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How Would You Fix the Post Office?

August 21st, 2009 @ 10:12 am

Categories: BNET, General, Management, Supply Chain, economy

Tags: Post Office, The Post Office, Post, Stefan Deeran

When you think of how well the government could run healthcare, do lunch breaks killed in Post Office queues pop into your head?  Even President Obama trashes on the country’s mailmen.

The United States Postal Service is facing the greatest crisis of confidence in its history.  It’s set to lose seven billion dollars this year and the Government Accountability Office now lists it as a “high risk” federal agency. Higher stamp prices and lower benefit levels for its workforce might not bring the Post back into the black.  That newfangled communication innovation called email just isn’t going away.

So to all the turnaround experts out there, I’d like to hear your proposals for fixing the Post.  Here are a few solutions I’ve found to get the conversation started.

Please share your thoughts below.

 
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  •  
    1

    schmiez

    08/24/09 | Report as spam

    RE: How Would You Fix the Post Office?

    i dont think combining one slow office (post) with another slow office (BMV) would equal success.

  •  
    2

    kpierz

    08/24/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Move into the digital age. So much of what is done at the post office can be done online.
    Create a readily searchable database of most any possible question about shipping any item from point A to point B.

    Teach customers how to properly weigh items and allow them to print out bar-coded labels to affix to the package or be printed onto an envelop and self-service is born. For items that can't be left for pickup create better self-service stations at the post office.
    And, what about point to point electronic delivery. Why can't the post office scan an important item, have it sent electronically to the destination city where it could be printed and delivered the next morning?

  •  
    3

    sherrymo

    08/24/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Schedule workers more effectively. I have friends who work for the postal service and even they say the scheduling is awful. This isn't just one post office, but several different ones. I think we've all seen this in action too - how many times has someone gone to the post office between 12 - 2pm and found only one person working at a window while 10 or moe people wait in line?

  •  
    4

    rawhite1969

    08/24/09 | Report as spam

    RE: How Would You Fix the Post Office?

    an appropriate level of automated machines would help - my local post office (in a large city) has one machine to buy stamps from that only takes $10 bills! Automated machines that take credit cards, machines that work efficiently. Scheduling is an issue at every post office I've been in. How about online ordering of stamps that show up the next day. Or better yet, online printing of 1st class stamps that doesn't require a special printer or subscription? Eliminate door delivery and go to a bank of mailboxes in each neighborhood. Mailperson makes one stop and I can stop there on my way home. Speeds up the delivery.

  •  
    5

    schmiez

    08/25/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Many post offices in larger cities do have self-weighing and payment machines. However they are limited to express mail, and there is usually only one.

    rawhite, while I like the deliver bank idea (ala apartment living or condo complex), I'm not sure delivery is a major portion of the problem. But I think the idea has merit.

  •  
    6

    em44052

    08/25/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I feel that regular mail needs to be cut down to three days a week. (Mon, Wed, and Fri.) I do not get any worth while mail on a daily basis. The Post office must also find a way to either be more competitive with Fed Ex and UPS on overnight shipments or get out of the overnight business.

  •  
    7

    miyahira

    08/25/09 | Report as spam

    RE: How Would You Fix the Post Office?

    There are no quick fixes for the USPS. It is a huge bureacracy and a huge infrastructure that has not been managed well. And it's been hindered from time to time by politicallly motivated decisions and policies over the years.

    Without the benefit of a thorough and objective analysis, one can only take uneducated guesses at what it would take to 'fix' the USPS. And I think our guesses should be focused on what makes money for the USPS (postage and complementary services) and major expense items such as payroll and infrastructure support costs.

    I'm not sure if I would be a typcial user, however my outgoing mail is 99% first class postage, and the balance being all sorts of things ranging from foreign delivery to certified deliveries. If I were typical of their customer base, then it would seem that a lot more revenue could be generated by increasing the price of first class mail.

    And the USPS would be wise to look at how technology has changed the communication needs of the world around us. How technology has changed the way we ship things also. How and why we purchase the things that we do. And perhaps speculate on how it might change the world moving forward.

    For example, why do companies such as Dell, Sony, Verizon, and others use Fedex and UPS?

    Manpower costs need to be reduced. I would think that better use of technology is part of the answer. Better scheduling may also help. And the USPS would probably be better off privatizing some routes and areas. Let a small entreprenuer handle delivery and postal services where it's not economical for the USPS to be involved.

    I'm sure that there are a lot of better answers out there. But hopefully these comments will help spark meaningful conversation.

    Have at it!!!

  •  
    8

    leerichan

    08/25/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Raise the price of postage to cover actual costs. One or two dollars? That's a typical business thing, no? This artificial setpoint ($0.47?) constantly changing makes the USPS continually unfriendly ("Now how much was that postage? And how much do I have in stamps?" -- never enough).

