- Project Title:
- Dynamic Route Optimization
- Start Date:
- Monday, February 11, 2019
- Estimated Report Release Date:
- August 2019
The U.S. Postal Service currently spends about $4.3 billion annually on highway transportation costs and intends to reduce these transportation costs through various initiatives. Dynamic Routing Optimization (DRO) is an initiative that targets the optimization of USPS Highway Contract Route (HCR) and Postal Vehicle Service transportation mileage and costs.
Surface transportation routes are normally static (fixed schedule) and operate regardless of mail volume. These static routes limit the ability to gain efficiencies from combining service and reducing overall miles within the transportation network. The DRO initiative allows surface transportation routes to be more flexible and responsive to demands, giving it the ability to consolidate and expand routes based on real-time and projected service demands and mail volumes. This DRO approach requires the use of a Transportation Management System and forecasted mail volumes, which are used to optimize local distribution networks at the Postal facilities.
Our objective of this audit is to evaluate the cost savings for the implementation of the Postal Service’s DRO initiative.
- What dynamic routing processes are working/not working?
- What can the Postal Service do to ensure the forecasted manifests are timely and accurate?
- What are the challenges, efficiencies and deficiencies of the DRO program and what improvements can be made?