Is there a better way to run your industrial distribution company? What business model should you use? What role does IT (information technology) play in your organization? Is IT viewed as a strategic asset or a strategic liability? And what is the best way to measure and monitor key business processes to make smart and informed business decisions?
Sometimes the best way to answer these challenging questions is to look outside your industry for examples of companies that successfully follow a clearly defined operating model and view IT as a strategic asset. UPS, the worldwide leader in package distribution, is one such company and its business model provides insight, inspiration, and guidance.
At UPS, IT plays a central role in everything they do; it’s part of their DNA. UPS implemented an operating model based upon unification—a single unified digital platform built on high standardization and integration of business processes and shared data to support end-to-end customer requirements. This operational model treats IT as a strategic asset, which leads to predictable, low cost business transactions and a unified view of the organization and customer. UPS analyzes data gathered from tightly integrated end-toend business processes to make informed business decisions on routing, package pricing, and customer profitability.
A key element behind the success of UPS’ digital platform is the use of mobile computers to capture critical data about every package they pick up and deliver. Data about each package is electronically uploaded and seamlessly integrated at a central digital platform, eliminating unnecessary labors costs.
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