UPS announced that RFID sensing technology is now installed in all U.S. package delivery vehicles, across its domestic delivery facilities, and in all 5,500+ UPS Store locations, automatically tracking packages throughout their journey without requiring manual scanning at each handoff. The company invested over $100M into the project, which could one day save workers from having to manually scan 18M packages per day, which I'd say is well worth the investment!
UPS wrote in its announcement:
- RFID pickup sensing confirms packages have been picked up and are in UPS’s possession. No other carrier can offer this assurance across its U.S. network.
- Packages are automatically sensed as they move through the network and customers gain greater transparency into where their shipments are and how they are progressing.
- With more and better data, UPS responds faster when conditions change such as weather and other unexpected events.
UPS said that it's the first major logistics provider to broadly roll out RFID technology across its integrated network — and I had to do some digging, but that's true.
While major retailers like Walmart and Zara use RFID for inventory management inside their stores, and Amazon uses RFID within its fulfillment centers, no other major U.S. carrier has implemented the technology as a universal standard across its entire package journey — from the moment of pickup to the delivery vehicle and to the final doorstep.
Will RFID be used on all packages moving forward?
Technically it could, as of today, but it'll be a gradual roll out. Most shippers still don't have the hardware needed to “print” these RFID chips yet, though UPS is working with high-volume shippers to equip them with it. As for smaller warehouses or home-based businesses, it doesn't quite make financial sense yet, as the RFID printers can cost a couple grand or more, but the costs will likely continue to go down.