The efficiency benefit of eliminating van keys at UPS

A Wall Street Journal article (Sept 26, 2011) describes the efficiency benefit to eliminating keys for vans – they are instead using a keyless system to start vehicles with a digital remote fob on the drivers belt.  UPS claims to save time spent taking keys out of the ignition, turning around to unlock the bulkhead door etc – a total of 6.5 minutes per day which will generate an estimated $ 70 million in savings, in addition to reducing motion and fatigue.  Is this the kind of “kaizen” one should expect with logistics systems ? How can these ideas be incoporated by van manufacturers to save costs throughout the industry ? Would you expect these cost savings to be passed on to consumers as lower shipment costs ?

Unknown's avatar

About aviyer2010

Dean and H. William Lichtenberger Chair in Management at the School of Management, University at Buffalo, State University of New York.
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , . Bookmark the permalink.

Leave a comment