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September 10, 2008

Route Optimization Saves UPS 3 Million Gallons of Gas

Upslogo UPS Utilizes SMART Eco-Strategies and the "Lens of Sustainability" to Reap

BIG CONTRIBUTION TO THE BOTTOM LINE.........................

UPS saved three million gallons of gas and 30 million miles driven last year thanks to a fleet of computer programs geared toward shaving the distance its packages travel before reaching their destination, according to the company's 2007 sustainability report.

The company uses specially designed routing hardware and software, known collectively as Package Flow Technology, to streamline delivery routes and improve fuel efficiency.

UPS also employs telematics - electronically gathering data on its vehicle fleet as well as drivers' performance - to identify new ways to boost fuel efficiency.

These technologies have helped UPS develop policies such as minimizing the number of left turns drivers take, thus lowering their idle time while waiting for oncoming traffic to pass.

Such measures have contributed to the company reducing their emissions by 32,000 metric tons in 2007.

UPS has also introduced low-carbon vehicles into its U.S. and Canadian fleets. The company currently employs over 2,000 green vehicles, including hybrid and compressed natural gas trucks.

To download UPS's 2007 sustainability report, click here (PDF).

note; 3 million gallons of gas X a (low) estimate of $3.50 a gallon is a COOL $10.5 MILLION DOLLARS!!!!!!

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Route optimization is going to be massive once people wake up to what it is and how much money they can save.

The trouble is that the haulage industry is made up of a lot of smaller players, not just a few big ones. These "little guys" can't afford the costly route optimization software, which can cost upwards of $100,000.

Fortunately solutions are just coming onto the market, using the software-as-a-service model... here's the first Route Optimizer to use this model:
http://www.postcodeanywhere.co.uk/products/route_planner/
it's pay-per-use, which as I see it is perfect for the small-medium businesses.

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