• on Jun 7th, 2010 in Post Offices & Retail Network | 13 comments
    A number of media news articles in the last year have examined reductions in Post Office retail hours around the country. They report that some Post Offices are cutting back or eliminating Saturday hours, opening late in the morning or closing earlier in the afternoon during the week. The Postal Service faces significant legal and political constraints when it tries to close Post Offices, but faces few constraints when it acts to cut back on the hours a facility is open. However, eliminating hours amounts to a partial scaling back of retail service. When contacted by media, local Postal Service spokespersons have said districts have no specific targets for reducing hours and potential savings have not been calculated. After notices are posted that a Post Office plans to cut hours, some districts refuse to provide the media with a list of facilities where hours have been reduced, citing competitive issues relative to UPS and FedEx.

    Senator Susan Collins (R-ME), has come out against this approach, noting that cutting hours is a sure way to make the Postal Service’s financial condition worse. She said the Postal Service should be doing more to attract business, rather than making it more difficult for people to mail packages and letters because of reduced hours. So, is cutting Post Office hours the best way for the Postal Service to address declines in mail volume and the limits it faces on closing Post Offices? Is this part of a national Postal Service strategy or taking place solely by Post Offices on their own directive? Does the Postal Service owe the American people a real accounting of the service cuts it is making? What do you think? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).

  • on May 24th, 2010 in Post Offices & Retail Network | 60 comments
    In the past 18 years, the Postal Service has reorganized its field structure at least three times. In 1992, the Postal Service reorganized its field structure from five regions and 73 field divisions into 10 areas and 85 districts. From 2002-2006 the Postal Service changed its field structure to nine areas and 80 districts, and adjusted again in 2009 to eight areas and 74 districts. Under the current structure, area offices ensure headquarters directives are implemented, and district offices are responsible for managing major functions within a specified region of an area, including day-to-day management of subordinate post offices and customer service activities other than processing and distribution. The Postal Service believes the most recent consolidation will provide an annual cost savings of approximately $100 million.

    Other organizations have streamlined their management structure, whether looking to utilize new technologies or just save money during difficult economic times. For example, United Parcel Service recently announced it was reducing its U.S. regions from five to three and its districts from 46 to 20, and Walmart announced it was reducing its regions from five to three. What do you think of the Postal Service’s field structure? Please share your thoughts in the comments below. Keep in mind that Pushing the Envelope will not publish comments that contain personally identifiable information, so please don’t include any names in your story. This topic is hosted by the Office Audit Field Financial – West team.

  • on Apr 12th, 2010 in Post Offices & Retail Network | 40 comments
    The Postal Service is required by law to “provide, reliable, and efficient services to patrons in all areas and shall render postal services to all communities.” Consequently, the Postal Service has the largest retail presence in America with more than 32,000 leased or owned facilities located across the country. Today, alternate access channels are widely available. Customers can purchase stamps and access services at the Postal Service’s website www.usps.com, self-serve kiosks, grocery stores, retail outlets, and privately-operated shipper locations. Meanwhile, in the past decade, business and household mailers have increasingly turned to electronic media to transmit correspondence that was formerly sent through the postal system. In addition, a weakened economy has resulted in declining mail volume and revenue. The combination of the availability of alternative access and declining revenue requires the Postal Service to re-evaluate its retail network to eliminate growing excess capacity, reduce costs, and improve efficiency. In May 2009, the Postal Service began a national initiative, known as retail optimization, to consolidate its retail stations and branches in urban and suburban areas. Unlike some other retailers, the Postal Service can’t close their stores without generating public reaction. Closing just a small percentage of postal facilities can affect thousands of people and communities and is often questioned by those communities involved. As a result, there is a need for the Postal Service to work with stakeholders to balance their interests and optimize resources. This topic is hosted by the OIG’s Network Optimization Team.

Pages