UPS’s $20 Billion Tech Bet Was Scorned by Wall Street. Now It’s Paying Off


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UPS’s $20 Billion Tech Bet Was Scorned by Wall Street. Now It’s Paying Off - Bloomberg
  • Computers will call more shots as automation push picks up
  • Courier faces pressure to show results from investment spree
The dizzying maze of conveyor belts and chutes that are piled into a giant structure in Salt Lake City are just the physical part of the plan.

United Parcel Service Inc. is also counting on algorithms you can’t see to prove that investors were wrong to doubt its three-year, $20 billion technological makeover.

It’s all part of Chief Executive Officer David Abney’s bet on squeezing out costs and becoming more nimble as UPS adjusts to surging e-commerce deliveries. While sticker shock from the investment spree rattled investors, UPS is showing signs of getting a lift as it catches up with FedEx Corp. in using technology -- and braces for a potential threat from Inc.


According to the article , UPS has ,so far, saved 400 million dollars by implementing Orion.


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According to the article

"But there are signs of progress. An example: UPS had one of its smoothest holiday seasons in recent years."

“It was the best peak I’ve been involved in 10-plus years,” Branch said. “I’ve never seen a UPS facility run so clean and efficient during peak season.”

But, UPS was didn't make projection.