UPS Expands RFID, Eliminates 20 Million Daily Scans

The carrier will equip U.S. hubs with RFID sensors starting later this year and roll out RFID label printing capabilities for customers in 2026 and 2027. This expansion is part of an ongoing network overhaul to reduce manual processes, leveraging lower RFID label costs to broaden its application beyond critical healthcare shipments.

Michael Yoshida, UPS VP of product innovation and strategy, confirmed plans for international deployment, with the goal of equipping almost every package in its entire network with RFID. UPS has already invested over $100 million in developing and implementing this technology, which includes placing RFID labels on every package shipped from over 5,500 The UPS Store locations and embedding tag readers in all U.S. package delivery vehicles.

Automated pickup scans will provide customers, such as Ingram Micro, hours earlier visibility into their shipments. Bill Ross, EVP of global operations and engineering at Ingram Micro, stated their company transitioned to UPS primarily due to its commitment to RFID investment, utilizing the technology at its Texas warehouse, which handles over 28% of its UPS volume.

Rival FedEx is also testing RFID sensors, indicating a competitive push in logistics technology.