on Sep 20th, 2010 in Delivery & Collection | 58 comments
Although eliminating Saturday delivery has been heavily debated, reducing delivery to 5 days a week may not be enough. There has been some discussion of whether the viable model for the U.S. Postal Service of the future will incorporate 3-day delivery. A 2010 study by the Boston Consulting Group for the Postal Service forecasts that the average pieces of mail per delivery point per delivery day will drop from 3.8 to 2.8 by 2020. If this projection holds true, then more households will likely receive no mail on any given day. With the increasing availability of alternative communication choices, it is unlikely that the demand for mail delivery will ever return to previous levels. Therefore, postal delivery may only be needed 3 days a week. Some homes could receive mail on Monday, Wednesday, and Friday, while others, on Tuesday, Thursday, and Saturday. Delivery would still occur 6 days a week for Post Office boxes. This additional benefit for P.O. Boxes would meet the needs of customers who have need of 6-day delivery, while generating higher revenue and increasing traffic for the Post Office. For many customers in the future, the amount of mail they will receive on a given day may not warrant the effort required to check their mailboxes every day. Delivering 3 days per week roughly doubles the amount of mail a household receives on a given day, making the “mail moment” of receiving mail more significant. The savings could be significant. With the Postal Service estimating a $3.5 billion saving from cutting one day of delivery, cutting three days could save roughly $10 billion. An additional benefit of this every-other-day schedule is that about 50 percent of the mail will have an additional day to reach its destination. These savings can be realized through the use of less costly modes of transportation, additional use of hub-and-spoke mail consolidation network design, and additional load balancing for the mail processing equipment. What do you think? Can this model balance the need to be financially viable while meeting the needs of the public? This topic is hosted by the OIG’s Risk Analysis Research Center (RARC).