1. Delivery Information Acquisition Device (DIAD) at UPS
Mohammed Khadim
CMGT 510

2. 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

3. 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

4. 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

5. 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

6. 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 6

7. 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

8. 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

9. 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

10. 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

11. What Do You Think of DIAD?

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Questions?