Inside Logistics

UPS Canada adding flex capacity to handle holiday loads

New Caledon facility pressed into service before it's fully open


December 2, 2019
by

MISSISSAUGA, Ont. –  UPS Canada is gearing up for another busy holiday season.

While not yet fully operational, sections of the new, $200 million UPS Caledon facility  – announced in 2018 – are being utilized to support holiday operations. Approximately 200,000 square feet of the 850,000 square foot facility is being utilized for holiday operations, UPS Canada spokesperson Murssal Akramy told Inside Logistics

To complement expansions in cities like Montreal, London and Ottawa, which are part of the company’s announced $500 million investment in Canada, alternate temporary capacity and sorting capabilities in major cities like Vancouver and Mississauga, will increase operational capabilities. The permanent expansions will add over 1.6 million square feet of operation space and process over 150 thousand additional pieces per hour.

The expansions will add over 750 thousand square feet of operation space and process tens of thousands of additional pieces per hour. UPS Canada will hire up to 2,500 new seasonal workers in facilities and on-road for pickup and delivery.

Temporary expansions include the leasing of available warehouse space, in various cities, to sort and prepare for delivery.  “We manage the process to locate available space, with the help of outside providers,” Akramy said via email.

“Space found is a mix of availability and strategic location. Planning for our busiest time of the year is never-ending. We understand market trends, particularly as it relates to e-commerce, and we work with customers to understand their projections. Planning, married with historical data and trends, helps us determine operational and people needs.” 

Part of that planning is based on consumer research commissioned by UPS Canada, which reveals that online gift purchases are up 33 percent compared to five years ago and almost 30 percent more Canadians are doing their holiday shopping earlier.

“Leveraging data to optimize our network, understanding market projections and working directly with customers throughout the year, ensures alignment between expected holiday volume and delivery capacity,” said Nicolas Dorget, vice-president, strategic alliances, UPS Canada.