• on Apr 20th, 2015 in Delivery & Collection | 0 comments

    Are all mailboxes equal? Not when it comes to advertising mail, which seems to invoke three critical factors normally associated with real estate – location, location, location.

    It costs the U.S. Postal Service less to deliver mail to curbside mailboxes or neighborhood cluster boxes than to your door. That’s why there’s been talk of possibly eliminating door-to-door delivery as Canada Post has recently announced. But the move could cut more than costs; it could also cut the effectiveness of ad mail, which provides about $16 billion of revenue annually to the Postal Service.

    We worked with the market research firm InfoTrends in surveying 5,000 households across the country to determine how much people engage with advertising mail. What we found was intriguing: People with to-the-door delivery had a much higher “read-and-response” rate to ad mail than people with curbside or cluster box delivery. A related trend: People with to-the-door delivery are less likely to throw their ad mail away than those who collect their mail at the curb or cluster box.

    It’s all detailed in our new white paper, Modes of Delivery and Customer Engagement with Advertising Mail, in which we suggest that the Postal Service and ad mailers work together to understand these delivery trends, which could have a critical impact on how much mail advertisers continue to send.

    In the meantime, tell us your experience: Do you have to-the-door, curbside, or cluster box delivery, and how much time would you say you spend with ad mail? If you have experienced a change from one type of delivery receptacle to another, did your behavior change? If so, how?

  • on Apr 13th, 2015 in OIG | 4 comments

    If you’ve rummaged around our website lately, you may have noticed a new tab on our home page entitled Audit Asks. “What is Audit Asks?” you might ask. It’s where you can read about some of our upcoming audits in their early stages and respond to questions that can help us develop more complete and useful audit reports.

    Audit Asks is actually an update of our audit project pages, initially launched about 6 years ago to get feedback from our readers. With the new Audit Asks format, we have added some eye-catching graphics and changed our writing style to prompt more feedback.

    Engaging stakeholders is important to us, as this blog attests. Your comments provide valuable insights and can help guide the direction of our audits, as well as our findings. This is also your opportunity to send links to documents you think will be useful during the audit planning phase. During this phase the audit team learns about the subject, collects a broad range of data, contacts key experts and stakeholders, and develops the specific objectives of the audit. This is when we decide on the breadth and depth of the topic of the report.

    Right now, for example, you can let us know about your experience with reduced window hours at select post offices and whether you think this will generate the intended savings. Or you can tell us what you think about voting by mail or your views on the new mobile delivery devices used to track packages and communicate with local post offices.

    Are you following us on Twitter and Facebook? It’s a great way to be informed when the audit announcements are posted in Audit Asks.

    And while we’re asking, are there specific issues you believe merit a U.S. Postal Service Office of Inspector General audit? We conduct objective, independent audits of Postal Service programs and operations to prevent and detect fraud, waste, and misconduct, and to promote economy, efficiency, and effectiveness. If you have an idea for an audit along any of these lines, we would love to hear from you. 

  • on Apr 3rd, 2015 in Strategy & Public Policy | 0 comments

    In the sage words of Yogi Berra, “If you don’t know where you’re going, you will wind up somewhere else.” So, where does the U.S. Postal Service want to go? Well, by 2016 it hopes to end up a lot closer to solvency. And to get there, it developed the Delivering Results, Innovation, Value and Efficiency (DRIVE) management process.

    DRIVE is a portfolio of strategic initiatives the Postal Service is implementing to meet ambitious performance goals and close its $20 billion financial gap. Each initiative is made of specific projects, goals, and milestones all leading toward a broad, overarching goal. The Postal Service began its DRIVE initiatives in 2011.

    So, how are the DRIVE initiatives working out? Well, the 19 initiatives are in various stages of development, funding, and implementation, and the Postal Service has about $2 billion in available capital to support all of them. The Postal Service said it generated $4.9 billion in new sales opportunities and cut $868 million in costs through DRIVE. It also reported that it has revitalized its Priority Mail package service and reduced its facilities footprint by more than 3 million feet.

    We’ve been keeping an eye on this process and have completed three DRIVE audits. Our reports looked at overall management of DRIVE (DP-AR-13-008), Initiative 6 (DP-AR-14-001), which aims to improve employee availability, and Initiative 42 (DP-AR-14-005), which focused on marketing new and existing services.

    Our first audit found DRIVE program management compares favorably to best-in-class program management practices – but there are opportunities for improvement. The other two reports reviewed specific initiatives and urged improvements, such as setting more aggressive goals, promoting accountability, and accurately measuring achievement. For example, one of the goals of Initiative 42 was to increase shipping and mail revenue by $5.2 billion in fiscal year 2014. As of May 2014, the Postal Service reported reaching $3.4 billion of that goal; however, we found the Postal Service does not have the capability to measure goals against recorded sales. A separate DRIVE initiative is intended to improve this ability to accurately measure goals.

    We are looking at other DRIVE initiatives, as well. But we would like to hear your thoughts on the value of this management tool.

    Do you believe the initiatives discussed here are improving the Postal Service?

    What DRIVE initiatives would you like to see the Postal Service pursue?

    Do you think these initiatives are the best way for the Postal Service to reach solvency? If not, what should it do instead? 

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