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UPS's New Machine-Learning App Aims To Reroute Packages Away From Snow and Other Trouble Spots in its Global Network (technologyreview.com)

If a snowstorm hits Denver, it can delay thousands of packages that travel through the city before reaching their final destinations on the other side of the country. But if UPS knows a storm is coming, what is the most efficient way to divert all those online orders and holiday gifts around the bad weather? UPS grapples with this question every winter. From a report: To help, UPS recently built an online platform that combines machine learning and advanced analytics. The app -- called Network Planning Tools, or NPT for short -- lets the company's engineers view activity at UPS facilities around the world and route shipments to the ones with the most capacity. They can also see details about the packages in transit, including their weight, volume, and delivery deadlines. While UPS already has a system called ORION that maps out last-mile delivery routes, and a program called EDGE focused on upgrading UPS facilities, NPT gives its engineers a bird's-eye view of package volume and distribution across all its pickup and delivery operations.

The app gets some of its smarts from AI, which it uses to create forecasts about package volume and weight based on analysis of historical data. Rob Papetti, who leads NPT development for UPS, says the machine-learning algorithms also analyze decisions the company's engineers made and assess how they affected customer satisfaction and internal costs. "[The app] starts to learn from itself and suggest this option versus that option, based on what enabled us to give our customers better service," he says.

That kind of insight is crucial during the frenetic holiday season. This year, UPS expects to deliver more parcels during that period than ever before --nearly 800 million, up 5% from 2017. In preparation, the company has used the NPT app to identify and eliminate bottlenecks, such as an Illinois facility that was struggling to process packages quickly. "Within a few minutes, we were able to determine how to get around and relieve [the backlog in] that building and still make our service commitments to customers," says Papetti. "Before NPT, that would have taken at least a week." UPS expects the program to save it $100 million to $200 million a year.

30 comments

  1. Maybe solve the small problems first by Anonymous Coward · · Score: 0

    Seems like every time I ship something through UPS it takes twice as long than the delivery I paid for. It has nothing to do with weather . Use your machine learning on the problem

    1. Re:Maybe solve the small problems first by BringsApples · · Score: 1

      They're trying to cut costs. Maybe they'll transfer any savings to you.

      --
      Politics; n. : A religion whereby man is god.
    2. Re:Maybe solve the small problems first by Fly+Swatter · · Score: 1

      They are passing those cost savings to me, they delivered my neighbor's package to my door yesterday! Didn't cost me a cent. Maybe it was snowing at his location?

    3. Re:Maybe solve the small problems first by Anonymous Coward · · Score: 0

      Well, the weather impacts logistics. You realize that they already have AI for their other purposes. Only maybe 20% of their capability is for routing. And a very small part of that on an operational basis.

  2. Use existing routing protocols by Anonymous Coward · · Score: 0

    BGP or other routing protocols can be used for routing physical packages as well as IP packages.

    You offline Denver because of snow, and secondary routes comes into play. Simple as that.

    1. Re:Use existing routing protocols by forkfail · · Score: 1

      Yes, but that doesn't synergize the deep learning network pipeline with leveraging personalized actionable analytics.

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      Check your premises.
  3. But Where's The AI? by Anonymous Coward · · Score: 4, Insightful

    In real terms, how is this different then just using historical data and sensors to make rules to route around bottlenecks as they are developing? Yes, this is overall good for the company but it looks like Buzzword Bingo Bullshit to temporarily goose the stock a few points on Wall St. All that's missing is a reference to blockchain. This is not AI or even ML, just basic analytical monitoring and historical reporting.

    1. Re: But Where's The AI? by Anonymous Coward · · Score: 0

      Amazing that it can use AI and ML at the same time as using all the other logistical systems without creating any new bottlenecks. That has never been possible before in my experience. Most logistics are not weather aware but AI can handle that

    2. Re:But Where's The AI? by Anonymous Coward · · Score: 0

      In real terms, how is this different then just using historical data and sensors to make rules to route around bottlenecks as they are developing? Yes, this is overall good for the company but it looks like Buzzword Bingo Bullshit to temporarily goose the stock a few points on Wall St. All that's missing is a reference to blockchain. This is not AI or even ML, just basic analytical monitoring and historical reporting.

      Cloud!

    3. Re:But Where's The AI? by 110010001000 · · Score: 1

      In 2018 any computer program with an algorithm is considered "AI" or "Machine Learning".

  4. Have they figured out the important stuff? by Anonymous Coward · · Score: 2, Interesting

    FedEx bills everything including accessorial charges at once... UPS bills based on an estimate, then follows up later with charges that may or may not link to the originals... so you can't chargeback to the customer easily. I have watched a UPS delivery person drop boxes on the ground off the back of a truck, and when we complained they were replaced by another rep who was seen doing the same thing. So our company decided to take our $2.5 million per year package delivery business and give it to FedEx. Seems they are cheaper than UPS too. The only time we use UPS now is when a customer requires it or the service in that area means FedEx packages would be delayed.

    anon because I want to keep my job and that means not disclosing my employer.

