Are Contract Postal Units and Village Post Offices the Post Office of the Future?

on Oct 24, 2011 in Post Offices & Retail Network | 23 comments

Are Contract Postal Units and Village Post Offices the Post Office of the Future?

A Contract Postal Unit (CPU) is a retail postal facility located inside a retail establishment, such as supermarkets, card and gift shops, pharmacies, and colleges. CPUs are operated by the retailer’s employees and offer the same basic services available at a regular Post Office. The Village Post Office (VPO) concept was introduced earlier this year and is similar to the CPU in that they are retail postal facilities operated by community businesses. However, they provide limited postal products and services. CPUs and VPOs lower U.S. Postal Service expenses, primarily because they use already existing retail stores. The Postal Service does not have to rent its own store and hire dedicated staff.

In fiscal year (FY) 2010, CPUs accounted for 8 percent of the Postal Service’s total retail network. In comparison, Canada has private dealer – operated outlets, which are similar to CPUs and account for more than 39 percent of Canada Posts® retail outlets; Australia has Licensed Post Offices and Community Postal Agencies, which are also similar to CPUs and account for 81 percent of Australia Posts® retail network.

Should the Postal Service close more Post Offices and expand the number of CPUs and VPOs to sell its products and services?

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Where would you prefer to go for postal services? (Please provide reasons in comment section)

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Expanding the use of CPUs and VPOs could assist the Postal Service in reducing its physical footprint, lowering expenses, providing more outlets for products and services, and potentially increasing access hours.
What do you think? Would a system of CPU and VPOs better serve the current market? Do you have any concerns with the concept?

Please share your thoughts and ideas.

This topic is hosted by the OIG’s Financial Control Directorate.

23 Comments

  1. The current drive to privatize the Post office with HR2309 will drive service and workers wages and benefits down.

    Two contract stations that I know about simply didn’t work out so to view contract stations as a cost saving measure to replace Post Offices may not save as much money as the Post Office contemplates.

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  2. If the USPS elimated the Union they could survive. Bad enough with the Government rules but then the post office has to deal with the the unreasionable & irresponsible demands of the Union Bosses that milk the employees of their hard earned pay. At least give the postal worker the freedom to choose & not be mandated to join a union against their will. If most workers were given that freedom – unions would fade away.

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