The aptly named Business Service Network (BSN) is charged with servicing the U.S. Postal Service’s 23,000 largest customers by addressing service issues, answering questions, and fulfilling other requests. Given the annual postal spend of this customer group – almost $38 billion in fiscal year 2013 alone – it clearly behooves the Postal Service to keep these customers happy.
You can’t cut your way to prosperity. That seems to be the message coming out of many of the comments we received on our recent blog about the next phase of network consolidation. So, if cutting alone isn’t the answer, what are your ideas for revenue growth?
Network consolidation will return in January 2015, a year after going on hiatus. The U.S. Postal Service announced recently that it would resume consolidations, closing up to 82 mail processing facilities. This second phase of the network consolidations should be done prior to the 2015 fall mailing season.
The Postal Service expects the changes to yield $750 million in annual savings and to affect about 15,000 employees. In 2012 and 2013, the Postal Service consolidated 141 mail processing facilities, resulting in cost savings of about $865 million.