The United Parcel Service (UPS) flies to more than twice as many destinations as the largest operating passenger airline in the world, with a full network of hubs reaching in every direction from its Louisville, Kentucky hub.
Sharing the majority of the international delivery space with DHL and FedEx, UPS transports millions of packages across oceans, mountains, and time zones, reaching hundreds of thousands of destinations overnight, every night. Put simply, the company’s infrastructure is vast.
With a long history as a leader in the delivery sector, UPS handles a solid chunk of the 16 million average daily domestic package shipments in the United States. The company cannot afford to rest on its laurels, however — stiff competition and increasingly stringent delivery expectations alongside ever-growing consumer demand keep the company pushing forward.
How Is UPS Shaking Up the Supply Chain?
UPS’ well-established logistics and precisely crafted network rival the resources of entire countries. But the complex, multifaceted challenges inherent in a thriving online marketplace demand a new generation of direct delivery service.
UPS — or the “United Problem Solvers,” as per their new campaign — answers competitor FedEx and new challenger Amazon by supplementing a well-crafted, time-tested system with new tricks.
The Latch
Digital commerce has impacted few systems as dramatically as supply chains; with more products to be delivered to more people, farther apart, with faster turnarounds and higher expectations, even the seasoned logistics experts at UPS have some work ahead of them.
The Latch, a smart lock system, has allowed UPS to conquer the challenge of apartment-based deliveries without the risk of porch pirates or compromised privacy. Drivers with appropriate credentials can access private buildings with ease, utilizing both public and private drop points to limit last-mile hassle and improve quality of service with every delivery.
Electric Trucks
More miles are nothing new for the international shipping specialist; UPS trucks have traveled far and wide for generations. But the latest round of vehicles will be powered by highly efficient electric engines.
The company has already committed to over 1,000 electric delivery vehicles, aiming to build a future in alternative fuel. UPS’ purchase of 950 trucks from the Workhorse Group in 2018 is among the largest electric vehicle orders ever placed in the United States.
The Future of the UPS Supply Chain
The UPS team is at a fascinating crossroads. Package delivery and logistics are notorious for being outdated and out of touch with new technology, but the delivery giant is choosing to take the tech leap.
Fuel for the Future
With the start of an electric fleet already in place, UPS aims to drive a quarter of its fleet using alternative fuels by 2020. With 700 hybrid electric vans and 300 fully electric vehicles already in operation, the company is off to a strong start.
End-Game Analysis
Newly integrated automation, technology upgrades, and a thorough, full-scale data analysis are all essential components of the $20 billion capital spending plan that UPS has proposed to prepare for the future.
The analytics assessment, driven by a custom tool, will evaluate over 1 billion data points per day in search of opportunities for streamlining, improved capacity, and enhanced service.
With heavy competition, rising demand, and high expectations ahead, UPS is at an interesting crossroads. With various new initiatives in place, the company will likely be well-positioned for savvy data use — through predictive analytics, real-time volume assessments, and even a blockchain patent — all while making use of highly efficient, advanced equipment.
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