• on Apr 13th, 2009 in Strategy & Public Policy | 12 comments
    The Postal Service spends approximately $13 billion each year with contractors, most of whom are also customers of the Postal Service. Meanwhile, the Postal Service has experienced the most significant mail decline in its history. Mail volume fell by 9.5 billion pieces in fiscal year (FY) 2008. The economic stress of current times is a major factor in this decline, and additional Postal Service revenue is lost when major businesses merge and combine their customer mail base.

    In March 2007, U.S. Postal Service officials developed Supply Management’s 3 Year Strategic Plan. One of the goals of the plan was to develop revenue generating opportunities. The plan mentioned that Supply Management should look further to identify additional opportunities to generate revenue. To meet its goal, Supply Management will focus on revenue generating opportunities that include partnering with Marketing and other business partners to identify revenue generating opportunities, increasing the use of volume rebates, and increasing licensing of its intellectual property (for example, cluster box unit delivery equipment). Royalty payments from various mail automation technology purchased through contracts will also increase revenue. The Postal Service is also considering advertising opportunities in its contracted transportation program.

    The Office of Inspector General has efforts underway to analyze Postal Service efforts to leverage its significant buying power to create revenue generating opportunities. We would like to solicit the knowledge and opinions of Postal Service employees and the mailing community. Our question is: How can the Postal Service best leverage its buying power to generate revenue and what opportunities may it currently be missing to do so?

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