Bad deliveries drive away customers. In 2018, 84% of customers were unlikely to shop at the same retailer after a bad experience with shipping or late delivery. Dealing with the high bar customers have set for companies is expensive. In 2017, US businesses spent nearly $1.5 trillion on logistics and shipping, $90 million more than 2016. U.S. businesses saw prices rise throughout the entire supply chain. The number one challenge for shipping companies right now is customer expectations.
Nine out of every ten customers expect a refund for late delivery, or they will take their business elsewhere. To reach these high expectations, companies must be able to find and correct inefficiencies and understand their causes to be able to prevent them in the future. One problem is the inefficient means of transporting tools, goods, and people to where they need to be.
UPS Orion used new algorithm-optimized routes for distance, fuel, and time. Reduced fuel consumption, less time wasted, and less CO2 emissions are the result of this system. CO2 emissions were cut by 100,000 metric tons per year and $400 million in total avoided costs per year.