“Think of RFID as the eyes and ears within our network, and AI as the

“Think of RFID as the eyes and ears within our network, and AI as the brain,” Carol Tomé CEO UPS said. “In fact, we believe RFID is the most significant package visibility advancement in a decade. We’re using it to move from a manual scanning-based network to a sensing network.”

RFID technology has become a critical pillar in the new network and the deployment of artificial intelligence. The technology uses radio waves to track assets and packages. UPS has completed deployment across all its domestic delivery facilities and package cars.

Tomé expects RFID technology to eliminate hundreds of millions of manual scans every year domestically. She said UPS plans to expand deployment to international operations.

“These capabilities are generating rich, real-time data about the packages in our network,” Tomé said. “This strengthens our ability to dynamically adapt to changing conditions.”

“This reconfiguration was never the destination,” Tomé said. “It was the foundation. We now have a leaner, more automated, more agile network that will deliver operating leverage as volume grows.”

Tomé added that the initiative included further network automation that removed $4.5 billion of related expense, with more planned in 2026. She also noted that incremental volume improvements are now more profitable than before the initiative because of the structural changes.

Adapted from the below article

UPS calls plan to shed low-margin Amazon packages a success - TT