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How UPS Used Supply Chain Analysis to Save Money and the Environment

By Anthony Taylor - July 09, 2011

As a small or mid-sized business owner or manager, little changes in your daily operations can have huge impacts on your bottom line. As most small to medium organizations have limited resources in time, money and staffing, it is imperative that they maximize the use of all three to get the most out of their business. By analyzing your supply chain, it is possible to free up resources to use them for something else.

A business of any size can benefit from supply chain analysis. Here is an example of a multinational organization (UPS) using supply chain analysis to improve their processes, save money, and move closer towards the corporate social responsibility (CSR) goals of the organization.

When UPS analyzed shipping routes and traffic patterns, they saved on carbon emissions and shipping costs:

“The value proposition is as simple as getting from point A to point B: optimized trucking and shipping routes mean less miles traveled, less miles traveled means less gas used by trucks, less gas used by trucks means less CO2 emissions. Logistics software can manage more than just fastest distance from point to point. This type of logistics software helped UPS shave 28.5 million miles off its delivery routes, which has resulted in savings of roughly 3,000,000 gallons of gas and has reduced CO2 emissions by 31,000 metric tons – just by eliminating left hand turns out of their delivery routes”

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