IT drives the UPS machine

Computerworld - Every night, United Parcel Service Inc. processes an average of 600,000 packages through its massive Worldport hub in Louisville, Ky. One hundred aircraft fly in and out of the 4 million-square-foot facility. It's a feat of industrial choreography that the company couldn't accomplish without advanced IT systems, says Jovita Carranza, vice president of air operations.

Carranza, who started her career with UPS in Los Angeles loading trucks, says it would be cost-prohibitive to handle that package volume manually. Plus, the Atlanta-based company has to process all of the packages slated for overnight delivery between 11:30 p.m. to 3:30 a.m.—a goal it couldn't meet if it had to sort them all manually, she says.

Moreover, automation has helped UPS increase employee retention by reducing the manual workload, says Al Rapp, vice president of human resources at the UPS Airlines unit.

That's important for UPS, Rapp says, because worker turnover threatened to tap out the labor pool in Louisville. Brian Clancy, a consultant at transportation and logistics consulting firm MergeGlobal Inc. in Arlington, Va., agrees. He says that by cutting the amount of manual labor involved, UPS can better attract and retain the 5,000 workers needed to staff Worldport.

Worldport's IT and automation systems run on a mind-boggling array of hardware, including almost 14,000 computer devices. These systems, which include 30TB of online storage, are networked via 5,500 miles of fiber-optic cable and control 122 miles of conveyor belts that move the packages, according to Ted Gallagher, Worldport's systems manager.

Managing 'The Machine'

UPS invested $100 million in software development for the Worldport applications, says Gallagher, who refers to the combination of hardware and software as "The Machine."

Though UPS used some outside consultants, CIO and Senior Vice President Ken Lacy says the company had no choice but to develop the infrastructure in-house, "since it was not available off the shelf." Besides, in-house development has made it easier to maintain and troubleshoot the systems, he says.

Gallagher says Worldport runs on 10 major applications tied together by company-developed middleware called the Common Message Environment. This software uses a proprietary messaging protocol, allowing for easy transfer of information among disparate applications, including mainframe-based legacy systems and newer e-business applications.

While The Machine manages Worldport, UPS maintains an IT staff of more than 100 people to manage it. That management starts at the most basic level on a daily basis, with what Greg Echsner, manager of the Worldport technical support group (TSG), calls a "pretrip" inspection of critical systems throughout the facility.

About two hours before the sorting process begins, John Music and five other technicians from the Worldport service desk walk through sections of the building, checking key components such as the computerized scales that weigh igloo-shaped containers filled with packages to be loaded on aircraft.