UPS is focused on the future for its ORION technology

While it is already reaping myriad benefits from ORION (On-Road Integrated Optimization and Navigation), a proprietary routing platform for its drivers rolled out in late 2013, transportation and logistics bellwether UPS announced big plans for the technology this week.

Big Brown officials said that when ORION is fully implemented in 2016 it is expected to reduce the distance driven by its drivers by 100 million miles annually, coupled with accelerating its implementation to complete all planned U.S. routes in 2016. Over the course of 2015, UPS said it expects to complete installation of ORION routing for about 70 percent of its planned routes.

UPS also cited many other benefits stemming from ORION in the coming years, including:
-a 100,000 metric ton reduction in CO2 emissions that is equivalent to taking 21,000 passenger cars off the road for a year based on the Greenhouse Gas Equivalencies Calculator;
-annual savings of 10 million gallons of fuel and more than $300 million upon completion of the U.S. implementation of ORION, with additional environmental benefits and cost reduction savings expected when UPS vehicles outside the U.S. are equipped with ORION technology

UPS Senior Vice President of Transportation and Engineering Mitch Nichols said in a statement that UPS has realized a reduction of 6 to 8 miles per hour through ORION that has seen benefits in terms of lower fuel use and related lower vehicle emissions.

In a recent interview, Jack Levis, Senior Director of Process Management at UPS, explained when UPS delivery drivers are on the road, they usually travel at a speed between 20-30 miles per hour, but usually closer to 20. And he said that means that for every mile reduced, there is a return of about 2-3 minutes due to the time involved in traveling a single mile.

And the reduction of 7-8 miles multiplied by 2-3 minutes equates to 15-25 minutes back per driver, which he said translates into additional capacity, providing UPS with the ability to deliver more packages, which ORION is able to do during hectic periods like Peak Season.

“At UPS, we constantly look for ways to improve our business and make it more efficient, all in an effort to best serve our customers,” said Levis. “Each business day, a UPS driver is faced with more alternatives to deliver his/her route than the number of nanoseconds the earth has existed. To ensure UPS drivers use the most optimized delivery routes in regard to distance, fuel and time, UPS developed On-Road Integrated Optimization and Navigation (ORION). ORION is a long-term, large-scale technology investment for UPS, and is the result of over a decade of planning, development and testing.”

Levis explained that the algorithm that is the backbone of the ORION technology was created in 2003, which UPS then worked to improve and perfect over a number of years. UPS drivers’ handheld computers include GPS tracking technology, he said, and in 2008, it began piloting telematics technologies by installing vehicle sensors and GPS tracking equipment in UPS delivery trucks. The data collected from these sensors included driver safety information, along with information on performance, location and vehicle routes, all of which was used to develop the ORION technology.

And from 2008-2011, UPS implemented the ORION technology in 11 sites to test and improve the system, with the help of its expert team of drivers providing feedback on the platform based on their years of experience, he noted.

“In 2013, we began the full-scale deployment of the ORION technology across the U.S, [and] by the end of this year, the technology will be used by nearly 10,000 drivers in 82 facilities, with full deployment wrapping up in [2016],” he said.

Regarding the primary benefits of ORION for UPS customers, Levis pointed out that ORION enhances UPS customer service with more efficient routing and allows UPS to offer innovative services and customized solutions. An example of one of these services is UPS My Choice— which gives consumers a one-day alert for when a package is coming and allows them to control the timing and location of the delivery—and has nearly 6 million members.

“This solution allows customers to have flexibility over their deliveries, including adjusting delivery locations, rerouting shipments, changing delivery dates and selecting delivery preferences,” he said. “There are a number of advantages and benefits to ORION that won’t be fully realized for years to come, but the technology allows UPS drivers to be as efficient as possible, saving time, fuel and money. The efficiencies of the ORION platform not only allow drivers to complete more pick-ups and deliveries, but also allow UPS to provide customers with the best timely service possible.”

Looking ahead, UPS said it plans to refine and improve ORION technology as it continues to be deployed. As an example, it explained how by operating one unified fleet with ORION technology, it can optimize pickup and deliveries across its operations. And for each 120-stop route, ORION analyzes more than 200,000 options and selects the most efficient while meeting customer requirements for time-sensitive pickup of deliveries.

And it added that future versions of ORION are planned to include dynamic routing for more efficient routing changes throughout a drivers’ day. Non-U.S. routes are expected to be deployed after 2017 to reduce miles driven, vehicle maintenance, fuel use, and CO2 emissions, UPS said.

Related: Algorithm Will Tell All UPS Trucks Where to Go