The U.S. Postal Service has aggressively moved to reduce costs by consolidating its processing network and realigning its delivery facilities. However, it has essentially eliminated rail transportation, which is the least costly way to move mail long distances.
The U.S. Postal Service’s network was designed to deliver First-Class Mail in 1 to 3 days. If you drop a First-Class letter going to a local address in the mail, you can expect it to be delivered the next day.
These basic delivery standards date from a time before e-mail and other electronic methods of of communication. Now, as some First-Class Mail shifts to electronic alternatives, are these service standards worth the cost?
In today’s world we have the opportunity to do just about anything with just the click of a mouse and a few key strokes. Recent studies show online retail sales continuing to grow despite the economic slowdown and decline of overall retail sales. A previous blog, Could Radio Frequency Identification Make the U.S. Postal Service the Premier Delivery System, stated, “Last year Americans spent $155.2 billion shopping online.
The U.S. Postal Service has experienced a significant decline in mail volume in recent years, yet its contracted surface transportation remains largely unchanged. While mail volume dropped almost 16 percent from fiscal year 2008 to 2010, the Postal Service contracted out around 1 percent more miles of highway transportation over the same period. During the same time, the Postal Service has had considerable success minimizing the number of labor hours employees spend on mail processing.
The following factors may have mitigated the effects on transportation from a volume drop:
Advertising mail is a core product for the U.S. Postal Service. It is an important way for businesses to reach their customers, but many local small businesses and others underuse or avoid advertising mail. The rules, rates, and regulations can be complex and confusing. For saturation mailings, simplified addressing allows businesses to use a simple “Postal Customer” address instead of a full street address.
While many posts, including the U.S. Postal Service, are downsizing due to shrinking domestic markets, China Post is aggressively expanding. By the end of 2015, the China Post Group plans to extend universal service to all villages, increase urban residential letterboxes, and add 300,000 jobs. This development presents an opportunity for the Postal Service to partner with China Post to expand the reach of both posts, as the demand for end-to-end solutions between the Chinese and U.S. markets grows.
Although the digital option has grown as a channel for Americans to communicate, purchase, and store personal information, there are drawbacks that leave a significant portion of the population underserved. To meet the population’s needs and “bind the nation together” in a digital world, the Postal Service must modernize its role.
[dropcap style="font-size: 60px; color: #9b9b9b;"]L[/dropcap]ast year Americans spent $155.2 billion in online shopping. This year they are projected to spend more than $190 billion. The delivery of these parcels and packages represent a large revenue opportunity for the U.S. Postal Service, especially if they can improve delivery times, package tracking and increase processing through automation and new technologies. One solution may be the use of radio frequency identification (RFID).
[dropcap style="font-size: 60px; color: #9b9b9b;"]L[/dropcap]ast Thursday the Postal Regulatory Commission (PRC) issued its advisory opinion on the U. S. Postal Service’s proposal to switch to five-day delivery. Following a year-long analysis, the PRC voiced concerns with the request, questioning the potential savings, the impact on service, and the effect on communities, especially in rural areas. However, the Commission was unable to reach a consensus and did not issue an opinion to endorse or reject the proposal to cut Saturday delivery.
[dropcap style="font-size: 60px; color: #9b9b9b;"] I [/dropcap]n recent years, a growing number of people have chosen to avoid crowded shopping malls by doing their holiday shopping online. To a certain extent, online shopping reduces their carbon footprint by keeping these individuals from driving to and from the store. However, their packages still have to be delivered. What if postal customers could choose to have carbon neutral delivery for an extra fee?