MANAGEMENT

United Parcel Services: Operations Management

United Parcel Services: Operations Management

Forecasting at UPS

The information and analysis in the reports of the company's Annual Report to shareholders provide insight into the intentions of the company, the belief set and existing expectations of the company regarding the strategic direction and future direction of UPS. We forecast on the basis of following:

1. Historic data evidences.

2. Economic conditions

3. Market viability (Mirchandani, 2012, pp. 58)

Business Strategies at UPS

There are three strategic business objectives that UPS's information systems address. First is to cut down the operational costs. According to the study, UPS has managed to save 28 million miles by their truck using advanced information technology annually (reduce the number of miles driven). As a result of advanced information technology use, UPS's trucks burn 3 million fewer gallons of fuel every year (reduce energy/fuel consumption). The use of advanced information technology guarantees UPS to save some dollars. The other business objective is to increase productivity. According to UPS Web site, “the use of DIAD also eliminates the use of 84 million sheets of paper, saving 7,308 trees per year”. The use of UPS's information system makes it easier to the company to run its operations. For instance, with the help of special software, dispatchers at UPS distribution center devise the efficient delivery routes for every driver. The last objective in my view is to increase awareness to the customers and public. With the help of advanced information technology, customers are able to utilize UPS service without visiting the UPS store or site. Customers can track their packages, check delivery routes, calculating shipping rates, determine time in transit, print labels, and schedule a pickup online. If UPS's information systems were not available operational costs could be higher, productivity could be low, the flow of customers looking for information of their packages to UPS sites could be high, million gallons of fuel could be burnt, millions of miles could be driven, and million sheet of papers could be wasted (Mirchandani, 2012, pp. 58).

Inventory Management at UPS

A company spokesman at UPS revealed how it revolutionized the package elivery industry in the year 1991. The company was the first to develop and launch a DIAD or a delivery information acquisition device. Two decades on from the development of the device, the company continues to excel in the industry and is working on the fourth generation of the DIAD. This device now allows the company to manage its inventory in addition to the existing capability of tracking shipments. The device ensures connectivity and is built around the built-in GPRS and CDMA radio along with an acoustical modem to provide internet or dial-up access whenever needed. The 802.11b local area network connects the devices to transmit information about the inventory to the mainframe system. UPS now equips its DIAD IV devices with Bluetooth local area network and infrared technology to connect to external devices such as personal computers and printer. DIAD IV now comes with a revolutionary new feature - Global Positioning Satellite or ...