BDE2016

1. Big Data Delivers Big Results 21 September , 2016
Nick Costides
Vice President of Information Technology,
UPS

2. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 2
6,689,502,913,449,135,000,000,000,0
00,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,00
0,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,00
0,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000

3. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 3

4. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 4
Big savings come from attention to detail.
1 km is worth over
€25M*
1 minute is worth
€13M*
1 minute of idle
time is worth
€460K**
Note: Figures are per driver per day across the US for a year
* Small Package P/U and Delivery drivers
** Small Package P/U and Delivery, Freight and Tractor / Trailer drivers

5. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 5

6. Breakthrough Change
UPS Data
Infrastructur
e
Customer
Address
Geography
(Map)
UPS
Proprietar
y
Regulatory
GPS
Vehicle
Service

7. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 7
Operations process vision
uses UPS’ rich data infrastructure to:
• Analyse situation and forecast future demand
• Develop plans based on forecast
• Execute the plans
• Monitor, adjust, close the loop

8. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Big Data Drives
Global GDP!
8

9. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Delivery Forecasting
and Planning
Each package planned on the right
vehicle for the right day

10. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
The Impact (so far)
135 million
kilometers driven
reduced32 million liters
of fuel reduced
85,000 cubic tons of
emissions reduced
95% reduction
in preloader
training time
Highest service
levels in
history
First of their kind
product offerings
>99.9% seatbelt usage 8 Billion fewer manual
entries by drivers
Real World Results: E(nergy) + I(nformation) = < E

11. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
Organizations hunger to move up the
analytics hierarchy
70%
Descriptive
What happened?
30%
Diagnostic
Why did it happen?
16%
Predictive
What will happen?
3%
Prescriptive
What should we do?
Advancing Analytics
Analysis
Structured Hybrid Unstructured/
Content

12. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
On-Road Integrated
Optimization &
Navigation (ORION)
Driver’s Route
Optimizes a driver’s route using:
– Advanced mathematical models
– Data from planning systems
– Customized map data
Accounts for business rules,
customer needs, and service
commitments
Allows “what if” analysis and
decision making

13. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
13
Approximate age of the earth (in seconds):
145,065,600,000,000,000
Number of ways to deliver 120 stops:
6,689,502,913,449,135,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,
000,000,000

14. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 14
Competing in the new entrepreneurial economy
Don’t just embrace
data…
Understand it
Always remain… Limitations lead
to…
Innovatio
n
Constructively
dissatisfied

15. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 15
A powerful team can transform a business…

16. Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved. 16
Expansion gives us the opportunity to
exercise imagination, ingenuity,
resourcefulness, initiative and leadership.
- Jim Casey, 1944

17. Thank you