The Road to Optimization
Jack Levis
Director of Process Management
The Road to Optimization
Operations Process Vision
• Utilize robust data infrastructure to:
– Analyze current status
– Forecast future demand patterns
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Robust tools plan from the forecast
Optimizations make plans efficient
Simplification allows for execution of plan
Real time monitoring and adjustment
Analysis tools close the loop
Advancing Analytics
Descriptive
What
happened?
Diagnostic
Why did it
happen?
Structured
Analysis
Hybrid
Information
Predictive
Prescriptive
What will
happen?
What should
we do?
Unstructured/Content
The Road to Optimization
Evolution of the DIAD
The DIAD has changed from an acquisition device
1991 to an assistant for better decision making
Today
The Road to Optimization
Evolution of the DIAD
DIAD V
The DIAD has changed from an acquisition device
1991 to an assistant for better decision making
Tomorrow
Today
Today
The Road to Optimization
Descriptive Analytics
Merging Multiple Data Sources
T elematic s T ec hnology utilizes …
Application Areas
E ngine Data
G P S Data
S ens or
Data
DIAD Data
Map Data
1. Automotive
2. S afety
3. Dis patc h P lanning
4. On-R oad P erformanc e
5. Work Meas urement
Vehicle Diagnostics Data,
Fault Codes, and Usage
Cycles can be used to
anticipate part failure and
predict vehicle breakdowns.
Through GPS, DIAD, and Sensor
Devices (Seatbelt, Bulkhead
Door, and Reverse), a driver’s
driving habits can be monitored
and areas of improvement can
be displayed visually on maps.
Dispatch Planning process may be
enhanced and simplified through
“Work Area” Concept. Dispatch
planning & address validation
processes may be enhanced and
simplified through GPS data.
Combining GPS and DIAD data
displayed on maps, allows us to
monitor and analyze daily driver
travel paths and highlight excess
miles and dispatch inefficiencies.
Using GPS, DIAD, and Map data,
has allowed us to enhance,
automate and simplify several
steps in On-Road time study and
work measurement processes.
Visibility on primary and behavioral characteristics that affect fuel consumption
The Road to Optimization
Descriptive Analytics
Analysis reduced from one day to 45 minutes
Backing
Delivery while Idling
The Road to Optimization
How do we Affect Change??
Customer
Address
(USPS)
Service
Package
Flow
Technologies
Vehicle
Geography
(Map)
UPS
Proprietary
GPS
Regulatory
“We call it being a "one-to-one" business – a business that
treats each customer, each package, and each transaction
as if it were the only one we have. This is a huge business
opportunity for us.”
“We know we can't serve one-to-one unless we
operate one-to-one. That means knowing where
every package is, every day, every minute, all
the time.”
Simplification
© Copyright 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
Made EDI with
customers a priority
The Road to Optimization
Preload Assist Label (PAL)
Sortation
Handling
Delivery
Vehicle
Shelf
Placement
Commit
Time
Forecast, Plan, Execute
© Copyright 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
The Road to Optimization
Predictive Analytics
The Road to Optimization
Supporting one to one Business
Commit
Time
Address Information
Number of Packages
Shelf
Location
Additional Activity
(COD, signature, etc.)
The Road to Optimization
Supporting one to one Business
Stree
Adult
Street
Street##
Street
NameSignature
TypeRequired
Dir Suf
3924
PLANDOME
RD
Park at Dock Only RD
PLANDOME
-----------------------------------------Mailroom ZIP Code Unit
City
1
Col Check
Amt inShip
# ID# 99001 Remark
with Security
01001
CLARKVILLE
1Consignee Use freight
#000000
elevator675Room CAL Flr
No Indirect/Reroute/LA
Note:1
CDS N
Completed Stop = 16
Prerec Stop = 0
Edit
Dup
Ship#<6
SplCnts
PreComm PreRec
/Ovrride
Edit
Ship#<6
PreRec Ovrride
PkgInfo
Notes PreRec Deliver
Edit NonDel
Dup
Notes
Ovrride
The Road to Optimization
New Geographic Data
The Road to Optimization
New Geographic Data
The Road to Optimization
New Geographic Data
The Road to Optimization
Supporting one to one Business
Street
Stree
Adult
Street##
Street
NameSignature
TypeRequired
Dir Suf
Park at Dock Only RDRD
3924
PLANDOME
PLANDOME
Mailroom ZIP Code Unit
-----------------------------------------City
with Security
01001
1
Col Check
Amt inShip
# ID# 99001 Remark
CLARKVILLE
elevator675Room CAL Flr
1Consignee Use freight
#000000
No Indirect/Reroute/LA
Note:1
CDS N
Completed Stop = 16
Prerec Stop = 0
SplCnts
PreComm
/Ovrride
Edit
Dup
Ship#<6
Edit
Ship#<6 PreRec
PreRec Ovrride
Edit NonDel
Dup
Notes
Ovrride
PkgInfo
Notes PreRec Deliver
Every
delivery
at the
right
location
The Road to Optimization
Predictive Analytics
Remaining
Work
Current
Location
Current
Location
Completed
Work
Implementation and Results
© Copyright 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
The Road to Optimization
Results - So Far…..
The Road to Optimization
New Products – My Choice
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Delivery Alerts
Delivery Planner
Reschedule Delivery
Hold for Will Call
Authorize Shipment Release
"Leave at" Instructions
(Driver Instructions)
Leave with Neighbor
Deliver to a UPS Store
Deliver to Another Address
Approx. delivery time
Confirmed Delivery Window
(2-hour)
Prescriptive Analytics
© Copyright 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.
The Next Step – Getting to
The Next Step – Getting to
Data will need to be even smarter
The Road to Optimization
ORION
The Road to Optimization
UPS Smart Navigation
The Road to Optimization
UPS Smart Navigation
The Road to Optimization
Breaking the Bottleneck
The Road to Optimization
Breaking the Bottleneck
DIAD “Bread Crumbs”
The Road to Optimization
Breaking the Bottleneck
The Road to Optimization
Benefits of Prescriptive Analytics
Comparison to Similar Sites
The Road to Optimization
Benefits of Prescriptive Analytics
Comparison to Similar Sites
The Road to Optimization
Breakaway…….
Average nearly 20
years of service
• ORION showed new
ways to deliver area
• Mileage reduction
• Real time
optimization
– Clairvoyance
• Strong management
and metrics required
The Road to Optimization
Challenge
• Standardized, accurate, valid data
availability and infrastructure
– Data is always the bottleneck
• Alternate delivery locations
– Avoid redelivery miles when
customer is not available
• “Neighborhood” drop off locations
– Customer picks up and travels last
mile on normal drive path
Every Project Needs an Enforcer!!
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