During the season of gift-giving, UPS must handle twice the tsunami of deliveries it typically takes on. After all, nearly 80% of Americans now shop online, a radical increase from even a decade ago. The company’s leaders wanted a solution that first, met their customers’ needs, and second, maximized efficiencies. That meant they needed a system that helped drivers get where they’re needed most, even when navigating new routes, or even new cities. That called for a solution that could optimize routes to anywhere in the world and that could fulfill their customers’ already high expectations.
The following podcast episode takes listeners inside UPS’s digital solution to a very real physical problem.
As UPS senior director of process management Jack Levis shares with Esri CMO Marianna Kantor, the answer lies in providing drivers with a glimpse into the future. The company equips drivers with the order and sequence of their deliveries on tablets powered with ORION (On-Road Integrated Optimization and Navigation), UPS’s proprietary real-time predictive data analytics software. The algorithms fuse disparate data such as customer needs, internal business practices, and traffic to predict the optimal route for all the deliveries in the truck. This allows drivers to find their way through a community with the smooth efficiency of a local.
“If we could reduce just one mile per driver per day, that’s $50 million at the end of the year,” Levis says in this episode. “So we just focused on the little things. When the day was done, ORION had ended up reducing 100 million miles a year. That ended up to be around $350 million to $400 million a year. And we kept services and added services for customers. We didn’t have an ‘or’–we had an ‘and.'”
Podcast: UPS isn’t the only company thinking about how spatial awareness will drive the next generation of analytics. In this episode, “Three Stages of Digital Transformation,” listen as Esri CTO (ArcGIS Enterprise) Jay Theodore discusses the intersection of real-time data, advanced analytics, and location-based information and the role they’ll play in business intelligence going forward.