Successful integration of operations research increases earnings by $10 Million.
Schneider National, Inc., a premier provider of transportation, logistics and intermodal services, announced it has been named the winner of the Institute for Operations Research and the Management Sciences’ (INFORMS’) annual INFORMS Prize. The international scientific society recognized Schneider for its effective integration of operations research (O.R.) into organizational decision making. INFORMS presented the award to Schneider in November 2006 at its annual meeting at the Carnegie Museum in Pittsburgh. Only one company receives the international award every year.
For more than 25 years, Schneider National has used O.R. in decision making throughout its strategic, tactical and operational levels. INFORMS recognized the company for doing so in “pioneering, varied, novel and lasting ways.’ Specifically, Schneider enhanced its processes in shipment and driver planning, revenue management, dedicated fleet management and operational decision support ’ leading to an annual earnings increase of $10 million.
“Schneider has long believed in the use of O.R., and is honored to be selected by an organization dedicated to educating and elevating its use by professionals around the world,’ said Ted Gifford, vice president of engineering and research at Schneider National. “We have built customized, integrated solutions for our customers and gained a competitive edge. The end result is that our shippers benefit from better service and more cost-effective pricing ’ important given today’s continuously rising transportation costs.’
Because the movement of freight involves more than transporting goods from one location to another, science plays a significant role in the development of efficient transportation networks. Through the use of O.R., Schneider Engineering leverages scientific methods such as mathematical modeling, statistics, and computational algorithms to make informed decisions surrounding the staging and dispatch of its fleet.
“Our goal is to use a variety of science-based methods to determine the best solution to customer and business challenges in order to remain a top performer in the industry,’ added Gifford. “O.R. is the true ‘science behind the trucks’ and is a major contributor to our success ’ we will continue to apply it as we further expand our reach worldwide.’
The Institute for Operations Research and the Management Sciences is an international scientific society with 10,000 members, including Nobel Prize laureates, dedicated to applying scientific methods to help improve decision making, management and operations. Previous winners of the INFORMS Prize include UPS, Hewlett-Packard, IBM, Procter & Gamble, and Air Products and Chemicals, Inc.