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UPSCOMPETESGLOBALLYWI THI NFORMATI ONTECHNOLOGY Uni t e dPa r c e lSe r vi c e( UPS)s t a r t e dou ti n1 90 7i nac l os e t s i z e dba s e me nto ffic e .J i m Ca s e ya n d Cl a ud eRy a n —t wot e e n a g e r sf r om Se a t t l ewi t ht wob i c y c l e sa ndon eph on e —p r omi s e dt he“ b e s t s e r vi c ea n dl o we s tr a t e s . ”UPSh a su s e dt hi sf or mu l as uc c e s s -f u l l yf o rmor et h a nac e n t u r yt o b e c o met hewo r l d’ sl a r g e s tgr ou nda nda i rp a c ka g e d e l i v e r yc o mp a n y . I t ’ sag l ob a le nt e r p r i s ewi t h o v e r40 0, 0 00e mpl o y e e s , 9 3, 0 00v e hi c l e s , a n dt hewo r l d’ sn i nt hl a r g e s ta i r l i ne . UPSde l i v e r s15 . 6mi l l i onpa c k a g e sa nddo c ume nt se a c hda yi nt heUni t e dSt a t e sa n dmor et h a n 2 20o t h e rc o un t r i e sa n dt e r r i t or i e s .Thefir m ha sbe e na b l et oma i nt a i nl e a d e r s hi pi ns ma l l p a c k a g ed e l i v e r ys e r v i c e sde s pi t es t i ff c omp e t i t i on f r o m Fe d Ex a nd Ai r b or ne Ex pr e s sb y i n v e s t i n gh e a vi l yi na d v a n c e di n f or ma t i o nt e c h n ol o gy .UPSs pe n d smor et ha n$1b i l l i one a c hy e a r t oma i n t a i nah i ghl e v e lofc u s t ome rs e r v i c ewhi l ek e e p i n gc o s t sl o wa n ds t r e a ml i ni n gi t so v e r a l l o pe r a t i on s . I ta l ls t a r t swi t ht h es c a nn a bl eb a r c o de dl a be la t t a c he dt oapa c k a g e ,whi c hc on t a i nsde t a i l e d i n f or ma t i ona b ou tt h es e n de r , t hed e s t i n a t i on , a ndwhe nt hep a c ka g es h ou l da r r i v e . Cu s t ome r sc a n d o wn l oa da n dpr i n tt he i ro wnl a be l sus i n gs pe c i a ls o f t wa r epr o v i de db yUPSorb ya c c e s s i n gt he UPSWe bs i t e .Be f or et h ep a c ka g ei se v e np i c k e du p ,i nf o r -ma t i onf r o mt h e“ s ma r t ”l a be li s t r a n s mi t t e dt oo neo fUPS’ sc o mp ut e rc e n t e r si nMa h wa h ,Ne wJ e r s e y ,orAl ph a r e t t a ,Ge or g i a , a n ds e n tt ot h edi s t r i bu t i onc e nt e rn e a r e s ti t sfin a ld e s t i na t i on . Di s p a t c h e r sa tt h i sc e nt e rd o wnl o a dt hel a b e ld a t aa n du s es p e c i a ls of t wa r et oc r e a t et hemos t e ffic i e ntde l i v e r yr o ut ef ore a c hd r i v e rt h a tc on s i de r st r a ffic ,we a t h e rc o nd i t i on s ,a n dt h el oc a t i on o fe a c hs t op .UPSe s t i ma t e si t sd e l i v e r yt r uc kss a v e28mi l l i onmi l e sa ndbu r n3mi l l i onf e we r g a l l on soff u e le a c hy e a ra sar e s u l tofus i n gt h i st e c hn ol o g y .Tof ur t he ri nc r e a s ec o s ts a vi n g sa n d s a f e t y , dr i v e r sa r et r a i ne dt ou s e“ 3 40Me t ho ds ”de v e l op e db yi n du s t r i a le n g i ne e r st oo pt i mi z et he p e r f or ma nc eo fe v e r yt a s kf r om l i f t i n ga ndl oa d i n gb o x e st os e l e c t i n gapa c ka g ef r om as he l fi n t het r uc k. Thefir s tt hi n gaUPS dr i v e rpi c k su pe a c hd a yi s aha n dh e l dc o mpu t e rc a l l e d aDe l i v e r y I n f o r ma t i onAc q ui s i t i onDe vi c e( DI AD) ,wh i c hc a na c c e s sawi r e -l e s sc e l lp ho nen e t wor k.As s oo na st hedr i v e rl o g so n,hi sorh e rda y ’ sr o ut ei sd o wn l oa d e don t ot h eh a n dh e l d .TheDI AD a l s oa u t oma