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House Memo: IoT & the UPS disaster

SAP CEO Bill McDermott was in Davos, before that in Barcelona at the SAP Fkom, Field Kick-off Meeting. There was little sign of flexibility and responsibility there. The Davos topic could also have come from the DSAG user association. When will SAP start listening to its existing customers?
E-3 Magazine
February 1, 2017
Internal Communication
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This text has been automatically translated from German to English.

I wouldn't be writing about this UPS delivery here if it hadn't ended in total disaster.

What worries me is the illogical and disastrous process of UPS logistics. Naturally, packages are lost or damaged in transit every day.

However, if contradictory processes, conflicting information, and incorrect computer data are possible by repeatedly capturing a perhaps broken package with numerous barcodes, how can complex IoT processes ever work?

The optimist now says that the sensors and RFID chips from the IoT construction kit are superior to any bar code. And, of course, a Hana Cloud Platform with a smartphone and Fiori 2 UI (user interface) are far ahead of any email communication.

The pessimist says that more technology has never solved any problem. The topic of barcodes or RFID is only superficially relevant. IoT will only work with new business processes, perhaps only with new business models.

Of course, technology is important! Sensors, cloud, Hana, S/4 are an important contribution.

Process error

However, the UPS disaster did not occur because of too few barcodes, but exclusively due to inadequate and illogical processes: My package was on its way to the wrong address.

Rerouting was only possible with an unlock code, which UPS only sends by mail.

In the meantime, the package had transport damage and the UPS website said that it was now returned to sender.

A check revealed that the package was delivered to another distribution center, however, why it was not delivered from there to the corrected delivery address was explained to me on the phone:

"In truth, the package has been lost, and a tracing request can only be initiated by the shipper, according to UPS terms and conditions."

Two days later, UPS assured me that the new delivery address was verified and I could get my (damaged?) package in two days.

In the meantime, the shipper was notified that the obviously recovered, truly damaged package was not coming to me, but was on its way back.

The manager of BOSfood then called me. He apologized and put together a new delivery, which I received very happily three days later. A big thank you to BOSfood!

What UPS did with the first shipment is unknown to me: damaged or lost or both?

All the barcodes on the packages won't help unless the processes are also stringently and logically secured.

If the flow of information is not consistent, IoT and Industry 4.0 will also remain an empty promise.

As the computer scientist says: Garbage in, Garbage out - GiGo!

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Working on the SAP basis is crucial for successful S/4 conversion. 

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June 5 and 6, 2024

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