Earlier this week, Atlanta-based freight transportation and logistics services provider UPS announced it is implementing radio frequency identification (RFID) package sensing throughout its United States small package network, which it said, “will bring unprecedented visibility and reliability to customers of all sizes.”
UPS said it is using RFID sensing technology in its package delivery vehicles in the U.S. and also in its U.S.-based delivery facilities and for every package shipped through the more than 5,000 national The UPS Store locations, which includes customer return shipments. The company said it is the first national logistics provider to broadly roll out RFID technology across its integrated network. What’s more, UPS noted that it has invested more than $100 million into developing and implementing RFID technology.
“We’re lighting up customers’ supply chains in real time with RFID, enabling precise tracking, faster insights, a smarter network and smarter packages,” said Matt Guffey, Executive Vice President and Chief Commercial and Strategy Officer. “This is the most significant visibility advancement in the past decade at UPS and in our industry. With RFID embedded into labels, on our vehicles and in our loading bays, customers benefit from clear visibility during the entire shipping process—from pick up to delivery, with no manual scanning required. The result is commerce that is smarter and predictable.”
What’s more, UPS explained that scanning technology has been a standard in the logistics industry since the early 1990s, when UPS pioneered the practice by equipping drivers with handheld scanners. Today, the company said it is advancing from scanning to sensing—a natural next step in its commitment to technological innovation—enhancing service reliability and delivering a superior, premium experience for its customers.
As for what drove the need for UPS to introduce RFID packaging across its U.S. small package network, a UPS spokesman told LM that technology is in the company’s DNA.
“For 118 years, UPS has led the way in logistics technology—from automated conveyor systems to AI‑powered route optimization,” said spokesman. “We’re always looking ahead to what’s next to improve service for our customers. UPS has been at the forefront of RFID technology at scale for years—with more than 30 patents in RFID technology going back to 2003. For select high-value items and healthcare goods (think vaccines), this technology has already been in use for several years with our UPS Premier product. We’re the first carrier to be able to do this at scale.”
When asked about the key value-adds, or benefits, in switching from scanning to sensing, for both UPS and its customers, the spokesman cited the following:
- Unmatched shipment visibility and transparency: RFID moves UPS from scanning to sensing, giving customers near-real-time insight into where their packages are across the network;
- Pickup confirmation (chain of custody confidence): 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;
- Greater reliability and confidence in delivery: Automatic sensing through vehicles and facilities reduces missed scans and errors—helping shipments arrive where and when customers expect them; and
- A future-ready logistics experience: RFID lays the foundation for smarter analytics, better predictability, and new value-added services
Looking ahead, the spokesman said that beginning later this year, UPS be equipping its hubs, for things like regional sortation building and the middle mile, in the U.S. with RFID sensors.
