Postal Service Network Streamlining

To remain financially viable, the Postal Service must effectively streamline its mail processing and transportation networks and optimize its workforce. Between fiscal years (FYs) 2005 and 2009, the Postal Service made progress in these efforts; however, management was unable to adjust resources quickly enough to fully offset declines in mail volume, resulting in a deteriorating financial condition. In FY 2009, the Postal Service experienced the largest 1-year decline in total mail volume since the Postal Reorganization Act of 1970 — a drop of more than 25 billion pieces.

Streamlining the network, while complying with its Universal Service Obligation, presents the Postal Service with many challenges in planning, developing, and implementing network rationalization initiatives. The economic downturn and resulting mail volume declines continue to complicate this difficult financial situation.

Consolidating mail processing operations and closing unneeded plants is controversial. With pressures from Postal Service stakeholders to maintain the status quo, the Postal Service has been limited in its ability to implement much-needed streamlining initiatives.

Where should the Postal Service look to gain greater efficiencies in its network?

This topic is hosted by the OIG’s Network Optimization directorate