CLAIM #60255 · United Parcel Service Inc (UPS) · 2024Q2 earnings call · Jul 23, 2024 · due Dec 31, 2024
“And we are on plan to complete an additional five operational closures in the second half of this year.”
Carol Tome · CEO
In context
“iness days. And in supply chain solutions, we've expanded our supply chain operations at our Frankfurt Airport Gateway, by adding nearly 25% more warehouse space. This facility is a major SCS hub for central Europe where it connects all transportation modes. In this expansion, we can now provide even greater flexibility to the region's growing technology and healthcare industry. And importantly, also in SCS, we are onboarding the new USPS Air Cargo business with plans to be fully implemented before peak. The onboarding has gone well and we continue to expect this business to be margin accretive for the company. Now let's turn to innovation driven and progress with Network of the Future. In the first half of 2024, we completed 35 operational closures, which included closing five buildings. And we are on plan to complete an additional five operational closures in the second half of this year. Simultaneously, we’re continuing to automate more of our operational tasks. For example, in the US, we are automating the dispatch process for our packaged car and feeder drivers to reduce dispatch staffing by half. We deployed Phase 1 of the project and so far this year we've reduced staffing by 26%. As we continue deployment, we expect to achieve our reduction target by 2026. As a reminder, these actions are outside of fit-to-serve and are part of Network of the Future. Lastly, touching on Smart Package Smart Facility, which is our RFID solution, we are moving from a scanning network to a sensing network. As we've discussed, we're adding RFID readers to our package cards, but we're not stopping there. We're moving upstream. First, we are enabling customers to print RFID labels themselve”
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SEC filings for UPS ↗ · Claim quote is verbatim from the 2024Q2 earnings call.