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The United Parcel Service (UPS)
The United Parcel Service (UPS), a worldwide known American logistics and package
delivery company, is an example of a real-life private for-profit firm that is effectively
incorporating artificial intelligence (AI) into its day-to-day operations. Established in 1907 and
based in Atlanta, Georgia, UPS is one of the biggest package delivery companies with operations
in more than 220 countries and territories. With over 500,000 employees and a fleet of about
127,000 vehicles, UPS processes over 24 million packages a day. It caters to a wide range of
customers, from individual consumers to small businesses and large enterprises, in different
industries, including e-commerce, retail, healthcare, and manufacturing. UPS is a company that
is based in the logistics and transportation industry, an industry that depends a lot on precision,
timeliness and efficiency (Gupta et al., 2023).
AI Application Used
In the recent past, UPS has embraced the use of advanced technologies such as artificial
intelligence to improve its logistics and efficiency in operations. One of the most powerful AI
applications at UPS is its ORION (On-Road Integrated Optimization and Navigation) system.
ORION majorly relies on machine learning, an important branch of AI, which enables computer
systems to learn from data and enhance performance without being programmed (Giuffrida et al,
2022). Although other AI sub-disciplines, including deep learning and cognitive computing, also
contribute to the system’s overall functionality, the essence of ORION is in machine learning
algorithms that process and optimize huge datasets (García, 2024). The major task of ORION is
route optimization. utilising data to map out the most efficient routes for UPS drivers, in real-
time (Farahani et al., 2021).
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In layman’s terms, the ORION system collects data from other sources such as delivery
of packages addresses, traffic flows, weather report, vehicle performances, as well as historical
data of shipments and then apply AI algorithm suggestions for the most optimal way for drivers
to follow. Instead of using fixed or manually planned route, ORION is a continuous condition
evaluator and route optimiser to save time, fuel, and deliver reliability (de Araujo & Etemad,
2020). A version of ORION that is a more recent improvement, known as Dynamic ORION,
offers further flexibility in allowing for route changes during the day when new packages come
in or the conditions of delivery change (Adeoye et al., 2025).
The Operational Role it takes in the Organization
Operational function of AI at UPS and especially the ORION is an essential element of
the core logistics operations of the company. In the morning, ORION processes millions of bits
in order to give thousands of drivers in North America optimized routes. It is not just residential
deliveries but also critical business shipments, and gratuitous healthcare package-deliveries. The
system leverages historical records and real-time information to identify when and where
packages should be delivered such that drivers do not get delayed because of road closure, jam-
ups or bad weather (Wang et al., 2024). As a result, AI facilitates in controlling a huge and
complex logistical system in real-time in the most efficient manner with minimum cost (de
Leeuw et al., 2023).
Moreover, the AI functions of ORION go beyond routing. Through analyzing delivery
data over time, ORION reveals the customer preferences in terms of delivery, peak periods, and
possible operational bottlenecks. Such insights are disseminated throughout UPS departments,
and they help to optimize the staffing, warehouse operations, and customer service. UPS also
uses natural language processing (NLP), another AI subfield, in its customer service chatbots,
The United Parcel Service (UPS)
The United Parcel Service (UPS), a worldwide known American logistics and package
delivery company, is an example of a real-life private for-profit firm that is effectively
incorporating artificial intelligence (AI) into its day-to-day operations. Established in 1907 and
based in Atlanta, Georgia, UPS is one of the biggest package delivery companies with operations
in more than 220 countries and territories. With over 500,000 employees and a fleet of about
127,000 vehicles, UPS processes over 24 million packages a day. It caters to a wide range of
customers, from individual consumers to small businesses and large enterprises, in different
industries, including e-commerce, retail, healthcare, and manufacturing. UPS is a company that
is based in the logistics and transportation industry, an industry that depends a lot on precision,
timeliness and efficiency (Gupta et al., 2023).
AI Application Used
In the recent past, UPS has embraced the use of advanced technologies such as artificial
intelligence to improve its logistics and efficiency in operations. One of the most powerful AI
applications at UPS is its ORION (On-Road Integrated Optimization and Navigation) system.
ORION majorly relies on machine learning, an important branch of AI, which enables computer
systems to learn from data and enhance performance without being programmed (Giuffrida et al,
2022). Although other AI sub-disciplines, including deep learning and cognitive computing, also
contribute to the system’s overall functionality, the essence of ORION is in machine learning
algorithms that process and optimize huge datasets (García, 2024). The major task of ORION is
route optimization. utilising data to map out the most efficient routes for UPS drivers, in real-
time (Farahani et al., 2021).
, 2
In layman’s terms, the ORION system collects data from other sources such as delivery
of packages addresses, traffic flows, weather report, vehicle performances, as well as historical
data of shipments and then apply AI algorithm suggestions for the most optimal way for drivers
to follow. Instead of using fixed or manually planned route, ORION is a continuous condition
evaluator and route optimiser to save time, fuel, and deliver reliability (de Araujo & Etemad,
2020). A version of ORION that is a more recent improvement, known as Dynamic ORION,
offers further flexibility in allowing for route changes during the day when new packages come
in or the conditions of delivery change (Adeoye et al., 2025).
The Operational Role it takes in the Organization
Operational function of AI at UPS and especially the ORION is an essential element of
the core logistics operations of the company. In the morning, ORION processes millions of bits
in order to give thousands of drivers in North America optimized routes. It is not just residential
deliveries but also critical business shipments, and gratuitous healthcare package-deliveries. The
system leverages historical records and real-time information to identify when and where
packages should be delivered such that drivers do not get delayed because of road closure, jam-
ups or bad weather (Wang et al., 2024). As a result, AI facilitates in controlling a huge and
complex logistical system in real-time in the most efficient manner with minimum cost (de
Leeuw et al., 2023).
Moreover, the AI functions of ORION go beyond routing. Through analyzing delivery
data over time, ORION reveals the customer preferences in terms of delivery, peak periods, and
possible operational bottlenecks. Such insights are disseminated throughout UPS departments,
and they help to optimize the staffing, warehouse operations, and customer service. UPS also
uses natural language processing (NLP), another AI subfield, in its customer service chatbots,
