UPS actively seeks change and focuses on finding new business growth points

First, business focus shift

Today, with the rapid development of global cross-border e-commerce, the logistics industry is facing unprecedented opportunities and challenges, and the giants have tried their best to seek more market share。

Recently, United Parcel Service (UPS(Announce, planThe business will shift its focus to returns and bulky cargo delivery services to further expand its addressable market。

UPSShift business focus diagram Source: Pymnts

正如UPSChief Executive Carol B.Tome said: "The improvement in the international market is due to the growth of export business in some markets, but UPS business demand is still relatively weak, in order to expand the market, UPS will focus on returns and bulky goods in the future.。This decision not only reflects UPS's keen insight into market changes, but also foreshadows the future development trend of the logistics industry。

As an important link in the field of cross-border e-commerce, the return business has shown rapid growth in recent yearsBasically, the return rate of all major markets is not low。Recently, the German digital association Bitkom released data from a survey showing thatGerman consumers return 11 percent of their purchases online。As consumers have higher and higher requirements for shopping experience, the quality and efficiency of return service will become an important factor affecting shopping decisionsUPS is keen to capture this market opportunity, returns business as a new growth point。

Online shopping return rate of German consumers Source: ecommercenews

In addition to returns business, large cargo delivery service is also one of the focus of UPS's strategic adjustment。With consumersThe demand for large goods such as home and home appliances is growing, and the market for large goods delivery services presents great potential。By increasing investment and improving technical strength, UPS has continuously improved its delivery services for large goods to meet consumers' needs for fast and safe delivery of large goods。

Second, recover the decline

In fact, the current situation in the global freight market is not optimistic,Global freight volumes are on a downward trendUPS, as an international logistics giant, has naturally been hit hard.This is also an important reason for it to find new growth points。

According to the latest data released by UPS,In the first quarter of 2024, UPS's average daily package volume in the U.S. market decreased by 3.The average daily package volume in the international market also decreased by 5 percent.8%。Although this is slower than the rate of decline in business volume in the fourth quarter of 2023, there is no denying that UPS has been suffering from a halving of business volume。

Package volume decline chart Source: UPS

Given this trend, not surprisingly,UPS's results have not been satisfactory。In the first quarter of 2024, UPS brought in $21.7 billion in total revenue, up 5 percent from the same period last year.A 3 per cent drop;Operating profit was $1.6 billion, down 36 percent from a year earlier.5%。

As one of the world's largest freight companies, UPS has long been aware of the impending crisis。因此In the face of declining business volumes and market challenges, UPS has taken a series of measures early on。其中，Layoffs have become an important tool。It is understood that UPS previously announced layoffs 1.20,000 employees to save about $1 billion in operating costs, and alsoSale of Coyote truck brokerage business。

UPS layoffs map Source: The Load Star

In addition, last month,UPS said it may close 40 U.S. sorting centers this year and about 200 over the next five yearsIt aims to reduce overcapacity and reduce labor costs。

It should be noted that the challenges faced by UPS are actually a common problem facing the logistics industry today。UPS needs to take proactive and effective measures to address market challenges in order to achieve sustainable development and long-term competitive advantage。In the future, we look forward to seeing UPS stand out from the competition in the market and provide customers with better and more efficient services。

上海十大买球平台Established in 2016, Supply Chain Management Co., Ltd. is a third party with a registered capital of 30 million yuan物流Enterprise (3PLs)。Adhering to the service concept of "safety first, customer first, service for the best, price for the best, cooperation for win", we provide transportation, warehousing, distribution and other value-added services for enterprises。