Who Should Pay for Mail Forwarding?

More than 40 million Americans change their address each year, which means the U.S. Postal Service forwards an awful lot of mail. In fiscal year 2010, it forwarded 1.2 billion pieces. Under the Postal Service’s regulations, customers who fill out a change of address form have their mail forwarded to their new address for 12 months after the move. Mail forwarding costs the Postal Service almost $300 million a year. The cost to return mail to sender is another $800 million.

 

Is the Brand Suffering?

The Postal Service has built a strong brand name around service, trust, and security. Few other organizations can lay claim to such a strong brand, one with more than 200 years of history and cultivated by the Postal Service’s consistent fulfillment of its mission to securely deliver mail to every American, regardless of location, at a reasonable price. For 6 straight years, the Ponemon Institute has named the Postal Service the most trusted government agency and one of the top 10 most trusted businesses in the nation.

 

Unused Land Parcels – Sell, Hold, or Develop?

The U.S. Postal Service is one of the largest real estate owners in the United States with more than 8,600 facilities and 950 million square feet of land. (The Postal Service leases another 24,600 facilities.) It also has about 357 unused land parcels with no structures on them, which have a book value of $128 million. The lands’ assessed values are likely to be significantly higher.

 

Hitting the Goal – Targeting the Results of AMP Consolidations

Between Fiscal Years 2004 and 2011, the U.S. Postal Service implemented over 100 area mail processing (AMP) consolidations, reducing the number of mail processing facilities from 676 to 461. Following implementation of an AMP, the Postal Service completes a post-implementation review (PIR) — a two-step documented process that tells management whether or not an AMP achieved the anticipated results. The PIR compares pre- and post-consolidation data, including projected savings, costs, workhours, and levels of service.

 

This is Not Your Father’s Railroad

The U.S. Postal Service has a long and storied history of moving mail on rail dating from the beginning of the railroad industry in the early 1800s. Mail was sorted on trains and Post Offices and processing facilities were located near rail stations. Many innovations and changes to rail, including the very development of modern freight rail service, were closely tied to the movement of mail. Today, however, the Postal Service meets its surface transportation needs almost entirely by using trucks owned by highway contractors.

 

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