t i c a l l yc a p t ur e s c us t o me r s ’s i gn a t ur e sa l on gwi t hpi c kupa ndd e l i v e r yi nf or ma t i on .Pa c ka g et r a c ki n gi nf or ma t i o n i st h e nt r a n s mi t t e dt oUPS’ sc o mpu t e rne t wo r kf o rs t o r a g ea ndpr oc e s s i n g .Fr om t he r e ,t h e i n f or ma t i onc a nb ea c c e s s e dwor l d wi det opr o vi d ep r o ofo fd e l i v e r yt oc u s t ome r so rt or e s po ndt o c us t o me rq ue r i e s .I tu s u a l l yt a k e sl e s st h a n60s e c on dsf r om t het i meadr i v e rpr e s s e s“ c o mpl e t e ” o nt heDI ADf o rt hen e wi nf or ma t i ont ob ea v a i l a bl eont h eWe b . Thr ou g hi t sa u t o ma t e dpa c ka g et r a c ki n gs y s t e m,UPSc a nmon i t o ra nde v e nr e r ou t epa c k a g e s t hr ou g ho u tt h ed e l i v e r yp r o c e s s .Atv a r i o uspo i n t sa l on gt h er o u t ef r om s e nd e rt or e c e i v e r ,ba r c o dede v i c e ss c a ns h i pp i n gi nf or ma t i onont hepa c ka g el a b e la n df e e dda t aa bo utt h epr o gr e s sof

t hepa c ka g ei nt ot hec e nt r a lc omp ut e r .Cus t ome rs e r v i c er e p r e s e nt a t i v e sa r ea bl et oc h e c kt h e s t a t uso fa n ypa c ka g ef r o m de s kt opc omp ut e r sl i nk e dt ot h ec e n t r a lc o mp ut e r sa n dr e s po nd i mme di a t e l yt oi nq u i r i e sf r o mc us t ome r s .UPSc u s t ome r sc a na l s oa c c e s st hi si nf or ma t i onf r om t hec o mpa n y ’ sWe bs i t eus i n gt h e i ro wnc o mp ut e r sormob i l eph on e s .UPSno wha smob i l ea p ps a n damob i l eWe bs i t ef o ri Ph on e , Bl a c kBe r r y , a n dAn dr oi ds ma r t ph on eu s e r s . An y o newi t hapa c k a g et os h i pc a na c c e s st h eUPSWe bs i t et ot r a c kp a c k a g e s ,c h e c kd e l i v e r y r ou t e s , c a l c ul a t es h i pp i n gr a t e s , de t e r mi net i mei nt r a n s i t , p r i ntl a b e l s , a n ds c he d u l eapi c kup . The d a t ac ol l e c t e da tt heUPSWe bs i t ea r et r a n s mi t t e dt ot heUPSc e nt r a lc o mpu t e ra ndt he nba c kt o t hec us t ome ra f t e rp r o c e s s i n g .UPS a l s o pr o vi d e st oo l st h a te n a bl ec us t ome r s ,s uc h Ci s c o Sy s t e ms ,t oe mbe dUPSf un c t i on s ,s u c ha st r a c ki n ga n dc os tc a l c ul a t i on s ,i nt ot he i ro wnWe b s i t e ss ot h a tt he yc a nt r a c ks h i pme nt swi t ho utvi s i t i n gt heUPSs i t e . A We b ba s e dPo s tSa l e sOr de rMa n a g e me ntSy s t e m( OMS)ma n a g e sg l o ba ls e r v i c eo r d e r sa n d i n v e n t or yf orc r i t i c a lp a r t sf u l fil l me n t .Th es y s t e me n a b l e sh i gh -t e c he l e c t r o n i c s ,a e r os pa c e , me di c a le q ui pme nt ,a ndo t he rc o mpa n i e sa n ywhe r ei nt hewor l dt h a ts h i pc r i t i c a lpa r t st oq u i c kl y a s s e s st h e i rc r i t i c a lpa r t si n v e n t o r y ,de t e r mi net hemos to pt i ma lr ou t i n gs t r a t e g yt ome e tc u s t ome r n e e d s , pl a c eo r d e r so nl i ne , a n dt r a c kpa r t sf r om t hewa r e h ou s et ot hee n du s e r .Ana u t o -ma t e de ma i lo rf a xf e a t ur ek e e p sc u s t ome r si nf or me do fe a c hs hi pp i n gmi l e s t o nea n dc a np r o v i de n ot i fic a t i onofa n yc h a n g e st ofli g hts c he d ul e sf o rc o mme r c i a la i r l i ne sc a r r yi n gt he i rp a r t s . UPSi sn o wl e v e r a g i n gi t sd e c a d e