The CEO of UPS, Carol Tomé, discussed on an earnings call the challenges faced by the company in the fourth quarter, attributing them to several factors. These included a decrease in volume from major customers such as Amazon, who are reducing their reliance on UPS due to internal logistics expansion and shifting delivery strategies. Additionally, other large customers either shifted to alternative carriers or experienced decreased business activity. UPS aims to mitigate these volume declines by focusing on smaller businesses and healthcare product shippers, with initiatives like SurePost and the Digital Access Program. Tomé highlighted the importance of these strategies in attracting and retaining small and medium-sized customers, ultimately aiming to increase their share of UPS’ total volume.

Inspired by: https://www.supplychaindive.com/news/ups-q4-top-customers-amazon-volume-decline/706583/