UPS recently announced that it has fully deployed Radio Frequency Identification (RFID) technology in its U.S. small package network, applying the technology to all delivery vehicles, national distribution facilities, and over 5,500 stores. This technology upgrade, with an investment of over $100 million, enables UPS to achieve real-time visual tracking of packages from pickup to delivery without relying on manual scanning, marking its logistics system's transition from traditional "scanning" to "sensing." The technology can automatically identify the location of packages. For example, when a package is loaded onto the wrong vehicle, the system can immediately issue an alert, reducing such errors by nearly 70%. For customers, this enhances logistics transparency, allowing them to more clearly track the status of their packages without incurring additional technical costs. This deployment is part of UPS's overall automation strategy, which aims to gradually phase out manual barcode scanning in favor of sensor-based automated systems. In terms of cost control, UPS continues to optimize operations through automation transformation. By 2025, the cost per piece processed at its automated facilities will be 28% lower than that at traditional facilities, and it plans to transfer 68% of its U.S. package processing volume to automated facilities by the end of 2026. Accompanying this, the company also plans to further cut 30,000 jobs by 2026.

Source: ChuHai Wang