Network Changes: Impacts in South Dakota
Background
As part of its network modernization plan, the U.S. Postal Service launched nationwide efforts to streamline transportation and mail processing, including consolidating and centralizing processing operations into regional facilities. As part of these changes, mail previously sorted in South Dakota is now routed to processing facilities outside the state. Subsequently, numerous customers in South Dakota reported concerns with how long mail was taking to be delivered. Residents and local businesses depend heavily on the Postal Service for essential, time-sensitive items including medications, local newspapers, and small‑business goods.
What We Did
Our objective was to evaluate the impacts of network changes on processing operations and service performance in South Dakota. We analyzed data related to mailflow, service performance, and service standards. Additionally, we conducted a mail test of 120 packages to evaluate intrastate mailflow and judgmentally selected three processing facilities and 16 post offices to conduct observations and interviews.
What We Found
Postal Service network modernization changes shifted mail processing to multiple out-of-state facilities, reducing intrastate connectivity and forcing South Dakota mail to travel long distances—often crossing multiple states—to be sorted. These extended routing distances, combined with limited intrastate transportation links and other transportation-related changes, reduced the timeliness and reliability of delivery across South Dakota. As a result, service performance declined across multiple mail classes and customers experienced longer delivery times, impacting rural communities who depend on the Postal Service for essential and time-sensitive items. At the same time, the Postal Service did not communicate impacts of the changes to affected communities. The Postal Service has taken actions to improve service performance for South Dakota by processing some intrastate mail in state but service performance for many classes of mail were still below nationwide averages.
Recommendations and Management’s Comments
We made three recommendations to address intrastate connectivity, service standards, and communication of operational changes. Postal Service management agreed with all recommendations. 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, 2, and 3 as corrective actions should resolve the issues.