The Postal Service established International Service Centers (ISCs) in 1996 to become more competitive in the international mail market. ISCs distribute and dispatch both incoming and outgoing international mail. The ISC network has facilities located in five major cities: New York, Miami, Chicago, Los Angeles, and San Francisco. The Postal Service hoped that ISCs would improve service and provide the structure needed to support new products and increase revenue. However, International Mail volume has not increased as projected by the ISC marketing and sales plan. During the period FY 2007 to FY 2010, International mail volume declined by approximately 29 percent (from 858 million to 609 million mailpieces). Although the Postal Service reduced expenses by nearly $6 billion in fiscal year (FY) 2009 and by almost $789 million during the first three quarters of FY 2010, the reductions have not been sufficient to offset declines in mail volume revenue. Consequently, the Postal Service is reviewing its mail processing and retail networks to remove duplication and make them more efficient to reflect current mail volumes. In light of international mail volume declines and the Postal Service’s current financial condition, does the Postal Service still need a separate network to handle international mail? Are there other options the Postal Service could pursue to increase International mail volumes and revenue? Please share your comment(s) on how to make the ISC network more profitable, effective, efficient and economical. This topic is hosted by the OIG’s Network Processing Audit Team.
on Jan 24th, 2011
in Mail Processing & Transportation
| 31 comments
on Dec 27th, 2010
in Post Offices & Retail Network
| 7 comments
It’s a couple days after Christmas and all through the house, still no creatures are stirring. Well, some of us are. After all, it’s back to work for most of us. Postal employees were especially busy this time of year. In the holiday season, the Postal Service delivered nearly 16 billion cards, letters and packages across the country and sent mail around the world. Post Office lobbies were also a busy place, with 97 million customers visiting. But more than 47 million customers skipped the trip to the Post Office this holiday season and took advantage of the Postal Service’s online shipping at www.usps.com. The Postal Service touches everyone regularly, but even more so during the holiday season. We would like to hear about your “Mail Moment” experience with the Postal Service over the past few weeks. What made it memorable? Was it a positive experience? If not, how can the Postal Service improve?
on Nov 29th, 2010
in Finances: Cost & Revenue
| 8 comments
The sale of stamps and related products are a core Postal Service business. The Postal Service prints billions of commemorative and definitive stamps annually to enable customers to mail pre-paid domestic and international mail and to also encourage stamp collecting. Given the traditional importance of stamps to the Postal Service, it is vital that the process by which stamps are distributed to customers be both timely and secure. Stamp Distribution Centers (SDCs) issue stamps to thousands of Post Offices, postal stores, and contract stations (sites under contract to the Postal Service typically located in retail establishments) nationwide. Not only do the SDCs distribute all accountable stamp items (stamps, coils, envelopes, and postcards), but they also accept obsolete and redeemed stock for destruction. During fiscal year 2010, the Postal Service consolidated its existing stamp distribution network into six SDCs. The goal of this consolidation was to standardize and automate work processes, reduce space requirements, improve transportation, and reduce stamp destruction costs. This topic is hosted by the OIG's Field Financial-East audit team.