CLAIM #60256 · United Parcel Service Inc (UPS) · 2024Q2 earnings call · Jul 23, 2024 · due Dec 31, 2026
“As we continue deployment, we expect to achieve our reduction target by 2026.”
Carol Tome · CEO
How to check this claim
Look at: Reduction in dispatch staffing for packaged car and feeder drivers, as a percentage decrease from baseline, via automated dispatch process
It came true if: Reported dispatch staffing reduction >= 50%
Where: Management commentary on earnings calls (UPS Q4 2026 or year-end 2026 call/filings discussing Network of the Future progress)
In context
“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 themselves. Second, we are installing readers at customer dock doors. This will enable immediate visibility as our trailers are loaded for pick-up. This solution provides a significant competitive advantage to us and to our customers. Moving to our financial outlook, Brian will provide more details but let me share a few highlights. First, while we have entered into an agreement to sell”
Verify independently
SEC filings for UPS ↗ · Claim quote is verbatim from the 2024Q2 earnings call.