UPS's ORION on pace for up to $350 million in savings

[cheryl]

UPS's ORION on pace for up to $350 million in savings - Marketwatch

Chief Financial Officer Richard Peretz said in a post-earnings conference call with analysts that while third-quarter U.S. delivery stops and volume increased 5.7% from a year ago, with the help of ORION, delivery miles traveled rose just 1.4%. He told MarketWatch in a phone interview, that for each mile saved per day, on average, annualized savings are about $50 million. "Orion is saving us about six and seven miles per driver per day," Peretz said, which translates to annual savings of about $300 million to $350 million.

 

[UpstateNYUPSer(Ret)]

I am generally within 10 miles of their "solution".

 

[brownmonster]

If ORION saves all these miles then we must have had drivers driving in circles all these years.

 

[1989]

Beat Orion by 57 miles so far this week. The solution is a failure.

 

[BostonBo]

UPS's ORION on pace for up to $350 million in savings - Marketwatch

Chief Financial Officer Richard Peretz said in a post-earnings conference call with analysts that while third-quarter U.S. delivery stops and volume increased 5.7% from a year ago, with the help of ORION, delivery miles traveled rose just 1.4%. He told MarketWatch in a phone interview, that for each mile saved per day, on average, annualized savings are about $50 million. "Orion is saving us about six and seven miles per driver per day," Peretz said, which translates to annual savings of about $300 million to $350 million.

How does $50 million translate into over $300 million? Also, he should've specified that while UPS saved $50 million in fuel, it wasted $4 billion in OT costs having its drivers follow terrible Orion plans.

 

[scooby0048]

"Orion is saving us about six and seven miles per driver per day," Peretz said, which translates to annual savings of about $300 million to $350 million.

Has there ever been a company anywhere who has just said, "Look, we spent an assload of money on such and such but it didn't work out like we had hoped. Such and such was a failure but we'd like to learn from it and fix such and such."

 

[Boulevard859710]

Beat my ORION solution by 10 miles today doing it my way. They should have given me the 2 billion. Lol

 

[Brownslave688]

I would love to know how one mile per day is $50 million dollars in a year.


I mean investors don't seriously believe this do they?

 

[dookie stain]

That guys probably the ******* who said my check would be here "tomorrow" 6 days in a row

 

[brownelf]

Does anyone else have routes built everyday in their center not on Orion? We have a least 4-6 everyday that keep hundreds of miles off the reports. Wonder what the real numbers are.

 

[BostonBo]

Does anyone else have routes built everyday in their center not on Orion? We have a least 4-6 everyday that keep hundreds of miles off the reports. Wonder what the real numbers are.

Yeah, plus we have supervisors bringing misloads directly to and from drivers rather than having them meet each other or having us run the misloads. That's a ton of miles right there.

 

[Indecisi0n]

Has there ever been a company anywhere who has just said, "Look, we spent an assload of money on such and such but it didn't work out like we had hoped. Such and such was a failure but we'd like to learn from it and fix such and such."

What is this such and such you speak of?

 

[gman042]

How does $50 million translate into over $300 million? Also, he should've specified that while UPS saved $50 million in fuel, it wasted $4 billion in OT costs having its drivers follow terrible Orion plans.

This is true. UPS will continue to tout ORION as the save all cure all. ORION is a farce. Mine are up and over time is up. Where is the saving in that equation?

 

[Boulevard859710]

I ran 13 miles under but my trace was only 76.7%. Wonder if I'll hear about it?

 

[PT Car Washer]

I ran 13 miles under but my trace was only 76.7%. Wonder if I'll hear about it?

We had a driver do the same thing and Center manager tried to accuse him of stealing time. Nothing ever became of it. Of course he is one of those guys that wears a big target on his back.

 

[Boulevard859710]

What costs more? Miles or time. Lol

 

[gman042]

What costs more? Miles or time. Lol

See....ORION is all about reducing miles.....in theory. Not so much in practical application.
So if a driver can beat the solution which is actually more efficient? The computer or the driver? The computer does not care about service while the driver does. The driver will actually take care of businesses and still beat the Orion solution that would have you scrambling at the end of the day to deliver business stops that are loaded in you 8000 shelf.
I have an entire community that includes business and schools that Orion sets to be delivered after 1800. I have to run my trace backwards some of the day just to make service on these stops. I will never be a believer in ORION.

 

[scooby0048]

What is this such and such you speak of?

I said SUCH not suck

 

[Nothing by 1030 anymore]

Orion is unsafe, and doesn't take anything into account. It's strictly math and is a huge waste.

 

[25TOLIFE]

Nice spin on a huge waste of money.