UPS relies on the utilization of information systems technology to ensure coherence within its business operations and to keep customers well-informed about the status of their packages. This technology is a critical factor in driving the achievements of the company in the United States (Lauded, 2009).
UPS utilizes various forms of information technologies, such as bar code scanning systems, wireless networks, large mainframe computers, handheld computers, the Internet, and diverse software applications for package tracking, fee calculation, customer account maintenance, and logistics management. The competitive advantage of UPS lies in its affordable rates and superior service quality, which has allowed the company to thrive in the industry. Consequently, UPS has established itself as the largest company providing ground and air drop-off services.
The services offered by UPS include supply-chain design and management, freight forwarding, customs brokerage, mail services, multimedia transportation, and financial services. However, the main product of UPS is a service package delivery. UPS has a device called AID (Delivery Information Acquisition Device), which is used by drivers to collect customer signatures. Once the signature is obtained, the collected information is transmitted back to UPS.
The company uses this device to conveniently access proof of delivery for customers worldwide, regardless of the delivery location. Pup’s system transmits shipping data in advance, either hours or days before the items reach customs. Once a customer has shipped or received a shipment, they can easily utilize the UPS website to track packages, review delivery routes, calculate shipping rates, estimate transit time, print labels, and schedule pickups.
The profit margins of the Company vary based on its products, customer business units, and geographic markets. Therefore, the overall profitability of the Company’s operations in a given period is influenced by the combination of products, customers, and geographic markets generating revenue during that time. Moreover, seasonal patterns may affect the Company’s service delivery, as stronger sales/services are typically observed in Europe compared to Asia. These trends are heavily influenced by social and cultural factors.
