Saving the Postal Service: The Problems, the Solutions, and the "Surprise"

Especially in urban cities buzzing with the latest technology, many would agree that, “you don’t need a full-service post office every few blocks in New York, for example” (Source A). In addition, I spend every summer with my dad in Chicago, and because there is a USPS post office right around the corner of our apartment building, I have noticed from passing it every day that it is the one store on State Street that is empty 90 percent of the time. In my experience, Postmaster General John Potter is correct in wanting to “close and consolidate 154 post offices”, significantly reducing operating costs and employment. Strategy is key; by shutting down the offices with the lowest production and necessity, USPS will no longer be uselessly spending money.

Hundreds of years ago, there was a war that made the British stop controlling the American colonies and made what is today the United States of America. The colonies were huge underdogs with poor amounts of supplies and clothing, but surprisingly found a way to victory and got their independence from the British. Since the war, America has been an independent and powerful country in the world as they still are today. Sparks flew in colonist anger as British Parliament passed acts that America thought were unreasonable, such as the stamp act, this act was in place so the British could raise money. The colonists at this time had to buy stamps that were imprinted into paper goods, newspapers, documents, advertisements, and playing cards. The stamp act was one of the most hated acts by the Americans since it applied to everyone and they always needed the stamps. Another act the British made was a series of taxes called the townshend acts in 1767. This act was a tax on all imported goods, and made the Patriots

Question 1 asked to complete a five forces analysis of the US Express Mail Industry. A five forces analysis is done to rate the attractiveness of an industry.

According to a Case Study-United States Postal Service (Jan 06, 2010), retrieved from: http://www.slideshare.net/bakeursilly/usps; since 1175 when Benjamin Franklin was appointed as the first postmaster general of the United States, the agency known as the United States Postal Service (USPS) has grown to become an institution that delivers about half of the world’s mail in snow, rain, and the dark of the night. Employing about 656,000 workers and 218,684 vehicles, 36,496 total retail and delivery facilities nationwide, 599 processing facilities, 584 million pieces is the average volume per day, and a total work hour of 1,258,025 per year delivering over 200 billion items per year via air and highway.

In July 2009, the Government Accountability Office (GAO) listed the budget of the United States Postal Service as “high risk” and recommended oversight from Congress and the Executive Branch. Specifically, the GAO stated that “Amid challenging economic conditions and a changing business environment, USPS is facing a deteriorating financial situation in which it does not expect to cover its expenses and financial obligations in fiscal years 2009 and 2010” (“Restructuring”, 2009, pg. 1). The GAO claimed that the mail volume in 2009 would likely decrease by about 28 billion as compared to 2008 and that the USPS would likely see declining volumes for the next five years (“Restructuring”, 2009, pg. 1). Clearly, the USPS is currently facing a

Before when automations were nowhere to be seen, people demand USPS to deliver their mails everyday. Sometimes when there is a large package, it might take weeks for the letters to reach their destination. So retailers assist delivering the packages in a more efficient way. In order for the USPS continue to be on

The Post Office Department known as the United States Postal Services (USPS) (Annual Report, 2009) today, is a dominate player in the mail delivery arena and has been existence since 1776. The Post Office was originally a governmental agency, but due to mismanagement by Congress, was reorganized in 1971 and no longer a part of the presidential cabinet; but became an independent establishment of the executive branch of the Government. To date, the USPS maintains a monopoly on the day-to-day delivery of mail but competitors do share the market on some of the other types of deliveries; shares the market on some of the other types of deliveries (i.e. express

To many individuals, this is traditionally seen as a bureaucratic problem; however, personally I do not believe that the problem is purely the result of public sector negligence. Like many government services, it is more likely that the answer lies in serious reform rather than complete suspension. Interestingly, I located an article about the nonprofit - National Academy of Public Administration – that suggested a kind of public/private hybrid approach to fix the USPS’s difficulties. The concept entails “farming out” much of the behind the scenes process while a federal letter carrier would still handle front-line delivery services.

The United States Postal Service has existed for more than two centuries. As the people have grown into the new world of digital technology and electronic communication, the USPS continues to become more of a disservice to the American people. The USPS has still used the same rules and principles for more than two centuries, which does not intrigue any more customers. The USPS needs to be reconstructed in order to fit the needs of a changing world. As the world grows and develops into higher levels of thinking and technological advances, the USPS should grow with them, changing to become more useful to American people.

The US Post Office provides reliable service, however, sometimes a letter is not delivered for weeks, months, or even years.

In the past there was no thing as overnight express delivery for packages or freight. Then the top 3 competitors in the delivery service industry that held 85% of the market were Airborne Express (AE), United Parcel Service (UPS) and Federal Express (FedEx) and, the remaining market share was among six second-tier companies. In the past few years, the express mail businesses had grown extremely fast due to the ability to provide and fulfill overnight shipping accompanied by next-morning delivery services for both individuals and businesses customers. By 1996, this segment of the expedited shipment delivery had grown to a $16-17 billion dollar industry business in the US alone.

The USPS is at a point where it does not have the financing available to maintain its operations. One reason for the annual net losses is due to the declining rate of first-class mail. The second reason has to do with the required prepayment of $5.5 billion per year toward retirees’ healthcare costs. In order for the USPS to overcome this deficit, they will need to consider their short time frame, government restrictions and labor union backfire in considering the best alternative. One alternative would be to privatize postal services operations which would allow the USPS to change its pricing structure, yet it would potentially significantly reduce market share. A second alternative would be to undergo a system-wide

Another key historical event that is about to happen in the future, this coming August of this year there is a proposition to stopping mail delieveries on Saturdays. Priority or express mail, packages and mail only medicine will continue to be delievered but no persoanl mail. I’m sure that would cause uproar amongst the public because naturally some people depend on those deliveries. Saturday delieveries are just as important and covenient as the weekly mailing because it can coincide with the consumers scheduling. Saturdays could be a consumer’s only possible day to accept or receive the delivery. The U.S Congress is stepping in and intervening and requiring The United States Postal Service to continue delivering all mail on Saturdays regardless of what it is. This proposal is a plan to save money and reduce cost all at the same time. Ultimately, The United States Postal Service objective is to “create engaged, loyal customers by satisfying their needs better than the alternatives.” (www.usps.com)

Attention getter: Everyone wants to save money and everyone hates to see postage going up. You have probably been told that the reason is because the USPS is going bankrupt, but do you really know why?

USPS should consider shifting part of its mail volume to rail. By making this change it has been estimated that USPS could save at least $100 million per year. Additionally, “because of its lesser sensitivity to fuel price increases and greater control of its own infrastructure, rail transportation has major, long-term strategic advantages over highway” (Berman, 2012).