In fiscal year 2009, the U.S. Postal Service spent more than $149 million in manufacturing, shipping, and fulfillment costs for Express Mail® and Priority Mail® packaging supplies. The Postal Service, like FedEx, provides these supplies at no cost to customers and the public.
The packaging is Postal Service property and, therefore, should only be used to send Express and Priority mail packages. However, some customers use the boxes, envelopes, and labels for other purposes and in some cases, customers use the packaging to mail items using the Postal Service’s competitors. This adds additional costs to the Postal Service and violates federal law. The question is balancing the desire to control costs with maintaining the convenience that customers desire.
The Postal Service must ensure the supplies it provides are used appropriately, but what’s the best way to do this? Are the savings worth the logistics and costs of monitoring and the inconvenience for customers? How do competitors monitor the use of packaging supplies?
This topic is hosted by the Office of Audit Field Financial – West team.