Cost optimization is one of the keys to transforming operations and achieving better results. A great example comes from UPS, a logistics giant, which implemented a surprising policy to reduce costs: avoid turning left whenever possible.
Since 2004, the company has been implementing this curious strategy in its U.S. operations. In the country, drivers can turn right, even when the light is red, as long as the road is clear. On the other hand, turning left usually means more time in traffic, higher fuel consumption, and an increased risk of collisions.
By eliminating most left turns, even if the route became longer, UPS optimized routes and saved 38 million liters of fuel. This led to a reduction of 20,000 tons of CO2 emissions and saved more than R$ 200 million annually. Additionally, with this simple and unusual change, the company was able to make 350,000 additional deliveries every year.
Many MyABCM clients, including major names in the logistics sector such as Correios do Brasil (Brazilian Post), OPT Nouvelle-Calédonie (New Caledonia Post), and Poste Maroc (Barid Al Maghrib – Moroccan Post), know that efficient management starts with the ability to measure and understand every detail of costs. With MyABCM, these companies can map costs in a granular way, identify bottlenecks, and create strategies that maximize efficiency.
UPS’s case highlights the importance of evaluating every operational decision with precision. The “right turn” policy was even validated by the “MythBusters” TV show, which compared two vehicles: one following the rule and the other ignoring it. The vehicle that avoided left turns consumed less fuel, proving the strategy’s effectiveness.
Detailed simulations, such as those offered by MyABCM, allow companies to go beyond simply looking for the shortest path and focus on the most efficient one. This level of detailed analysis can lead to significant savings and optimize operations on a large scale.
Small adjustments, like UPS’s “right turn” policy, show how seemingly simple and even odd decisions can have a transformative impact on costs and sustainability. Is your company also prepared to identify these opportunities and optimize results?
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