Package Process at UPS

Driver Process

Driver Process

PreDelivery

PreDelivery

Custome
r

Packa
ge

Package
Delivery
Package
Pick-up

Transp
ort

Sort

Packa
ge

Packa
ge

Packa
ge

Package
Delivery
Package
Pick-up

PostDelivery

PostDelivery

PLD

Package Level Detail

Custome
r

Packa
ge

Package Process at UPS (Contd)

Package Process
Customer focused, core operations process
Technology is a key component enables package information
flow
Time saving activities leading to cost savings putting keys on
fingers instead of pockets, specially designed seats in package
cars to slide in and out
Package flow technologies such as Preload Assist System (PAS)
and Dispatch Planning System (DPS) for enhanced dispatch and
execution capabilities
Constant reviews and analysis of processes to maximize
efficiencies and identify opportunities for improvement

Technologys Role Reengineer Processes

UPS previous processes were good, but failed to provide gains in

productivity due to manual processes
Technology enhancements offer UPS the following value/benefits:
New customer-focused
services
Reduction of miles and fuel
consumption
Reduction of carbon dioxide
emissions
Major competitive
advantages
Improved performance and
efficiency

Technologys Role Reengineer Processes

Now UPS has changed substantially has employed technology to
redesign processes
Feed detail contains detailed information on package and is used to
manage package movement and plan, sort, and deliver

Capabilities to plan and forecast based on real time data

Package flow technologies such as Preload Assist System (PAS)
and Dispatch Planning System (DPS) for enhanced dispatch and
execution capabilities
Route optimization information on what exactly is in every
vehicle, routes to minimize fuel consumption and miles travelled
Hand-held Delivery Information Acquisition Device (DIAD) GPS units
to provide delivery verification, mapping, routing, commit times,
address details, and in-truck shelf locations of packages

Lessons Learned

Understand Organization Culture to understand employee

tolerance levels and better asses scope of process reengineering
and technology investments
Maintain Focus important to focus on activities/projects that will
bring most value
Ownership and Accountability is critical
Process improvement must be accompanied by aligned
measures
Love your methodology and not your tools tools are just
enablers, processes and frameworks should drive operations
Establish a common language for easy and uniform flow of
information

Lessons Learned

Process changes spanning functions or business units

generally provide most benefits, although they are hardest to
execute
Break reengineering efforts into manageable projects
Be prepared to modify, change or cancel your efforts
70 percent rule You may only obtain 70 % of the desired
functionality, but it is the functionality most critical to the process
Law of Unintended Consequences Automating bad processes
speeds up bad results, perform due diligence because technology
will not fix a bad process