UPS expands RFID labeling at The UPS Store to improve visibility and efficiency

UPS is scaling up its use of RFID technology by offering RFID labels at all 5,500 The UPS Store locations across the United States. Customers dropping off packages can now have them tagged with RFID labels, enabling greater shipment visibility throughout the delivery process and reducing errors, according to CEO Carol Tomé during a recent earnings call.

Currently, UPS Store locations process about 1.3 million RFID-enabled packages each day. Applying RFID tags at the point of drop-off allows customers to track shipments more accurately from pickup through delivery, a level of transparency many shippers are increasingly demanding. UPS said the added data also helps attract and retain business customers.

UPS has also installed RFID readers across its U.S. delivery vehicle fleet, allowing trucks to automatically detect tagged packages without manual scanning. This improves routing accuracy, speeds up handling and reduces operational friction throughout the network.

The initiative is part of UPS’ broader “Smart Package, Smart Facility” strategy, which focuses on automation and digital transformation. RFID supports two core goals: providing customers with better shipment insights and improving internal efficiency by reducing manual labor and increasing automated processing.

About 66% of UPS’ package car fleet is now equipped with RFID technology. The company estimates this has already eliminated roughly 12 million manual scans per day in 2024. As shipping volumes from large customers such as Amazon decline, UPS continues to optimize its network by investing in automation and modernized facilities to operate more efficiently.