re: UPS Nets Huge Fuel Savings With Analytics
Details are sketchy on the proprietary nuances of the ORION model, but one exec told me UPS almost gave up back in 2007. The model takes in a complex array of data and variables to try to figure out the best route for deliveries. Originally UPS assumed that every variation from a prescribed route had an equal penalty, but that wasn't the case. Sometimes small adjustments helped while large variations where problematic.
"We had to throw away all our old thoughts on how to measure a good route," said UPS exec Jack Levise. "There were ways UPS measured whether a route was good or not that didn't translate to optimization well at all."
The UPS breakthrough was finding better metrics for determining whether if a route is efficient. Goes to show you that you sometimes have to "reverse your thinking," as Levise put it, to come up with a real breakthrough.