The Postal Accountability and Enhancement Act of 2006 (PAEA) ushered in a new regulatory structure for the U.S. Postal Service. One key element was a price cap on market dominant products. (Most of the Postal Service's products are market dominant.) This means that price increases for market dominant products are capped by the rate of inflation as measured by the Consumer Price Index (CPI).
One area identified in the Postal Service’s action for the future is to increase workforce flexibility. A larger, part-time work force would give postal management the flexibility to increase or decrease employees depending on mail volume. Although this change is not as drastic as closing postal facilities or switching to 5-day delivery, it raises questions about what a part-time postal workforce would look like. The Postal Service has fewer part-time employees than any other international postal operation. Currently only 13 percent of its workforce is part-time.
For decades, the Postal Service offered vending machine service to supplement its retail operations. Vending machines meet the needs of customers who want to purchase stamps without waiting in line. While the lack of stamp vending machines has resulted in customer frustration and a surprising number of newspaper articles, the problems are particularly acute in economically depressed and more urban areas.
The economy has changed dramatically over the last 12 months. The Postal Service’s financial situation has changed, as well as its target markets and the fortunes and requirements of its customers. If the Postal Service gathers appropriate data to fully understand customers’ needs and desires, and offers relevant solutions, customers are more likely to choose the Postal Service as their primary supplier of mail products and services. The customer experience includes attributes such as access, convenience, products, services, price and relationship with the Postal Service.
The U.S. Postal Service’s current fleet of more than 219,000 vehicles includes approximately 146,000 delivery vehicles, most of which are long-life vehicles (LLVs). The first LLVs were produced in 1987, and they average about 10 miles per gallon. The vehicles are right-hand drive to accommodate drivers delivering numerous mailpieces to curbside mailboxes. These iconic right-hand drive delivery trucks are nearing the end of a 24-year life cycle and are costly to maintain. In a recent audit, we noted that it cost the Postal Service about $524 million to fix the LLVs in fiscal year 2009.