As the U.S. Postal Service remakes itself into a leaner organization in the face of a communications revolution, it still remains a powerful medium and an important part of the nation’s infrastructure. A smaller Postal Service will still be huge, with more than $60 billion in projected revenue. It will not disappear tomorrow.
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.
The Postal Service has built a strong brand name around service, trust, and security. Few other organizations can lay claim to such a strong brand, one with more than 200 years of history and cultivated by the Postal Service’s consistent fulfillment of its mission to securely deliver mail to every American, regardless of location, at a reasonable price. For 6 straight years, the Ponemon Institute has named the Postal Service the most trusted government agency and one of the top 10 most trusted businesses in the nation.
Detail from Iron Mountain, Michigan
Post Office Mural
Some Americans may be aware that Benjamin Franklin was the first postmaster general of the United States, appointed by the Continental Congress during the American Revolution. But, unfortunately, our history lessons have otherwise overlooked the Post Office’s contribution to the development of the nation. A new paper entitled Postal Service Contributions to National Infrastructure describes some of the ways the Postal Service was used to support national infrastructure growth. For example, did you know?
When online, how do you know who you’re really communicating with? Does that affect your shopping or banking habits? Do you know people who don’t use the Internet much because they are afraid of identity theft?
The latest statistics from a Pew Research Center study demonstrate the pull of the Internet:
•80 percent of Americans are users, whether through personal computer, tablet, or smartphone;
•many of those users do not conduct any kind of commerce;
•30 percent have not made a purchase online;
•and 40 percent do not bank online.
As the Postal Service struggles to survive, it needs to take a good look at the financial health of its products. However, ascertaining the financial health of a product line requires an accurate estimate of the cost of providing that product. The Postal Service is moving into an increasingly data-driven future; thus, the timeliness and accuracy of cost measurement will continue to grow in importance. The Postal Service has not changed its cost system fundamentally in many years, though it updates significant inputs annually.
Generally, most consumers know the rates for mailing a 1-ounce First-Class® letter. However, many don’t know the prices of other postal service offerings, such as certification, insurance, or return receipt. In some instances, some of these services must be bundled with the mailing type.
This is the fifth topic in our "Five Elements of a Postal Solution" blog series. Link to last week's topic.
Link to the blog by Elmar Toime.
Link to the blog by Jim Sauber.
Link to the blog by Roger Kodat.
Guest Blogger Elmar Toime, independent advisor to the postal sector
What Opportunities Exist for the Postal Service to Integrate Its Traditional Role in the Digital World?
This is the third topic in our "Five Elements of a Postal Solution" blog series. Link to last week's topic.
Link to Friday's recap.
Link to Thursday's blog by John Payne.
Link to Wednesday's blog by Dan Combs.
Link to Tuesday's blog by Steve Ressler.
Recapping the week - March 19, 2012