USPS Seeks PRC Opinion On Operational Improvements & Service Standards Refinements
The US Postal Service has requested the Postal Regulatory Commission's opinion on proposed operational & service standards refinements to improve mail processing & transportation.
The plans draw on feedback USPS solicited from the mailing and shipping community, as well as members of the public, in a virtual conference last month.
Operational improvements and corresponding refinements to process, transport and deliver all categories of mail and packages through an integrated network without expanding the existing day ranges of service standards, and for some products shortening the current day ranges, are all part of the proposed updates, according to USPS - which also noted that the refinements are within the existing service standards.
Postmaster General Louis DeJoy explained how he believes these updates will enable the Postal Service to operate more reliably and at a lower cost to deliver, and with a more rational logistics approach as part of his larger Delivering For America vision.
“As we integrate our transportation, processing, and delivery network to logically sequence the flow of mail and packages by deploying improved operating practices in our redesigned facilities network, we expect to improve service reliability, reduce cost and grow our business.”
“Despite the many improvements we have made since the release of the Delivering for America plan, our service requirements, facilities infrastructure, business rules and operating practices have continued to reflect a Postal Service designed for three decades ago. However, since 1997, we’ve seen an 80-percent decline in Single-Piece First Class Mail volume, the significant expansion of delivery points, the growth in the percentage of mail obtaining discounts through workshare programs, and the growth of our package business."
"Our 10-year Delivering for America plan is transforming our network to better reflect today’s market demands and the current volumes and product mix. This revamped, integrated network, designed for a more unified, logically sequenced movement of mail and packages, combined with modifications to our service standards, but still within the current day ranges, will enable us to operate more efficiently and reliably, grow our business and give us a chance for a viable future.”
Dejoy's plans have faced much criticism and pushback as massive delivery delays have built up in some areas, and the PRC has urged "exercising business judgement" on future rate increases.
Liz Morton
Most recently, confusing zip code-based rather than zone-based rate changes for Priority Mail and Ground Advantage have left many online buyers and sellers confused and questioning the fairness of charging American's in mostly rural or less populated areas higher prices - especially on Flat Rate Priority packages.
Liz Morton
This most recent filing proposes improvements and adjustments to optimize service and reduce cost, including:
- Transitioning from 3-Digit to 3-Digit ZIP Code standards to more precise 5-Digit to 5-Digit ZIP Code standards. This will make it easier for customers to understand exactly when their mail will arrive and improve the reliability and predictability of delivery.
- Reforming legacy business rules that are no longer tethered to today’s volume and product mix and that force USPS to do costly, expensive, and inefficient things such as executing a trip in the morning and another trip in the evening every day, to every office, no matter how far the office is from the mail processing plant. This reform allows USPS to adjust our operating practices to the current market realities and to implement more efficient transportation routes, thereby reducing costs, carbon emissions, and truck trips through neighborhoods.
- Expanding daily reach for most classes of mail and packages when traveling through the network; resulting in faster delivery expectations for some mail pieces. For instance, some mail and packages that used to take four days to deliver will now have a service standard to arrive in three days.
- Recognizing the significant volume reduction of Single-Piece First-Class Mail and making the long overdue adjustments required, while committing to a 3-day delivery standard for local Single-Piece First Class mail, and in some instances even achieving a 2-day standard.
The Postal Service will not implement these newly proposed service standard adjustments any sooner than 90 days after the advisory opinion request was filed with the PRC, which would put the timing after the first of the year and avoid any impacts to election mail or the peak holiday shipping season.
