We’ve all heard the bad news. Mail volume in fiscal year (FY) 2008 totaled 202.7 billion pieces, a decline of 9.5 billion pieces or 4.5 percent compared to the previous fiscal year. Mail volume has declined even further this year. At the end of the last quarter, mail volume was down more than 12 percent from the same period last year. Most recently, the Postal Service lost $2.4 billion in the third quarter of FY 2009 and projected a net loss of more than $7 billion for FY 2009.
As a panelist during the August 6 Senate subcommittee hearings on the Postal Service, Postmaster General Jack Potter once again focused on the need for 5-day delivery, greater flexibility, and the elimination of some network infrastructure. During the same hearings, the Government Accountability Office (GAO) recommended urgent action to streamline the mail processing and retail networks as the Postal Service no longer has sufficient revenues to cover the cost of maintaining its large network of processing and retail facilities.
The reality of the current situation is that in many areas the Postal Service has an excess of equipment, staff, and facilities to process a declining volume of mail. Given the harsh economic conditions faced by the Postal Service today, looking at opportunities to cut costs by streamlining inefficient operations or eliminating unnecessary ones makes good business sense.
One area for consideration is the elimination of Sunday mail processing operations. In many Processing and Distribution Centers around the nation, mail processing activities are run on Saturday night and into Sunday just as they are the rest of the week.
With mail volume declining, should the Postal Service reduce mail processing operation to 6 days a week, rather than the traditional 7 days, and allow employees to have Sunday off?
This blog is hosted by the Network Operations directorate.