UPS automates 4 additional facilities ahead of peak shipping season

United Parcel Service (UPS) has finished converting four more traditional package sortation centers into automated facilities just in time for the hectic holiday shipping season, according to a news release. The newly automated centers are now operational in Denver, St. Paul, Minnesota; Syracuse, New York; and Portland, Oregon. The company stated that automation projects are part of a strategic plan to restructure its distribution system, aiming to reduce operational costs and boost profitability.

These initiatives include closing 200 manual sort facilities over five years and consolidating operations into larger, modern facilities capable of handling increased volumes from larger catchment zones. By 2028, UPS anticipates achieving annual cost savings of around $3 billion through these restructuring efforts. As of July 1, 68.5% of U.S. parcel volume was processed through automated facilities, compared to 64% the previous year.

The automated systems not only enhance sorting speed, package flow, accuracy, and capacity but also minimize manual intervention, leading to a 28% reduction in cost per piece compared to conventional facilities with mechanical systems. UPS is also preparing to hire 100,000 seasonal employees to maintain smooth operations during the peak season.