UPSNav: Save a minute, save $14 million

UPSNav: Save a minute, save $14 million

January 14, 2019

Known for its focus on efficiency, UPS is always on the lookout for ways to save time and offer better service to its customers.

UPSNav, due to be in place by 2020, updates United Parcel Service’s previous route optimization system for its 60,000 drivers.  The new system will recalculate routes all day long, taking traffic, remaining deliveries, and pick-up requests into account.

UPS drivers make about 125 stops per day, so shaving even seconds off each stop can result in huge savings.  For example, saving drivers one minute per day multiplies to $14.5 million in labor cost savings per year.

UPS competes in a tough market with FedEx, the U.S. Postal Service, and Amazon.  Figuring out how to make the “last mile delivery” as cost-effective as possible is a constant challenge, especially in suburban and rural areas where the stops are further apart.

Video Spotlight: A look at UPS Orion, the current UPS navigation system

This post is based on the Reuters article, New UPS navigation tool aims to save time and money with each turn, by Lisa Baertlein, December 4, 2018; and the YouTube video, UPS Orion, by lolrus15, September 6, 2017. Image source: Continue reading