Proving the Business Case for the Internet of Things

UPS rolls out telematics in Singapore

Steve Rogerson
November 19, 2015
 
UPS is rolling out telematics technology to its Singapore delivery fleet. The proprietary system works with the DIAD delivery information acquisition device, a handheld device used by UPS drivers during deliveries to gather data for analysis to improve safety, service and performance throughout UPS’s service network.
 
“Telematics is an exciting example of how UPS integrates human variables and technology advancements to support organisational efficiency,” said Ingrid Sidiadinoto, managing director of UPS Singapore. “Raising operational efficiency has always been a hallmark of our service to customers and being able to do that in a sustainable manner will positively impact our environmental footprint, while helping us better serve our Singapore customers.”
 
UPS vans and trucks have been equipped with energy informatics sensors that track and transmit more than 200 vehicle-related elements – ranging from a driver’s speed, number of reverses made, time spent idling or stopping, to how often the brakes are applied, and other data – to data warehouse computers for analysis using an in-house developed software programme. The analysis is reviewed by UPS’s operations management team to identify safety breaches and inefficiencies, and then used to effectuate operational enhancements.
 
For example, UPS drivers receive daily detailed reports generated from telematics data, empowering them to practice safe driving behaviour, compare their performance with internal benchmarks, and set personal goals for increasing efficiency.
 
UPS is also able to optimise maintenance of its fleet by analysing mechanical variables and carry out repairs and maintenance on each vehicle only when required, as opposed to preventative-based maintenance following a fixed schedule. This reduces unnecessary costs without compromising on the need to keep the fleet roadworthy at all times and prevent breakdowns, delays and accidents on the road.
 
“Introducing a diagnostic analytics tool like telematics to our Singapore operations helps us anticipate problems and take action before they occur,” said Sidiadinoto. “We are pleased to be the first UPS market in Asia to pioneer the use of telematics and look forward to delivering the best level of customer service by making our operations as efficient as possible.”
 
In 2014, the use of telematics throughout UPS’s US express, freight forwarding and ground freight fleets enabled the company to avoid 281 million minutes of idling time, equivalent to 7.57 million litres of fuel and 19,000 metric tonnes of CO2.