ups casestudy group6

8/3/2019 UPS CaseStudy Group6

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UPS

Submitted by:Sachin Bhayana 074Prashant Sahwney 056Syed fazal bari 087Rajesh Kumar 069Vivek 102Yoshio 108


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Problem Statement

To Create IT based New BusinessOpportunities at United Parcel Service

Identifying Changes to be made inorganization to gain competitive edge overcompetitors.


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UPS

UPS was founded in 1907 as a messengercompany and now operates in more than200 countries with revenue of US $36billion.


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Identifying New BusinessOpportunities

Identify customer pain points

Constantly evaluate where and how it canadd value within network to alleviate thepain points by capitalizing on its internalvalue chain efficiencies.


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Opportunities which enabled UPSto lower costs, increase revenue

and profitability.1.Outsource Rural Deliveries to a

competitor.UPS identified this businessopportunity by examining the costs ofoutbound logistics in its internal valuechain.


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2. Get customers to do UPSs work. They led the suppliers input the directly

input shipment data directly into the UPSssystems.

They let the customers do some work

which was done inhouse, UPS was able toreduce shipping time one day.3. Help customers respond swiftly to product

recalls.UPS was able to develop the capability

to locate and intercept a package within 15minutes.


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So UPS could help customers in taking swiftaction during product recalls, because it could

stop or redirect a delivery on short notice.

4. Fix customers mistakes Customers occasionally make mistakes wheninputting the package information.UPS made use of high resolution camera andcriss cross online directory to get a valid

customer address. This gave UPS capability ofdelivering incorrectly addressed packages.


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5. Do Customers work. UPS used its packaging department and

warehouse department to repackage and deliverthe customers product to the end user. For example , Dell inputs the type and quantity ofcomputer systems and customer information in

TradeDirect. UPS procures the components,repackages them, and custom label thepackages while in transit and delivers themdirectly to the end customers. UPS saved thetime and cost involved of its customer in theseactivities.


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Recommendations and lessons learnt: Integrate internal IT systems before integrating

customer processes. Identify Services gaps in your customers

business where your IT can add value

Encourage and be open for the ideas from frontline managers. Focus first on cost cutting Business

opportunities and then on revenue increasing

ones. View information and IT as two different entities.


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ThankYou

ups casestudy group6

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