United Parcel Service

United Parcel Services

1. Does it make sense for UPS to move into computer repair business?

UPS has been managing Toshiba’s entire Laptop repair operation successfully through UPS Supply Chain Solutions. UPS will send Toshiba laptops for repair at Louisville, KY, where UPS engineers will repair them. Toshiba repairs are much easy with UPS doing this else it could have taken weeks to repair a computer as most of the laptop components were exported from Japan. But as the UPS repair station is nearby its air hub, customers could get their laptops back in few days. Computer repair operation is more logistical than technical, which field had been mastered by UPS since day one. Again, the management is taking a move to train 50 UPS computer technicians to take Toshiba certified training courses.

The other advantage for UPS in this business is the prior experience. The Company had serviced Lexmark and Hewlett-Packard printers since 1996 and had performed initial inspections on laptops being returned to Toshiba for service since 1999. Of course, the competition in repairing industry is very tough, and UPS could have hard time getting contracts with big IT players being in market like Unisys, which fixes computers for Dell. It all depends on the customer satisfaction after UPS repair services is started.

UPS could expand this service as a strategy to expand the parcel business. This business could gain the exclusive packaging contracts from Toshiba for many years, which would definitely yield huge profits. Moreover, this would give UPS an opportunity to expand the business beyond parcel services to commerce services. The company already has an excellent supply chain management system which works well with client managing inventory, ordering and customs processes.

So, it definitely makes sense for UPS to enter the computer repair business.

2. How does the Quantum view system provide new revenue or profits for UPS?

The Quantum view system definitely attract more customers as this web based software help customer track their package along with reason of delays. Customers can also utilize special feature to enable alerts if possible problems arise. This software informs customer automatically when their delivery arrives.

3. How do UPS use the Internet to reduce costs?

UPS is using internet at almost all levels of service which cuts on cost and makes all the processes speed up.

DIAD IV terminal: The DIAD IV terminal scans package barcodes and includes the Global Positioning System (GPS) receiver. It uses Bluetooth wireless connection to connect to a label printer in the van and uses LAN via WiFi wireless connection.

· The DIAD IV terminal monitors drivers in terms of performance and routes. The system plans the routes for drivers to reduce transportation costs

· If the package delivery information is changed at last minute by customers request, the GPS can update the drivers through this wireless internet service and reroute the parcel, thus reducing the costs and increasing the efficiency

· For international shipping, the custom requirements had created lots of complications. So, UPS uses online knowledge system that automates most of the steps in shipping overseas which ultimately cuts the costs.

· UPS online tools helps reduces costs by making shipping more efficient, reducing returns, decreasing customer support phone calls, and reducing address errors at order entry.