The U.S. Postal Service spent $12.3 billion on supplies and services in FY 2011, which made up about 17 percent of its total operating expenses. Suppliers to the Postal Service range from large integrators, such as FedEx and UPS, to individuals responsible for cleaning offices and transporting mail between postal locations. With thousands of suppliers, the Postal Service needs a procurement process that is agile, yet transparent and secure.
The digital revolution has changed communications, and with it, the operations and finances of the U.S. Postal Service. It also has brought deep changes in the way we design networks and analyze systems. Many organizations rely on mathematical modeling to test ideas before they become operational, conserving money and time. The Postal Service, facing limited capital and resources, has also adopted this practice. It is discovering how important these tools are for assessing strategies for designing the future mail network.
The U.S. Postal Service has made improving the customer experience a priority. Postal officials see a positive customer experience as a key to revenue generation because customers are more likely to return if their experience was good. As Deputy PMG Ron Stroman noted to a gathering of postal officials in August, “Our customers have choices, they don’t have to come to us. How people are treated makes all the difference in the world.”