Ups and Fedex Case Study

U03a1- UPS and Fedex Case Study

Erica Hall

12/03/06

1. Analyze UPS and FedEx using the competitive forces and value chain models.

UPS and FedEx compete on a global scale as they try to carry their businesses to greater heights. The changes in technology have both companies walking a fine line between keeping competition behind them and growing side by side. UPS contributes their success to being strong in its time-definite ground delivery of packages and documents. FedEx contributes their success to having a reputation of unmatched performance in overnight deliveries. One of the ways both businesses can become successful is to make technology improvements. UPS adheres to a more measured schedule of new technology rollouts by waiting from 5 to 7 years between initiatives, which can cause lag time between new technology advancements. FedEx uses the approach to adopt the latest and greatest applications as soon as they prove to be economical and effective for both the company and its customers.

2. How are wireless technologies related to the core information systems and business strategies of UPS and FedEx? How do these technologies provide value to these companies?

UPS and FedEx use Bluetooth short-range wireless specifications, 802.11b wireless LANs, and general packet radio service cellular networks to varying degrees. In order to reduce the time it takes to deliver letters and packages wireless technology is the driving force behind creating this efficiency of delivery. Wireless devices enable employees to be able to complete their tasks more quickly and provide elevated level of customer service.

UPS drivers carry a handheld device called a DIAD. The DIAD can connect to UPS operation centers directly using cellular transmitters in the delivery trucks. These add value to UPS by providing communication to the company's global network without delay. The handheld devices transmit information about pickups and delivery.

3. How do the implementations of wireless technology reflect the organizational differences between UPS and FedEx? Which wireless strategy is more effective? Explain your answer.

UPS looks to reduce maintenance costs by 30 percent, spare parts by 35 percent, and downtime by 35 percent by completing the rollout of a new scanning unit. The unit will place the terminal on the user's waist. This will result in less physical stress for employees. UPS new scanners will also use Bluetooth for communication