Operators of IP/MPLS networks need to optimize their existing network infrastructure, increase the options available to existing services and potentially create new service offerings. In this environment, traffic engineering is vital to success. Segment Routing (SR) provides traffic engineering capabilities without the scaling constraints of Resource Reservation Protocol- Traffic Engineering (RSVP-TE). A path Computation Element (PCE) resolves some of the issues of distributed path computation. This paper explains how SR combined with PCE can optimize path placement and improve efficiency in networks.