While the Postal Service leads the world in processing letter mail, private sector competitors have a higher market share for parcels. And while letter volumes are decreasing, parcel volumes are projected to increase. Although parcels represent less than 2 percent of mail volumes, the Postal Service parcel business makes up 13 percent of the market share in the U.S. The chart on the left depicts the market share for parcels. Just how do parcel industry giants keep their costs down and productivity up, even in today’s economic environment?
As package volumes climb, so too has the U.S. Postal Service’s investments in sorting systems. Since 2015, it has deployed 33 Small Package Sorting System (SPSS) machines costing over $141 million. It intended to invest another $23 million to have seven more SPSS machines operational during the...Read More