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UPS expands RFID deployment to woo shippers, up productivity
Yahoo Finance· 2026-02-03 10:00
Core Insights - UPS is focusing on RFID technology as part of its "Smart Package Smart Facility" initiative to enhance its network and attract more shippers [3][4] - The company aims to improve package throughput and reduce labor-intensive tasks through increased automation and RFID implementation [6][7] Group 1: RFID Implementation - UPS is enhancing its appeal to large enterprise retailers by providing RFID offerings that improve inbound visibility and workforce management [4] - The installation of RFID sensors in vehicles has eliminated 12 million scans daily in 2024, with 66% of the package car fleet already equipped with this technology [6] - RFID labels are now available for packages at all 5,500 The UPS Store locations, processing 1.3 million packages daily, which enhances shipment visibility and reduces defects [8] Group 2: Digital Access Platform - The Digital Access Platform has grown significantly, with revenue increasing from $139 million in 2020 to $4.1 billion by the end of 2025, attracting small- and medium-sized businesses [5] - The platform connects to e-commerce platforms, offering rate discounts and services that are beneficial for businesses selling through partners like eBay and Shopify [5][6] Group 3: Automation and Network Optimization - UPS is transitioning to a smaller and more agile network due to reduced volume from major customer Amazon, with a goal to increase U.S. volume processed through automated facilities from 66.5% in 2025 to 68% this year [7] - The company is committed to investing in capabilities that will help win new business and improve operational efficiency [6][8]