Information Technology in the Package Delivery Business

In the package delivery business, information technology has transformed the industry by allowing companies like UPS to operate in a near real time environment. The speed of delivery has increased through the use of computer systems which connects companies directly to their customers. According to Laudon (2013), by utilizing technology such as bar-coded labels and handheld communication devices like the UPS Delivery Information Acquisition Device (DIAD) companies can plan for the most efficient means of delivering a package based on a customer’s needs before that package is even picked up. Packages can even be tracked from pick up to delivery by customers using information transferred from a company’s tracking systems to corporate Internet websites. These advancements through the use of information technology have reduced the time it takes to deliver a package from days to, virtually, whatever a customer’s schedule dictates. As the global leader in package delivery, UPS invests heavily in advancements in information technology to achieve operational excellence. According to Laudon (2013), “UPS spends more than $1 billion each year to maintain a high level of customer service while keeping costs low and streamlining its overall operations.” Customer and supply intimacy is met through the use of UPS’ handheld computer system, the DIAD, and their scannable bar-coded labels. According to Laudon (2013), customers can use downloadable software or the Internet to create their own shipping labels. The information contained in these labels allows UPS begin to create the most efficient delivery route for the package before it is even picked up. Customers can also track the package information transmitted by the DIAD and communicate with UPS instantly through their website.
The package tracking system and the handheld DIAD are two of the tools which allow UPS to achieve improved decision making. Wireless communication through the DIAD keeps drivers in contact with

References: Laudon, Kenneth & Laudon, Jane (2013). Essentials of Management and Information Systems Upper Saddle River, New Jersey: Pearson Education, Inc.