    And how much does it cost to install a bank of scales to weigh packages (no line, no wait) and spit out a barcoded label that is paid by your cell phone? Other countries do it all day long... but oh, no, never here.

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    9

    navyblu1914@...

    08/25/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Here in Japan the mail men use mopeds with boxes on the
    back. This method saves much more gas than the jeeps that
    the post office use. I am sure that they have more mopeds
    than the US has Jeeps, but you have to consider the savings
    that the Japanese save with up keep, maintenance and gas.

    Plus they need to stop losing mail!

  •  
    10

    dsingh_uk@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    very interesting. I thopught only India Post had the challenge of being meaningful to people in today's e-world. Well for starters, US Post can study some of the turnaround cases including India Post for this. It is important to understand the process rather than the tricks. My guess is first is to change the mindset... of US Post employees more than anyone else. Innovation would follow suit and be more effective.
    One of the qs they need to ask is ' what business are we in?.. what value do we provide?..how can we deliver this better than others on sustainable and consistent basis?..'

    Davinder @ TARU Innovations (www.taru.net.in)

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    11

    widiantozhu@...

    08/26/09 | Report as spam

    be a system provider

    empower companies, individuals and cities to have their own postal system with USPS serving as the backbone for all operations.

    franchise the whole postal system, make it efficient and easy to duplicate. make it smaller, leaner, faster with higher rate of accuracy. build an armada of postal services resellers.

    just my two cents:)

  •  
    12

    sonidv@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Life is about change. We should not fear the consequence as long as it is in the right direction. This addage appiles to all beings and organizations. The Post Office, likewise, needs to change with the times. I would like to suggest that a major SWOT analysis is undertaken before any new strategic plan for recovery is undertaken. There is need to consider alternatives such as partially privitasing the Post Office in order that it can provide multi-function services, eg. payment of various bills, purchase and reservations of theatre, sports and other function tickets; creating e-mail cafes; establishment of private post boxes; payment for priority mail (counter to counter); hiring students and unemployed at flat rates to deliver mail within local precincts.
    We will need to consult and innovate with the people to find the best solution - a win-win situation. The USA has a proud tradition of being a leader in innovation - make it happen!

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    13

    vampirekwc

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Maybe drive-through windows for mail pickup instead of delivery? They'd probably need 487 windows staffed around suppertime to avoid traffic problems, so it might not be that viable an idea. But if they don't have carriers, gas, jeep upkeep/insurance to pay for, it could save a huge amount of money.

    Consolidation of smaller, regional post-offices into the main town offices could help, too.

    The internet--with its email and electronic billing and payment--is the biggest problem they face...we all know that. I think they should try to capture a piece of that. Maybe some sort of online bill payment and money sending service...like Paypal + Billpay where they can guarantee money transfer within 24 hours. I know if I schedule a payment online through my bank on Friday afternoon, it doesn't get paid out until Tuesday. That's a problem if I forgot a bill that's due Monday. If the PO can offer some sort of lightning-fast bill payment service and general money transferring service, they might reclaim some of that business they're losing to the internet.

  •  
    14

    Timmccr8

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Change the model completely. We live in an age where all are seemingly enthralled with the idea that word of mouth, personal referrals and branding can carry the load. Call me a spoilsport but selling isn't going anywhere and mail has always been a selling medium.

    All the targeting in the world doesn't work without accurate demographics and those are assigned at the household address level. Who owns your address? The USPS actually.

    So why not create an e-mail account for every household in the US, e.g., 123mainstreet01234@usps.com and make it available as a bulk e-mail option at a phenomenally low cost with demographic data, maybe a half cent per address delivered?

    Suddenly you're France. There's at least one household e-mail address for everyone in America, the data are rich, the low cost attracts new users of the channel so the volume pays for the infrastructure (which they lease and don't own because in 12 months it will be obsolete) and the physical plant can focus on packages, first class and other high touch high margin propositions.

    You might need to fire the lifers but that's a diferent story.

  •  
    15

    barcodeguy

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I have been saying this for some time. Use Economic simulus money to convert the USPS (and for that matter, some other Federal fleets to compressed natural gas). Proponents of CNG have hurdles to overcome. One hurdle is the infrastructure to fuel vehicles. Since these vehicles are returned to their terminals, put the fueling capacity there. Pay the auto companies, or start-up companies, or even university training centers to do the conversion, and provide high tech training to students. This would save a great deal on fuel costs, and also provide a platform studying the benefits of the program, and the possibility of expanding to other agencies and the private sector.

  •  
    16

    psuie

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Most deliveries through the post office are not needed next day so lean the process out. Deliver mail every other day (including saturday and sunday) and work to reduce the high variability in the service time. Rotate service between two service areas. Close half of the post offices, get rid of half the vehicles and keep the people employed. Have the carriers work seven 10hr days every 2 weeks.

