• on Jul 31st, 2015 in Ideas Worth Exploring | 1 comment

    Imagine ordering groceries and having them delivered to a mailbox that signs for them, monitors and controls temperature to prevent spoilage, and alerts you that your food has been safely delivered.

    Meet the connected mailbox.

    Sounds like something George Jetson and his family might have, doesn’t it? Actually, it could be something you have in the not-too-distant future, given the growing interest in the so-called “Internet of Things” – essentially interconnecting digital networks of physical objects embedded with sensors that do everything from collecting data to switching things on and off.

    Think of existing systems that wire up your home so that you can remotely adjust lighting, temperature, even door locks and more via computer or mobile device. As we note in our new white paper, The Internet of Postal Things, the U.S. Postal Service has a vast and rich infrastructure that could be similarly wired to create what we call an Internet of Postal Things (IoPT), which could benefit both the Postal Service and its customers. We identify more than a dozen IoPT applications that could be developed in four key categories:

    • Transportation and logistics – Sensors on postal vehicles to increase efficiency through predictive maintenance, fuel management, and real-time dynamic routing.
    •  Smart postal buildings – Sensors to not only increase security and reduce energy consumption, but also improve customer convenience by, for example, equipping clerks with wearables (clothing/accessories incorporating computer technology) to help them find what customers need.
    • Neighborhood services – Sensors on postal vehicles, carrier devices, and mailboxes that could perform tasks useful to local authorities, such as monitoring air quality or identifying potholes.
    • Enhanced mail and parcel services – More applications like the connected mailbox, providing greater customer convenience and increased postal efficiency.

    You can check out the paper for more details, including suggestions on how the Postal Service could start building an IoPT. Meanwhile, what do you think? What IoPT applications would you most like to see?

    To get an idea how the IoPT might work, we created this video.

     

  • on Jul 21st, 2014 in Delivery & Collection | 12 comments

    The Internet may have eaten into the U.S. Postal Service’s First-Class Mail volume and revenue, but digital devotion does bring good news, too. Package shipping is on the rise, due in large part to the ever-increasing popularity of online shopping. The Postal Service’s future could brighten considerably because of this expanding market, but is the Postal Service prepared to compete effectively in it?

    Our new white paper, Package Services: Get Ready, Set, Grow!, essentially probes that question and comes up with several intriguing findings. As our auditors have noted, the Postal Service has done a good job of managing package growth in terms of mail volume and workhours. But it could do more. And it will have to, not only because UPS and FedEx are offering modernized, end-to-end products and services in response to customer demand, but also because some e-tailers, like Amazon, are expanding to offer their own shipping and delivery options.

    Last year American businesses and consumers spent more than $68 billion to ship packages domestically; the Postal Service accounted for almost two-fifths of the total volume but less than one-fifth of the total revenue. That worked out to an average $3.37 of revenue per package for the Postal Service. UPS’s and FedEx’s average revenue per piece for their domestic packages were $9.39 and $9.70, respectively. The main reasons for the disparity? The Postal Service excels in lightweight and last-mile package delivery, which generate comparatively lower revenues.

    The white paper says the Postal Service could increase its revenue-per-package average by adding new services that customers want. For example:

    • Improving tracking service and package-return service
    • Offering email and text alerts to parcel senders and recipients
    • Specifying time-windows for delivery

    What do you think? How could the Postal Service expand its dominance in lightweight packages to higher-revenue packages? What package services would make you use the Postal Service more than you do now? How much online shopping do you do compared to in-store shopping?

  • on Apr 21st, 2014 in Products & Services | 0 comments

    Social media isn’t just for fun any more. Sure, millions of people are still tweeting, posting, pinning, and sharing things with each other online by the nanosecond. But 70 percent of businesses and organizations worldwide, including the U.S. Postal Service, also have active Twitter, Facebook, LinkedIn, or other social media accounts.

    Why? Because they recognize that social media is an important channel of business communication, particularly in light of research from management consultants McKinsey & Company estimating there is between $900 billion and $1.3 trillion in annual value to the economy that could be unlocked by social media technologies. So how is the Postal Service using social media? Last summer we released a Management Advisory noting that the agency is present on no less than 18 social media sites. And now our new white paper – Like, Share, Tweet: Social Media and the Postal Service  – identifies multiple ways the Postal Service could not only improve its current social media activities, but also expand upon them to develop new products and services, such as:

    • Crowdshipping
    • Identification services
    • Hybrid products bridging physical and digital communications
    • Social e-commerce services

    Social e-commerce services, for example, could facilitate the use of social platforms as storefronts, similar to online shops on Etsy or Amazon. The Postal Service could manage those storefronts’ back-end operations by providing services such as micro-warehousing, fulfillment, and delivery.

    The paper ultimately makes the case that an overall stronger and more robust social media strategy could help the Postal Service remain competitive in the digital age by better responding to changing communication needs, improving the customer experience, creating value through social commerce, and cutting costs.

    Tell us what you think:

    • How could the Postal Service improve its social media activity?
    • How might your view of the Postal Service be affected by better social media activity?
    • Do you prefer businesses that engage customers via social media? 

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