- A decoupling strategy affords the Postal Service more flexibility to respond to changing customer needs for retail service.
- The Postal Service too often ignores retail functions, which receive secondary managerial attention when competing with delivery for resources and clerk time.
- Decoupling could help transform both retail and delivery into separate best-practices driven, strategic business units.
- Major private-sector delivery companies in the United States as well as foreign posts previously separated their retail and delivery functions with each having its own distinct skills, training, and performance measures.
on Sep 26th, 2011
in Ideas Worth Exploring
| 9 comments
The Postal Service has “coupled” its retail and delivery operations, both managerially and physically, since delivery services were first established almost 150 years ago. Historical patterns, or the needs for delivery service efficiencies, primarily determined the location of physical facilities, which typically house both delivery and retail operations. Demands for postal retail services are changing both geographically and demographically as consumers age and population centers shift. Our Risk Analysis Research Center studied the strategic concept of “decoupling” the Postal Service’s delivery and retail operations, examining both the physical and managerial functions. The results appear in the recently released whitepaper titled Retail and Delivery: Decoupling Could Improve Service and Lower Costs. The white paper draws upon the insights of key stakeholders, private sector delivery companies within the United States, foreign postal operators, and expert business consultants. The study found that selective decoupling of retail and delivery operations, mostly outside of rural areas, could result in lower costs, increased revenue, and better service that is more responsive to changing market conditions and diverse customer needs. The paper’s key findings include:
on Aug 15th, 2011
in Products & Services
| 18 comments
In today’s world we have the opportunity to do just about anything with just the click of a mouse and a few key strokes. Recent studies show online retail sales continuing to grow despite the economic slowdown and decline of overall retail sales. A previous blog, Could Radio Frequency Identification Make the U.S. Postal Service the Premier Delivery System, stated, “Last year Americans spent $155.2 billion shopping online. This year Americans are projected to spend more than $190 billion.” Purchases made online have to be shipped and this provides a great opportunity for the Postal Service to increase parcel delivery service. The Postal Service delivers almost half the world’s mail and more than 171 billion pieces annually, of this amount, roughly 3 billion are packages (Source: 2010 Report on Form 10-K, United States Postal Service). In addition, the Postal Service is often the last mile option for delivering FedEx, UPS and DHL packages. In 2007, if given a choice, 46 percent of consumers would select the Postal Service to deliver their packages.(Source:Package Delivery Study conducted by comScore, March 2007.) The Postal Service has received several ideas for improving its parcel delivery service. Many suggest the Postal Service could be more competitive if it offered an improved track and trace and confirmation system. Other suggestions include reliable on-time delivery, increased speed of service, and a better loss and damage policy. This blog is hosted by the OIG’s Sales and Service Team.
on Jun 9th, 2011
in Post Offices & Retail Network
| 8 comments
Think for a moment about your most recent visit to a store. How late was it open? Where was it located? Now think about the last time you visited a Post Office? Were there any differences between the two experiences? While retail and the society at large have changed tremendously in the last 40 years, the size and distribution of the Postal Service retail network today is not that different from the network that existed in 1971. It has not changed to reflect the changes in where and how Americans live today.
Why is this? An OIG paper issued today, Barriers to Retail Network Optimization, highlights some of the obstacles to change:• Statutory restrictions prevent closing Post Offices for economic reasons and impose requirements for notice, consultation, and appeal procedures. • Regulatory procedures and interpretations create burdens on the Postal Service’s ability to make adjustments. • Political obstacles to rightsizing result from the natural inclination of affected groups to protest the loss of local Post Offices. • Institutional barriers within the Postal Service prevent action. These include a lack of sustained focus over time on retail optimization, problems with the availability and quality of data, past dependence on a highly decentralized bottom-up process, and the absence of a well-articulated strategic retail vision. What changes would you like to see to the Postal Service’s retail network? What do you think are the biggest barriers to change? We want to hear from you. This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).
This site provides a forum to discuss different aspects of the United States Postal Service and how it can be improved. We encourage you to share your comments, ideas, and concerns.
This is a moderated site—we will review all comments before posting them. We expect that participants will treat each other with respect. We will not post comments that contain vulgar language, personal attacks of any kind, or offensive terms that target specific individuals or groups. We will not post comments that are clearly off-topic or that promote services or products. Comments that make unsupported accusations will also not be posted.
We ask that reporters send questions to the USPS OIG Media Office through their normal channels and refrain from submitting questions here as comments. We will not post questions from reporters.
We recognize that the Web is a 24/7 medium, and your comments are welcome at any time. Given the need to manage Federal resources effectively, however, we will review comments and post them from 9:00 a.m—5:00 p.m Eastern Time, Monday through Friday. We will read and post comments submitted after hours, on weekends, or on holidays as early as possible the next business day.
To protect your own privacy, and the privacy of others, please do not include personal information or personally identifiable information such as names, addresses, phone numbers or e-mail addresses in the body of your comment.
Except when specifically noted, any views or opinions expressed on this forum (or any other forums available via an RSS feed) are those of the individual bloggers. The views and posted comments do not necessarily reflect those of the U.S. Postal Service Office of Inspector General, or the Federal government.
Thank you for taking the time to read this comment policy and disclaimer. We plan to blog weekly on as many emerging new media topics as possible. We encourage your participation in our discussion and look forward to an active exchange of ideas.