Leveraging Postal Service Purchasing Power to Generate Revenue

The Postal Service spends approximately $13 billion each year with contractors, most of whom are also customers of the Postal Service. Meanwhile, the Postal Service has experienced the most significant mail decline in its history. Mail volume fell by 9.5 billion pieces in fiscal year (FY) 2008. The economic stress of current times is a major factor in this decline, and additional Postal Service revenue is lost when major businesses merge and combine their customer mail base.

 

Fuel Economy and the Postal Service: A Quiz

Two families trade in their vehicles for more fuel-efficient ones. If both travel the same amount each year, which will save more fuel by making the change?

Family 1 decides to trade in their 4-wheel drive Jeep Patriot (25.5 avg. MPG) for a Civic Hybrid (42.5 avg. MPG).
Family 2 decides to trade in their 4-wheel drive Chevy Trailblazer (14 avg. MPG) for a 4-wheel drive Jeep Patriot (25.5 avg. MPG).

Please vote before continuing if you don’t want to cheat.

[poll id="22"]

Did most of you think Family 1?

 

Options for the Postal Service

As Pushing the Envelope noted 8 weeks ago, the Postal Service is facing a severe financial challenge. There are concerns the Postal Service could end this year without enough cash to pay all of its bills. The Postal Service attributes its problems to two major factors: (1) the long-term erosion of high-margin First-Class Mail volume because of electronic diversion and (2) drastic volume losses due to the current recession. The Postal Service has asked Congress to

 

City Delivery Route Consolidation

Mail volume plummeted 4.5 percent — or 9.5 billion pieces — in fiscal year (FY) 2008. Reduced mail volume allows the Postal Service to combine delivery routes to maximize efficiency and reduce workhours, overtime, and other expenses. The Postal Service is seizing this opportunity by consolidating more than 87,000 city delivery routes — which could affect as many as 50 million addresses nationwide. Consolidating routes means some customers will receive their mail at a different time — earlier or later in the day.

 

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