As the Postal Service struggles to survive, it needs to take a good look at the financial health of its products. However, ascertaining the financial health of a product line requires an accurate estimate of the cost of providing that product. The Postal Service is moving into an increasingly data-driven future; thus, the timeliness and accuracy of cost measurement will continue to grow in importance. The Postal Service has not changed its cost system fundamentally in many years, though it updates significant inputs annually.
As package volumes climb, so too has the U.S. Postal Service’s investments in sorting systems. Since 2015, it has deployed 33 Small Package Sorting System (SPSS) machines costing over $141 million. It intended to invest another $23 million to have seven more SPSS machines operational during the...Read More