US Postal Service Uses Transportation Modeling to Reduce Transportation Costs

ILOG announced that the United States Postal Service has realized over US$5 million in annual savings through a strategic transportation management initiative.

Developed by USPS and IBM using ILOG CPLEX optimization software, the Highway Corridor Analytic Program (HCAP) uses advanced technology to analyze USPS highway transportation scenarios and identify cost saving opportunities. The HCAP model examines routing and scheduling options to minimize costs while meeting business goals - leading to a savings of over US$10 million in the two years since the model was deployed in

2006.

The HCAP model uses specialized optimization technology to identify the best allocation of mail among transportation resources. Optimization technology enables quick calculation of the best possible utilization of resources – including vehicles, people, time, processes, equipment, raw materials, supplies, capacity, and securities - needed to achieve a desired business result, such as minimizing cost or process time or maximizing throughput, service levels, or profits.

USPS, www.usps.com

ILOG, www.ilog.com