Posts Tagged "postal service"

Postal Service Revenue: What Should be Done?

on Oct 10, 2011 in Finances: Cost & Revenue | 56 comments

Much emphasis has been placed on reducing the Postal Service’s costs in response to its financial crisis. Yet financial viability could come in the form of a balanced approach that both reduces costs and increases revenue. How would a smart business respond to declines in its major products? Would it raise prices where possible in stagnant areas and invest the proceeds into existing or new growth areas? Would it selectively discount products to grow volume in price sensitive segments? Disruptive innovation, such as that underway in the communications sphere, requires change to ensure the Postal Service has what it needs to move beyond the critical crossroad it faces today.

Digital Currency: An Opportunity for the Postal Service?

on Oct 3, 2011 in Finances: Cost & Revenue | 18 comments

When you buy your groceries, how do you pay for them? What about when you go to the gas station or neighborhood restaurant? How do you buy items online?

Cash may still be king, but in everyday life, it is being eclipsed by newer digital payment methods such as credit cards, debit cards, and electronic transfers.

These payment methods are often more convenient than carrying around lots of cash, but they are not equally available to everyone. People who don’t have bank accounts or credit cards cannot access the full-range of digital currency products.

Operations and Finance – Allies or Foes?

on Sep 19, 2011 in Finances: Cost & Revenue | 12 comments

Let’s take a simplistic view of the Postal Service by dividing it into two groups: Operations and Finance. Operations’ main concern is to make sure mail is delivered and other services are rendered to satisfy customers’ needs. On the other hand, Finance’s responsibility is to ensure that all the information stemming from the Operations side is captured for billing/payment and financial statement reporting purposes. After all, the Postal Service needs to be paid for their good work, doesn’t it?

Standardization of Mail Processing Operations

on Sep 12, 2011 in Ideas Worth Exploring | 12 comments

Despite financial challenges resulting from declining mail volumes and current economic conditions, the Postal Service is continually driving efficiency by making better use of space, staffing, equipment, and transportation in processing mail. One key element of improving efficiency is consolidating mail processing operations, which is an ongoing effort.

Since fiscal year 2009, the Postal Service has completed 47 consolidations and has an additional 107 consolidations in progress for proposed savings of approximately $255 million.

How can further efficiencies be gained in mail processing? One idea may be to redesign workroom floor layouts to improve mail flow and eliminate redundancy or inefficient mail flow routes. This effort could also lead to work hour savings and efficiencies in staffing, staging, and dispatching the mail. Another idea may be to standardize mail processing equipment based on the volume of mail processed at each plant.

Are these viable options for further improving mail processing efficiencies? What are some other ways the Postal Service can standardize mail processing operations to improve efficiency and improve the bottom line?

This blog is hosted by the OIG’s Network Processing team.

What Should the Postal Service Retail Network Look Like in 2020 and Beyond?

on Aug 29, 2011 in Products & Services | 5 comments

The Pushing the Envelope blog recently described some of the barriers that have prevented the Postal Service from optimizing its network of retail facilities. This week we’d like your thoughts on the factors the Postal Service should consider in developing a retail network for the future. If the Postal Service were to rebuild its retail network from scratch — focusing on today’s consumer behaviors and needs — would it look as it does now? Today, there are about 32,000 brick and mortar postal-operated retail facilities. However, the Postal Service generates about 35 percent of retail revenue through alternative access channels. For example, customers can buy stamps and access postal services at http://www.usps.com/, self-service kiosks, grocery stores, retail outlets, and privately operated shipper locations. The availability of alternatives combined with declining mail volume and changing consumer needs has led the Postal Service to renew its efforts to optimize the retail facility network.

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