To remain financially viable, the Postal Service must effectively streamline its mail processing and transportation networks and optimize its workforce. Between fiscal years (FYs) 2005 and 2009, the Postal Service made progress in these efforts; however, management was unable to adjust resources quickly enough to fully offset declines in mail volume, resulting in a deteriorating financial condition. In FY 2009, the Postal Service experienced the largest 1-year decline in total mail volume since the Postal Reorganization Act of 1970 — a drop of more than 25 billion pieces.
One small upside to losing 26 percent of mail volume and relaxing delivery service standards over the past decade is that the U.S. Postal Service should experience a significant decline in its costs as well. Except that hasn’t happened for transportation costs.
In fact, Postal Service...Read More