ORION is expected to reduce operating costs by US$300 million to US$400 million a year once it is fully implemented in the U.S. in 2017. More than 70 percent of the company’s 55,000 U.S. routes are now using the software, with an average daily driving reduction of between six and eight miles. To put this into perspective, UPS can save US$50 million a year by reducing by one mile the average aggregated daily travel of its drivers.
I'm just a simple truck driver, but I don't see how this math works. If you only count weekdays, that is 261 days, times 55,000 routes makes 14,355,000 miles, for a 1 mile reduction per day, per route, over a year. Here is where it gets tricky. What is the avg mpg for the fleet? Let's say five. So divide the 14.355 million by 5, that's 2.871 million gallons of gas for a 1 mile reduction per route, per day, over a year. Now, how much does UPS pay for a gallon of fuel? Let's say $2.50. OK, that's a little over $7,000,000. That's not even close to the $50 million they are claiming, and to achieve the $300 to $400 million that would mean a reduction of over 40 miles per route, per day.
