on Feb 1st, 2010 in Mail Processing & Transportation | 21 comments
 
To remain financially viable, the Postal Service must effectively streamline its mail processing and transportation networks and optimize its workforce. Between fiscal years (FYs) 2005 and 2009, the Postal Service made progress in these efforts; however, management was unable to adjust resources quickly enough to fully offset declines in mail volume, resulting in a deteriorating financial condition. In FY 2009, the Postal Service experienced the largest 1-year decline in total mail volume since the Postal Reorganization Act of 1970 — a drop of more than 25 billion pieces. Streamlining the network, while complying with its Universal Service Obligation, presents the Postal Service with many challenges in planning, developing, and implementing network rationalization initiatives. The economic downturn and resulting mail volume declines continue to complicate this difficult financial situation. Consolidating mail processing operations and closing unneeded plants is controversial. With pressures from Postal Service stakeholders to maintain the status quo, the Postal Service has been limited in its ability to implement much-needed streamlining initiatives. Where should the Postal Service look to gain greater efficiencies in its network?
 
This topic is hosted by the OIG's Network Optimization directorate

21 Comments

Cut these management bozos already ! Here in SW Pennsylvania they just move supervisors around and fill in for each other. Totally worthless people who cannot contribute to processing or delivering the mail !

How difficult is it to see that the savings would be to get rid of upper management? If you don't handle the mail, it's time to go. None of these 6 figure salaries. For what, they don't do anything to benefit the Postal Service. All they do is create problems for craft. They are costing the Post Office money in all the grievances they have to pay out for making stupid decisions. Just look at the article about hiring a casual in Arkansas to cover someone who enlisted for 4-5 years. They are going to be paying out some money for that mistake.

I'm with Congressman Dennis Kucinich on this. He seems to think that the USPS is leaning towards privatization. He thinks that the decisions taken and or being proposed are basically actions that are leading down the road to privatization. Hopefully he will keep an eye on the situation like he promised.
Here are some reasons why he might think that;
1. Failure to address bloated management
2. Failure to address unnecessary discounts to mailers
(Funny these first two aren't even on your survey)
3. Lack of coverage on windows thereby fostering discontent with the public.
4. Slashing personnel in facilities causing delay of mail.
5. Wanting to give away business to competitors by cutting back on services ie: closing facilities, ending Saturday delivery
I can see how someone might question what the real goal of the USPS is.

Unfortunately the USPS can not be trusted to make significant changes because they are too inept. Listen to craft employees. They are the ones that REALLY knows what works, what doesn't, and the best way to make changes, if any. USPS is too top heavy. Everyone knows that. Why not do something about it? There is no need for 40 something VP's!

The reason the USPS is in financial straits is due to the mis-management of management. There is no private company in the free world that would allow the blatent violation of the National Collective Bargaining Agreements without some recourse. The USPS spends millions on contract violations, EEO settlements because of poor management traning, undue harrasment, and just flat out discrimination. USPS management would rather shoot first and ask questions later, not realizing that its their own throats they are cutting. In the mean time, the bean counters sit back and try to figure out how to save our service? And most of the time, saving it involves reduction of craft employees, reduction of craft hours, consolidating offices, etc. All of these affect the craft, not so much management. Lets look at the real problem. MANAGEMENT! Getting rid of the inept supervisors, managers, upper management and all of those dead weights that have these "made up management" jobs. This is what would save our service and streamline efficiency. Lets face it, none of these folks would be able to ikep a job in the private sector doing the things they do here. They would have been fired and in the unemployment line a long time ago. Accountibility, and true accountability is what the USPS needs. When is it coming? Hopefully before its too late.

Cutting upper management, Consolidation of delivery units, and ending Saturday delivery are 3 huge cost savings for the USPS. Losing money is not an option. It's time to run the USPS like a business, not like a cash cow. Those who fail to change with the times get crushed under the wave of change

Why is it so obvious from the clerk point of view. They(management) have cut our processing jobs to the minimum and yet we keep the same people in management, different titles. Why do we have managers in our office doing the same work as managers in upper offices, redundency rewarded, as long as you are a manager.

Post Offices that are in ZOT to downgrade could be posted and filled at the lower grade if incumbent Postmasters were offered incentive to retire.

