• on Sep 19th, 2011 in Finances: Cost & Revenue | 12 comments
    Let’s take a simplistic view of the Postal Service by dividing it into two groups: Operations and Finance. Operations’ main concern is to make sure mail is delivered and other services are rendered to satisfy customers’ needs. On the other hand, Finance’s responsibility is to ensure that all the information stemming from the Operations side is captured for billing/payment and financial statement reporting purposes. After all, the Postal Service needs to be paid for their good work, doesn’t it? Based on audits of prior years’ financial statements, it seems Operations personnel were not always aware what financial impact their action or inaction had on the Postal Service when it came to the big picture. For example, Operations personnel might process the mail and deliver it to the customers’ satisfaction. However, internal supporting documentation and data might not have been updated in a timely manner. When personnel do not process documentation for services rendered according to Postal Service policy, the Postal Service risks losing money. Over the years, management has taken steps to provide Operations and Finance personnel with the bigger picture. They have advised the Operations side of their impact on the Postal Service’s financials and the repercussions of not completing processes correctly. The question is do you believe this endeavor has been successful? Let us know what you think in the comments section below. This blog is hosted by the OIG's Financial Reporting Directorate.
  • on Sep 12th, 2011 in Ideas Worth Exploring | 12 comments
    Despite financial challenges resulting from declining mail volumes and current economic conditions, the Postal Service is continually driving efficiency by making better use of space, staffing, equipment, and transportation in processing mail. One key element of improving efficiency is consolidating mail processing operations, which is an ongoing effort. Since fiscal year 2009, the Postal Service has completed 47 consolidations and has an additional 107 consolidations in progress for proposed savings of approximately $255 million. How can further efficiencies be gained in mail processing? One idea may be to redesign workroom floor layouts to improve mail flow and eliminate redundancy or inefficient mail flow routes. This effort could also lead to work hour savings and efficiencies in staffing, staging, and dispatching the mail. Another idea may be to standardize mail processing equipment based on the volume of mail processed at each plant. Are these viable options for further improving mail processing efficiencies? What are some other ways the Postal Service can standardize mail processing operations to improve efficiency and improve the bottom line? This blog is hosted by the OIG’s Network Processing team.
  • on Aug 29th, 2011 in Products & Services | 5 comments
    The Pushing the Envelope blog recently described some of the barriers that have prevented the Postal Service from optimizing its network of retail facilities. This week we’d like your thoughts on the factors the Postal Service should consider in developing a retail network for the future. If the Postal Service were to rebuild its retail network from scratch — focusing on today’s consumer behaviors and needs — would it look as it does now? Today, there are about 32,000 brick and mortar postal-operated retail facilities. However, the Postal Service generates about 35 percent of retail revenue through alternative access channels. For example, customers can buy stamps and access postal services at http://www.usps.com/, self-service kiosks, grocery stores, retail outlets, and privately operated shipper locations. The availability of alternatives combined with declining mail volume and changing consumer needs has led the Postal Service to renew its efforts to optimize the retail facility network. In recent months, the Postal Service has initiated action to address some of the institutional barriers that have inhibited modernizing the postal retail network. For example, in July 2011, the agency published final rules to improve the Post Office closing and consolidation process. However, public debate looms over this initiative. Numerous news articles have circulated about the Postal Service’s plan to study thousands of retail facilities for discontinuance opportunities, some questioning whether the final rules conflict with postal laws. Others maintain that Post Offices are essential to keeping communities connected and businesses strong and therefore should remain open even if they are not profitable. What should the Postal Service consider as it seeks to transform its retail network to meet future consumer needs? This blog is hosted by the OIG’s Network Optimization Directorate.

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