UPS Expands Digital Transformation With RFID and DAP Tech

Core Insights - UPS achieved significant milestones in digital transformation and operational efficiency in 2024, driven by the Digital Access Program (DAP) and RFID tagging technology [1] Digital Access Program (DAP) - DAP generated $3.3 billion in global revenue, reflecting a 17% year-over-year increase, and contributed significantly to UPS's overall growth [2] - Small and medium-sized businesses (SMBs) accounted for 28.9% of UPS's total U.S. volume in Q4 2024, benefiting from discounted shipping rates and seamless integration with eCommerce platforms [2] RFID Technology Implementation - UPS equipped 60,000 U.S. package cars with RFID sensors, reducing the need for manual scans by approximately 12 million per day, enhancing package visibility and tracking accuracy [3] - Retailers integrating RFID tagging into their supply chains have improved visibility and control over stock levels, making UPS's RFID-enabled services a key differentiator in the logistics market [4] Operational Efficiency and Cost Savings - UPS announced the insourcing of its SurePost service, aiming for$ 1 billion in annualized savings through its "Efficiency Reimagined" initiative [6] - The company is strategically reducing its volume handled for Amazon by 50% by mid-2026, focusing on more profitable market segments [7][8] Financial Performance - Fourth-quarter revenue increased 1.5% to $25.3 billion, while full-year revenue grew slightly to$ 91.1 billion [9] - The U.S. Domestic segment revenue fell 2.2%, driven by higher revenue per piece and growth in air cargo, while the international segment saw a 6.9% increase [9]