Delivery Information Acquisition Device (DIAD) at UPS

Mohammed KhadimCMGT 510

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What is DIAD

Delivery Information Acquisition Device (DIAD) is a hand-held electronic data collector that keeps track of packages and gathers delivery information

DIAD is a pen based computer system which allows customers to sign for packages

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Who Uses DIAD UPS is embarking on a worldwide wireless strategy that will streamline operations by

keeping better track of packages and employees by developing the DIAD system UPS is one of the largest package delivery company in the world and a global leader in

supply chain and freight services UPS has a long history of using technology to speed its business UPS delivers 13.6 million packages and documents every day

UPS was first mover Developed its own operating system Released four generations of DIAD system

96,000 DIADs in use

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UPS

Before Founded in 1907 Seattle

Washington 19-Year-Old James E. (Jim) Casey $100 Loan for Messenger Service American Messenger Company

Now $49.7 Billion Corporation 200 Countries & Territories

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Why UPS Uses DIAD

UPS has allocated a budget of almost one billion dollars for information technology UPS implemented DIAD system to meet customer needs

regardless of the technology system’s cost Using DIAD has enabled UPS deliver the packages timely

and reduce the route length DIAD uses the latest technology to increase efficiency in

package delivery DIAD helps UPS deliver packages daily and aids the drivers to

know the most efficient route for the day's deliveries Development of DIAD cost UPS around $150 million

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UPS Before DIAD

Prior to DIAD Sorting, tracking, delivery = labor intensive Very paper intensive Prone to error due to illegibility

Sorters Memorize zip codes and shelf locations Place packages correct vehicle shelf location

Drivers Clock-in Pickup their list of deliveries Pull from the correct shelf to load his/her truck Plan orderly route

In Route Little communication between driver and communication center

Final Destination Required delivery confirmation signature Captured by paper, pen, and carbon paper

Return to the local operation center Drivers would empty their truck Turn in the delivery confirmation sheet Clock-out

Delivery confirmation sheet Passed to the data entry department Entry of information was slow and time consuming Very difficult read due to hand writing

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Key Features

1.5 megabytes of RAM Digital signature-capture device technology Merges multiple functions into single key to save

time and space Couriers can transmit the information via

telephone since DIAD has built-in acoustical modem

Built-in laser scanners which helps DIAD read package labels quickly and accurately

Software called Smart Able to tell the driver’s next street for package

delivery

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How DIAD Works

Looks like a notebook computer Does not need high power to work Works by putting the DIAD to the vehicle adapter Records package and customer information Transmits it from the UPS vehicle to the cell sites through a cellular

telephone modem (CTM) which is linked to the DIAD Sends the information from the cellular switch equipment Equipment connects to a UPSnet packet switch which then sends the

information to UPS mainframe in Mahwah, NJ. When the information is combined in the delivery status database, it then

becomes available to the company’s customer service representatives UPS has its own telecommunication network

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UPS After DIAD

Improved Delivery Time

Guides the drivers to the actual location of the delivery packages in the truck

Accountability Reduces the waste of time looking for the direction or location

of packages by the couriers Reduction of data entry error

Digitally captures customer signatures and package information accurately

Customer Service Updates real-time delivery status

Time and attendance

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UPS DIAD Adoption

Rolled out to small group of influential employees

Well received by most drivers

Veteran drivers were slow to accept the change

Called tech support for small issue

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What Do You Think of DIAD?

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DIAD I Year of Introduction

1990 Hard Drive

0.75 megabytes of memory Development

Created by two wholly owned subsidiaries of UPS Had a special operating system

Design 11 x12 inches in size Pen-like Stylus

Technology Almost completely eliminated paperwork for drivers and customers Scan and collect delivery bar code information▪ Information uploaded at the end of every shift by each driver ▪ Included good program which was able to show the route and timecard

information

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DIAD II Year of Introduction

1993 Hard Drive

Doubled the memory of the original DIAD Memory of 1.5 megabytes

Development UPS factored in recommendations from drivers▪ Led to the DIAD II being smaller and lighter▪ Increased ease of use

Improvements Provided the ability for drivers to have two way communications in the vehicle

from the DIAD back to the dispatch center Delivery information could be uploaded in real time through a cellular service

when the DIAD was inside the vehicle Allowed UPS to give customers same day package tracking information▪ Previously customers had to wait till the next day to find out whether or not

their package had been delivered

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DIAD III

Year of Introduction 1999

Hard Drive Faster processor Memory of 6.5 megabytes

Development Manufactured by Motorola, Inc. in Schaumburg, IL

Design Adjustments Global keyboard that glowed in the dark

Improvements Enabled two way communication away from the vehicle It was easy to upgrade First device which combined two features, capture and transmit real-time delivery

information

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DIAD IV Year of Introduction

2004 Hard Drive

128 Megabytes of Memory▪ 20x the amount of DIAD III

Development Co-developed by UPS and Symbol Technologies

Design Adjustments Lighter and more ergonomically sound Full color screen

Improvements WiFi Bluetooth Connections General Packet Radio Service (GPRS) Communication Global Positioning System (GPS)▪ Increases efficiency of UPS drivers▪ UPS dispatch center can locate the most convenient driver for an on-call pick

up▪ Gives most efficient routes and assists in finding unfamiliar addresses▪ Alerts the driver if they drop off a package in the wrong location

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Benefits

Eliminates around 6,000 jobs Saves 59 million sheets of paper Deskills the driver Saves $600 million operating cost Cuts 1.9 million miles off delivery routes Increases level of employees’ productivity Accurate delivery information is recorded digitally Delivers the packages faster and with better tracking Provides customers more information on the status of their

packages such as delivery and receipt information Makes UPS be more trusted by people

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Shortcomings

Does not know exactly the route for the packages Blocks where street numbers change from three

digits to four digits Routes to the least accessible houses Sometimes some routes take longer than others

compared to left turns, and the DIAD does not calculate this

These might be enhanced in the future

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Competition

Couriers need to have a system to facilitate their delivery packages processes

UPS and FedEx Spending more than $120 million over the

next three to five years in order to make their delivery process faster

Developed new wireless handhelds to their couriers to speed up the process and improve customer service and meet customer needs

Using wireless technology to get near real time data to run their operations

Planning to lower costs using the same resources

Using off-the-shelf solutions to help them with pickup, delivery, packaging and sorting

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UPS versus FedEx UPS

Makes intermediate changes as technology changes provide new opportunities Every five to seven years UPS refreshes its technology Delivers 13.6 million packages a day

FedEx Looks at the likely long-term benefits before upgrading wireless technology Delivers 5 million packages a day

UPS and FedEx have different design of their wireless technology Recently, both are using LANs, Bluetooth short-range wireless links and general

packet radio service (GPRS) cellular networks that lead to lower development and maintenance costs, greater throughput and security, and lower acquisition and deployment costs. UPS – DIAD FedEx – PowerPad

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Conclusion

Information technology systems help UPS succeed DIAD system helps UPS reduce the cost and speed of

delivering packages UPS upgrades its information technology as needed in order to

meet the customer’s needs regardless of the price, in order to provide new opportunities for UPS

Customer shipments information can be accessed real-time on delivery

DIAD has enabled the company to track drivers globally for the first time

DIAD has flexibility to accept future network technologies DIAD V – 2010

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Questions?