Postal Service Core Strategy Linkage

In response to a Government Accountability Office report and a Congressional request, the Postal Service introduced its Transformation Plan in 2002. Since then, the Postal Service has seen many changes, including a new postmaster general (PMG) and senior management team. Mail volume has declined due to electronic diversion and the recession. In addition, the Postal Accountability and Enhancement Act of 2006 changed how the Postal Service operates and conducts business.


Decreased Volume. Increased Miles

The U.S. Postal Service has experienced a significant decline in mail volume in recent years, yet its contracted surface transportation remains largely unchanged. While mail volume dropped almost 16 percent from fiscal year 2008 to 2010, the Postal Service contracted out around 1 percent more miles of highway transportation over the same period. During the same time, the Postal Service has had considerable success minimizing the number of labor hours employees spend on mail processing.

The following factors may have mitigated the effects on transportation from a volume drop:


Should the Postal Service Offer Volume Incentives to E-Retailers?

Offering volume incentives is a common business practice in the U.S. and around the world. Although the U.S. Postal Service offers incentives to businesses that presort their mail, the agency does not offer incentives based strictly on the volume of packages shipped. One reason might be that offering volume incentives would lower the profit margin on each package shipped; yet, the potential volume increase of items shipped would make up for the smaller profit margins.


Training . . . Stay or Pay?

It happens many times . . . a company invests time and money into training employees only to have them leave soon after the training is complete. Some industries and companies now have contractual agreements requiring employees to repay training costs to their employers if they separate from employment before a specified period. Congress has also passed legislation requiring continued service agreements from government employees who have received extensive training.



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