In May 2009, the Postal Service activated the first three Network Distribution Centers (NDCs) in the northeast region of the United States. This realigned the distribution and transportation of standard, periodical and package mail at more than 40 Northeast, New York Metro, and Eastern Area postal facilities. The NDC concept retained the 21 bulk mail centers renaming those NDCs and established a three tier approach to fill containers and trucks early in the network to dispatch them as deep into the network as possible. The Postal Service hopes its NDC network will streamline the processing and dispatching of mail, ultimately generating new gains in service, efficiency, and customer value.

From September through November 2009, the Office of Inspector General (OIG) conducted a review of these recent efforts and found the Postal Service is off to a successful start. During the first phase activation of the NDC, management implemented live loads and unloads of all trailers, increased trailer utilization, streamlined some transportation trips, reduced mail processing workhours, and improved Package Service performance.

Management expected to see future workhour savings and transportation trip cancellations as a result of the activations. Despite the overall success of the first phase of activations, the OIG audit team determined postal management could enhance future NDC activations by completing customer supplier agreements and planning sufficiently for work reduction caused by the activations. Additionally, the audit team concluded postal management should develop and submit specific milestones in the activation planning documents.

In a future review, the OIG will assess the financial and operational impacts of the NDC activations and determine whether the activations achieved anticipated benefits. To read the report “Network Distribution Center Phase 1 Activation” (Report Number EN-MA-10-001)

click here.

A study just released by the U.S. Postal Service’s Office of Inspector General (OIG) shows that the current system of funding the Postal Service’s Civil Service Retirement System pension responsibility is inequitable and has resulted in the Postal Service overpaying $75 billion to the pension fund. The OIG estimates that if the overcharge was used to prepay the Postal Service’s health benefits fund, it would fully meet all of the Postal Service’s accrued retiree health care liabilities and eliminate the need for the required annual payments of more than $5 billion. Also, the health benefits fund could immediately start meeting its intended purpose -- paying the annual payment for current retirees, which was $2 billion in 2009.

The report further illustrates the inequity in the methodology used to determine the Postal Service’s contribution to the CSRS fund. Key findings from the report: Read more

When a Part-Time Flexible (PTF) Carrier in Pennsylvania kept calling his office on his day off to determine if four Express Mail packages had arrived from Arizona, the manager became suspicious. Aware that such packages had been part of marijuana trafficking networks from Arizona, the manager notified the Office of Inspector General (OIG). After identifying the packages as containing marijuana – 57 pounds of it – OIG Special Agents tailed the PTF Carrier as he picked up the parcels and delivered them to a third party. The PTF and his associate were arrested. End of story, right?

Not so fast . . .

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