sofe x pe r t i s ema na gi n gi t so wngl oba ld e l i v e r yn e t wor kt o ma na g el o gi s t i c sa nds u pp l yc h a i na c t i v i t i e sf o ro t he rc o mp a ni e s .I tc r e a t e daUPSSup pl yCha i n So l u t i on sdi v i s i ont ha tpr o v i de sac omp l e t ebu nd l eo fs t a n da r di z e ds e r -vi c e st os u b s c r i b i n g c o mpa n i e sa t af r a c t i onofwh a ti twou l dc o s tt ob ui l dt h e i ro wns y s t e msa n di nf r a s t r u c t ur e .The s e s e r vi c e si nc l ud es up pl yc ha i nd e s i gna n dma n a g e me n t ,f r e i g htf or wa r d i n g ,c us t omsb r o k e r a g e , ma i ls e r v i c e s , mul t i moda l t r a ns po r t a t i on , a n dfin a nc i a ls e r v i c e s , i na d di t i ont ol o g i s t i c ss e r v i c e s . I n20 06 , UPSs t a r t e dr u nn i n gt h es u pp l yc ha i nsofme d i c a lde v i c ea n dp ha r ma c e u t i c a lc o mpa n i e s . Fore x a mp l e , a tUPSh e a d q ua r t e r si nLou i s vi l l e , Ke n t u c k y ,c o mpa n yp h a r ma c i s t sfil l4 , 00 0o r d e r s ada yf ori n s u l i npu mp sa ndo t he rs up pl i e sf r o mc us t ome r sofMe d t r on i cI nc . ,t heMi n ne a p o l i s b a s e dme d i c a l -d e vi c ec o mpa n y .UPSph a r ma c i s t si nLou i s vi l l el o gi nt oMe dt r o ni c ' ss y s t e m,fil l t heor de r swi t hde v i c e ss t oc k e dons i t e ,a n da r r a n g ef o rUPSt os hi pt he mt op a t i e n t s .UPS' s s e r vi c eh a sa l l o we dMe d t r on i ct oc l os ei t so wndi s t r i bu t i onwa r e ho us ea nds i g ni fic a n t l yr e du c e t hec o s t so fpr oc e s s i n ge a c ho r d e r . UPSa n do t h e rp a r c e lde l i v e r yc omp a ni e sa r ei n v e s t i n gi ngi a nt wa r e ho us e st h a ts e r v i c emu l t i pl eph a r ma c e u t i c a lc o mpa n i e sa to nc e ,wi t hf r e e z e r sf orme d i c i ne s a n dh i gh s e c ur i t yv a u l t sf orc on t r ol l e ds u b s t a n c e s . UPSha spa r t ne r e dwi t hPr a t t& Wh i t n e y ,awor l dl e a d e ri nt h ede s i g n,ma n uf a c t u r e ,a nds e r v i c e o fa i r c r a f te n g i ne s ,s pa c epr op ul s i ons y s t e ms , a ndi nd us t r i a lg a st u r b i ne s ,t or u ni t sGe o r g i a Di s t r i b ut i onCe nt e r ,whi c hpr oc e s s e s98pe r c e n t o ft hep a r t sus e dt oo v e r ha u lPr a t t& Wh i t n e yj e t e n gi ne sf o rs h i pme nta r ou ndt h ewo r l d.UPSa n dPr a t t& Whi t n e ye mpl o y e e st o g e t he rk e e pt r a c k o fa b ou t2 5, 0 00d i ffe r e ntki nd sofp a r t sa n df ul fil lu pt o1, 4 00c o mpl e xor de r se a c hda y —r a n gi n g f r omaf e wn ut sa n dbo l t st oki t sc omp r i s i n ga l lt hep a r t sne e d e dt obu i l da ne n t i r ee n g i ne . Ont h e

r e c e i v i n gs i d eoft he2 50 , 00 0 s q ua r e f oo tbu i l di n g ,UPSq ua l i t yi ns p e c -t or sc h e c kne wl ya r r i v e d p a r t sa g a i ns tbl ue p r i n t s . CASESTUDYQUESTI ONS 1 . Wh a ta r et hei n p ut s , p r oc e s s i n g ,a ndou t p ut sofUPS’ sp a c k a g et r a c ki n gs y s t e m? 2 .Wh a tt e c h no l o gi e sa r eu s e db yUPS?Ho wa r et he s et e c h no l o g i e sr e l a t e dt oUPS’ sb us i ne s s s t r a t e g y ? 3 . Wh a ts t r a t e g i cb us i ne s sob j e c t i v e sd oUPS’ si n f or ma t i ons y s t e msa d dr e s s ? 4 . Wh a twoul dh a pp e ni fUPS’ si nf or ma t i ons y s t e mswe r en o ta v a i l a bl e ?...