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Chapter 2 • Systems Integration 55

and when business dictated. It was clear that UPS needed to bridge the gap between
physical product or services and access to electronic information.
UPS developed an action plan that would be focused on the customer and enabled by
technology. They offered a new variety of services integrated with core transportation
functions to make UPS an invaluable part of the customer’s business. They chose to
centralize data in one of two large data centers (i.e., the hubs of their IT platform).
Integration is the cornerstone of UPS’s success. Since going public in 1999, UPS has
acquired more than 30 other companies. They have more than 3,600 IT staff with two data
centers in Mahwah, NJ, and Atlanta, GA. UPS has more than 14 mainframes, 2,755
mid-range computers, 260,000 personal computers, and 6,200 servers. According to the
CIO of UPS, “We haven’t made [these acquisitions] to gain market share. Instead, we’ve
made them for very strategic (technology) reasons.” 13 Each time, UPS integrates old and
new services to add value to the delivery chain.
The IT department at UPS was a critical enabler and tried to integrate the systems
from a business perspective. 14 They installed a couple of different ERP modules from
Oracle: one for the HR functions and another for financials. By implementing the ERP UPS
saved a tremendous amount of money for the goods and services purchased from hundreds
of locations around the globe. In addition, the UPS logistics network, which is very
extensive, is rigorous because it was built on well-defined technological standards. When
UPS adds new applications, therefore, they fit into the rest of their interconnected IT
infrastructure, which doesn’t tolerate excessive waste. UPS makes sure all new technology
fits in nicely over their architecture. In general, two factors have contributed to the successful
integration of technology at UPS: a corporate culture of open communication and a
commitment to training.
UPS now integrates information from more than 60,000 Web sites with more than
7.2 million customers making online tracking requests daily. The sophisticated UPS IT
platform offers such new software as Package Flow12, which identifies the packages that
should be loaded on the delivery truck first, second, and so on, so that the first deliveries are
in the rear of the truck. Another software service is Trade Direct12, which now allows
retailers, dot-com sites, and other enterprises to track the status of both small packages and
large freight around the globe through a single Web-based system. Management is also
committed to training whenever new technology is introduced and to providing an environ-
ment where all employees can contribute ideas for improvement.
From the customers’ standpoint, systems integration translates to better services
related to package shipping and tracking that can be easily accessed from the UPS Web site,
or by using software provided by UPS. If an incorrect zip code is entered, an error message
prohibits the user from continuing the process. The system provides “smart” data (e.g.,
identifying rural addresses that may require extra delivery time and allowing the user to
change options). It is possible to save a database of shipping addresses to auto-fill fields for
frequent receivers.
The UPS integrated system platform provides real-time communication links
between packages shipped because the tracking number, date, and status are immediately

13 Emigh, J. (August 3, 2005). UPS Bolsters Online Shipment Tracking. Ziff Davis Internet.
14 UPS’ Sutliff. (January 28, 2003). Communication key to Alignment. CIO Insight.