50 mil per mile???!!!

Discussion in 'UPS Discussions' started by MaceFremonti, Jul 24, 2013.

  1. MaceFremonti

    MaceFremonti Active Member

    Unless I misread the transcript of the quarterly results conference call Orion supposedly saves $50 million per average mile reduced...???!!!

    Myron Gray-

    "In David’s opening comments, he addressed Orion, but before we go there, let me remind you that just last year we finished completion of deploying telematics in the U.S. So in the quarter, we were able to drive 1.6 million less miles on top of 1.9% volume growth.Now, a couple of on top of that. You talk about the 500 people that we’ve deployed with Orion, which is an on-road integrated optimization system that will allow us to reduce additional miles. Keep in mind that for every average mile reduced there’s a $50 million savings to UPS."
  2. jibbs

    jibbs Long Live the Chief

    $50mil per average mile.

    So say you've got 100 drivers. They all go, for the sake of this example, 100 miles a day. That's 100 people averaging 100 miles per day. In order for the average to drop to 99 (a 1 average mile decrease), each driver would have to drop a mile from their daily route. 100 drivers dropping a single mile each would bring the average mileage down a single point to 99, yet the cumulative reduction amongst all the drivers involved would be 100 miles.

    I could come up with a formula but I'm not feeling very algebraic right now.

    Multiply these variables exponentially with UPS' real numbers and I don't doubt that $50mil saved per average mile reduced in an international delivery company isn't such a far stretch-- in my mind, at least.
  3. kingOFchester

    kingOFchester Well-Known Member

    Who cares. Not my problem. That said, Jibbs is correct. Some on here can't figure out the 30 in 8 being applied to package cars, so not going to waste my time doing and explaining the math.

    Point is miles is where UPS wants to shave right now. Shave shave shave. Cut cut cut. Thats the UPS way to more profit.

    Who cares that there were more then several drivers taken to the hospital last week for heat related issues in just my building? Who cares if some spent several DAYS in the hospital? Who cares if a business that ships 40+ pieces a day is use to getting their stuff before noon? Who cares if drivers break the 30 in 8 Federal regulation? Who cares if drivers have to break laws to get their work done as long as there isn't an accident? Who cares?

    I can tell you who doesn't care, our employer.
  4. jaker

    jaker trolling

    Yeah but no matter how manys miles they save, they use them back up and more with miss loads and re attempts
  5. kingOFchester

    kingOFchester Well-Known Member

    Got to love driving 5-10 miles each way to deliver a QVC ground bag on a Tuesday to the lady who gets 5 packages a day anyway.

    This is where allowing a manager to manage could pay off. instead of paying me $40.00 in overtime to deliver a QVC ground bag just to keep a "missed" off of a report, a manager could make the call to hold package till the following day.

    Huh, what do I know. Just a dumb driver. Wish I had Orion to tell me where I left my beer.
    Last edited: Jul 24, 2013

    HEFFERNAN Huge Member

    2 months ago, they made me go 2 towns over after my route was done to deliver 2 off area SUREPOST packages. These probably cost 2 bucks to ship. After my complaint, my sup says that all we can do is provide service, that's what they expect.

    An hour of work, 48.39/hr + 20 extra miles of gas > 4 dollars of product

    ​As a driver, I enjoyed the ride
    As a stockholder, I threw up in my mouth
  7. kingOFchester

    kingOFchester Well-Known Member

    Diversify. Buy Fedex. Fedex eats UPS, you make out well with the stock. UPS eats Fedex, job security and better wages.
  8. MaceFremonti

    MaceFremonti Active Member

    Too much a/c in my tractor must have froze my brain...obviously average mile means if each driver lost an average of a mile on their route that would save UPS 50 mil....

    I wonder how many actual bid routes there are in package nationwide.....?????
  9. kingOFchester

    kingOFchester Well-Known Member

    Whatever it is, its to many according to the beards. Think they trying to get it down to a couple dozen.
  10. Wally

    Wally Hailing from Parts Unknown.

    How about discount on calls? One told me they pay $4. It takes me 15 minutes to get there. Lots of miles and OT for a pick up we lose money on?
  11. Dracula

    Dracula Package Car is cake compared to this...

    No one expected them to say it is costing them money, did they?
  12. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    This must be 50 million for a year. Still does not really add up. The math just doesn't work.
  13. stink219

    stink219 Well-Known Member

    _ 1 n
    X= — € Xi = — (Xi+•••+Xn)
    N i=1

    This simply means:
    Summation divided by the unites equals the average.

    Divided by the 3 units= 100 average.

    99+98+100= 297
    Divided by the 3 units= 99 average.
  14. didyousheetit

    didyousheetit Active Member

    It's not just the actual miles saved. It's the fact that they cut routes because the dispatch is lowered by way of the reduced miles. So if every center cuts just 1 route per 25 routes that would add up very quickly. ( 1 out of 25 routes, that number may actually be higher)
  15. nicky

    nicky Active Member

    Lets put it this way in my building there are about 170 package car routes on a day. If you reduced every route by one mile thats 170 miles a day just in my building. So say we average 10 mpg(which we dont) thats 17 gallons of gas at 3.50 a gallon saves almost 60 a day in just my building that is about 15,ooo per year for one building
  16. stink219

    stink219 Well-Known Member

    Is this our issue?
  17. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    And if every one of those drivers works 1 extra minute because of taking the slower route to save that mile you negate all the savings. Just 1 minute.