UPS plans $2bn network investment


UPS has announced its long-term growth strategies and financial outlook during its investor conference in New York, US.

At the conference, Chief Financial Officer Kurt Kuehn outlined plans for capital investments of 4.5% to 5% of revenue annually for 2015 to 2019. The company plans to invest approximately $2bn to expand its international infrastructure in Europe, Asia and the Americas.

UPS also highlighted plans to improve B2C profitability through optimized planning and data analysis. The company expects its On-Road Integrated Optimization and Navigation (ORION) system to reduce an average of seven to eight miles travelled from daily driver routes. Upon full implementation in 2017, ORION is expected to generate $300m to $400m in cost savings.

“The company is adapting well to the rapidly changing market conditions,” said Kuehn. “We are developing the right solutions today, to ensure customers choose UPS for their supply chain needs tomorrow.”

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