A Future Mail Processing and Transportation Network

The Postal Service has evolved with the needs of a growing country for more than 230 years. A vast and complex network of processing facilities and transportation links was created to meet its universal service obligation. Today, the Postal Service has 260 Processing and Distribution Centers located throughout the country. This highly automated processing technology network provides incentives for its customers to presort the mail and drop ship it deeper into the network. As the likelihood of stagnant or decreasing mail volumes grows, there is a mismatch between the existing network capacity and user needs.

For several years, the Postal Service has introduced plans to consolidate its mail processing plants and reconfigure its transportation network. The Postal Service has made some progress, closing all but two Air Mail Centers (AMCs), initiating and implementing numerous AMP consolidations, and transforming the Bulk Mail Center (BMC) network in the Network Distribution Centers.

Despite these efforts, the fundamental question still remains: what should the mail processing and transportation network look like to meet future demand? And how many plants will be needed? A former deputy postmaster general suggested that in order for the Postal Service to be fully efficient, its footprint must be much smaller, possibly comprising 150 plants, and 400,000 employees. Another stakeholder said the current network is twice the size it should be. Are these reasonable assessments? What do you think?

To learn more, read our recently released white paper “A Strategy for a Future Mail Processing and Transportation Network.”

This blog is hosted by the OIG’s Risk Analysis Research Center (RARC).