As online shopping has become the norm for many Americans, it has brought operational changes to both brick-and-mortar retailers and online retailers. Shipping costs are now a major consideration for companies. Retailers are working to control their shipping costs as their ebusiness grows, with the traditional retailers relying on their extensive network of stores to reduce shipping costs. Instead of shipping goods from centralized warehouses to far-flung customers, major retailers, such as Wal-Mart, Best Buy, and Gap Inc., deliver from stores close to their customers whenever possible.
“If you are generally well-equipped to deal with a zombie apocalypse, you will be prepared for a hurricane, pandemic, earthquake, or terrorist attack.” – U.S. Assistant Surgeon General Ali S. Khan, Centers for Disease Control and Prevention
The U.S. Postal Service adds more than 600,000 new delivery points each year, mostly in the form of new residential homes. While most new residences include cluster boxes rather than to-the-door delivery to reduce costs, delivery remains the Postal Service's largest cost center. Canada Post, which has suffered losses recently after years of profits, has introduced a $200 per address charge that it is assessing housing developers for installing community mailboxes.
Imagine if customers didn’t have to wait at home for a package delivery or have to rush home from work to retrieve a package off their front porch. Or, what if they could avoid paying a fee to receive packages at another address? With 24-hour parcel lockers, their prayers are answered.
The U.S. Postal Service delivery workforce consists of city and rural letter carriers, who perform similar duties, but have differences in compensation and work rules. City letter carriers typically work routes that are high density and low mileage. These routes are classified as either “mounted” routes (for those that require a vehicle) or “walking” routes (for those that are done on foot). City letter carriers are also given a $371 per year uniform allowance.
The U.S. Postal Service is about the best in the world at providing its core service of mail delivery. In fact, its ability to deliver mail and return undeliverable mail to the sender effectively makes the United States government one of the most efficient in the world, according to a working paper by National Bureau of Economic Research.
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.
More than 1.4 million Americans serve in the military, with about 200,000 of those troops serving overseas. Members of the armed forces can feel isolated while deployed, often in dangerous conditions. The military discovered long ago that mail boosts the morale of troops serving in other parts of the world, so it has made military mail a high priority. Military mail provides members of the armed forces with a vital link to their communities.
The U.S. Postal Service owns more than 213,000 vehicles, the largest civilian fleet in the world. Many of these vehicles are reaching the end of their operational lives, prompting the Postal Service to wrestle with how best to address its long-term vehicle needs. A recent Government Accountability Office report noted that the organization’s current financial situation poses a significant barrier to vehicle replacement or refurbishment.
More than 40 million Americans change their address each year, which means the U.S. Postal Service forwards an awful lot of mail. In fiscal year 2010, it forwarded 1.2 billion pieces. Under the Postal Service’s regulations, customers who fill out a change of address form have their mail forwarded to their new address for 12 months after the move. Mail forwarding costs the Postal Service almost $300 million a year. The cost to return mail to sender is another $800 million.