The United States is a country that revolves around technology and is constantly innovating to more efficiently accommodate its people. However, before recent technologies such as the internet, the US relied heavily on the United States Postal Service, also known as the USPS. The USPS has been around for centuries and has been quite successful up until the year 2007 where there was a rapid decline in mail volume. Simply shutting this company down would not be beneficial to the country, but perhaps making improvements in order to adapt to the changing society will keep the USPS in business. The USPS is experiencing more flexibility due to the major drop in mail volume (source C). According to author, O’Keefe in his article “Postal Service
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
There is still a need for the United States Postal Service (USPS) today then just as anytime during the history of the United States. The USPS provides valuable and equitable services to all Americans everywhere in the United States, regardless of distance from their nearest post office. “Universal Service” a key term provided in an article by the Bloomberg Business week journal, describes what the USPS provides. The cost of delivering mail in rural communities is much higher than in urban areas. The USPS chief executive officer stated “You cannot charge 46 cents to deliver a letter by snowmobile in Alaska and make it work” (Bloomberg Business, 2014). Privatization of the USPS would possibly cause regional price differences that can place many Americans in rural areas at a
Due to the rising popularity of email and the easiness of scanning documents, less and less mail is being sent every year and because of competitors like FedEx and UPS the United States Postal Service (USPS) is having financial problems. All over the world there has been sweeping postal reform. New Zealand moved to three day mail delivery, Canada eliminated home delivery in cities, and the United Kingdom recently privatized their mail system. The United States Postal office has been losing money and reported a loss of $15.9 billion dollars in 2012. The USPS has been increasing stamp prices to make up for this financial loss, most recently increasing stamp prices from forty-four cents to forty-five. With congressing blocking the latest USPS
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.
For over two centuries, people relied on the United States Postal Service (USPS) as a way to receive their letter and packages from people around the country. It is their only way where a person can obtain a parcel when there are no technologies to assist them. Nowadays, in the modern world, there are different kinds of ways where one can receive a package or a letter, from an email or other companies. This results in the USPS decreasing its values. In order for the USPS to keep up with the fast-paced society, it should consider changing their ways of working.
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.
There are a great deal of changes that the USPS systems needs to make. For one, they need to stop bombarding their customers with junk mail. According to (SOURCE E), 44 percent of marketing mail isn’t opened. Nineteen states have opted to pass bills that would allow people to opt out
All across America, technology is overtaking simple pastimes that were once essential for the activities of everyday life. However, these advances are proving to be troublesome for the USPS. As people are taking a modernized approach, the USPS's business strategy is failing to accommodate the needs of the people technologically and provide the necessary profits needed to sustain a successful profit margin. The USPS should restructure its mailing process because it will financially stabilize the company and suit the needs of today’s society.
They are USPS’s biggest competitors and are rendering it obsolete. Both FedEx and UPS are extremely reliable when compared to USPS, and for this reason they are able to charge more and make more of a profit. USPS even has contracts with FedEx to deliver some of their mail, as they cannot handle it all. This is due to the fact that they had to cut costs by decreasing their operations. They cannot compete with these independent businesses, nor do they have any money to invest in researching new technologies. They cannot cope with the new digital world, so UPS and FedEx must pick up the slack. The entire mail industry would do better if it were completely privatized. More customers would be satisfied and less effort would put into a failing enterprise. Congress is unwilling, though, to give up one of the original rights afforded it by the Constitution. It is this obstinacy that is keeping USPS alive, and that will cause the American government to keep interfering in our
Great example. Honestly, with the advances in technology and the fast and efficient services of UPS and FEDEX, I thought that the USPS would go out of business years ago. I knew that they are a government organizations, but until this week, I did not think of them are a corporation. I think that the USPS will serve as a great example of federal bureaucracy in the future, when people are studying the increased U.S. debt. Don’t get me wrong, in no way am I saying that the USPS is responsible for the increased U.S. debt, but is one of many corporations that contribute to the fact. I am not a business major nor a politician and when I looked at the USPS annual fiscal report, there was a lot of positive verbiage in the report and when it came
The US express mail industry is highly consolidated. 85% of the market is served by 3 service providers. There are six second tier players who serve the remaining 15%. FedEx and UPS lead the industry in services and innovation. The following trends have been observed in this Industry.
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)
Since 1971, the U.S. Postal Service (USPS) has been a self-supporting government agency that covers its operating costs with revenues generated through the sales of postage and related products and services.
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).
The United States Post Office was established by the Second Continental Congress in 1775. The Post Office has been part of American society for almost two centuries and through the years it has been changing with America. It was an important method for people to communicate in the past, however, is it relevant in today’s society? The issue of eliminating or keeping the Post Office resulted in a controversy among the United States. The Post Office should be eliminated due to the debt the post office is facing each year, more usage of technology, and slow modifications.