• on Apr 7th, 2014 in Products & Services | 4 comments

    Love ‘em, hate ‘em or feel indifferent, stamps are certainly getting their 15 minutes of fame. Not only are the latest stamp releases creating major buzz (think Harry Potter and Jimi Hendrix) but alternatives to buying stamps at Post Office counters – such as online and retail partners – are gaining in popularity.

    The Postal Service reports a growing number of direct-to-consumer stamp orders received from online channels, including eBay. With consumers buying stamps in new ways and a need to improve internal processes, the Postal Service recently announced it is borrowing some of the best practices of other large national retailers to create a world-class distribution network.

    The new system will support the growing number of direct-to-consumer stamp orders while keeping postal retail outlets and partners, such as Costco, Walmart, and Staples, well-stocked. This improvement should reduce consumer frustration when preferred stamps are not easily available. The changes include consolidating its stamp distribution network, greater use of automated equipment to provide order processing 7 days a week and faster fulfillment and delivery times of 5 days or less. The streamlining also should improve inventory management and reduce destruction of stamps.

    These changes address some of the recommendations made by the Office of Inspector General in an audit report issued late last year. The Postal Service is also beginning to implement some of our other recommended improvements, including better scanning compatibility, timely posting of transaction data, and status alerts sent to requesters.

    The new system should be seamless to customers and post offices were told to order stamps as usual until further notice. We welcome your input on the changes and the stamp-ordering process. Customers, do you have trouble locating the stamps you prefer? Employees, are there other ways to improve stamp ordering and fulfillment? 

  • on Jan 24th, 2011 in Mail Processing & Transportation | 8 comments
    The Postal Service established International Service Centers (ISCs) in 1996 to become more competitive in the international mail market. ISCs distribute and dispatch both incoming and outgoing international mail. The ISC network has facilities located in five major cities: New York, Miami, Chicago, Los Angeles, and San Francisco. The Postal Service hoped that ISCs would improve service and provide the structure needed to support new products and increase revenue. However, International Mail volume has not increased as projected by the ISC marketing and sales plan. During the period FY 2007 to FY 2010, International mail volume declined by approximately 29 percent (from 858 million to 609 million mailpieces). Although the Postal Service reduced expenses by nearly $6 billion in fiscal year (FY) 2009 and by almost $789 million during the first three quarters of FY 2010, the reductions have not been sufficient to offset declines in mail volume revenue. Consequently, the Postal Service is reviewing its mail processing and retail networks to remove duplication and make them more efficient to reflect current mail volumes. In light of international mail volume declines and the Postal Service’s current financial condition, does the Postal Service still need a separate network to handle international mail? Are there other options the Postal Service could pursue to increase International mail volumes and revenue? Please share your comment(s) on how to make the ISC network more profitable, effective, efficient and economical. This topic is hosted by the OIG’s Network Processing Audit Team.