UPS released its earnings report for the fourth quarter of 2020 last week. No surprise to anyone it was higher than 2019, as demand for delivery services exploded exponentially with COVID. “Our financial performance…exceeded our expectations,” said UPS CEO Carol Tomé, thanking “all UPSers for their extraordinary efforts to deliver industry-leading service through the holidays.”
In the US, UPS revenues increased 17.4%, aided by growth from small and medium-sized businesses and abetted by the company’s use of surcharges.
We can expect to see more of the same in 2021. Now that online shopping has fully taken hold and people have experienced its convenience, it’s highly unlikely that the demand for shipping will ease much. However, and especially once people go back to the office, there will be more web cam monitoring and lock boxes in use as people find ways to reduce porch piracy.
UPS naturally wants to hang on to their SMB customers, and has indicated it will be overhauling its billing system, replacing the current system with a SaaS tool that it plans to make customizable.
If you’ve had trouble with your UPS or FedEx billing, consider ShipAudit from Varsity Logistics. It automatically compares your electronic invoices to your contract rates, flagging those that don’t match for your review. For companies shipping 200 or more parcels a day, ShipAudit saves many hours poring over invoices! It often takes so long to go over every line item, that companies only spot-check or don’t check at all. For these companies, ShipAudit typically reduces shipping costs by 10-15% just by finding and surfacing invoice errors.
Varsity ShipSoft connects to your logistics, warehouse, and order management system(s) to automatically find you the best price and service combination to save money. Plus, it’s not a stand-alone system in the shipping department but an integrated tool that can be accessed by customer support, visitors to your website, and anyone you authorize to obtain your best, in-contract rates. Contact us to learn more.