Ups Information System

Case 2 – UPS

1. UPS’ IT projects time-listing:

* 1990 – Company launched UPS Net (UPS Global Network);

* 1993 – UPS launched DIAD;

* Middle 1990s – UPS launched Web page;

* 2000 - UPS launched UPS’s tracking API;

* August 2000 – UPS e-Logistics;

* September 2000 – Internet Web-Supported Products and Services including: UPS Document Exchange, UPS Returns Services, UPS Internet Shipping;

* At the end of 2000 – Company launched free of charge electronic tools - UPS On-Line Tools, which included six online tools and 30 different services.

2. In 1985 UPS company IT unit employed approximately 100 people and invested near $50 million a year. In total including regional IT departments which supported their own IT needs UPS invested about $75 million a year. At that time, company was not ensured that customers care about shipping tracking and UPS management invested in tracking and information processing with reluctance. UPS considered itself as reliable and effective company and didn’t see reasons to invest in package tracking. In 1986, when OZ Nelson was appointed as CEO, the company started to invest heavily in IT in order to develop packages tracking and present variety of other services. Company understood its strategic needs and importance of moving on IT and since 1986 till 1996 UPS invested more $11 billion in IT infrastructure. They established large data centre in Mahwah, New Jersey, built networks and hired technical professional. The package tracking became main factor for IT infrastructure development.

3. In the middle of 1990s UPS studied the impact of Internet on supply chain. UPS management believed that Internet technologies could bring value into supply chain and distribution. At that time 80% of company revenue was generated by providing shipping services to businesses, which shipped goods to other businesses or individual consumers. In company considered that businesses could ship to customers directly...