on Dec 3rd, 2012
in Delivery & Collection
| 6 comments
The U.S. Postal Service is about the best in the world at providing its core service of mail delivery. In fact, its ability to deliver mail and return undeliverable mail to the sender effectively makes the United States government one of the most efficient in the world, according to a working paper by National Bureau of Economic Research. A group of economists rated the efficiency of the world's governments with a simple test of their postal systems. The group mailed fake letters to nonexistent businesses in 159 countries and waited a year to see which were sent back to a professor at Dartmouth College in New Hampshire. The goal was to use a simple, universal service to explore why, other than corruption, developing countries tend to have poorly performing governments. All the letters went to countries that subscribe to the Universal Postal Union, which requires that incorrectly addressed mail be returned within a month. The United States was one of only four countries to send the undeliverable letters back within 90 days, along with El Salvador, Czech Republic, and Luxembourg. In fact, the U.S. had the fastest return rate at 16 days, although it may have benefited from returning the letters to an address in the United States. It also returned 100 percent of the fake-addressed letters. The study was not intended to assess the Postal Service, but the results do highlight some of its key strengths, at least compared to foreign posts. Foremost, better classification systems for addresses tended to result in faster returns, the economists noted. The Postal Service uses uniform address standards and its address database is among the most robust in the world. Again, this was not the study’s intention, but the results seem to support the Universal Postal Union’s (UPU) position that a national addressing system is essential to the economic and social advancement of countries. In its recent white paper, “Addressing the World – An Address for Everyone,” the UPU says that in many developing countries, physical addresses exist only in city centers. Without physical addresses, it is difficult to impossible for public services and businesses to reach their intended targets. “A quality address infrastructure must be considered as an essential part of a country’s socio-economic infrastructure, not only for improving public services, but also facilitating business, trade and, consequently, national development,” the UPU says. How important is an addressing infrastructure to government efficiency and business development? What parts of addressing does the Postal Service do particularly well? What could be improved? Share your thoughts.
on Oct 8th, 2012
in Delivery & Collection
| 10 comments
The digital revolution has changed communications, and with it, the operations and finances of the U.S. Postal Service. It also has brought deep changes in the way we design networks and analyze systems. Many organizations rely on mathematical modeling to test ideas before they become operational, conserving money and time. The Postal Service, facing limited capital and resources, has also adopted this practice. It is discovering how important these tools are for assessing strategies for designing the future mail network. The Office of Inspector General has explored some of the main components of the postal supply chain - retail, mail processing and transportation, and delivery – using a systems modeling approach. This approach has allowed the OIG to use objective methods to determine how the network could be redesigned to meet current needs and future demands. This research also helps us to understand some of the challenges in developing information-based decision models for the Postal Service. A primary challenge in any modeling effort is collecting the necessary information. Without this data, the model cannot fully assess the efficiency of the operations it is modeling, and develop an optimal network solution. Postal information systems can be a complex array of the hundreds of highly varied and specialized information systems that are often developed and maintained under separate contracts. Simplifying this landscape also could enable more insightful analyses to better guide decision makers. As the Postal Service considers how it can best serve the public through its products and services, modeling efforts can help it to evaluate different proposals for change. As we develop better efficiency standards with more rich data sources, we can not only better evaluate the efficiency of operations and system design, but we can better explore how operations may be changed to meet the needs of new environments.
on Sep 24th, 2012
in Delivery & Collection
| 3 comments
The U.S. Postal Service recently reported that its third quarter delivery service performance results marked “all-time record service performance” across all mail categories. In particular, the Postal Service had significant improvement in delivery performance for its commercial mail products in First Class and Standard Mail. Periodicals’ on-time performance topped 80 percent for the first time since 2010, a major improvement over the 46 percent score from earlier this year. The improved service performance in the third quarter occurred while the Postal Service was in the process of consolidating 46 facilities, which some mailers feared would affect service. But initial reports suggest service has not been overtly disrupted by the consolidations, although the real test could come during the fall and holiday mailing seasons. The Postal Service recently completed this first phase of its network rationalization plan, and is now on a break from consolidation until 2013 after the election season. Postal officials have attributed the improvement in service performance to diagnostic tools that show “pinch points” and help managers to act on that information to reduce cycle times. The Intelligent Mail Barcode full-service data, which identifies many potential problems, is also helping and employees are doing outstanding work often under difficult circumstances. It will be important for the Postal Service to maintain strong service performance as volumes pick up during the fall mailing season and election mail is added to the mix. Further, the second phase of consolidations could begin in February 2013 and could have an impact on service. Finally, mailers report that they are not solely concerned with service scores but that the Postal Service delivers the mail as promised. What has been your experience with service over the past few months? Have you been affected by the consolidations? Are you concerned about phase two of the network consolidation plan?
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