UPS has rolled out radio frequency identification (RFID) labels for packages at all 5,500 The UPS Store locations across the US, according to CEO Carol Tome. Applying RFID tags at the point of origin significantly enhances order visibility throughout the "order to cash" cycle, a key concern for customers. This system handles approximately 1.3 million packages daily.
Furthermore, the company has equipped all its US delivery vehicles with RFID readers. This allows vehicles to automatically identify packages, optimizing delivery processes and minimizing errors.
This new capability strengthens UPS's competitiveness with commercial clients, according to company leadership. Large retailers value RFID for its ability to precisely track goods arriving at warehouses, enabling proactive workforce allocation and efficient processing of incoming orders.
This initiative is part of UPS's "Smart Package Smart Facility" strategy, aiming to attract more customers and boost network productivity. Beyond RFID, UPS has invested in its Digital Access Platform, which connects with e-commerce platforms to offer shipping discounts and services to senders. Revenue from this platform surged from USD 139 million in 2020 to USD 4.1 billion by the end of 2025.
UPS is also advancing automation to reduce manual operations. The installation of RFID sensors on vehicles is projected to eliminate approximately 12 million manual scans daily in 2024. Currently, 127 UPS facilities are automated, with plans to add 24 more in 2026. According to Tome, the cost to process each package at automated centers is 28% lower than at traditional facilities.
Amid a decline in package volume from major customers like Amazon and ongoing network streamlining in the US, UPS anticipates automation and RFID will continue to drive productivity gains and attract new customers.
United Parcel Service (UPS), founded in 1907 in the US, is one of the world's largest logistics and express delivery corporations. The company provides parcel shipping, supply chain logistics, and e-commerce solutions to individual and business customers in over 200 countries and territories. UPS operates a network of hundreds of sorting centers, a delivery vehicle fleet, and a dedicated air cargo fleet. In recent years, the company has accelerated automation, digitalization, and the application of technologies like RFID and AI to enhance operational efficiency and order tracking capabilities.
The Dan (Source: Supply Chain Dive)
