Streamlined Purchasing Procedures: How Well Are They Working?

The U.S. Postal Service spent $12.3 billion on supplies and services in FY 2011, which made up about 17 percent of its total operating expenses. Suppliers to the Postal Service range from large integrators, such as FedEx and UPS, to individuals responsible for cleaning offices and transporting mail between postal locations. With thousands of suppliers, the Postal Service needs a procurement process that is agile, yet transparent and secure.

 

Modeling Isn’t Just For Ships Anymore

The digital revolution has changed communications, and with it, the operations and finances of the U.S. Postal Service. It also has brought deep changes in the way we design networks and analyze systems. Many organizations rely on mathematical modeling to test ideas before they become operational, conserving money and time. The Postal Service, facing limited capital and resources, has also adopted this practice. It is discovering how important these tools are for assessing strategies for designing the future mail network.

 

A Happy Customer is a Loyal Customer

The U.S. Postal Service has made improving the customer experience a priority. Postal officials see a positive customer experience as a key to revenue generation because customers are more likely to return if their experience was good. As Deputy PMG Ron Stroman noted to a gathering of postal officials in August, “Our customers have choices, they don’t have to come to us. How people are treated makes all the difference in the world.”

 

Diagnostic Tools Drive Service Improvements

The U.S. Postal Service recently reported that its third quarter delivery service performance results marked “all-time record service performance” across all mail categories. In particular, the Postal Service had significant improvement in delivery performance for its commercial mail products in First Class and Standard Mail. Periodicals’ on-time performance topped 80 percent for the first time since 2010, a major improvement over the 46 percent score from earlier this year.

 

Taxing the Postal Service?

Many international postal operators pay corporate income taxes to their national treasuries. Similar to a private company, these payments appear in the postal operators’ financial statements. Countries whose postal operators pay corporate income tax have essentially made a policy decision: They want their postal service to behave like a private business.

 

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Recent Comments

  • 3 hours 3 min ago
    I shipped out a box of my books on June 5th from Oklahoma to Connecticut, about a third of my library. The other two boxes are still waiting to be sent out. The box was supposed to arrive on the 12th...
  • 3 hours 4 min ago
    Hi Elizabeth, Thank you for your message. The OIG is an independent agency of the Postal Service and day-to-day mail delivery issues are outside of our jurisdiction. If you have not already done so,...

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