UPS: Addressing Procurement Challenges With Investment

UPS has committed US$50m to network infrastructure targeting automotive and industrial supply chains. The investment supports procurement operations through expanded air freight capabilities and tracking systems.

The delivery company plans to extend its North American Air Freight services to and from Mexico starting in August. The network upgrade addresses procurement challenges including border delays and supply chain visibility.

Procurement visibility through RFID

UPS became the first major logistics company to deploy Radio Frequency Identification technology across its entire US vehicle fleet in 2026. The system tracks packages without manual scanning from pickup through delivery.

Matt Guffey, Chief Commercial and Strategy Officer at UPS, says: "Our automotive and industrial customers want an easy button for logistics.

"They need reliability, visibility and a partner that understands their supply chains – end to end, today and tomorrow. We have made strategic investments to build the team and the network that meets their needs, unlike any other in the industry."

The RFID system confirms driver pickups and monitors packages through sensor networks. It enables faster responses when weather or unexpected events disrupt procurement schedules.

"We're lighting up customers' supply chains in real time with RFID, enabling precise tracking, faster insights, a smarter network and smarter packages," Matt adds.

"This is the most significant visibility advancement in the past decade at UPS and in our industry."

Network capabilities for manufacturers

The North American Air Freight expansion provides multiple service options throughout the US and Mexico.

According to UPS, the changes support automotive and industrial procurement through reduced border delays and improved production planning.

UPS has introduced freight pricing for shipments exceeding 150 lbs with next-day delivery to businesses by 10:30 am. The company reports automation across 67.5% of facilities.

The logistics provider also offers same-day delivery to dealerships and repair shops through its Roadie service. Additional capabilities include on-demand after-hours delivery and expanded early delivery reach.

David MacNeil, Chief Executive Officer of WeatherTech, adds: "When we know what to expect from shipping, it helps us plan with confidence.

"That clarity allows us to stay focused on delivering a great experience for our customers."

Strategic procurement partnerships

UPS has restructured its customer portfolio to focus on profitable segments.

The company reduced shipping volumes for Amazon in 2025 to decrease reliance on single customers.

According to UPS, Amazon represented 11% of the company's US$91.1bn revenue in 2024. This figure declined from 13.3% in 2020.

Carol Tomé, Chief Executive Officer at UPS, says: "We are making business and operational changes that, along with the foundational changes we've already made, will put us further down the path to becoming a more profitable, agile and differentiated UPS that is growing in the best parts of the market," Carol states.

The RFID technology integrates with labels, vehicles and loading bays to provide procurement teams with shipment tracking data. The system eliminates manual scanning requirements throughout the delivery process.