UPS says that it expects its On-Road Integrated Optimization Navigation (ORION) routing system to reduce by 100 million miles annually the distance driven by its drivers, when fully implemented in 2016.
The company expects additional benefits including annual savings of 10 million gallons of fuel and more than $300 million when its ORION system completes US implementation. UPS says it will realize additional environmental benefits and cost reduction savings when vehicles outside the US are equipped with the technology after 2017.
During 2015, UPS plans to complete installation of ORION routing on about 70 percent of the planned routes.
UPS’s ORION routing system uses data from customers, drivers and vehicles to reduce miles driven on delivery routes. ORION calculates the most efficient driving path taking into consideration all scheduled package delivery and pick-up stops required on the route for the specific day.
Since it began implementing ORION routing in 2012, UPS has reduced each route driven by 6 to 8 miles, says Mitch Nichols, UPS senior vice president of transportation and engineering.
Dynamic routing is planned for a future version to enable more efficient routing changes during the drivers’ day.