  •  
    17

    cobreloa33

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Privatize it. Let it become a real business, not a service provided by the government. I'm sure UPS or Fedex would give us much better service than we get right now and we (tax payers) wouldn't have to fund the business and pay for the services when we need to send mail.

  •  
    18

    jotrud

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Stop re-creating stamps... Have ONE stamp (The Flag) and that's it. Why do they need to place pictures and flowers... how much ink does that cost versus just the 3 colors (red, white and blue??

  •  
    19

    dmrdano

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Close it. It has served us well over the years, but it is now outmoded. I would give businesses and individuals a 2-year time table to convert to digital or to migrate to private carriers. Then I would shut it down. (By the way, I am a 50-year-old techno-phobe, and even I believe digital is the way to go.)

  •  
    20

    mkubik7

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    First, the employees at the Post Office need to "own" their work. You can't have stories of long lines with people standing behind the desk and not helping because they are "on a break". Remember what service is, and you will compete better with the FedEx's and UPS's of the world. Second, is invent some new services, and think like it is 2009, not 1909. Here's one: Print and Deliver Certified Mail. The Post Office could accept email for certified mail. They could print it, package it, and deliver it locally for less than the cost of the normal delivery - and provide electronic record of the signature back. This is also a way for them to get "Greener". The sad truth is, the Post Office is going to have to get much smaller if it wants to compete...

  •  
    21

    rogerwilco71

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I think the government needs to give it up privatization of some sort, atleast there's accountability...government helping government sounds like a 'merrygoround' circus of errors (is that called bureacracy?).

    Years ago, I was able to enter the "back-room" of the post office for some bulk mailing and found:
    -one person running around like a headless chicken
    -one person dust mopping the same corridor 15 times
    -several standing and talking
    -several walking around (restroom,soda machine,looking confused)
    -one person that was able to 'look' busy and accomplish nothing (that's an art)
    *one thing I was able to assertain....this is a "high pay" loafing job...I was ready to drop the bulk mail and declare: WHERE ARE THE APPLICATIONS!

    I've been in management since, and all I can think of is a private shaking of the tree so to speak, new management, new direction, and marketing...the post office needs a good ole fashion "SWOT" on the butt.

  •  
    22

    novellg

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    From the responses it is obvious that to solve this problem, the organisation would need to be turned upside down. No single solution is going to solve it. A wholistic approach is needed. Over the years, USPS would have become a huge behemoth that even a simple plan of action would take months to implement, which would not be the only problem. Think about change management, staff objections, etc. Participation at all levels is required. A combination of top-down and bottom-up consultation/brainstorming would be advisable before any decision to go private, franchise or any other option is considered.

  •  
    23

    steveo@...

    08/26/09 | Report as spam

    Lots of excellent ideas here

    There are a lot of incremental improvements that can be made. I like the general focus on reducing non-value-added costs instead of reducing value-added costs such as Saturday delivery.

    To cut big numbers, you need big actions. Compensation to the entire labor force needs to be brought in line with the labor market, perhaps over a 5 year period.

  •  
    24

    steveo@...

    08/26/09 | Report as spam

    Low expectations.

    This is fun for us to think about. Ideas are easy. Implementation is hard.

    The Federal government has access to all kinds of resources and expertise. The fact that they fell so far behind in the first place does not give me any confidence that they can accomplish much more than token improvements.

    Any private business run as poorly would be out of business if it had to compete even with another mediocre enterprise. What makes anybody think that the same dynamics could lead to reduced cost if only the gov't took over the insurance industry is beyond me.

  •  
    25

    alorenz

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I don't agree with privatizing the post. There definitely needs to be a big change in how it is managed, but that can be accomplished if it's made a priority. Many of the ideas above are great for making it more efficient, and maybe even more profitable. (and I have a few more - or additions to what was said)
    1. I don't agree with increasing the postage rate significantly to make it as expensive or profitable as FedEx or UPS. People are forgetting that the people using the post the most frequently are likely the people with the fewest resources. USPS should aim to be a break-even venture, not a profit-seeking one. If you have extra money, pay for enhanced service, but don't make services inaccessible to people without means.
    2. Shipping should not be charged for purchasing stamps online. It's counter-intuitive. I could agree with a minimum purchase, but free shipping on stamps should be available so that we can reduce that traffic in the branches.
    3. I strongly disagree with stopping the design stamps. That is a highly profitable area for the post office because many, many of those stamps go un-used. They can get almost $10 right now for a pretty printed paper that never sees an envelope. That's gotta be a good profit margin, no matter what the cost of the ink!
    4. The neighborhood banks of mailboxes is a fantastic idea. It would not only make delivery more efficient staff-wise, but would save on gas. Stopping at each house, is such a gas guzzler. In neighborhoods, they at least walk a block. In rural areas, they have to go up and down hills at 5mph, stopping at every single house!
    5. Changing delivery schedules would be a great idea, but I think it should be more tiered, or people will freak. Businesses really need to have their mail daily. There will be people - especially the rising number working from home - who need it daily, too. Those people can have a post office box, and those can receive daily delivery. Home delivery could stand to have reduction, and this system would still make mail available daily for businesses, and those individuals who really need it (or think they do). If it's too difficult to single out businesses for daily delivery, they can have a PO box, too. Most probably already do.
    6. I also agree that the stamp vending machines are a pain. They seldom work, and when they do, they seldom have the denomination you want. (I have SO many 36 cent stamps, but the machines are always out of make-ups)

