1.
What are UPS “Smart Labels?” What
role do they play in UPS operations?
UPS Smart Labels are bar coded labels
that are used to initiate a UPS transaction.
The bar code label contains all the key information about the customer,
the package size, destination and weight.
This information is sent immediately to a UPS processing center at the
very time it is created with a UPS drivers hand held computer (the DIAD
IV). The smart labels become the control
document used throughout the transaction right through to final delivery.
2. Write out the steps a package takes
from pick-up by a UPS driver to delivery including the role of DIAD, the UPS
Data Center, and the UPS Package Center.
Smart label created
Information sent to processing center
Information processed—stored, address
corrected
Information matched to dispatch plan
Package is sortedAnother label is
printed specifying delivery truck and position on truck
Geo software used to continuously update
dispatch plans for trucks based on current load
Information is displayed on the DIAD IV
identifying drop off order, position on truck
At delivery, package scanned. Information sent wirelessly to processing
center
Customers sign on the dotted line on the
DIAD IV.
Main processing centers store complete
track of package for customer tracking
3. What role does wireless communication
play in the UPS systems?
DIAD IV is wirelessly connected to the
main processing centers and the package centers. Generally UPS trucks contain a transceiver to
work with the local driver's DIAD IV, and then
communicate that information wirelessly back to the UPS processing
center.
4. How has information technology
transformed the package delivery business?
Package delivery used to take many days
and even weeks prior to the development of the UPS technologies described in
this video. Now next day service is
available anywhere in the United States, and around the world. Information technology has made the industry
much more efficient, reliable, and lower in cost to the customer. IT has enhanced the competitive position of
UPS and others like FedEx vis a vis the U.S. Postal Service, and prior local
delivery services which no longer exist because of the success of UPS and
FedEx.
5. How does UPS’s investment in IT help
it achieve the strategic business objectives described in Chapter 1?
The most important contributions of
technology to UPS strategic objectives is the greatly enhanced operational
efficiency; the compression of time to deliver; the development of new services
like tracking, and overnight or 2-day service; the closeness to the customer;
improvements in the quality and speed of decisions related to packages.
Firms that made these investments in IT
benefit by achieving significant competitive advantage over others in the
package delivery business. FedEx remains
a much smaller but competitive service especially in the overnight market. Other competitors have largely disappeared.