Colombia Southern University
MBA 5401
Unit II Case Study
UPS Competes Globally with Information Technology Case Study
UPS began in 1907 in a small office ran by two teenagers in Seattle. Their company
policy at that time was to give the best service at the lowest possible rate. Since then, UPS has
become a multi-billion dollar global industry. UPS spends approximately a billion dollars a
year on information system technology to ensure that they provide the best customer service
and streamlining their process (Laudon, K. C., & Laudon, J. P., 2020).
UPS management uses information systems technology tools to be more efficient
than their competitors and increase customer service. UPS is known for their scanable bar
code. These codes holds information like shipping address, customer’s name which gets
uploaded in
their computer data base. This information helps UPS determine efficient routes for their
drivers, how long it will take a package to get delivers as well as status updates for their
customers (Laudon, K. C., & Laudon, J. P., 2020).
UPS relies heavily on their bar code scanning. The information within the code tells
the computing systems the name of the customer, address and tracking location. This
information is also used to use determine the drivers route for the day. UPS noticed that their
delivery drivers were making more residential stops than before, increasing the gas usage and
mileage. Transportation teams can alter routes based on weather, traffic patterns to ensure they
are using the most efficient route. By using the automated system, they were able to determine
routes that would be more efficient thus driving the cost down (Laudon, K. C., & Laudon, J.
P., 2020).
, UPS would struggle if the automated tracking system were not available. UPS prides
themselves with their customer service program. Customers can look up their package location
and see at any time where their package is reroute. The drivers can confirm if they dropped off
the package or if they could not get a signature immediately in the system. Real time data
would not be available for their customer service team if this were not used. I think UPS
would
see a steep decline in their customer service ratings. They would also see a hit in gas usage,
as they would not be able to compute the most effective delivery route to minimize gas
usage. (Laudon, K. C., & Laudon, J. P., 2020).
UPS is a great example of a company who uses global communications to
communicate with their other companies around the world to “flatten” the world. Before the
internet and smart product, countries were silo from each other. Today, people are fighting
each other for jobs around the world. Companies now have the ability to determine what
country is more profitable to start a factory. Consumers can purchase products globally, where
before, they were limited to a catalog to how far they could drive. (Laudon, K. C., & Laudon,
J. P., 2020).
Data Changes How NFL Teams Play the Game and How Fans See It Case Study
Information technology systems are having economic impacts. For example,
industries are replacing labor cost with IT solutions. We see this in our grocery stores. We
now have self- checkout lanes were the customer could ring up the items and the system
tallies it up and changes monies in lieu of a cashier.
Information technology systems are also changing the way industries look at suppliers.
Companies cannot research global supplier s and look at the lowest cost to help reduce their
bottom line. Using the internet to research suppliers and communicating with them overseas is
more accessible. Companies can now use IT system to enhance their marketing strategies and