The U.S. Postal Service adds more than 600,000 new delivery points each year, mostly in the form of new residential homes. While most new residences include cluster boxes rather than to-the-door delivery to reduce costs, delivery remains the Postal Service's largest cost center. Canada Post, which has suffered losses recently after years of profits, has introduced a $200 per address charge that it is assessing housing developers for installing community mailboxes. Canada Post claims the charge “is in keeping with how other infrastructure costs are shared by utilities and other services." Canada Post, which adds almost 200,000 new addresses a year, could earn tens of millions of dollars from the fee and it would offset the added costs of new delivery points. Housing developers in Canada have been fighting the charge, arguing that it is unfair to assess new homes only, which they say receive substandard delivery service compared to older homes and apartment buildings that get delivery to the door. In the United States, the Postal Service does not charge a fee to set-up and deliver to a new address. New delivery points are generally more profitable than old ones because they generate on average more volume and revenue and they cost less due to the increased use of lower cost options such as curbside and cluster boxes. Still, other utilities, such as gas, electric, and cable companies, charge customers a new service fee when they move or start service. Cities and counties also often charge an administrative fee for services, such as water, when a customer changes or adds a new address, sometimes in the $50 range. The City of Mountain View, CA, charges a hefty administrative fee of $195 to change or add a new address. Should the Postal Service recover the costs associated with new delivery points by charging customers a one-time “set-up” fee for their new home or business location? Or does that effectively penalize a new homeowner for receiving what is usually a more cost-effective form of delivery (cluster boxes)? If the Postal Service were to charge, should it only charge for the administrative costs it incurs to set up new addresses, such as completing and reviewing Postal Service forms and updating to the Address Management System and Delivery Sequence File? Should it charge the developer as Canada Post is doing? Or should it retain the status quo and keep it so that costs are shared by all ratepayers? Are there other solutions?
on Mar 11th, 2013
in Ideas Worth Exploring
| 8 comments
on Mar 4th, 2013
in Delivery & Collection
| 5 comments
Imagine if customers didn’t have to wait at home for a package delivery or have to rush home from work to retrieve a package off their front porch. Or, what if they could avoid paying a fee to receive packages at another address? With 24-hour parcel lockers, their prayers are answered.
Last spring, the U.S. Postal Service unveiled gopost™, a self-service parcel locker system. The Postal Service is pilot-testing the 24-hour secured locker systems in the Washington, DC, area at locations such as shopping centers, grocery stores, pharmacies, and transportation hubs. Many gopost locker systems are accessible 24-hours a day, have a security camera, touch screen operations, and they provide mailing receipts.
Customers can register online to send or receive packages, with no fee to register and use the lockers. Instead of using residential addresses, customers can have shipments sent to the address of a selected and convenient gopost locker system. They then pick up their package at a time that works for them.
Additionally, once registered, the customer can receive communications through either email or by text when their package arrives. More details about gopost operations are at the Postal Service’s website.
The growth in packages is expected to rise steadily as Americans do more of their shopping online and via digital devices. In just the past few years, the Postal Service has seen volume growth in package services of about 15 percent. Increasingly, customers want the security and convenience of picking up packages from a location other than their own address.
What other factors should the Postal Service consider as it deploys more parcel locker systems to other locations? Would you like a gopost location near you? How often do you think you would use a gopost locker?
on Dec 17th, 2012
in Delivery & Collection
| 27 comments
The U.S. Postal Service delivery workforce consists of city and rural letter carriers, who perform similar duties, but have differences in compensation and work rules. City letter carriers typically work routes that are high density and low mileage. These routes are classified as either “mounted” routes (for those that require a vehicle) or “walking” routes (for those that are done on foot). City letter carriers are also given a $371 per year uniform allowance. Rural letter carriers typically work routes that have a lower density of delivery points and higher mileage than those of city letter carriers. They work mounted routes, leaving their vehicles only to deliver to grouped mailboxes or to deliver an item that must be taken to a customer's door. However, rural routes have expanded to suburbs and exurbs, which are more densely populated and urbanized. These routes are similar to mounted “city” routes. Because suburban areas in the country continue to flourish, the rural carrier craft is the only craft in the Postal Service still growing. Postal Service policy states that rural carriers must present a neat, clean, and professional appearance reflecting a positive postal image, but does not require rural carriers to wear uniforms like their city counterparts. The 114,000 rural carriers and non-career rural carrier associates serve as a post office on wheels. They perform many of the services that a customer could receive at a retail counter. They sell stamps and money orders; provide Priority Mail flat rate boxes; accept Express and Priority mail; offer signature and delivery confirmation; and collect mail and parcels. Rural carriers provide their own vehicles to deliver mail on nearly half of the more than 73,000 rural routes. Now that the rural carrier craft is becoming more "urbanized," they are more visible to the public. Also, the past few years has seen an increase in the number of rural carriers delivering mail in Postal Service vehicles with the logo on the side. Do you think a uniformed shirt for rural carriers would be an overall positive change for the Postal Service as far as image, branding, marketing, and security? Would a uniformed shirt for rural carriers give employees a larger sense of unity and ownership to the mission of the Postal Service? Or is the idea of a uniform old-fashioned?
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