on Sep 21st, 2011 in Finances: Cost & Revenue | 3 comments
In a time when the Postal Service has suffered declines in volume and revenue across many categories, it has turned to the international market. For example, it has seized opportunities, including with China, to increase its overall market share in package and express business. But the Postal Service has to maintain an “international” infrastructure in order to efficiently receive and dispatch this mail flow. International Service Centers (ISCs) in Chicago, Los Angeles, Miami, New York, and San Francisco distribute and dispatch international mail. International Airmail Records Units are located within the ISCs which are part of the International Network Operation. These units validate mail records before transmitting information to the International Accounting Branch in St. Louis for billing foreign postal administrations. Currently, the records units are located in Chicago, Los Angeles, New York, New Jersey and Honolulu. In recent years, workload in Miami and Chicago were redistributed to other locations. Our office previously reported the records units operated in an obsolete, inefficient, and manual work environment resulting in the use of unnecessary work hours. Specifically, we found that these units supported more than 2 million hard copy records. Since then, the Postal Service has improved efficiency by implementing Lean Six Sigma methodologies to streamline processes and continues efforts to transition to a paperless environment. What additional opportunities exist to strengthen operations at International Service Centers and International Airmail Records Units to improve efficiencies and protect international revenues? For example, are there additional opportunities for consolidation? Are there additional steps the Postal Service can take to automate its processes and fully transition to a paperless environment? This blog is hosted by the OIG's Financial Reporting Directorate.