Case Study 12-1 UPS Deploys Routing Optimization with a Big Payoff The UPS ORION (On-Road Integrated Optimization and Navigation) system reduces delivery miles and fuel and sets the stage for enhanced customer service. The system not only reduces the overall delivery cost, it is also a great move toward sustainability. At the end of 2013, according to UPS, 10,000 delivery routes were optimized by ORION and 1.5 million gallons of fuel were saved. As a result, the emission of carbon dioxide was reduced by 14,000 metric tons. ORION combines more than 250 million address data points, online map data, and an optimization algorithm to find the best routes for pickups and deliveries. The data for the system has been collected since 2008 by using GPS systems and telematics technologies installed in delivery trucks. A prototype of the ORION system was deployed in 11 sites between 2008 and 2011. In order to challenge the system and further improve the algorithm, UPS invited its most experienced drivers to try to beat the system. Tim Ahn, a UPS driver says, I get options that I would have actually never thought of before. Its a new way of thinking to make me more efficient.

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