UPS Financial and Insurance Service Planned Secure Transport of Expensive Commodities
ATLANTA, GA: The need of innovation and security for delivering effective logistic system has led to acquisition of Parcel Pro by UPS Capital, a financial and insurance service unit of UPS, a logistic company and supply chain provider.
Parcel Pro offers insured shipping and technological solutions specifically for jewelry and collectibles industry. This acquisition will provide UPS an opportunity to grow their business-to-business segments, which is more profitable than its consumer-shipping business, reports THE WALL STREET JOURNAL.
Over the past few decades the limited insurance and split up of shipments to the U.S. and other countries has elevated the transport and labor costs. Whereas now the assimilation of UPS security and Parcel Pro technology which provides online tracking, e-reporting and web access of ship via smart phone apps will allow companies to ship more items in one package, which is economically beneficial and logistically uncomplicated.
The collaboration will enhance supply chain risk reduction proficiency, benefiting global logistics of valuable goods and offers compensation for inventory and shipping loses through insurance to clients, acknowledged Ronald Chang, President of UPS Capital.
Kevin Sterling, an analyst covering UPS for BB&T Capital Markets, states that this acquisition will provide an opportunity to pace high in the insurance of jewelry business, rather than starting from nullified profit.