UPS is planning to invest $140 million to deploy its smart package initiative in all of its US facilities in 2023. There are currently 100 facilities participating in the pilot program and the reported result is positive. In 2023, CEO Carol Tomé wants to apply this technology in the remaining 940 facilities. 

The RFID initiative is expected to improve UPS’ network efficiency. Under the initiative, a smart tag will be placed on packages that can be identified through wearable devices on employees. With the application of RFID, the employees will no longer need to scan manually which helps decrease misload rates and accelerate parcel delivery speed in giant warehouses.

UPS looks to reduce the frequency of misloads from 1 in 400 to one in 800. Some facilities in the pilot program already exceed the expectation, with misload rates of one in 1000. With the RFID tags becoming increasingly affordable, UPS holds high hope for this initiative. It is one of the carriers leading in leveraging RFID tags in warehouses. In the future, the tag can even go beyond that and reduce the warehouse's labor demand. CEO Tomé shared that she saw that capacity in the laboratory visit when the package car interacts with RFID directly. 

Source: UPS’ RFID initiative to expand to rest of US network in 2023