AI Case Study
UPS uses network planning tools to optimise the flow of packages within its network from loading docks to sorting to the final destination
Network Planning Tools (NPT), a multimodal platform developed inhouse by UPS is designed to lower sort and transportation costs. It will optimise how a package is picked up from docks to the route it takes to final destination.
Freight And Logistics
"Route optimization and hub optimization are rolled into one tool that tells us the most efficient way to run our network each day, even when our U.S. volume spikes and the destinations change. It’s one more element in our fully integrated, smart logistics network.
NPT brings multiple benefits to the network and to customers. It will help us efficiently route and reroute package flows using a series of sophisticated algorithms. So we can reroute in-transit volume flowing to a hub that is already running at or near capacity to another hub with available capacity. The key is our ability to act on real-time data. This will help no matter the time of year, as volume fluctuates.
NPT also moves volume to lower-cost transportation modes to optimize our margins without affecting service. When major storms impact a geographic area, NPT helps us analyze every variable and every option. It will preemptively reroute packages to alternative lanes to minimize unexpected costs and delays.
By minimizing the effects of bottlenecks, we can make our network more agile and capable of handling more volume, which translates to more growth. All while reducing operating costs."
Pilot; results not available yet, but expected to save 100s of millions of dollars annually for UPS
"The continued growth in e-commerce has changed the dynamics of last-mile deliveries. UPS attempts to balance the business stops – where multiple packages are picked up or delivered – with residential stops where the density is lower."