UPS disclosed Monday that it is investing more than $2 billion across its international, healthcare, and supply chain solutions businesses, revealing the total figure for the first time. The investments began in 2024 and are set to continue through 2028, the company said.
Scott Szwast, UPS vice president of international strategy, framed the spending as an effort to build out capabilities that help customers in specialized sectors navigate increasingly complicated global supply chains. "These investments are really aligned to one of our big strategic areas of focus, which is creating capabilities to enable our customers, particularly in complex industries, to more effectively run their global supply chains," he told CNBC.
Among the initiatives are a new hub in the Philippines slated for this year, a facility in Ontario, Canada, due to open in 2027, and an air hub at Hong Kong International Airport scheduled for 2028. UPS has also opened a technology-enabled logistics center in Taiwan and an Amsterdam facility that integrates freight forwarding, customs brokerage, and cold-chain capabilities under one roof. The Taiwan facility has used automation and robotics to cut total supply chain time by one day, Szwast said. UPS also operates weekly service on the Paris–Hong Kong route and the Shenzhen–Sydney route, each running five days a week.
Szwast said that as global supply chains come under growing strain, companies have moved to spread risk across multiple sourcing and distribution points rather than relying on a single node, even as those same businesses push out new products with unfamiliar logistics demands faster than ever before. "What they find in a lot of cases is that their supply chains look more like their histories than their strategies," he said.
The $2 billion figure encompasses a previously announced $48 million buildout of 27 temperature-controlled facilities across the Americas, Europe, and Asia aimed at handling temperature-sensitive pharmaceuticals, including GLP-1 weight loss drugs. UPS said the healthcare initiative is part of its broader effort to grow in higher-margin logistics services.
#chains #facility #Logistics
Scott Szwast, UPS vice president of international strategy, framed the spending as an effort to build out capabilities that help customers in specialized sectors navigate increasingly complicated global supply chains. "These investments are really aligned to one of our big strategic areas of focus, which is creating capabilities to enable our customers, particularly in complex industries, to more effectively run their global supply chains," he told CNBC.
Among the initiatives are a new hub in the Philippines slated for this year, a facility in Ontario, Canada, due to open in 2027, and an air hub at Hong Kong International Airport scheduled for 2028. UPS has also opened a technology-enabled logistics center in Taiwan and an Amsterdam facility that integrates freight forwarding, customs brokerage, and cold-chain capabilities under one roof. The Taiwan facility has used automation and robotics to cut total supply chain time by one day, Szwast said. UPS also operates weekly service on the Paris–Hong Kong route and the Shenzhen–Sydney route, each running five days a week.
Szwast said that as global supply chains come under growing strain, companies have moved to spread risk across multiple sourcing and distribution points rather than relying on a single node, even as those same businesses push out new products with unfamiliar logistics demands faster than ever before. "What they find in a lot of cases is that their supply chains look more like their histories than their strategies," he said.
The $2 billion figure encompasses a previously announced $48 million buildout of 27 temperature-controlled facilities across the Americas, Europe, and Asia aimed at handling temperature-sensitive pharmaceuticals, including GLP-1 weight loss drugs. UPS said the healthcare initiative is part of its broader effort to grow in higher-margin logistics services.
#chains #facility #Logistics
2 months ago
