United Parcel Service UPS is introducing radio frequency identification (“RFID”) sensing across its U.S. small package network, delivering exceptional visibility and reliability for customers of all sizes. The technology is now integrated into all its delivery vehicles, operational facilities nationwide and every package shipped through more than 5,500 UPS store locations, including returns.
With this move, UPS becomes the first major logistics provider to implement RFID at scale across its integrated network. The initiative reflects a continued commitment to innovation, building on more than $100 million already invested in developing and deploying RFID solutions.
Matt Guffey, executive vice president and chief commercial and strategy officer, emphasized that RFID enables real-time supply-chain visibility, offering precise tracking, quicker insights and smarter operations. Since the early 1990s, scanning has been the industry standard, with UPS pioneering driver-based scanning systems. The shift from scanning to sensing marks a natural progression in UPS’ technology-driven approach, enhancing service reliability and delivering a superior customer experience.
By embedding RFID into labels, vehicles and facilities, UPS eliminates the need for manual scans. Customers gain continuous visibility throughout the shipping journey — from pickup to delivery — resulting in more predictable and efficient commerce.
RFID also simplifies operations for customers. UPS handles the technical complexity, allowing users to benefit without additional systems or expertise. The technology confirms package pickup, tracks movement automatically across the network and provides greater transparency. Additionally, improved data enables faster responses to disruptions such as weather or unforeseen events. Currently, RFID supports millions of packages daily, offering customers unmatched insight into their shipments.
According to a Supply Chain Dive report, UPS’ rival FedEx FDX is also leveraging AI to boost its operations and service performance. FedEx aims to expand the use of AI further, applying it to physical assets such as RFID sensors and robotic systems. This effort by FedEx is intended to improve network reliability and strengthen connectivity for shippers.
To enhance efficiency, GXO Logistics GXO, the world’s largest pure-play contract logistics provider, recently introduced GXO Accelerator, an open innovation program aimed at identifying, testing and scaling new technologies across the United Kingdom and Ireland. This initiative represents the next phase of GXO Logistics’ commitment to promoting collaboration between the industry and leading technology innovators. The program, which combines GXO Logistics’ innovation-driven culture and expertise, is developed and delivered in partnership with global innovation specialist L Marks.
UPS’ Price Performance, Valuation & Estimates
Despite its cost-cutting efforts, shares of UPS have declined in three months, underperforming the industry in the same timeframe.
3-Month Price Comparison
From a valuation standpoint, UPS trades at a discount to industrial levels on the basis of the 12-month forward price-to-sales ratio.
See how the Zacks Consensus Estimate for UPS’ earnings has been revised over the past 90 days.
UPS’ Zacks Rank
UPS currently carries a Zacks Rank #4 (Sell).
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
FedEx Corporation (FDX): Free Stock Analysis Report
GXO Logistics, Inc. (GXO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).