The Postal Service does not receive tax dollars to sustain its operations, but relies on accurate postage payments for support. While the vast majority of the Postal Service’s customers pay the full cost of mailing, revenue loss, otherwise known as revenue leakage, can occur when individual or business customers don’t pay the appropriate postage for their mailings.
Loading ...Postage may be paid in a number of ways. Customers can buy stamps at a customer service window and apply them to letters and packages as they need them, which can sometimes lead to underpayment of postage. Business customers can pay through meter or permit accounts. Business Mail Entry Units make sure that the correct postage has been affixed or claimed when discounts are claimed. Online sellers can use PC Postage and Click-N-Ship® postage with free carrier pick-up, eliminating the hassle of taking their goods to the Post Office to be weighed and shipped. Of course, this could lead to mistakes in mailings sent out under the wrong, and cheaper, mailing class for which the goods do not apply, such as mailing a set of skis as media mail.
Because of its dire financial situation, it’s now more important than ever for the Postal Service to protect the revenue it is due whether it comes in from the post office window, meters, online postage accounts, or from permit accounts.
Now is the time to share your thoughts and help the agency get back in the black.
What are the best ways to protect Postal Service revenue? Enter your comments below.
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I was fascinated by your response to Lenny with respect to his observations about EXFC and the way it managed. I contacted the PRC with concerns about the manner in which EXFC was distorting behavior and was referred to the OIG. I had several exchanges with someone at OIG, he had me look at an audit done in the Dallas area with respect to a shadow Priority delivery network – nothing unique there. Ultimately though the answer was always that management’s approach to EXFC was within the confines of their discretion. I am reminded of the old saw I learned as a steward many year’s ago – management has the right to mismanage.
It is no secret that every district has adopted some form of shadow network to chase EXFC perfection. A measurement that was designed to report on the efficiency of the network as it operated normally has become more a measure of our ability to identify extraordinary means and procedures in the quest for higher numbers. It is truly a shame that no one has been able to address what amounts to a fundamental element of our institutional culture with respect to systems measurement.
As far as revenue protection goes, it would seem that there are many opportunities for improvement. Start with an obtuse rate system that is virtually impenetrable to the layman. Add to that the infatuation with programs like Click and Ship that appear to have no real controls – ironic that we treat employees as if they are all dishonest and apparently give little thought to the idea that customers with economic incentive will not abuse the system. Finally, mix in an institutional culture that worships numerical goals without a basic understanding of the elements from which many of the goals are determined.
The Postal Service is an essential institution that does amazingly well in spite of itself. Unfortunately as the challenges of sustaining an unsustainable business model become more evident the resulting cognitive dissonance becomes ever more deafening.
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I agree with most of these posts {except for COMMONCENTS} I believe that the craft employees have great ideas for cost cutting since they are in touch with the customers as well as the mail. I also agree with MOPAR. You should be investigating wasteful spending as well as revenue protection. How about Potter? He should be held accountable for what he’s done to our service, and to hard working, honest employees. Grievances and lawsuits are costing the PO millions and no one tries to correct these situations. MOPAR, the waste, fraud, and abuse is going on all over our country. The public needs to know about this.
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We are still listening to all of you out there (even if we are unable to post you comments due to the sensitive nature), so please keep the dialogue happening!
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Most Postal employees do not realize the negative impact that short paid mail has on the Postal Service. From the data collected last year it was estimated that the USPS lost 600 million in revenue due to short paid mail. The District I am in was held accountable for roughly 6 million of the 600 million. You would think with the declining revenue and mail volumes each District Manager would put some effort in collecting a portion of the lost revenue.
I first started detecting postage due mail as a clerk. Each morning I would challenge another clerk to see who could come up with the most postage due mail and the lesser would pay for the coffee during the am break. It would be easy just to put everything you thought was postage due on a pile but we added if you guessed wrong on the weight you would lose two pieces so this made the game a little interesting. Later in my career I began to take it a bit more seriously and realized this was no longer a game. Since the shape based requirement many meter customers did not change the way the postage was applied partially because no one told them. From what I have learned is most of the short paid first class is collected by carriers, brought in to the back door for dispatch where the dispatch clerk has little or no retail knowledge or picked up on a dedicated collection route by either a PVS driver or carrier. The P&DC is a funnel and is a great place to start however most mail handlers and clerks in the plant have no rate knowledge. The P&DC will not utilize work hours to detect postage due mail and customer service clerks cannot work in the plant environment. I propose to create a EAS revenue protection specialist position. This individual would identify and document the postage due mail and then contact the Postmaster of the origin zip code. The Postmaster then would contact the mailer to educate the mailer. There are four areas for identification of postage due mail first the 010 or opening unit. This is where the incoming comingled mail is separated then sent to specific areas in the plant. Second would be the rough cull area. This is where fat letters, flats and small parcels are culled before going to the Advance Facer Canceller. The third place would be at near the loading station on the flat sorter. The fourth would be the dumping station for the SPBS and APPS.
Marketing is dong a great job at getting additional customers but the customers we currently have should be paying the correct rate. Having a carrier take a postage due letter for 17 or 44 cents to a customer actually costs the USPS more in man hours than what is collected. The key is contacting the mailers and educating them, this is also a great way to then promote other services that we as a company have to offer. Many times you see a large brown envelope get mailed from a company with Priority postage applied and no Priority endorsement. The Company probably did not realize it was Priority or did not have the needed packaging priority supplies on hand. Studies show companies that have the packing on hand use them.
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