Overview
UPS Supply Chain Solutions has partnered with Verity to bring autonomous inventory tracking to its Kentucky-based UPS Velocity facility. This integration underscores UPS’s commitment to building a stronger tech stack focused on precision, speed, and customer experience. As the first of many potential sites, the UPS Velocity facility sets the standard for how robotics and AI can streamline UPS’s operations on a global scale.
Industry
Third party logistics provider (3PL)
Results
- Smart scanning used 74% of operational days, increasing inventory control frequency while reducing operational downtime
- 50% reduction in hours spent on inventory processes
“When we share information about the technology in the facility [with our customers], their eyes light up. They get excited to hear about the technologies available to complete a very labor-intensive process efficiently.”
Stephen Kronenthal, Business Development Manager, UPS
“From a customer expectation standpoint, nearly all of our customers have quarterly cycle count requirements in our contracts. The Verity solution will obviously help us proactively meet these requirements and, in most cases, even exceed them, keeping us ahead of the curve.”
Mary Ann Crawford, Industrial Engineering Manager, UPS
“Innovation is in our DNA. We’re constantly seeking ways to improve the customer experience, and Verity’s technology aligns perfectly with our customer-centric approach.”
Thomas Sterman, Industrial Engineering Director, UPS
UPS Supply Chain Solutions, a global leader in third-party logistics (3PL), operates a network of over 1,000 facilities spanning more than 220 countries and territories. With a steadfast commitment to precision, speed, and customer-centric service, UPS continues to set high standards in logistics by investing in advanced technology.
In July 2024, UPS Supply Chain Solutions partnered with Verity to implement the future-ready inventory management system at its UPS Velocity facility. This strategic move sets the stage for UPS’s vision of using technology to drive better customer experiences and set new benchmarks in the industry.
The challenge
In the competitive logistics industry, the success of UPS Supply Chain Solutions hinges on reliable service that meets client expectations and builds trust. Inventory discrepancies—whether from misplaced items or inaccurate counts—risk disrupting order fulfillment, directly impacting customer satisfaction. High labor costs underscore the need for automated processes that reduce manual checks and enable staff to focus on high-value tasks.
The solution
Located in Shepherdsville, Kentucky, the UPS Velocity facility is the newest and one of the most advanced sites in UPS’s network, designed to support multi-channel distribution for e-commerce, wholesale, and retail. Spanning a storage area of 266,000 sq. ft., this ambient-temperature facility manages over 930,000 annual inventory movements and serves multiple clients across 100,000 locations.
The facility’s very narrow aisle configuration optimizes space but poses challenges for traditional inventory processes that use heavy equipment like forklifts. Verity’s lightweight yet powerful, self-flying drones easily navigate these tight spaces and heights, performing daily inventory checks, floor-level to top-rack scans, and comprehensive full-facility audits twice per month. The system efficiently maintains accurate, real-time data on stock levels, ensuring continuous inventory visibility and control for UPS Supply Chain Solutions.
The system autonomously captures high-resolution images in the dark each night, identifying stock discrepancies and conducting routine empty location and moved locations checks. Each day, operations are empowered by smart insights— Verity efficiently identifies operational issues from the previous day, enabling rapid resolution through actionable data, ensuring that each day’s operations are optimally prepared for success.
The Verity system supports safer working conditions by limiting high-reach and labor-intensive tasks.
Results
- Daily smart checks combined with two monthly full scans ensure comprehensive inventory visibility with minimal operational downtime
- 8,000 labor hours saved annually, reducing total inventory-related labor hours by 50%
- Improved worker safety with automated scans that eliminate high-reach tasks
- Lowered energy and equipment usage, achieving a projected 1,540-ton CO₂ emission reduction
- 90% reduction in cycle count, moved and empty location scan hours