  •  
    26

    RAS924

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I have an idea that could kill two birds with one stone. If you look at what you are receiving in the mail, most of it is junk (apologies to the direct mailing people out there). The USPS needs to get rid of the bulk mailing prices and charge more for it. The direct mailing houses who continue to use it will pay the increase, creating more revenue for USPS, along with that it will weed out the accounts just sending out items blindly decreasing the amount of mail by a substabntial amount. This also creates the benefit of less letter carriers and less discarded mail to get rid of (AHHH...the bliss of less junkmail!).
    I agree that it needs to have better scheduling of employees and also needs to be smaller to move better. Heres another way to think about it...How would UPS or FedEx run the local mail?

  •  
    27

    rnotaro@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Eliminate the union rule that pays a carrier for 8 hours even if his route only takes 2 hours. I had a friend who would get his route done by noon (less than 4 hours) just about every day. He would be sitting on his porch enjoying a cold beverage and his boss would call asking him if he would do the route of someone who was sick. He did it, was home by 3 pm and got time-and-a-half for the prescribed 8 hours the route was allotted. So, he got paid for 20 hours when he only worked a total of 7. Only in the government does excrement like this happen.

  •  
    28

    rnotaro@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Junk/bulk mail is a money maker for the post office - it's first class mail that is the money loser.

  •  
    29

    SterlingDevelop

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Here's a radical idea.
    Don't privatize it........end it!
    Auction off the assets, in pieces or in total.
    Let private enterprise fill the void their own way, don't saddle them with the running of an antiquated bloated bureaucracy.

    We do not need a government-run or government-created and then privatized postal system. In fact, we need it to be gone.

    TRUE free market solutions work.

  •  
    30

    duwain@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    1. Slash the adminsitrative staff to the bone. If a job does not directly support or facilitate the delivery of the mail, cut it. The PO is a haven for the 'job-for-life' crowd.
    2. Retain Saturday delivery in rural areas and reduce urban delivery to Mon-Fri.
    3. Increase the Bulk Mail rate to a revenue level, say 44 cents for each item.
    4. Encourage stamp collecting. Collectors buy stamps. They keep them. The PO does no further work.
    5. Use business practices such as LEAN and Six Sigma to improve processes. Engage in these tools and the PO can rehang the clock they took down, wait time is wait time.
    6. Teach customer service skills to employees. Email is not killing the PO, it is strangling itself.
    7. Use Nancy Pelosi's private, government-provided jet to deliver packages to the troops.

  •  
    31

    frankbj1

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I have spent a little time as a postal carrier (Casual Employee) summer hire during college (early 90's). Even at that time the salaries were high considering education/time/responsibility. Any change to overall salary structure could provide some long term benefit. Another possibility could be to understand what they do better than anybody else and focus on it internally and externally. Start selling those services to public/provate companies (Logistics) to leverage thier fixed cost across a greater revenue base. Finally make the hard decisions to divest the anchors of the portfolio. To summarize bring a publicly traded company mentality to this government subsidized business.

    If this or something drastic is not done sone we'll have another Medicare/Medicaid drain on tax dollars...that we all ending paying for!

  •  
    32

    runrex

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    From the above comments I?ve read some good ideas but most of them are just measures to curb costs. Looking back I remember that this issue came up in the 1988 debate for president in the Republican primary. Pat Robertson may have never been a real serious candidate but he had an idea back then of how to resolve the problem of the unprofitable and underperforming US postal service ?
    Privatize it by giving it to the employees and tell them they have five years head start before they had open competition. If that had happened 20 years ago, what would we have today? We would have better service and would be paying less for it. More importantly, the US taxpayers would not have to burden by another government service that does not know how to operate profitably.

  •  
    33

    Schlickieboy

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    I think there are a 1000 ideas, but we are dealing with Government. The only way to profits is privatization. Put the company up for sale, use the money from the sale to help SS and MC. Privatization will bring down cost and restore profits.

