UPS Improves Supply Chain Through North American Expansion

US delivery conglomerate UPS has made a US$50m investment in network capabilities to assist with improving automotive and industrial manufacturers. This investment coincides with the expansion of the company’s North American Air Freight (NAAF) capabilities. 

Matt Guffey, UPS Chief Commercial and Strategy Officer shares his perspective on the change: “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.”

UPS new expansion 

Starting in August, the North American Air Freight (NAAF) will provide multiple service options to and from Mexico and extend US coverage throughout the US to assist with pertinent supply chains. This change will allow for fewer border delays, increased visibility and easier production processes.

Over the years, UPS has made numerous efforts to improve their supply chain process including:

• Competitive value for less-than-truckload shipments 
• Expanded early delivery reach 
• Enhanced visibility and control On-demand, after-hours delivery via Roadie

UPS has also provided freight pricing for shipments over 150lbs, delivered to businesses by 10:30am the following day, increased automation across 67.5% of UPS facilities and Radio Frequency Identification (RFID) sensing technology and offered same-day delivery to dealerships and repair shops.

David MacNeil, Chief Executive Officer of WeatherTech, says: “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.”

UPS utilises RFID technology

In 2026, UPS became the first major logistics company to utilise RFID technology. RFID technology is used in every UPS package delivery vehicle in the US. With this technology, UPS:

• Confirms packages have been picked up by drivers
• Track packages automatically through sensors as they move through the network
• Respond faster when weather conditions change or unexpected events occur

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

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

“With RFID embedded into labels, on our vehicles and in our loading bays, customers benefit from clear visibility during the entire shipping process – from pick up to delivery, with no manual scanning required. The result is commerce that is smarter and predictable.”

Alongside RFID, UPS remains focused on streamlining their delivery services. 

In 2025, UPS began cutting shipping volumes to reduce reliance on Amazon. 

Amazon accounted for 11% of UPS’s US$91.1bn revenue in 2024, which is a decline from 13.3% in 2020.

Carol Tomé, UPS CEO, states: “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.”