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Print 67 comment(s) - last by lexluthermiest.. on Feb 11 at 7:50 PM

It will save USPS $2 billion annually

Many aspects of our lives have made a digital transformation over the last decade or so. We no longer rent physical movies from the video store; we watch them on Netflix or Hulu. We no longer get subscriptions for or pick up the daily newspaper; we read the news online. We don't run to the bank as often for daily finances; we jump on our smartphone, tablet or computer for online banking.

The U.S. Postal Service (USPS) is seeing these shifts in technology as well, but can't seem to keep up. Many letters, bills, etc. can now be sent electronically rather than through the mail. Hence, in an effort to save some serious money, USPS will no longer deliver mail on Saturdays starting August 1, 2013.

Cutting mail delivery down to five days per week will save USPS about $2 billion annually. For fiscal 2012, USPS saw a net loss of $15.9 billion (three times the loss record one year previous).

While mail delivery is getting axed, USPS plans to continue package delivery on Saturdays since this particular area has seen a 14 percent increase since 2010. Mail will also still be delivered to P.O. boxes six days per week as well.

In addition, post offices will remain open on Saturdays to allow customers to drop mail/packages off, access post office boxes or buy postage stamps -- although hours will likely be cut.


USPS is expected to give an official announcement today without explicit congressional approval. Lawmakers have said this approval is necessary for a change like cutting Saturday mail delivery, but the USPS is arguing this claim.

As far as the American people go, USPS expects some opposition from those like rural communities that worry a change in scheduling could make low-cost deliveries of items like medication a thing of the past, and publishers who will have to adjust schedules with publication deadlines.

Just last month, it was reported that USPS wanted to be more digital-friendly in order to keep up with the times. The agency is working on a digital platform called MyPost, which will allow customers to log in and view all packages that they'll be receiving as well as those they've already received instead of searching several different sites that the packages may be coming from.

However, Paul Vogel, president of digital solutions at USPS, revealed that his office is like "a San Jose startup," with only 15 Android/Apple developers, consultants coming and going, one computer and his BlackBerry smartphone. Technological restrictions make upgrading hard to come by.

A few other major obstacles are legislation needed to get permission for new digital products, the USPS' huge instruction manual for just handful of current products (adding digital products and security certifications would turn that 1,500 page book into something unimaginable), and USPS' losses of nearly $16 billion last year led to legislative proposals to keep making cuts (hence, more digital tech may not be in the cards right now).

Source: Boston Business Journal



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RE: Dont blame the internet and email
By fic2 on 2/6/2013 11:59:57 AM , Rating: 2
The USPS attitude about bulk mailers seems to be we loose money on every transaction but we'll make it up in volume.

I have gotten an offer letter from AmEx every two weeks for the last 8 years. Even after I did the take me off the pre-approved credit card lists AmEx still sends their crap to me. I would be happy if the USPS raised bulk rates at least 1 or 2 cents. From looking at the price list bulk rates can be as low as 12.6 cents - although I didn't make it through all 53 pages of prices.

I get a thing in my mail yesterday telling me what my "official" address is. Well, since I have lived there 15 years I am pretty sure I knew it already. The zip code didn't even include the extended 4 digits that they want everyone to use.


RE: Dont blame the internet and email
By bah12 on 2/6/2013 12:18:21 PM , Rating: 2
quote:
The USPS attitude about bulk mailers seems to be we loose money on every transaction but we'll make it up in volume.
But that has to be their attitude, if there were no bulk mailers how quickly would they run out of money if they were still required to drive by your house every day to see if you had a package to send. At least with bulk they get some revenue daily from your box, without it it would simply be impossible to drive by each day. UPS/FEDEX spends millions yearly to reduce route miles, USPS doesn't have that HUGE leg up, as they are required to re-actively see if you have a letter going out today, rather than proactively only driving by if you call for a pickup.


RE: Dont blame the internet and email
By Dr of crap on 2/6/2013 12:54:44 PM , Rating: 2
Answer, don't have pickup at EVERY address.
Like UPS and FEDEX, use drop off mail boxes for out going mail, then the only reason the USPS trucks need to come to your house would be for a delivery.

AND charge those bulk mailers more. Make them pay more for the truck to go to every address and that will cover the losses they are having.

OR, just get the damn govt out of the way. Nothing messing the post office up more than having to go to the govt,
slow and expensive!


By bah12 on 2/6/2013 1:00:25 PM , Rating: 2
Spot on, but you and I know the union lobby will never let any of this happen. My bet in less than 5 years the USPS will be back on the government teet.


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