  •  
    34

    tramky

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    --Greatly reduce or eliminate so much paperwork--Certified Mail, Priority Mail, Priority Mail with Delivery Confirmation, Media Mail, Insurance forms and all the rest. Each of these has separate & distinct bits of paper that must be filled in & attached to the mailing item. Ridiculous. Get rid of all that stuff. Like GM, get rid of most of these 'brands' and get things down to 2 or 3 classes--2 is much better than 3.

    --Don't handle Media Mail or any parcel larger than the currently largest Priority Mail box--turn that over to UPS or FedEx or any other private carrier to go by ground. In fact, eliminate handling ALL boxes--turn that ALL over to UPS/FedEx/and any others you can name.

    --Stop browbeating postal carriers--most Postal Service management & supervisors diss the actual workers.

    --At most Post Offices, maintain & staff 'merchant windows' for businesses, or some way to quickly service window service for businesses such as shipping businesses that handle US Mail. I owned such a business and it was not good to be standing in line, with my $300 or $500 or $800 worth of postage purchases, behind people--or a LINE of people-- buying an $8 book of stamps--or a single stamp. I was one told by a postal clerk at the counter that I wasn't a 'customer' as far as they were concerned--their customer was granny buying a stamp, not a business owner bringing $500 of postage purches to them!!! That was one of the Top 3 Most Stupid comments I've ever heard someone in a 'business' say.

    -- Speaking of shipping business that handle US Mail, turn over MORE function and MORE money to THEM. Operations like Pak Mail, Postal Annex, The UPS Store, and a host of others that handle retail US Mail could handle a lot more stuff for the Postal Service if they were given a piece of the revenue. Push the retail functions out of Post Offices and into private businesses. Most of them are cheaper to run, don't have the overhead (meaning union wages, pension and health care costs) that the Postal Service does. There are other possibilities in this general proposal.

    And separate as much as possible the passport-related tasks from the main retail line.

    --Reduce individual home mailbox delivery of mail by installing mail box structures for neighborhoods.

  •  
    35

    nanettew

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Remove the union or rewrite the union rules to allow the USPS to become more competitive.
    My friend is a letter carrier (for 20 years), there is a layer of management that is not allowed to lift a finger to assist carriers because it is not in their job description. The managers want to help but are not allowed because of union rules. This situation wastes productivity of employees and does not foster teamwork.

  •  
    36

    suerich

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    The United States Postal Service sits upon a large connected infrastructure of property, transportation, technology and education. They are well-positioned to expand this existing corporate network into something more than dissemination of mail. Much of their property is considered to be the center of many rural American towns. Expand its use. The USPS over-the-road fleet could be utilized for more than just mail. Advertisers would love to paste their offerings upon these moving billboards. Automation is already lowering the need for human labor. The USPS has shrunk from a top 950,000 to less than 500,000. If the USPS is indeed a government operation, have the remnants become part of community-related service. Unbeknown to many, the USPS has the largest private corporate training campus in the country. It is well-staffed, and equipped to take on the extra educational needs of private industry. Let?s not rip the organization apart until we measure all the potential applications and benefits.

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    37

    barcodeguy

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    cobreloa33 and Schlickieboy say to privatize the Post Office. Does anyone believe that a private carrier would deliver a letter, catalogs, and the numerous pieces of junk mail people still get, for the prices the Post office charges? And we, the consumers of the products sold by those companies would ultimately pay anyway, in the form of higher product prices to offset the higher mailing costs. Digital is the way to go, but if many company's on-line bill paying or banking services are any indication of how well that works, we're in for a rough conversion.
    Others say to cut wages and benefits to compete. Sounds like they are taking a page from corporate America's book. The easiest cost cutting measure is wages and salaries, unless of course you're a Wall Street financial firm, and then you can't because you need to pay the big bucks to, "keep the great talent".
    In the U.S profit used to be achieved through increased innovation and efficiency. That holds true in both the public and private sectors. Now the mantra is, cut costs with cheaper labor. I've sold barcode equipment manufactured overseas to help companies increase efficiency here, and the companies who make the equipment don't even use it themselves because their labor costs are cheaper.
    The Post office has one of the best automated systems around. They deliver a letter anywhere in the country for a price that no private carrier would consider. Make them more efficient. The vehicles use lots of fuel and could be converted to compressed natural gas. Saturday delivery could be eliminated.

    How about instituting a program where the extended postal code (postnet) currently used for automated sortation, has the requirement that the receiver specifically request mail from a mass mailer, and their catalogs and marketing pieces must have that code on them to be accepted by the post office. In essence, the equivalent to a "no call" list for mass mailers.
    Think of the trees we'd save.

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    38

    rnotaro@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Re barcodeguy:

    "Does anyone believe that a private carrier would deliver a letter, catalogs, and the numerous pieces of junk mail people still get, for the prices the Post office charges?"

    I think just about everyone but you believes that a private carrier would deliver anything the USPS delivers more cheaply than the USPS.