    1. Re:Have they figured out the important stuff? by Anonymous Coward · · Score: 0

      Your explanation probably explains why we have so many individual invoices for FedEx, compared to UPS. It probably corresponds to delivery dates and closing out any final charges with FedEx, compared to UPS who bills you earlier, then later on makes adjustments. That would make sense, and we have always wondered why it feels like we have 10 FedEx bills for every 1 UPS bill, despite using both carriers daily for around the same number of packages..

      FedEx can be cheaper than UPS. UPS lacks a flat rate solution. FedEx has OneRate, and this year got aggressive with rates to take business away from USPS.
        Guaranteed nationwide 2 day delivery, plus Alaska and Hawaii, for prices I didn't believe that I only tested one package and waited for the bill.

      I'd say both carriers suffer from questionable delivery staff.
      UPS is union. FedEx are self-employed (perhaps only for Ground, or only Express, can't remember, but I was told the owners of the routes could simply go home for the day and your only recourse is... not enough recourse.)

      Pick your poison.

      Anon for similar reasons.

  5. If only by nehumanuscrede · · Score: 1

    They could apply the same algorithm to route the expensive, fragile packages around their employee(s) who seem to delight in doing everything in their power to destroy them :|

    The primary reason I don't order $$$ items from an online retailer is due to the 50 / 50 chance of it arriving undamaged.

    1. Re: If only by Anonymous Coward · · Score: 0

      Then just give them a bad review they will shape up. If not today, then very soon.

    2. Re:If only by Anonymous Coward · · Score: 0

      lies. 50% of the stuff you purchase online did and does not arrived damaged.

    3. Re:If only by Anonymous Coward · · Score: 0

      I've been in a new FedEx facility (this is a UPS article, but still, UPS builds new facilities too) in my area where they claim to only have 2 touch points for humans. I witnesses boxes going down sloped rams and slamming into the wall of the bottom conveyor system. Doesn't matter if the employees treat the fragile packages any differently if the employee-less system is going to do that.

      The online retailer needs to package their products to survive minimum abuse. And guess who offers such package testing? UPS. You can actually get a pretty detailed lab report back with images and the tests run. They will drop it from all sorts of heights. They gave us a redacted one from a client who was shipping a similar product. UPS has a department that has little to do with transportation, and more to do with the automation and efficiency of your business. Pretty neat, but I digress.

  6. What happens if you're shipping to Alaska? by Anonymous Coward · · Score: 0

    Have they thought this through?

  7. Relevance by darkain · · Score: 1

    The most relevant tweet ever made about AI is still just as relevant today: https://twitter.com/iamdevlope...

  8. Meanwhile... USPS is still confused by mspohr · · Score: 1

    I had a package shipped from S. California to me in N. California. It spent 2 weeks in City of Industry USPS sorting facility waiting for "acceptance". They tell me it might be delivered by Friday if I'm lucky.
    No snow yet this year but there will be snow by Friday so I think they were waiting for snow to deliver it so they could do their "Neither rain nor snow... etc." thing.

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  9. How about ... by PPH · · Score: 1

    ... not using a shipping hub with shitty weather like Denver? Fly in and out of places like Nevada or New Mexico instead.

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    Have gnu, will travel.
    1. Re:How about ... by Anonymous Coward · · Score: 0

      That's a great idea.I'm sure making mail travel long distances to hubs won't cause problems. New England doesn't need a hub anyway. \s

    2. Re:How about ... by PPH · · Score: 1

      New England doesn't need a hub

      Nobody is going to use New England as a hub for anything. It's either a start or end point for shipping. And if the weather there goes to hell, there is no way to route around it. Your mail/packages will just have to wait. Unless your alternative is to load them on dog sleds.

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      Have gnu, will travel.
  10. Small amendement by nospam007 · · Score: 1

    "Neither snow nor rain nor heat nor gloom of night stays these couriers from the swift completion of their appointed rounds" ...unless AI told us so.

  11. They are slow to implement routing concepts by Targon · · Score: 1

    Going back several decades, network protocols such as OSPF were designed as a way for networks to automatically reroute around problems and to allow for manually adjusting for things like congestion on a network to route around problems. It should NOT have taken this long for a company like UPS to come up with something similar to route around problem areas when it comes to traffic. People with a computer science degree should have been brought in back in the 1990s to come up with a good package routing system, and with all the new information available, to even be able to switch from air to ground or ground to air as a way to address changes to transportation infrastructure that would improve transportation times.

  12. This will be popular in Canada by WillAffleckUW · · Score: 1

    Oh.

    Wait.

    Hmm, maybe not.

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  13. Away from snow? by Anonymous Coward · · Score: 0

    They will re-route packages away from snow? Where I live in Canada is basically a blizzard 8 months of the year and snow piled over your shoulders. So they will only deliver to Canada 4 months of the year then?

  14. Woof by Anonymous Coward · · Score: 0

    The way it is now, packages that're 'diverted' in-transit to Redmond, WA, get ripped open by the fake DEA, and the contents "inspected" by drug-sniffing dogs, leaving dog whisker fragments & dog slobber behind. The dipshits usually open the bottom of the box, & do a piss-poor job of sealing it back up. Be wary of shipping cartons sitting upside down on your front porch.