Package Flow Technologies The Road to Optimization

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Package Flow Technologies
The Road to Optimization
Chuck Holland
Vice President of Industrial Engineering
“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-toone. That means knowing where every package is, every day,
every minute, all the time.”
CEO Vision
- Infrastructure
- New Products
- Improve Service - Reduce Cost
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
Customer
Address
(USPS)
Service
Package
Flow
Technologies
Vehicle
Geography
(Map)
UPS
Proprietary
GPS
Regulatory
The Road to Optimization
Knowledge Barrier
The Road to Optimization
Knowledge Barrier
To reduce driver time, packages are
loaded in a general order of delivery
10- 205
10- 245
10- 145
10- 005
1118
10- 240
10- 405
10- 450
10- 320
10- 200
10- 455
10- 365
10- 600
10- 400
10- 140
10- 325
10- 360
The Road to Optimization
Breaking the Knowledge Barrier
Made EDI with
customers a priority
The Road to Optimization
Preload Assist Label (PAL)
Sortation
Handling
Delivery
Vehicle
Shelf
Placement
Commit
Time
The Road to Optimization
Knowledge Barrier
Training time reduced from
three weeks to three hours
3000
4000
2000
1000
1118
1118
3999
7000
7999
4999
2999
8000
6000
8999
6999
1999
5000
5999
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
Full Integration
Prediction / Analysis / Planning
Predictive decisions
Not where you are… but will be..
Remaining
Work
Current
Location
Current
Location
Completed
Work
Historical Analysis
Closing the loop
Deployment
© 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
Implementing Change
1,000 buildings / 60,000 Drivers
• Trained all management
• Roles and Responsibilities
• “Vital Stats” defined and monitored
• Set up proactive alerts, support,
and monitoring
– If system fails service is impacted!!
• Updated EVERY UPS procedure
Delivery Methods
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
The Next Step – Getting to
Data will need to be even smarter
The Road to Optimization
Real Time Optimization
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
The Road to Optimization
Breakaway Results
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
www.ups.com/sustainability
Thank You
Taking the Lead in London
Sustainable Logistics for the London 2012 Games
© Copyright 2010 United Parcel Service of America, Inc. UPS, the UPS brandmark and the colour brown
are registered trademarks of United Parcel Service of America, Inc. All rights reserved.
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