UPSNav: Save a minute, save $14 million

UPSNav: Save a minute, save $14 million

January 14, 2019
Lisa M. Spencer

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 →

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It’s All About Location, Location, Location

It’s All About Location, Location, Location

January 5, 2019
Corinne M. Karuppan, Ph.D.

How important is access to public transportation in corporate location decisions?

According to this article, access to public transportation is now a major factor as large corporations, including Amazon, McDonalds, and Caterpillar, attempt to attract and retain employees in a tight labor market.

It is especially a factor for Millennials, who have multiple job prospects and often prefer not to own a car — or cannot afford one.

Audio Spotlight: Listen to related podcast (click blue button in top left-hand corner)

This post is based on the NPR article, ‘Talent Wants Transit’: Companies Near Transportation Gaining the Upper Hand, by D. Schaper, November 29, 2018. Image source: egdigital/Getty Images.

Discussion Questions:

1. Why do businesses prefer locations with easy access to public transportation? Is it true for all types of businesses?

Guidance: The article identifies the primary reason as attracting and retaining employees. It is important for businesses to have easy access to their markets as well. This is why the service sector typically enjoys strong economic activity in city areas with public transportation stations and stops.

As an added bonus, large cities with extensive public transportation options often have access to major airports and highways, Continue reading →

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