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    39

    pnkearns

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    The Post Office has had a service/technology "crisis" for the last 50 years. The real problem is the post office is not defined and run as a business. It is defined as a governement political entity (even if semi-private) tied up in government policies and regulations, and union-government relations. It is not run for customers and driven by customer service/satisfaction.

    The answer is brutally obvious.
    1. Define what core customer services are essential.
    Allow them to be done as efficiently as possible. It's the classic make vs. buy decision. If a contractor can provide the service better, contract it out.
    2. For all services demanded politically by Congress and advocate groups, e.g. Village A of yuppies love their quaint post office, give them a bill for the services.

    Until the Post Office becomes a true business that can shake off its political baggage, it will dwindle in spurts and studders into oblivion as a quaint government historic realic.

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    40

    jejamese@...

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Partner with Banks and put stamp machines in busy ATM areas. If possible add more autoamted services in those locations.

    I also like the part about green routes. But why stop at a few mail carriers walking around.
    They should start a program whereby they startr selling the massive structures and propeties they have and replacing them with the nmostr energy effcient buildings with the most advanced technoology available.

    They should also set a goal to have all postal vehicles use the most efficient energy available. Even if the government loses money at least they can start to set the example that needs to be set to combat climate change.

  •  
    41

    eweberg

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Disclosure: I work for a mail fulfillment company. I work closely with mail generation and USPS regulations, and my opinions are probably influenced by job security.

    Many excellent ideas for improvement have been suggested here. pnkearns pointed out that the USPS is not run like a business because it is, in fact, not a business but a pseudo-governmental agency. The US Congress actually plays an active role in establishing the basic business policies of the USPS.

    If I recall correctly, in 2007 Congress ruled that each category of mail- first class letter, standard, parcel, certified, etc.- must be profitable in its own right. This ruling led to significant shifts in postage pricing and policies. Then the USPS suffered a double-whammy from the Great Recession and radically decreased mail volumes. Privatizing the USPS would allow it to make establish business policies without the need for Congressional review, but it's important to remember that the USPS today serves a significantly different purpose than FedEx or UPS.

    The USPS is first and foremost a letter delivery service, and has the capacity to visit every mailbox in the US every day for pickup and delivery. UPS and FedEx are primarily parcel and high-priority delivery services, and visit mailboxes only when needed. The USPS actually relies upon its letter carriers' authoritative knowledge of their route as the final link in its address quality system.

    To fix the USPS, one must recognize the true problem: high fixed costs. The USPS has a massive infrastructure designed to handle an equally massive volume of mail. They simply aren't profitable at lower volumes. Some costs can be eliminated through consolidating facilities. The USPS has already closed a few locations. Other costs can be eliminated through automation, although the USPS is already extremely automated at its core. Outsourcing can eliminate more costs, and a niche industry for such activities already exists in the business mail environment.

    Interestingly, while we are currently focusing on optimization, the USPS is in the midst of initiating a new barcode to replace the PostNet barcode: the IMB (Intelligent Mail Barcode, aka 4-state barcode). One of its features is tracking the progress of a mailpiece through the postal system. This new capability will allow the USPS to tightly measure system performance in ways that would have been impossible in 2008 - if they're able to complete rollout of the new system!

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    42

    endthemonopoly

    08/26/09 | Report as spam

    RE: How Would You Fix the Post Office?

    There's a simple solution that will never be implemented:
    Repeal the law that makes/enforces the USPS as a
    monopoly provider of first class/bulk/etc. mail.

    Allow free-market enterprises to compete with the USPS for
    delivery of all postage types. If the USPS as it exists now is
    truly essential, it will survive competition with free-market
    enterprises.

    And why will this USPS monopoly never be abolished? Who
    will take on the union, the bureaucracy, politicians, and
    other vested interests?

    The solution is simple; getting it enacted... not so much.

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    43

    alorenz

    08/27/09 | Report as spam

    Think before you privatize

    Sorry, but anyone who thinks privatizing USPS would be a good idea isn't clear on the details. As it has been explained above, the scope of what they do is larger than any other private company. Can anyone name a single company or agency which has the ability to touch every person in the country almost every day. What they do is far more remarkable, and priced better than people are willing to give them credit for. Everyone has the option of using a higher-priced solution now. If service is an issue for you - you have options. Many people seem to be forgetting that free-market in this case would increase costs substantially, and provide an incredibly inconsistent product. Each competing company would have to set up an entire infrastructure similar to what USPS already has. It would be incredibly inefficient. USPS is struggling, but improvement is the way to go. The unions need to be more flexible and sensible. We've seen that as an issue everywhere lately. It's tough because I am pro-union as far as their intended purpose, but they drive me toward anti-union because of their abuse of power. They sometimes even end up hurting the employees they are supposed to be helping by digging in their heels on ridiculous demands.