Well, I guess we'll see what the new Board of Governor
appointee's will do to "streamline" the footprint.

the postal mgmt here in st louis is removing all collection label in apartments and high rise office bldgs with no explanation other than its a courtecy to get the mail whenever we get there. even if its nine in the morning.most secrateries dont come down till around 5 pm.the people now have to either leave it with stale meter date for the next day,or drive to the P.o. whre the last collection time is five p,m. and when you take inside its to late as well even though the truck leaves at 6 p.m. the postmaster and district managers are destoying the st louis P.o. and when there done they will goback to chicago where that i place is one of the worst rated P.O. in the country. Remeber hymn 43

- 1800 UPS managers to be retired or layed off with incentives and serverance pay...
- 11,000 workers of Walmart's Sam's Clubs to be layed off.
The news is full of options the private sector is practicing to cut cost. The USPS did try an incentive program but the results did not yield the numbers that were hoped for.
It's time to target management for a retirement incentive and trim the redundency of positions.
This incentive need not be monetary. An arrangement with the Office of Personal Management to credit additional years to service time may cause thousands to opt for retirement. Also an option to invest unused sick leave in an annuity to fund Health Benefits in retirement would be an attractive incentive. I feel retirement incentives are the USPS first option for savings as the 5 day delivery option is not as popular with the public.

I agree with the earlier post, it appears obvious the USPS is just positioning itself for privatization. And it is also true management violates the collective bargaining agreement constantly, and knowingly. Management is also doing craft work on a regular basis, while craft positions get cut. This comes from a P&DC. They most certainly do not earn the money they are given. It is well known. Do not assume this comes from disgruntled staff of craft, investigage the EEO de-merits of management, look at their files for a change, how many grievances were filed and LOST on their behalf. As far as offering a vote to assist in streamlining postal operations, how about flexibility with employees? If we can take some time off to attend to matters, just how efficient do you think that would be? To much paperwork? at $70,000 plus per supervisor, dont you think they can learn to earn it? Taking time off for sick leave MUST be under the FMLA or we're toast. How about an unexpected situation, 3 days notice and MAYBE you'll get approved. Im greatful for the job, and there is a job to be done, but I feel it can be looked at from a better angle.

We all know the OIG is just another mouthpiece for upper management. The craft employee is always going to be the target. If you really want to save the USPS some money, make management follow the agreement that they signed. Another thing, how about going after some of the abusive supervisors. Instead of promoting or finding them other jobs, put them in jail where they belong.

To streamline/improve financial conditions: Change residential delivery to every other day: Mon-Wed-Fri for one-half of the residential population, and Tues-Thurs-Sat for the other half, thereby significantly cutting delivery costs and labor. (I don't need to see the bills and junk mail every day.) Maintain daily delivery for business districts and PO Boxes. Residences who want daily delivery could get PO boxes.

If the U.S. Postal service would offer an 80% on letter carriers under civil service to retire with no peneltys, the post office could save about $79.000 per employee per year.
The post office could keep the 6 day delivery, keep all emlpoyees that have been hired, and the 80% would be made up through the years with NO cash pay out. What I am saying is the 80% is the same as working 40 years. Most civil employees already have 30 to 42 years already. Get with the program PMG.

Streamlining? What is happening in Philadelphia. Close one facility, move mail to another, and fail. The movement of mail and people from the Philadelphia L&DC to the Philadelphia NDC was poorly planned. Now, people are being accused of poor implementation! It was a poor plan, plain and simple. Where are the "planners" that are responsible for this mess. Even the best managers can't implement a plan that was faulty from the start.

GET RID OF MOST LETTERS. HAVE LETTERS SENT BY TELEPHONE FAX. IT IS MORE SECURE THAN E MAILS.
MOST PEOPLE HAVE PHONES. LICENSE THE SERVICE TO THE TELEPHONE COMPANIES FOR A FEE. HAVE THE TELEPHONE COMPANY COLLECT THE SENDING FEE FROM THE CUSTOMER.

How about stopping Saturday delivery? It's not necessary.

The post service of any nation should remain government property. Look at how the Royal Mail of the U.K. has declined since becoming privatized, yet still borrowing huge chunks of public money. Is that what this nation wants? Sometimes I wonder

The APWU, AFL-CIO compiled significant data to confirm this AMP is nothing but a shameful attempt to benefit a few chosen individuals. From a logistical standpoint, Wareham Annex is centrally located near major interstates. Route 195, 495, and 28 are all within one mile including Route 6 and 3 within 5 miles. This shows we can be a major component to the USPS financially. USPS continually searches for ways to improve customer service and strives in making good business decisions. Indisputably our geographic location shows we can increase our customer service; while at the same time reduce operating costs. So if the USPS is actually serious about true cost-effective changes, then this study should be primarily focused on the actual savings if the Brockton Facility was reclassified. Eliminating wasteful liabilities and taking hold of an actual asset is the real way to attain its greatest aspirations.

These issues are affecting postal services across the globe. In the UK jobs are being axed in our postal service, which is losing millions financially every year. More and more private firms are muscling in all the time, putting further pressure on the national service.

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