1. UPS Deploying RFID Initiative to Full U.S. Network in 2023
UPS has announced plans to expand their RFID (Radio Frequency Identification) initiative to their full U.S. network. The program involves placing RFID tags on packages and outfitting employees with wearable scanners. Testing in select facilities proved to greatly eliminate manual scans, minimize packages loaded onto wrong vehicles, and improve speed and efficiency.
The company will invest $140 million in the initiative, which is expected to reduce 20 million manual scans a day. The plan comes as UPS continues streamlining operations and increasing efficiency amid normalizing demand.
2. USPS Reports Declining Volumes, Rising Revenue
The U.S. Postal Service reported last week that their fiscal Q1 revenues increased 1% year over year, despite a 4.8% decline in volume. The agency reported that while volumes are declining, they still remain above pre-pandemic levels, reflecting our view that volume trends should be viewed more as a normalization, rather than a decline in eCommerce.
Though revenue increased compared to the same period last year, the USPS is still operating at a loss, reporting a $1 Billion loss in the quarter.
3. Ware2Go Expanding Footprint, Increasing Services for Amazon Sellers
Ware2Go, an on-demand warehousing and fulfillment subsidiary of UPS, has partnered with eCommerce platform WhiteBox to expand their distribution network, adding WhiteBox facilities in Baltimore, Las Vegas, and Memphis. WhiteBox users will now have access to Ware2Go’s fulfillment services, which allows the eCommerce platform to narrow its focus on its marketplace business and shift away from logistical operations.
With the partnership, Ware2Go can offer new services to Fulfillment By Amazon merchants. Amazon merchants make up more than 20% of Ware2Go’s clientele, and they’ll now have access to WhiteBox’s services that help drive sales growth.