    Also - people are using USPS to slam a public health care system. This is dumb. The public system would be there to catch people who fall between the cracks. Private health care would still be available. They would have to do something to make sure private health care plans do not spike their prices and employers still susidize plans for employees, but if proper controls are in place, it could help a lot of people. Both of my parents are self-employed with health problems. They are practically uninsurable, and they are not alone. A public plan is better than no plan. As long as you are still free to choose, quit whining!

    USPS does need to look at their scheduling and compensation issues, and also at non-value added service - but the basic model is impressive. If you don't think so, you have not given it enough thought. Try building a business model to just deliver mail daily to your county. See how much each peice would cost you. If you're not impressed with the system - your math is wrong!!! :->

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    44

    Pantoja1

    08/27/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Simple its time that Fedex or UPS buy's out the entire system we can't keep subsidizing the post office in previous decades the agency worked now it had its time. As of today in the 21st century technology has changed eveything email, videoconferenceing webchats, twitter, blogs etc... has subsitute mailing. Guess what did you think I was going to mail my comment ??? Sorry for the workers, nonetheless part of them will have be absorbed by onw them (Fedex or UPS) or may have to retire with a good retirement package. Lets see what happens in the next 5-10 years.

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    45

    barcodeguy

    08/28/09 | Report as spam

    RE: How Would You Fix the Post Office?

    eweberg and alorenz - Thanks for the insight. You get it. Two examples of private businesses that have ended, or are struggling to remain, are home milk delivery (For those of you old enough to remember), and printed newspapers. Private companies saw no way to make a profit providing the daily delivery service. Newspapers have gone digital, and that may save some of the bigger players. bUT, The customer base that most relies on the USPS, does not have digital access to potential services, and NO private company would provide the service the USPS does for the price currently being paid.

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    46

    SterlingDevelop

    08/29/09 | Report as spam

    RE: How Would You Fix the Post Office?

    "and NO private company would provide the service the USPS does for the price currently being paid."

    That's irrelevant.

    One of the keys to freedom and economic prosperity is to reduce the size and role of government as much as possible.
    Someone will step in to provide the service. Perhaps at a higher price, but nothing exists in a vaccuum.

    The cost to us could certainly be offset by eliminating taxes that now support other facets of government which should be ended along with the USPS.

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    47

    barcodeguy

    08/30/09 | Report as spam

    RE: How Would You Fix the Post Office?

    SterlingDevelop - if the if the increase in cost is offset by the elimination of the supporting taxes, what would a private entity have to charge to deliver a letter? It would be much higher than the cost of the tax supported cost by the USPS. No one wants that business. Why do you think the USPS is promoting flat rate pagkage shipping? They want to get into the profitable larger package business and compete with UPS and Fed Ex. The private carriers, are not required to provide a service at a fixed rate, and if a service they provide is not prifitable, they can drop it.

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    apgsub@...

    08/30/09 | Report as spam

    RE: How Would You Fix the Post Office?

    Two solutions, among others, can bring greater efficiency and all round benefits in the Medium Term.
    1) As in India, empower the post offices in USA to assume the roles of Business Facilitators (BF) and Business Correspondents (BC) for delivery of social services and products thereof. These BFs and BCs can handle Social security payments, Governmental grants, pensions, other compensations across all local Unions and communities as in India. Financial Inclusion Services covering Micro credit, Micro Insurance and Micro Remittances, improvement of lively hood services for under-previleged and unemployed etc. using latest technological environment including kiosks, internet, bio-metric mobile and other devices like smart cards, are the 'in-thing' as of now internationally. Select scaling up of similar identified services involving public at large even in far-flung areas are possible. These would require re-engineering of existing in-flexible and unwieldy structures, restructuring of delivery mechanisms and cost-cutting excercises so as to bring about effectively micro and macro level cost-savings and efficiency in public institutions like post offices.
    2. Tie-up with other private courier serrvice providers selectively at local levels for collection and delivery, eliminating the present duplication and even multi-plication delivery channels. Adequate security measures and safe guards can be in built in such joint engagements to ensure credibility and confidence among end-user public.
    Prof.S.Subramanian
    (Retd-Senior Executive, Reserve Bank of India)
    Adviser & Senior Management Consultant (BFSI)
    NCR Consultants Ltd
    Gradatim IT Ventures (India) Ltd
    Visiting Faculty for Reputed B Schools in India
    EMail : apgsub@yahoo.com
    Mobile : +91 9841057857 (Chrennai, India)

    A tall order but drastic and innovative steps like these are necessary in times of 'crisis and ruins' !!

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    49

    Luckyst

    08/31/09 | Report as spam

    RE: How Would You Fix the Post Office?

    My comments are also influenced by job security.

