[dropcap style="font-size: 60px; color: #9b9b9b;"]I[/dropcap]n fiscal year 2009, the U.S. Postal Service spent more than $149 million in manufacturing, shipping, and fulfillment costs for Express Mail® and Priority Mail® packaging supplies. The Postal Service, like FedEx, provides these supplies at no cost to customers and the public. The packaging is Postal Service property and, therefore, should only be used to send Express and Priority mail packages. However, some customers use the boxes, envelopes, and labels for other purposes and in some cases, customers use the packaging to mail items using the Postal Service’s competitors. This adds additional costs to the Postal Service and violates federal law. The question is balancing the desire to control costs with maintaining the convenience that customers desire. The Postal Service must ensure the supplies it provides are used appropriately, but what’s the best way to do this? Are the savings worth the logistics and costs of monitoring and the inconvenience for customers? How do competitors monitor the use of packaging supplies? This topic is hosted by the Office of Audit Field Financial – West team.
on Mar 21st, 2011
in Post Offices & Retail Network
| 26 comments
on Feb 7th, 2011
in Ideas Worth Exploring
| 3 comments
[dropcap style="font-size: 60px; color: #9b9b9b;"] I [/dropcap]n recent years, a growing number of people have chosen to avoid crowded shopping malls by doing their holiday shopping online. To a certain extent, online shopping reduces their carbon footprint by keeping these individuals from driving to and from the store. However, their packages still have to be delivered. What if postal customers could choose to have carbon neutral delivery for an extra fee? In 2009, Itella, Finland’s postal service, introduced a program where customers could pay extra for carbon neutral delivery, adding the “Itella Green” marking to letters for less than a penny or parcels for around five cents. Itella achieved carbon neutrality through a combination of energy efficient delivery vehicles by funding reputable, environmentally-friendly projects. While Itella’s plans include increasing carbon efficiency in all three phases of the package delivery process: sorting, transportation, and delivery, the greatest carbon efficiency gains currently come from their shift to electric or fuel efficient delivery vehicles. On February 1 Itella made the cost of carbon neutrality a standard part of all postage, making it the first country to offer completely carbon neutral delivery. That way, when a customer uses Itella to send a letter, package, or direct mail, they know they are getting zero net emissions. Through their efforts, Itella has made carbon neutral delivery, a key element in developing a “green” reputation and an advantage in competitive areas like package delivery. Is offering carbon neutral delivery as a separate, specialized service that customers can purchase an idea worth exploring for the Postal Service? The Postal Service is already in the process of converting its delivery fleet to cleaner electric vehicles, making carbon neutrality easier to achieve in the coming years. Moreover, does it make sense to give consumers a choice in terms of the environmental friendliness of their mail delivery? Sources: Hellmail Itella This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).
on Dec 27th, 2010
in Post Offices & Retail Network
| 7 comments
It’s a couple days after Christmas and all through the house, still no creatures are stirring. Well, some of us are. After all, it’s back to work for most of us. Postal employees were especially busy this time of year. In the holiday season, the Postal Service delivered nearly 16 billion cards, letters and packages across the country and sent mail around the world. Post Office lobbies were also a busy place, with 97 million customers visiting. But more than 47 million customers skipped the trip to the Post Office this holiday season and took advantage of the Postal Service’s online shipping at www.usps.com. The Postal Service touches everyone regularly, but even more so during the holiday season. We would like to hear about your “Mail Moment” experience with the Postal Service over the past few weeks. What made it memorable? Was it a positive experience? If not, how can the Postal Service improve?