- A decoupling strategy affords the Postal Service more flexibility to respond to changing customer needs for retail service.
- The Postal Service too often ignores retail functions, which receive secondary managerial attention when competing with delivery for resources and clerk time.
- Decoupling could help transform both retail and delivery into separate best-practices driven, strategic business units.
- Major private-sector delivery companies in the United States as well as foreign posts previously separated their retail and delivery functions with each having its own distinct skills, training, and performance measures.
on Sep 26th, 2011
in Ideas Worth Exploring
| 9 comments
The Postal Service has “coupled” its retail and delivery operations, both managerially and physically, since delivery services were first established almost 150 years ago. Historical patterns, or the needs for delivery service efficiencies, primarily determined the location of physical facilities, which typically house both delivery and retail operations. Demands for postal retail services are changing both geographically and demographically as consumers age and population centers shift. Our Risk Analysis Research Center studied the strategic concept of “decoupling” the Postal Service’s delivery and retail operations, examining both the physical and managerial functions. The results appear in the recently released whitepaper titled Retail and Delivery: Decoupling Could Improve Service and Lower Costs. The white paper draws upon the insights of key stakeholders, private sector delivery companies within the United States, foreign postal operators, and expert business consultants. The study found that selective decoupling of retail and delivery operations, mostly outside of rural areas, could result in lower costs, increased revenue, and better service that is more responsive to changing market conditions and diverse customer needs. The paper’s key findings include:
on Sep 12th, 2011
in Ideas Worth Exploring
| 12 comments
Despite financial challenges resulting from declining mail volumes and current economic conditions, the Postal Service is continually driving efficiency by making better use of space, staffing, equipment, and transportation in processing mail. One key element of improving efficiency is consolidating mail processing operations, which is an ongoing effort. Since fiscal year 2009, the Postal Service has completed 47 consolidations and has an additional 107 consolidations in progress for proposed savings of approximately $255 million. How can further efficiencies be gained in mail processing? One idea may be to redesign workroom floor layouts to improve mail flow and eliminate redundancy or inefficient mail flow routes. This effort could also lead to work hour savings and efficiencies in staffing, staging, and dispatching the mail. Another idea may be to standardize mail processing equipment based on the volume of mail processed at each plant. Are these viable options for further improving mail processing efficiencies? What are some other ways the Postal Service can standardize mail processing operations to improve efficiency and improve the bottom line? This blog is hosted by the OIG’s Network Processing team.
on Aug 1st, 2011
in Ideas Worth Exploring
| 7 comments
In December 2009, the Universal Postal Union (UPU) obtained exclusive rights to the “.post” top-level domain for the postal community from the Internet Corporation for Assigned Names and Numbers. The .post domain joins existing prominent top level domains (such as .com, .edu, and .org), along with recent additions (such as .museum, .biz, and .aero.) The .post domain is intended to provide a secure space for members of the postal community to develop and deploy digital products and services. The .post domain is expected to be available for use by private postal operators, regulators, suppliers, vendors, trade unions, and trade associations. By linking well-established national networks, the UPU hopes .post will allow postal operators and customers to reap the benefits of a global physical/digital network that permits postal service providers and end users to connect quickly and securely to other end users around the world. The .post domain could be an appropriate platform for a variety of services. Common suggestions include: a global track and trace system linking the existing systems of the posts; the creation of an accessible database holding a universal and global addressing system; and a feature allowing consumers to decide whether to have an item delivered to a physical address or an electronic address. One approach, at the core of the OIG Risk Analysis Research Center's (RARC) digital strategy paper, Expanding the Postal Platform, would be to give every postal customer an e-mail address and digital ID. The .post top level domain could be a platform to support implementation of this strategy. The development of the .post top level domain raises a number of interesting questions: •Should the U.S. Postal Service use .post as a platform for offering digital services? •What are the advantages and disadvantages of using the .post domain, rather than .com or .gov? •Are there potential applications for .post that the postal media has not addressed? •Would .post improve the Postal Service brand by helping differentiate the Postal Service from other services in the digital space? •Does the choice of domain name affect the quality of service provided or the effectiveness of marketing such services? Let us know what you think! This blog is hosted by the OIG’s Risk Analysis Research Center.
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