Last month, Ryan Mervyn, former ORION project manager and current engineering coordinator at United Parcel Services (UPS), and Peter Frohling, current ORION manager, presented on an APQC webinar. Mervyn and Frohling provide a general overview of UPS' ORION program, the results and significance seen from ORION, and the advanced analytics used.
Organizations are often looking for ways to improve cost effectiveness, process efficiency, and cycle time. United Parcel Services (UPS) has developed an optimal-route tool that allows the delivery service to be more efficient in these performance areas. ORION, UPS’ new on-road integrated optimization and navigation program, is an automated system that uses algorithms to devise optimal routes for its drivers, which is transforming package delivery. The system relies on online map data, which has been customized by UPS, to calculate miles and travel time to plan the most cost-effective routes.
Mervyn and Frohling point out that big savings comes from the attention to detail that ORION provides. When looking at figures per driver per day across the US for a year, the following savings were seen.
- 1 mile is worth $50 million
- 1 minute is worth $14.6 million
- 1 minute of idle time is worth $515 thousand**
What technology is your organization using to be more efficient?
For more information about UPS’ ORION program, watch the free webinar.
*Small package P/U and delivery drivers
** Small package P/U and delivery, freight and tractor/ trailer drivers