• Comment (12)

Related Articles

How to Fix the Postal Service

Besides cutting offices and employees, it could try to best its competitors...or join forces with them

By

March 9, 2012 RSS Feed Print

If the postal service can't beat its opponents, the next best thing might be joining forces. This has already begun in a limited way. Last year, 7 percent of USPS shipping revenues came from the "parcel select" program, in which FedEx, UPS, and other couriers handle packages, with the USPS handling the "last mile" of packages' journeys to customers' doors. The post office says that the program is growing by 20 percent each year.

In Callan's opinion, even bigger growth could be the key to survival. "The postal service could do a lot less and partner a lot more with the private sector," he says.

More Ads in the Mailbox

According to its five-year plan, the USPS thinks that direct mail—in which businesses circulate advertising to selected neighborhoods—could potentially be a chief area of future revenue growth. "If I'm a pizza shop and I want a menu to everyone in my neighborhood, I can bring it to the postal service, and [the mail carrier will] drop the piece off at everybody's door," explains Gary Reblin, vice president of domestic products for the USPS. The program will mean fuller mailboxes and, the USPS hopes, fuller coffers.

See why job growth might mean higher unemployment.

Read why the new iPad's features aren't that important.

See five shocking facts about student loan debt.

You might be interested in...

Tags:
Postal Service,
employment

Reader Comments Read all comments (12)

Add Your Thoughts
Your comment will be posted immediately, unless it is spam or contains profanity. For more information, please see our Comments FAQ.

Here's a visualization comparing USPS income and expenses>> http://flapjackmedia.wordpress.com/2013/01/15/the-decline-of-the-us-post-office/

Flapjack Media of NC 9:33PM April 13, 2013

I agree about the Postal General and Board..They make a lot more than they should...they are appointed to their jobs and are business men who try to run the post office like a business it is a service organization...never was expected to make money...the Postmaster Gen makes more than the US President!

Jo Cukr of MI 9:56AM April 11, 2013

The USPS has many options available. However, they must get changes through Congress and by their unions. Cutting service is an accounting office idea. What is overlooked is ho that change in service will affect the customer. Cutting too deeply will drive up overall transportation costs and change the way the customer uses the service. Right now, USPS worker is the "Best Loved" of all govt employees (yeah, I know)... People know, trust and wish to keep their carrier.

A focus more on the areas where costs are high-per-unit delivered would be a great start. Contracting these areas to local couriers would add coverage and maintain service. Many small towns have a different courier service every day for medical test specimens, eyeglasses, bank deposits and checks as well as the usual Brown and Purple package carriers.

why does the USPS own so many buildings-? Could soe be sold and leased back-? Many a transportation company has done this and freed up cash for expansions and changes in operations. Perhaps some facilities could also serve as co-locations for franchise services-? Any drive along the interstates will see pairings that would have been unthinkable 10-20 years ago.

As many a politician is fond of saying, about many different problems; "It took a long time to get into this situation. we cannot expect miracles overnight." From the private enterprise view, that is tru only as far as it goes. Unless one commits to changing practices and examining legacy habits the costs will continue to rise... and rise... and rise. This applies to many problems that face our nation not jut this single issue.

Andy Johnson of OR 10:49AM March 21, 2012

Photo Galleries

History of U.S. Bombings, Failed Attempts

A look at some of the worst bombings in the U.S. and infamous failed attempts.

advertisement

Latest Videos