White Paper

Analytical Improvement Plan

Delivery Data Collection and Integration

Author: Group 7

Analytical Improvement Plan

Delivery Data Collection and Integration

Author: Group 7

55 Glenlake Parkway NE Atlanta, GA 30328

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55 Glenlake Parkway NE Atlanta, GA 30328

A

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P: 352-368-3737 F: 1-904-693-4567

P: 352-368-3737 F: 1-904-693-4567

Executive Summary

Executive Summary

UPS has been the world’s largest logistics company for the past 7 years. However over the last couple years, UPS has fallen back and has not been able to meet the shipping demands of online retailers. UPS ships 60% of Amazon’s orders and as Amazon’s sales continue to grow, UPS’s revenue remains flat, as shown in Figure 1.0 (Stevens, 2014). During the last holiday season, UPS shipped 132 million packages in the week leading to Christmas. Even with that much volume, profit margins were slim. In order to remain competitive and keep the business of major online retailers like Amazon, UPS needs to find areas to cut costs and improve efficiency.

Figure 1.0

Executive Summary cont.

Executive Summary cont.

Business analytics has received much attention in the recent years. Companies are gathering large amounts of data and using analytic software to find patterns and trends to make better business decisions. Currently, UPS uses analytics at the corporate level to make strategic business decisions and has seen much success. The same success could be seen at the operational level. Analytics could improve delivery rates and ensure customers receive packages on time.

Telematics is already in place in each UPS delivery truck. The data received from these systems is now used to ensure...