How UPS saves 100 million miles, 10 million gallons of fuel and $300,000,000 to $400,000,000 every single year, with proprietary software

UPS's ORION System

UPS first deployed ORION (On-Road Integrated Optimization and Navigation) in 2012 to provide its drivers with the most efficient route for deliveries and pickups on more than 66,000 routes in the United States, Canada and Europe.

The inner workings of the system are proprietary but, based on publicly available information, this article outlines some details of what ORION can do.

What does it do?

1. Route optimisation

ORION uses AI algorithms to analyse an extensive amount of data, including delivery addresses, package weights, vehicle capacities, and historical delivery information. By considering these factors, ORION determines the most efficient routes for UPS drivers.

2. Machine learning

ORION employs machine learning techniques to continuously learn and adapt based on real-world data. As drivers complete their routes, ORION collects data on traffic patterns, delivery times, and other variables. This data is then used to refine and improve the accuracy of future route optimisations.

3. Dynamic updates

ORION is designed to adapt dynamically to changing conditions. It incorporates real-time data such as traffic congestion, pickup commitments, delivery orders, road closures, and weather conditions to make on-the-fly adjustments to routes. This capability enables UPS drivers to navigate efficiently and avoid delays.

4. Delivery Volume Balancing

ORION optimises delivery routes not only for individual drivers but also to balance the overall workload across the entire fleet. It takes into account the number of packages, delivery times, and driver capacities to distribute the workload evenly, reducing congestion and improving efficiency.

5. Address Accuracy

ORION incorporates an address validation feature that helps improve the accuracy of delivery addresses. It cross-references customer address data with an extensive database, to correct and standardise addresses, reducing the chances of mis-deliveries or delays.

6. Package Load Optimisation

ORION considers the specific dimensions, weight, and stacking requirements of packages to optimise the loading of delivery vehicles. By organising packages in the most efficient way, it minimises the time spent searching for and handling packages during deliveries.

7. Data Analytics and Reporting

UPS implemented telematics technologies on its delivery trucks to collect transactional and locational data, aiming to identify areas where operational efficiencies could be enhanced. By equipping vehicles with GPS tracking devices, vehicle sensors, and providing drivers with wireless mobile devices, UPS began gathering data on travel routes, idle times, and even driver compliance with seatbelt usage!

8. Environmental Impact

By optimising routes and reducing unnecessary mileage, ORION helps UPS minimise fuel consumption, vehicle emissions, and overall environmental impact.

Impact for UPS

ORION has been an incredible success, delivering:

Improved operational efficiencies resulting in $300m-$400m/year of cost savings

Reduced environmental impact

Improved customer satisfaction via enhanced delivery accuracy

Increased driver satisfaction via enhanced on-road assistance

By Steer73

TECH IN LOGISTICS: INSIGHT