MEKELLE UNIVERSITY
EIT-M
SCHOOL OF COMPUTING
DEPARTMENT OF INFORMATION SYSTEM (IS)
COURSE- TITLE: MANAGEMENT INFORMATION SYSTEM
COURSE- CODE: INSY-4112
ASSIGNMENT-TYPE: INDIVISSUAL -ASSIGNMENT
SUBMITTED-BY :
NO. NAME ID NO.
1. Halefom Gebrehans Eitm/ur177342/12
SUBMITED TO INS: Berihulay H.
SUBMISSION DATE: 3/5/2025
MEKELLE
Individual assignment MIS
Case Study: UPS Competes Globally with Information Technology
1. What are the inputs, processing, and outputs of UPS’s package tracking system?
Inputs:
Package Data: Includes tracking numbers, destination addresses, service levels, and parcel
dimensions.
Scanning Data: Time-stamped scans at each touchpoint (pickup, hub, transit, delivery).
Driver Entries: Captured through DIAD (Delivery Information Acquisition Device), including
delivery confirmation, recipient signature, and any delivery issues.
GPS and Sensor Data: Provides real-time location and performance metrics of delivery trucks.
Customer Interactions: Preferences and instructions submitted via UPS website or mobile app.
Processing:
Centralized Data Aggregation: All data is collected and stored in UPS databases.
Route Optimization: Algorithms calculate the most efficient delivery routes, considering traffic,
weather, and delivery deadlines.
Exception Handling: Flags for errors like incorrect addresses, failed deliveries, or system
anomalies.
System Integration: Connects to logistics, billing, and customer service platforms for end-to-end
functionality.
Outputs:
Real-Time Tracking Information: Available on UPS’s website and app.
Customer Notifications: Delivery updates, confirmations, and delays via email/SMS.
Proof of Delivery: Signatures or photos recorded and stored.
Operational Reports: Performance metrics and insights for UPS internal use.
2. What technologies are used by UPS? How are these technologies related to UPS’s business
strategy?
UPS employs a variety of technologies to support its logistics and tracking operations:
DIAD (Delivery Information Acquisition Device): Handheld device used by drivers to capture
package data and delivery confirmations.
Barcode Scanning Systems: Used at every checkpoint to log package status and location.
GPS and Telematics: Tracks vehicle location, monitors speed, and supports route planning.
Wireless Communication Networks: Transmit real-time data from vehicles and facilities.
UPS Worldport and ORION (On-Road Integrated Optimization and Navigation): Advanced
systems for global package sorting and route optimization.
Relation to Business Strategy:
These technologies align with UPS’s strategy to provide reliable, timely, and cost-efficient
delivery services. By leveraging data and automation, UPS improves operational efficiency,
minimizes fuel use, and enhances customer satisfaction. The focus on information technology
supports their global competitiveness and service innovation.
3. What strategic business objectives do UPS’s information systems address?
UPS’s information systems help achieve the following strategic objectives:
Operational Excellence: Automation and optimization improve efficiency, reduce errors, and
lower costs.
Customer and Supplier Intimacy: Real-time tracking and personalized notifications enhance
service quality and build trust.
Improved Decision Making: Data analytics enable UPS to make informed decisions about
logistics, staffing, and resource allocation.
Competitive Advantage: Innovative use of technology allows UPS to offer better services than
competitors.
Globalization: Integrated systems support international operations and consistent service
worldwide.
4. What would happen if UPS’s information systems were not available?
Without its information systems, UPS would face significant challenges:
Loss of Tracking Ability: Customers and employees would be unable to monitor package status,
leading to confusion and dissatisfaction.
Inefficient Operations: Lack of route optimization would increase fuel consumption and delivery
times.
Manual Errors: Without scanning and automated data input, human errors would likely
increase.
Reduced Customer Satisfaction: Poor service visibility and communication would harm UPS’s
reputation.
Competitive Disadvantage: Rivals with more advanced systems would overtake UPS in reliability
and efficiency.
In short, UPS’s operations are heavily reliant on its information systems, and their absence
would disrupt both customer service and internal logistics.
5. Summary of "UPS Competes Globally with Information Technology" (Page 53, Laudon &
Laudon)
The case study illustrates how UPS has transformed from a traditional parcel service to a global
leader through its innovative use of information technology. UPS invests heavily in technology
infrastructure such as the DIAD, ORION, and centralized data systems to manage logistics,
improve delivery accuracy, and optimize routes. By collecting and analyzing large volumes of
data in real time, UPS can ensure timely deliveries, cut operational costs, and provide customers
with up-to-the-minute package information. This strategic use of technology enables UPS to
respond to global market demands, stay ahead of competitors, and provide high-quality, reliable
service on a global scale.
