US Postal Service faces new reality

[TrueBlueTerrier]

http://www.postaltechnologyinternationa ... wsID=33140" onclick="window.open(this.href);return false;


Faced with a massive infrastructure that is no longer financially sustainable, the US Postal Service has proposed sweeping changes designed to save the organisation up to US$3 billion a year by cutting its network of processing facilities by over half and adjusting service standards.

“We are forced to face a new reality today,” said Postmaster General Patrick Donahoe. “First-Class Mail supports the organisation and drives network requirements. With the dramatic decline in mail volume and the resulting excess capacity, maintaining a vast national infrastructure is no longer realistic. Since 2006 we have closed 186 facilities, removed more than 1,500 pieces of mail processing equipment, decreased employee complement by more than 110,000 through attrition and reduced costs by US$12 billion.”

Mail volume has declined by more than 43 billion pieces in the past 5 years and is continuing to decline. First-Class Mail has dropped 25 percent and single piece First-Class Mail — letters bearing postage stamps — has declined 36 percent in the same timeframe, and nearly 50 percent in the past ten years. The decline has created substantial excess capacity within the postal processing network.

“We simply need fewer facilities to process less mail,” said COO and executive VP Megan J. Brennan. ““We’re going to radically realign our mail-processing network over the next two years and we’re going to study 252 mail-processing facilities for potential consolidation or closure. We expect to shrink our network to fewer than 200 processing facilities by 2013.”

Other proposals under consideration include reducing mail processing equipment by as much as 50 percent, dramatically decreasing the nationwide transportation network, adjusting the workforce size by as many as 35,000 positions, and revising service standards for First-Class Mail from 1-3 days to 2-3 days.
“Our employees continue to do a terrific job for our customers and are among the most dedicated workforce anywhere. These are difficult times and our announcement today does not reflect on their commitment to service,” added Donahoe.