UPS expects this change, along with other efficiency improvements, to yield significant savings, with an estimated billion in annualized savings through its Efficiency Reimagined initiative.This network reconfiguration is also a response to changing customer dynamics, including shifts in volume from major customers like Amazon. Despite Amazon remaining a key customer, UPS is strategically reducing the volume it handles for the eCommerce giant, expecting a reduction by the second half of This decision is part of the company’s strategy to focus on more profitable market segments, particularly in complex logistics where it can offer premium solutions that no other carrier can match.
We’ve been partners with Amazon for years and Amazon is our pakistan mobile database largest customer, Tome said, but it’s not our most profitable customer. Our contract with Amazon came up this year and we stepped back and assessed our relationship. We will accelerate the glide down by more than by June As we glide down the volume, we’ll also be gliding out those assets and resources which give us the margin expansion.
Amazon accounts for of UPS’ total company revenue, Tome said.Amazon will remain a customer when we finish our accelerated glide down, she added. This was not their ask. This was us. This was UPS taking control of our destiny. We are not anticipating changes in the competitive environment as a result. Our future is very bright and we are leaning into the segments of the market that value our network.
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