UPS to make $2bn investment in international infrastructure by 2019


UPS has announced plans to invest $2bn over the next five years to develop its international infrastructure in Europe, Asia and the Americas, equating to 4.5% to 5% of annual revenue from 2015 to 2019. The delivery company will be targeting international growth markets and improvements in the profitability of e.commerce deliveries.

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David Abney, UPS chief executive commented: “The needs of our customers continue to change and we are changing with them by offering new and innovative solutions. UPS provides superior customer benefit by connecting a broad portfolio of solutions to the global network. When coupled with efficient investment in technology, UPS generates substantial value for customers and shareowners.”

 

UPS expect online shopping to account for 51 per cent of its US domestic volume by 2019, up from 46 per cent this year. With this in mind, the company aims to make lightweight e.commerce packages more profitable by increasing delivery density through technology developments. This includes new ORION route software, already in use by 22,000 UPS drivers with full deployment expected to be completed by 2016, as well as the pricing of items by dimension as well as weight.

 

Postal organisations and parcel companies are investing heavily in infrastructure, service offering and technology to take advantage of growth opportunities within the delivery marketplace. This is enabling them to improve the service they provide to customers and increase competitiveness.

 

Skillweb provides an effective means of tracking and tracing incoming and outgoing deliveries, as well as communicating useful delivery details to the recipient, via its SmartTask POD solution, helping carriers of all sizes to enhance their service offering.

 

Downloaded onto a worker’s smartphone, ruggedised or semi-ruggedised device – including the Motorola TC55 touch computer – this mobile software application can run as a standalone solution, alongside Skillweb’s Houndit technology or a carrier’s current system.

 

When recipients choose their delivery option during a purchase, the information sent to a carrier relating to the order can be used by the software to generate a communication via email or SMS stating an approximate delivery slot. This is based on how long it takes to get from a warehouse to the customer.