A Greenification Success Story: U.S. Postal Service

January 20, 2009

We all know that this year, we’re going to have to Greenify in two ways: for the environment and for our back-pockets.  The economic concerns that are hitting our businesses are mounting but what if we could help the environment AND cut our costs?

The United States Postal Service said it did that last year, saving $5 Million by consolidating some of its transportation. 

The USPS deployed a transportation optimization system that consolidated trips.  The program was developed with IBM to analyze operations, loads, and routes to determine the best way to make sure the mail gets through while saving gas and expensive employee hours.

The Highway Corridor Analytic Program (HCPA) was put in place in 2006.  It helps USPS find the best way to allocate mail among its transportation resources.

Of course, the Postal Service has various transportation methods for moving around mail, depending on the type of mail and when it needs to be delivered. Our letters and packages flow through a number of networks, along processing routes and into distribution centers with some trips still overlapping.

But they did it!  They looked for ways to conserve and they did, saving energy, lowering cost, shrinking their carbon footprint and in the end, cutting the bottom line.  (You may use mostly email, but doesn’t it still bug you every time they ask for an increase in the price of stamps?)

Could you use a similar system on a smaller basis for your business?  You might be able to do it the old-fashioned way, on paper (or a spreadsheet) and without involving IBM.  Organize your schedule of weekly (monthly, quarterly) deliveries and pickups.  Talk to your drivers and customers.  Then lay out the routes, times, truck capacities, and end points. 

This year may be the year that doing a little extra brain-work offers the extra businesses that keep the bottom line in the black.  Simply spotting a few overlapping delivers could save money and allow you to Greenify.

Back to the USPS: savings of $1.3 million annually in Chicago, $3.7 million on the West Coast, and $400,000 in Greensboro and Pittsburgh, adding up to more than $5 million and over 615,000 gallons of gas saved per year.  That’s Greenification that gets thru in wind, sleet, or snow!


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