UPS implemented a computer-based dispatch system starting in about 2002. This new system would allow a supervisor to see forecasted volumes based on actual pick-up scans and have a very good idea of how much work each delivery route would be delivering. This would allow the work to be balanced out and appropriate levels of routes to be put out on a given day. The idea would be to optimize the routes so that less miles were driven, less time would be spent by the driver “sorting” the load, and deliveries would be more efficient.

What ended up happening was that dispatch supervisors wanted to please everyone and realized there were a lot of things they could do to “customize” the routes the way the delivery driver wanted. The system could be easily manipulated. So a huge multi(multi-multi)-million dollar system, that was supposed to pay for itself in a short period of time in increased productivity, was in fact making for less productivity. UPS cared a little bit, but business was booming and so no one really cared too much. We did save about 2 million miles year to year upon implementation as a company, but compared to the implementation cost…still a huge loss.

Along comes the economic storm. We realize that this dispatching system can really work. The third level manager above the dispatch supervisor gets involved in daily conference calls with the dispatchers, letting them know how important it is. And providing incentive (not getting questioned for poor results in front of your peers) to do well. This upper management person learned the system very well to the point where he could call out the bluffs and clear away the manipulations. As you point out in your article, when the top end of the management structure gets involved, the new technology can really gain steam.

Now the technology is utilized. There are no longer daily conference calls, the message has been sent out that the technology will be used, and used appropriately to gain productivity. But it took 7 years and a lot of conflict. Imagine how much of a better situation UPS would be in if the implementation had been taken 7 years ago?