UPS Rolls Out RFID Tracking to Improve Delivery Accuracy, WSJ Reports

United Parcel Service, Inc. (NYSE:UPS) is included among the 14 Value Stocks with Highest Dividends.

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The Wall Street Journal reported on April 14 that United Parcel Service, Inc. (NYSE:UPS) is rolling out new technology to track the billions of small packages better moving through its US network each year. The company said it has already invested $100 million to deploy radio frequency identification, or RFID, across its network, with plans to spend more. It expects the change to improve visibility across its small-package system, increase delivery accuracy, and reduce the need for manual scanning.

This marks a step beyond the tracking systems most customers are used to. Those systems rely on workers scanning barcodes as packages move in and out of facilities or vehicles. That process often creates delays, leaving gaps where packages can be misplaced or harder to locate. UPS is now embedding RFID tags directly into shipping labels. It has also installed RFID sensors on all its US delivery trucks, across more than 5,500 retail locations, and in its final-mile delivery centers. The company plans to expand the sensors into its middle-mile facilities later this year.

With this setup, packages can be tracked automatically as they enter or leave a building or vehicle. UPS said this will give customers a more current and accurate view of where their packages are, even if it does not provide real-time location tracking.

United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics solutions to customers in more than 200 countries and territories. Its U.S. Domestic Package segment includes a range of domestic air and ground delivery services.

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