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Effectiveness of the New Regional Processing and Distribution Center in Atlanta, GA

Audit Reports

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    Effectiveness of the New Regional Processing and Distribution Center in Atlanta, GA
Aug
28
2024
Report Number:
24-074-R24
Report Type:
Audit Reports
Category: Delivering for America, Service, Service Performance

Effectiveness of the New Regional Processing and Distribution Center in Atlanta, GA

Background

The U.S. Postal Service is redesigning its processing network with the goal of creating a best-in-class mail and package processing network as part of its 10-year strategic Delivering for America plan. The Postal Service plans to create a modernized network based around Regional Processing and Distribution Centers (RPDC), local processing centers, and sorting and delivery centers. The Atlanta RPDC is a new, one million square foot facility and one of the first RPDCs in the network.

What We Did

Our objective was to assess the operational impacts related to the launch of the RPDC and identify successes, lessons learned, and opportunities. We conducted observations of the Atlanta RPDC and surrounding mail processing facilities from March through June 2024.

What We Found

The Postal Service faced serious challenges when implementing the Atlanta RPDC and failed to capitalize on the success of their pre-launch transfer of operations. The challenges were significant and caused an immediate and significant decline in service performance in the Atlanta region. Specifically, the Postal Service had challenges executing operations under its new plant design, resulting in congested dock conditions and truck drivers waiting hours to unload mail.

In addition, the Postal Service did not build on lessons learned from the launch of the Richmond RPDC, to address similar barriers to success such as staffing, training, and supervision. Specifically, the Postal Service experienced serious staffing challenges at the Atlanta RPDC and did not have management in place to supervise employees and operations at launch. Finally, the Postal Service’s policy did not require it to communicate its plans to close certain facilities in the Atlanta region to customers or other stakeholders.

Recommendations and Management’s Comments

We made seven recommendations to address the issues identified in the report. Postal Service management agreed with five recommendations and disagreed with two. Management’s comments and our evaluation are at the end of each finding and recommendation. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to recommendations 1-3, 5, and 6, as corrective actions should resolve the issues identified in the report. Recommendations 4 and 7 were disagreed, and we will work with management through the formal audit resolution process.

Report Recommendations

# Recommendation Status Value Initial Management Response USPS Proposed Resolution OIG Response Final Resolution
1

Develop a platform operation plan with established procedures for tracking, staging, and organizing any mail moved off the docks to ensure it is timely entered into mail processing.

Closed $0 Agree
2

Communicate to management and follow a yard management plan at the Atlanta Regional Processing and Distribution Center (RPDC) and future RPDC sites.

Closed $0 Agree
3

Develop plans to orient and train employees to effectively perform operations before they start completing the new mail processing operations

Closed $0 Agree
4

Work with labor unions to successfully staff future Regional Processing and Distribution Centers to allow for successful transitions for the Postal Service and its employees.

Closed $0 Disagree
Agree
5

Develop contingency plans to handle low employee availability when implementing network changes.

Closed $0 Agree
6

Develop plans to provide facility specific training to management staff before they oversee the new mail processing operations.

Closed $0 Agree
7

Implement plans to hire sufficient managerial staff when implementing future network changes.

Closed $0 Disagree
Agree