What bene?ts does ups derive from using orion

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Reference no: EM132750915

Analytics Drive Success at United Parcel Service {UPS} United Parcel Service [UPS] is one of the world's largest package-shipping companies, so saving a tiny bit of gasoline on every truck route can generate enormous savings, in both expenses and impact on the environment. For example, reducing each route by 1.6 Km [1 Mile] per day for a year can save the company about 162 million km (100 million miles] per year, a reduction of carbon omission of 100,000 tonnes and a cost saving of about $50million. Thus, ef?ciency is a major factor in work design. UPS keeps improving its abilityr to gather, analyze and apply data to making every aspect ofpackage handling use fewer resources. Some of its detailed requirements once included requiring drivers to hook their truck keys over one ?nger instead of stashing them in a pocket. This task was updated when drivers Were provided with a digital remote fob to Wear on their belts. With the keyless systems, drivers stop the truck and press a button to turn off the engine and unlock the bulkhead door.

This change saves 1.?5 seconds at each stop. That's equivalent to an average of 6.5 minutes per driver per day. Besides saving time, the changes save motions by the driver, reducing fatigue. Recently the company began using a system called ORION [On-Road Integrated Optimization Navigation]. The ORION system gathers data from customers, vehicles, drivers handled mobile devices. It analyzes the data - even times for pick up and delivery when customers have special requests - and designs routes for each driver to use the minimum time and fuel, driving the minimum distance. According to UPS, once fully implemented, ORION is expected to save the company $300 to $400 million a year.

The company hopes that ORION will eventually do even more to improve outcomes - for example, updating routes when accidents or construction sites cause congestion. With results like these. it is easy to see why UPS invested years to develop the ORION system The challenge for managers is to ?nd drivers who are willing to commit to a system in which their every turn is planned by a computer and to keep those jobs engaging.

Questions: 1. What bene?ts does UPS derive from using ORION to help it make drivers' work more ef?cient? 2. What challenges does the system pose for drivers and their managers?

Reference no: EM132750915

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