Sandy Springs-based UPS said it is working on a pilot project to consolidate package deliveries from different retailers into one delivery to a customer’s house, part of an effort by the company to save time and cut costs.
For example, if a customer orders three items online from three different online retailers with ground shipping, one of them might be delivered on a Tuesday, the second on Wednesday and the third on Thursday. UPS chief information officer Dave Barnes said the company could work with merchants to synchronize the deliveries and deliver all the items on Thursday, during remarks at the firm’s investor day.
Barnes said that would reduce shipping costs and it has the technology to see what orders have already been placed for shipments in its network, and it offer shippers incentives to match those shipments.
Increasing the number of packages per stop by 1/10 would increase operating profit for UPS by more than $200 million annually, according to the company.
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