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Reports have been issued on the USPS strategy for realigning its mail processing network and improving delivery performance info. These reports recommended that the USPS: (1) strengthen planning and the overall integration of its realignment efforts, and enhance accountability by establishing measurable targets and evaluating results; (2) improve delivery service standards and performance measures; and (3) improve communication with stakeholders by improving public notice, engagement, and transparency. This testimony discusses USPS¿s actions toward: (1) strengthening network realignment planning and accountability; (2) improving delivery performance info.; and (3) improving communication with stakeholders. Charts and tables.
U.S. Postal Service: USPS Has Taken Steps to Strengthen Network Realignment Planning and Accountability and Improve Communication
The recession accelerated declines in mail volume in FY 2008 and flattened revenues despite postal rate increases. That year, mail volume fell by 9.5 billion pieces, or 4.5%, and resulted in a net loss of $2.8 billion. USPS's financial condition has continued to deteriorate in the first 5 months of FY 2009, with accelerating declines in mail volume and financial losses. This testimony updates that info. and focuses on: (1) how USPS's financial viability is challenged given current economic conditions and whether USPS can cover its expenses and financial obligations; (2) USPS's opportunities to rightsize its retail and mail processing networks; and (3) what options and trade-offs need to be considered to address mail volume and revenue declines. Illus.
In Dec. 2006, the USPS had just completed FY 2006 with its largest mail volume ever -- 213 billion pieces of mail and a net income of $900 million. Two years later, USPS's mail volume dropped almost 5% -- the largest single-year decline. USPS was facing a potential net loss of over $1 billion for FY 2008. USPS anticipated continued deterioration due to the econ. slowdown, as the financial, credit, and housing sectors are among its key bus. drivers. The shifts in transactions and messages from mail to electronic commun. and from advertising mail to electronic media have affected the USPS's financial situation. This testimony focuses on: (1) USPS's financial condition and outlook; and (2) options and actions for USPS to remain financially viable. Illus.
USPS's financial condition has deteriorated. Mail volume declined by a record 9.5 billion pieces (4.5%) in FY 2008, leading to a loss of $2.8 billion -- the second largest since 1971. This was largely due to declines in the economy, esp. in the financial and housing sectors, as well as shifts in transactions, messages, and advertising from mail to electronic alternatives. Declining mail volume flattened revenues despite rate increases, while USPS's cost-cutting efforts were insufficient to offset the impact of declining mail volume and rising costs in fuel and cost-of-living allowances for postal employees. This testimony focuses on: (1) USPS's financial condition and outlook; and (2) options for USPS to remain financially viable in the short and long term. Illus.
The Postal Accountability and Enhancement Act of 2006 required an evaluation of strategies and options for reforms of the U.S. Postal Service (USPS). USPS¿s business model is to fulfill its mission through self-supporting, businesslike operations; however, USPS has experienced increasing difficulties. Due to volume declines, losses, a cash shortage, and rising debt, the USPS was added to a high-risk list in July 2009. The objectives of this report were to assess: (1) the viability of USPS¿s business model; (2) strategies and options to address challenges to its business model; and (3) actions Congress and USPS need to take to facilitate progress toward financial viability. Includes recommendations. Charts and tables.
Deteriorating financial conditions and declining mail volume have reinforced the need for the USPS to increase operational efficiency and reduce expenses in its mail processing network (MPN). This network consists of interdependent functions in 600 facilities. USPS developed several initiatives to reduce costs and increase efficiency; however, moving forward on some initiatives has been challenging because of the complexities involved in consolidating operations. This report assessed: (1) the overall status and results of USPS's efforts to realign its MPN; and (2) the extent to which USPS has consistently followed its guidance and applied these criteria in reviewing Area Mail Processing proposals for consolidation since the beginning of FY 2009. Illus.