According to an October 2023 Reuters report, the package delivery industry is getting increasingly competitive for big players like UPS and FedEx. As the pool of potential ground-based customers shrinks due to the growing favor of air-based services, UPS and its rivals are employing new strategies to fight for a larger market share.
Despite announcing its plans to increase UPS rates in 2024, UPS still has one attractive solution to sway potential customers to use its service—UPS Mail Innovations. Like UPS Surepost, this economic shipping option uses the UPS network and collaborates with local postal systems to achieve transit times comparable to First Class Mail plus one day.
UPS Mail Innovations is much more than a traditional supply chain solution. It includes international services, return services, and optimized solutions for various businesses.
Key Features of UPS Mail Innovations
Believe it or not, UPS Mail Innovations has been partnered with the U.S. Postal Service (USPS) since 1997. While the program's primary function hasn’t changed, solutions and technology have evolved over time, resulting in the following new features of UPS Mail Innovations.
Cost-Effective Shipping Solutions
UPS Mail Innovations offers you competitive transport times while saving you money compared to traditional shipping methods. This is thanks to their unique working relationship with the USPS.
UPS handles the labeling and sorting, expediting the transportation through its network of 22 US locations. Then, the delivery is handled by USPS in the “final mile.” UPS passes the savings to you, the customer, when you use UPS Mail Innovations.
Tracking and Visibility Advantages
UPS Mail Innovations allows you to use any of the three methods below to track your parcel’s journey to your customers.
- Package ID
- Tracking Number
- U.S. Postal Service IMPB
When customers can access real-time information and status updates on their shipments, your business benefits by earning trust and maintaining transparency. According to a 2021 study, 96% of respondents said they track their packages after placing an order, and 43% monitor their delivery status once a day.
UPS Mail Innovations aims to deliver on the promise of a mailing solution with built-in visibility that affords your customers peace of mind and satisfaction.
Integration Options for Businesses
Whether your industry is e-commerce, retail, or education, UPS Mail Innovations aims to integrate seamlessly into your operations.
This is possible through the expedited processing flow for just about any mailer your business might need to send. For example, retailers can efficiently save on sending lightweight goods (under 1 lb.) like apparel, catalogs, video games, cosmetics, and more while still meeting desired delivery times. Travel and tourism businesses can cut the costs of bulk-sending calendars, brochures, and photographs.
There’s an innovative way to utilize the UPS network for just about any business. The program offers customized solutions for diverse industries, including but not limited to:
- Financial Services
- Insurance & Healthcare
- Retail
- Professional Services
- Travel & Tourism
- Government
- Education
How can so many different large and small businesses all take advantage of UPS Mail Innovations? Is it really one-size-fits-all? The answer lies in how the supply chain system works.
How UPS Mail Innovations Works
For domestic shipments, the UPS Mail Innovations logistical flow breaks down as follows:
- From the mail’s origin point, the parcel undergoes expedited transportation via air or ground to one of the 25 Destination Processing Facilities located at strategic positions across the US. This bypasses the package’s traditional journey through the origin sectional center facility (SCF) and origin network distribution center (NDC), getting your mailed goods closer to their destination much faster.
- From the UPS Destination Processing Facility, your package goes to the destination NDC, SCF, or destination delivery unit (DDU). With the advantage of the vast UPS network, your parcel arrives at its induction point within 24-48 hours of pickup.
- USPS handles the final delivery, with the total transit time equivalent to First Class Mail plus one day. The advantage of the USPS handoff is the ability to ship to P.O. Boxes, Alaska, Hawaii, U.S. Territories, APOs, FPOs, and DPOs.
This straightforward, streamlined process is vital to the success of the program. But is it really that much of an upgrade from sending mail the old-fashioned way?
Comparison with Traditional Mail Services
Traditional mail services, while reliable, are slow. And if reaching your parcel’s destination quickly is a priority for your business, be prepared to pay high rates if you want to go through your local post office.
Just like UPS’s Simple Rate program, the main goal of UPS Mail Innovations is to save you money. You can save up to 25% on mailing costs compared to First-Class or comparable services. You can also use UPS Mail Innovations to send mail internationally and make returns more economical and efficient with UPS Mail Innovations® Returns.
Optimize Your Supply Chain Strategy with Lojistic
Running a world-class business requires equally world-class logistical strategies to save time and money while maintaining customer satisfaction. UPS Mail Innovations could be an asset to your operations with its potential to bypass traditional mail bottlenecks and integrate seamlessly with your products.
With Lojistic, you can have even more control over your shipping costs by leveraging a tech-enabled platform to bring all the vital information and analytics to your fingertips. Built to instantly increase your profits by identifying cost-saving opportunities and streamlining your cost-coding, refunds, and carrier payments, Lojistic allows you a bird’s eye view of your business’s past and present, so you can prepare for a rewarding future.
Check out the virtual demo to learn more about how Lojistic can help you manage and reduce shipping costs today.
Sources:
Reuters. UPS cuts 2023 revenue outlook, cites weakening demand ahead of holiday peak. https://www.reuters.com/business/ups-cuts-2023-revenue-outlook-says-demand-weak-headed-into-holiday-peak-2023-10-26/
iHeart. Americans Are Addicted To Tracking Packages: Study. https://www.iheart.com/content/2021-08-10-americans-are-addicted-to-tracking-packages-study/
Author
Matt Bohn
Matt Bohn
Director of Parcel Rate Services
Prior to his role at Lojistic, Matt held significant positions in the industry, including his tenure as Senior Pricing Advisor at FedEx. Matt analyzed pricing programs and wrote pricing contracts for some of FedEx’s largest e-commerce and retail shippers. He also managed projects for the FedEx Global Pricing Approval Systems and Strategic Account Executive Inputs.
Matt earned a BS in Computer Engineering and an MBA in Finance from the Joseph M. Katz School of Business at the University of Pittsburgh.