UPS wants to improve its delivery density, or the number of deliveries made on a single route, to reduce its carbon footprint, according to EVP and Chief Digital and Technology Officer Bala Subramanian at the 2023 UPS Impact Summit on October 17, 2023.
UPS is trying to increase its deliveries-per-stop ratio from 1.28 to 1.4, leaning on technologies like machine learning. UPS aims to halve its CO2 per package delivered in its global operations by 2035, compared to 2020.
Improving delivery density has long been on UPS’ radar. This can eliminate unnecessary emissions, make more efficient use of transportation assets, and reduce costs.
UPS launched this initiative in partnership with CommerceHub, which was unveiled in 2022. Through the project, the technology company virtually holds an order until it can be matched with another shipment to the same destination. Still, the hold’s duration will only last as long as the service level agreement allows.
UPS has pursued better delivery density for years, but it has tried to tackle the issue downstream rather than upstream when the order is made.
Another UPS machine learning initiative is to prevent ‘porch piracy’. Machine learning algorithms that assign delivery addresses a confidence score based on address-specific data are working with retailers, including Costco Wholesale.
Source: Supply Chain Dive