Usps System Pros And Cons

Another point the USPS should take into consideration when restructuring, is that it is too easy for most Americans nowadays to forget the significance of a hand written letter or card, when we can communicate within seconds through technology. Come to think of it, I remember running to the mailbox in excitement every November to collect a special, pink birthday card from my grandma with her messy cursive scrawled across the envelope. Now, my “special” birthday wishes are in a 30 second voicemail she leaves from her cell phone every year. The USPS must remind us of the significant difference it can make in communication by recapturing its emotional importance through advertising.

In fact the United States Postal Service (USPS) is a form of legalized monopoly, or natural monopoly (Ayers & Collinge, 1995). In order to make this point it is important to identify the definition of a natural monopoly, and that is when economies of scale are so large that one firm can supply the entire market at a lower average total cost (Hubbard & Obrien, 2017). While the surface of this definition may imply that the USPS is so big because they are exceptional at performing the task of delivering mail, the reality of the situation is derived from law, and 19th century law at that (Ayers & Collinge, 1995). The United States Government has made it illegal for any entity other than the USPS to be tasked with delivering the mail (Ayers & Collinge, 1995). Additionally, the USPS is becoming more and more outdated every passing minute with the advancements of technology (Gómez, 2018). This leads to a failing business model that is continually funded, all be it minimally, by the federal government (Gómez, 2018).

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

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

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.

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

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.

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.

Another growing idea is the privatization of USPS and the removal of its monopoly on mail delivery. It seems the ultimate goal of this would be alleviating the government’s hold on the Post Office altogether, therefore reduce any burden that it has. Perhaps it would also allow the Post Office to expand its services in order to meet the growing needs of consumers and adapt to the

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.

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

The goal of The United States Postal Service is to create “a free flow of information between citizens and their governemnt as a cornerstone of freedom, often spoke of a nation bound together by a system of postal roads and post offices.” (Longley 2013) Postal offices are forbidden to open any letters unless it is undelieverbale. The United States Postal Service (USPS) is resposible for providing postal services for the United States to all Americans no matter the geographical location. The United States Postal Service is an independent agency of the United States federal government that was

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).

E-mailing could possibly have a small effect on this industry, but this is not an option for most deliverable items, as well as legal documents. Depending on the urgency of a package being delivered, regular mailing systems propose a small threat on this industry. It obviously costs less, but it doesn’t compare at all to the convenience of express delivery services.