UPS is expanding its use of RFID technology across its U.S. network, improving package visibility and reducing errors as shipments move through its system. Company executives noted that the expansion will directly affect customer experience and boost the carrier's competitive position.
The new system will automatically detect RFID tags applied to packages via specialised sensors at hubs. In this way, much of the manual scanning currently performed during transport will be eliminated. In the existing workflow, employees touch each package individually with handheld terminals; under the new arrangement, that contact will be limited to exceptions only. Along with gains in operational efficiency, the goal is for packages to move error-free through their routes.
Industry experts stressed that RFID adoption is a response to supply-chain pressures. As dependence on manual labour is reduced, carriers can offer faster, more accurate service. UPS's rival FedEx is pursuing a similar RFID strategy; the technology race between the two continues to raise standards in package delivery services. The expansion is expected to extend beyond the US to international operations.
Key Takeaways:
1. UPS is rolling out RFID package tracking across its U.S. operations.
2. The technology enables automatic package detection and reduces manual scans.
3. Shipment accuracy improves and error rates drop.
4. Rival FedEx is pursuing a similar RFID strategy.
5. The expansion is expected to extend to international operations.
