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Saul Hernandez has been driving for the United Parcel Service for 20 years. His route is mostly residential, but he doesn’t get to interact with customers often.
“I usually leave the package and go,” said Hernandez.
That changed last week when he came across something he’d never experienced in Carpentersville he said. A woman was on the ground in a pool of her own blood.
“For a split second, all my senses went numb,” he said.
FedEx Corp and robotics company Nuro on Tuesday announced a multi-year agreement to test self-driving vehicles in the package delivery company’s network, starting with a pilot program in Houston.
The partnership comes as parcel companies race to reduce the cost of last-mile delivery, which surged during the pandemic.
The companies will target delivery scenarios where Nuro’s low-speed, unmanned vehicle can provide “the biggest bang for your buck,” Cosimo Leipold, Nuro’s head of partnerships, told Reuters in an interview.
That will likely include inefficient tasks like late-night pickups in out-of-the-way places, said Rebecca Yeung, FedEx vice president for advanced technology and innovation.
UPS recently hosted its investor and analyst conference where the company highlighted priorities for its Customer First, People Led, Innovation Driven strategy, and discussed targeted areas of growth which include small and medium-sized businesses, healthcare and international. During the event, the company also announced its 2023 financial targets and discussed newly established ESG targets.
The company’s Customer First strategy strives to provide the best digital experience powered by its global smart logistics network. The company will showcase the actions it is taking to make it simpler and more helpful to do business with UPS. Customer First focuses on removing friction when doing business with UPS, as measured by gains in Net Promoter Score, or NPS. The company has targeted a 2023 NPS score of 50 or higher.
The company discussed the measures it is taking to improve the employee experience and increase the likelihood that an employee recommends UPS as a great place to work. The company has established a 2023 “likelihood to recommend” target of 80 percent or higher. By highlighting technology and productivity initiatives, the company addressed its approach to creating shareowner value by delivering consistently higher returns on invested capital, as well as returns to shareowners through dividends and share repurchases.
Logistics companies have become more interested in route planning as packages pour into their networks. Volume surges have prompted them to figure out the most efficient way to get them delivered to their final destination. For UPS, it’s work that is decades in the making.
UPS tested its ORION algorithm between 2003 and 2009, with pilot testing taking place in eight locations between 2010 and 2011, according to the company.
The dynamic routing upgrade that is now rolling out began to be deployed in the fall of last year, between September and October, according to Matthew O’Connor, a UPS spokesperson.
The company will highlight priorities for its Customer First, People Led, Innovation Driven strategy; discuss targeted areas of growth including small and medium-sized businesses, healthcare and international; provide 2023 financial targets; and discuss newly established ESG targets.
Customer First: The company’s Customer First strategy strives to provide the best digital experience powered by its global smart logistics network. The company will showcase the actions it is taking to make it simpler and more helpful to do business with UPS. Customer First focuses on removing friction when doing business with UPS, as measured by gains in Net Promoter Score, or NPS. The company has targeted a 2023 NPS score of 50 or higher.
People Led: The company will discuss the measures it is taking to improve the employee experience and increase the likelihood that an employee recommends UPS as a great place to work. The company has established a 2023 “likelihood to recommend” target of 80 percent or higher.
Innovation Driven: By highlighting technology and productivity initiatives, the company will address its approach to creating shareowner value by delivering consistently higher returns on invested capital, as well as returns to shareowners through dividends and share repurchases.
“We are creating a new UPS, rooted in the values of the company. Our strategic priorities are evolving to reflect the changing needs of our customers and our business, and what matters most to our stakeholders,” said Carol Tomé, UPS chief executive officer.