Question: UPS is no stranger to big data, having begun to capture and track a variety of package movements and transactions since as early as the

UPS is no stranger to big data, having begun to capture and track a variety of package
movements and transactions since as early as the 1980s. The company now tracks data on
16.3 million packages per day for 8.8 million customers, with an average of 39.5 million
tracking requests from customers per day. The company stores over 16 petabytes of data.
Much of its recently acquired big data, however, comes from telematics sensors in over
46,000 vehicles. The data on UPS package cars (trucks), for example, include their speed,
direction, braking, and drive train performance. The data is not only used to monitor daily
performance, but also to drive a major redesign of UPS drivers route structures. This
initiative, called ORION (OnRoad Integrated Optimization and Navigation), is arguably the
worlds largest operations research project.
It also relies heavily on online map data, and will eventually reconfigure a drivers pickups and
drop-offs in real time of more than 8.4 million gallons of fuel by cutting 85 million miles off of
daily routes. UPS estimates that saving only one daily mile driven per driver saves the
company $30 million, so the overall dollar savings are substantial.
Explain how this company can capture financial value by applying Big Data solution.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!