Last year Americans spent $155.2 billion in online shopping. This year they are projected to spend more than $190 billion. The delivery of these parcels and packages represent a large revenue opportunity for the U.S. Postal Service, especially if they can improve delivery times, package tracking and increase processing through automation and new technologies. One solution may be the use of radio frequency identification (RFID).
Currently, the Postal Service uses barcode systems to manually track and scan packages. A RFID tracking system uses radio waves to transmit and track identifiable information about an object, which has a unique tag embedded with a microchip and an antenna. The chip could store product or shipment information, such as the sender’s and receiver’s addresses, package contents, or other relevant information.The technology would allow for greater automation of parcels/packages, reducing delivery time and allowing mailers to track and even recall/reroute packages with greater ease. Instead of relying on human scanning – as the current barcode system does – RFID would use electronic readers to capture data on tags and transmit it directly to a computer system.
The RFID system would require significant outlay for a new infrastructure as well as the cost of the tags themselves. The investment ultimately could result in lower costs and improved mail delivery times, making the Postal Service the premier delivery service.
This blog is hosted by the Office of Audit, Delivery Directorate.