UPS adds to delivery reach with major ZIP code expansion

Delivery bellwether UPS this week added 12,680 ZIP codes to its earliest small-package delivery service, UPS Next Day Air Early in an effort to create an earlier guaranteed-delivery option for customers in locales that only had end-of-day guarantees.

UPS said this service reaches 94 percent of U.S. ZIP codes and 98 percent of U.S. businesses. The new ZIP codes are for customers in extended areas, with customers receiving packages by noon or 2 p.m., with Saturday service available in some locations. And it added that UPS now serves more ZIP codes by 8 a.m. and 10:30 a.m. than any other carrier.

As part of this announcement, UPS explained that its UPS Next Day Air Early A.M. has been renamed as UPS Next Day Air Early to signal it is the first available delivery, and in Canada UPS Express Early A.M. has been renamed as UPS Express Early, adding that UPS was the first to roll out an early a.m. service in 1994.

“Already we’ve seen manufacturers, healthcare companies and professional services, such as financial firms, respond to the expansion,” said Alan Gershenhorn, executive vice president and chief commercial officer, in a statement. “Getting a package by noon or 2 p.m. has proven to be attractive.  For example, businesses use those additional hours to process documents faster, or to turn inventory or lab specimens around quicker.”

UPS Public Relations Manager Peggy Gardner told LM that previous expansions have shown that customers need an early, first of day delivery option to meet the urgent needs of their customers, when asked what drove the need to add more than 12,000 ZIP codes to this offering.

“Customers want to squeeze more into the day and so having the afternoon to either turn around inventory or documents helps them serve their customers better,” she said. “So it’s driven by customer needs, which have been driven by faster business cycles and growing expectations.  We now cover 94 percent of the ZIP codes in the U.S. – out of a total of approx. 41,000.  That’s also 98 percent of all businesses.”

In terms of the biggest benefits of this expansion, Gardner cited time, because of the time businesses or consumers gain, they are able to do more. 

“Let’s say your business is to repair items,” she explained. “Now you can get something, turn it around and ship it back out that same day––or you need documents signed and returned, or your business needs an item to complete an order you have sold.  It’s about flexibility, speed and reliability.  The flexibility is demonstrated by developing more, earlier first-of-day delivery options within areas that previously only an end-of-day delivery guarantee.

And from a competitive advantage perspective for UPS, Gardner said UPS is bringing fast, reliable delivery to more businesses and consumers around the world, noting this is true for shippers in the U.S. and those shipping into the U.S. or to other global locations. 

“On March 7, we announced the UPS Worldwide Express service expanded to 23 new countries and territories outside of the U.S. so they also receive earlier deliveries when they previously only had end-of-day guarantees,” she said. “We’re investing in making our network work harder for customers.  We’ve been pleased with the response.