Postal Service Progresses With Operational Efficiencies
Proposal to Change Service Standards Filed with PRC
December 05, 2011
WASHINGTON — The U.S. Postal Service today announced it will move forward with its proposal to change service standards. This action is being taken in response to on-going financial challenges caused by the dramatic and continual decline in First-Class Mail volume and the resulting revenue loss.
“The U.S. Postal Service must reduce its operating costs by $20 billion by 2015 in order to return to profitability,” said David Williams, vice president, Network Operations. “The proposed changes to service standards will allow for significant consolidation of the postal network in terms of facilities, processing equipment, vehicles and employee workforce and will generate projected net annual savings of approximately $2.1 billion.” This is part of the overall savings expected from the network optimization initiative, which is projected to save up to $3 billion by 2015.
The size of the existing Postal Service network is dictated by the current overnight transit time in existing service standards. The Postal Service is proposing, through the rulemaking process, to move First-Class Mail to a 2?3 day standard for contiguous U.S. destinations; however, there would be an opportunity for mailers who properly prepare and enter mail at the destinating processing facility prior to the day’s critical entry time to have their mail delivered the following delivery day.
On Sep. 15, the Postal Service announced it would begin studying 252 out of 487 mail processing facilities for possible closure. At that time, the Postal Service also announced it would be considering changes to service standards in an Advance Notice of Proposed Rulemaking published in the Federal Register. The Advance Notice filing was a formal effort to gather input from the public early in the process to ensure their views can be factored into the service change proposal.
The Postal Service will send to the Postal Regulatory Commission (PRC) a request for an advisory opinion regarding service standard changes associated with a significant rationalization of its mail processing network. Shortly thereafter, the Postal Service will publish a notice in the Federal Register soliciting public comment on the specific proposed changes.
[…] is dithering, the for-profit mail services that want to carve up the USPS are salivating, and the postmaster general is surrendering—proposing to end next-day delivery of letters, postcards and other First Class […]
Two very egregious items continued to be overlooked; (1) a first class letter, which currently is .44 cents and constitutes over 40 % of next day deliveries will now cost appx $18.00. (the present day cost of next day Express) and, (2) how can communities put up with the power of the USPS to determine which communities will be superior (those cities designated to have mail processing plants will still have next day delivery capacity). Those cities losing their plants will be designated as second-class cities. These two items alone if made public should be enough to make this proposal DOA. This should be a public policy debate suitable for political decision-making, not a ‘proclamation’ by shortsighted postal officials. PRC should say no way Jose!!
I understand the need to reduce overhead, restructure the organization and streamline the Postal Service to make it a viable and profitable entity for many more years to come but I can not understand how reducing the service standards on first class mail is going to help accomplish this monumental task.
If this proceeds, I think this will only accelerate the already declining volumes of first class mail. How about reaffirming our commitment to delivering first class, priority and express mail as quickly as we can. Stop treating standard mail as if it were first class and demanding delivery as priority over first class mail!!
Try teaching supervisors and postmasters some common sense business skills!
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