Management Information System

Introduction

United Parcel Service (UPS) is a pioneer in the field of package distribution worldwide. Starting with the promise of “best service and lowest rates”, UPS currently delivers more than 13.6million documents and parcels each day in more than 200 countries.

The Package Distribution Industry

Two of the main dimensions of the package distribution industry are “time” and “safety”. The main gist of this industry is to deliver a package to a particular destination without any damage and also within the allotted deadline. This industry is a very competitive one and has grown exponentially over the last few years. The rapid growth of this industry has contributed to the accelerating economy in most of the countries. The global market is dominated by a few large competitors such as UPS, FedEx, Airborne Express and DHL. The only way to survive in this competitive industry is remain ahead of time and keep clients satisfied. Due to the promise of this fast paced service, and enhanced customer satisfaction, it has become increasingly crucial for the parcel delivery companies to set up a comprehensive IT system and utilize them properly in order to convert themselves into a truly digital corporation.

Main challenges faced by UPS

UPS is currently the worldwide leader in the package industry. But to reach this pinnacle of success, it faced the following challenges:

i) Reducing Workforce

➢ Reducing the number of administrative processes before a UPS driver finally received information about a particular delivery. Too much administrative procedures are very time consuming and cost a lot of valuable delivery time.

➢ Reducing the amount of paperwork drivers had to go through after making a delivery, in order to ascertain a proof of delivery. This also meant a lot of hassle for customers as well.

(ii) Maximize Operations & Profit

➢ To find out a way to track the status of a particular parcel, which had not been delivered yet. The...