United Parcel Service’s being an international company normally sends its customers parcels outside the United States. One major external factor that affects its international operations is the custom duties. The parcels and cargo to be delivered must attract custom duties at transit terminals, which vary depending on the weight and destination country. The payment of customs duties goes hand in hand with the recording and issuance of receipts of payments. Packaging of parcels and cargo is another factor that affects this company. Goods to be imported in various countries must be packed appropriately. Language and communication barriers are other factors that affect United Parcels Service’s international operations.
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UPS Company has adopted modern technology to overcome trade barriers. According to Reynolds, (2009), the company invests about $ billion annually on technology. Most of the external factors experienced by UPS revolve around logistics. The company has adopted the use of logistics cloud data systems, which facilitates logistic issues across the globe. The use of logistics cloud by the company enables it to overcome language and communication barriers as customers across the globe can tap into the system, thus sharing and accessing information they may be in need of (Stahl, 2008). The company is also collaborating with smaller firms and empowering them to improve on its supply chain from the suppliers to customers. According to Loudon and Loudon (2009), information systems are acting as catalysts in transforming businesses. UPS Company has also adopted the use of mobile technology so as to make sure its presence and connectivity anywhere and every time.
The major inputs of the UPS tracking system include the customer’s details, such as name, contacts, and signature. The system also captures the description of the parcel or cargo to be transported and its destination area. The agency of the cargo is also captured since UPS offers various urgency packages depending on the amount charged. The information captured on the time-card that is composed of package tracking data is later transmitted remotely to server computers for processing, whereby the results are saved centrally and can be accessed globally by UPS customers. The result of the UPS tracking system is the package information that can be accessed globally. The output information encompasses the customer details, the present location of the package, and estimated time to reach its destination.
The technologies used by UPS are web package tracking systems, logistics cloud systems, and mobile data capture systems that are facilitated by Delivery Information Acquisition Devices as well as Cisco Systems (Laudon & Laudon, 2009). The web package tracking system enables UPS customers to track their packages in term of the current location under delivery and time estimate for the package to be delivered. This system leads to customer satisfaction because of its predictability. The use of data capture technology enables the customers to send their parcels remotely without visiting UPS central offices since all the package details are captured remotely and then transmitted electronically. Customers are able to calculate the courier services cost by use of Cisco system that is integrated in UPS website. All these technologies enable UPS Company to meet one of its objectives of satisfying its customers hence reinvention.
UPS management systems have made it possible for smaller firms to improve their sales by use of logistic clouds system. This system has empowered small firms by improving their chains of distribution. The systems also enhance certainty as customers are always aware of the position of their packages during the entire delivery period. Elimination of theft for packages under transit is another problem that is solved by UPS management systems. The systems have enabled the company’s management to improve on its quality services at low cost hence attracting more customers.
Laudon, K., and Laudon, J. (2009). Essentials of management information systems (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Reynolds, G. (2009). Information Technology for Managers. New York: Cengage Learning.
Stahl, B. C. (2008). Information Systems: Critical Perspectives. New York: Routledge.