    A couple of people have suggested raising the postal rate
    for 3rd class mail. Please keep in mind that it is not only
    the catalog mailers that a price increase in 3rd class mail
    would hurt. There are a lot of small business owners that
    would be put out of business if that happened, myself
    included. I own and sell ad space in several local
    advertising magazines, which are mailed to most of the
    households in any given area. It is not a subscription
    magazine, so the recipient does not pay for it. If my costs
    to mail it tripled, I would be forced to pass along to the
    business who advertise in the magazine, many who would
    suddenly find it cost prohibitive. The other's would, of
    course, pass the extra cost along to their customers, in the
    form of higher prices for goods and services. Eventually I
    would lose most (if not all) of my customer base, due to
    pricing. It would effectively be like taxing my business so
    heavily that I would be crushed under the pressure and it
    would, most likely, put me out of business. Multiply that by
    the hundreds of small business owners and employees in
    any state and suddenly you have hundreds of thousands of
    new people out of work.

    The post office becoming more efficient is a far superior
    idea. One postal worker in your local BMEU (Bulk Mail Entry
    Unit for 3rd class mail) can process lots of small businesses
    mail and keep more people working in the long run.

  •  
    50

    SterlingDevelop

    08/31/09 | Report as spam

    RE: How Would You Fix the Post Office?

    "SterlingDevelop - if the if the increase in cost is offset by the elimination of the supporting taxes, what would a private entity have to charge to deliver a letter? It would be much higher than the cost of the tax supported cost by the USPS. No one wants that business. Why do you think the USPS is promoting flat rate pagkage shipping? They want to get into the profitable larger package business and compete with UPS and Fed Ex. The private carriers, are not required to provide a service at a fixed rate, and if a service they provide is not prifitable, they can drop it."

    barcodeguy,

    Your response above assumes that a subsidized system is preferable because it provides a service that would not be not available under open market conditions.

    I would submit that your premise is faulty.
    If an service providing enterprise is not sustainably viable without an infusion of money from the taxpayer to lower the cost of said service, it should not exist.

    The free market will absolutely meet any needs for such services and set the price.

    The arguments for keeping the USPS to save jobs is akin to saying that we should not streamline our tax system because we would put IRS agents and H&R Block out of business.




  •  
    51

    barcodeguy

    09/01/09 | Report as spam

    RE: How Would You Fix the Post Office?

    SterlingDevelop - Your argument and comparison to the IRS and H&R Block is idiotic. To take your logic a step further, maybe we should do away with the Military because they are inefficient, and privatizing them would be more cost effective. And why do you think Fed Ex is asking their employees to take unpaid days off and DHL has eliminated their service in the U.S.? They are losing money every day. however, your assumption that if there is a demand, a private entity will fill the void (for a price), is absolutely correct. And as business costs go up due to higher postage costs, they will look for less expensive alternatives. That's good. In the interim, the consumer must bear the additional cost. I may be a little off on the price, but UPS and Fed Ex charge about ten or eleven dollars, or more, for an overnight letter now. And, If you are a private individual, you have to deliver it to their office, and stand in line for the service. While were at it, lets privatize and deregulate everything. Let free market forces work their magic. Leave all regulation and selection of all services up to the consumer. If you need a bridge built, or clean water, or gas to heat your house, find a private entity you like and try them out. if it doesn't work out so well for you, you can always find another. And if they are so bad, costly, or inefficent, free market forces will eventually drive them out of business. (Unless of course they're Wall Street bankers). There are certain services that government is uniquely suited to provide for the good of all citizens. It's called civilization. The cost of providing those services resul;ts in taxes. Could we do better? Certainly. If everyone was honest, we wouldn't need the IRS. If our tax laws were better, we wouldn't need H&R Block.

  •  
    52

    SterlingDevelop

    09/01/09 | Report as spam

    RE: How Would You Fix the Post Office?

    barcodeguy,

    Thank you for your tactful analysis of my proposed solution to the USPS debacle. I find discussion of differing business philosophies only really gets stimulating when a proponent of one idea calls the ideas of a competing participant "idiotic".

    I subscribe to the Austrian school of economics, and believe strongly in free market solutions. My comparison was meant to illustrate that saving people's jobs is not a valid reason for keeping an outdated bloated bureaucracy.

    Although it is largely ignored today,there is a document that sums up quite nicely the limited role of the federal government.

    "We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

    I don't see mail delivery in there.

    Our disagreement on the business solution for the problems of the USPS stem from a fundamental difference in our political belief system. As I said, nothing exists in a vacuum.


    I will end with the following quotes which, when removed from the larger context of the author, sum up the correct solution quite nicely.

    "Could we do better? Certainly."
    "Let free market forces work their magic."












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    53

    sonidv@...

    09/02/09 | Report as spam

    RE: How Would You Fix the Post Office?

    It is quite obvious from the recent interchanges that there is no perfect solution. The so called free market if not controlled can lead to its own demise. Likewise, the governement is not an entrepreneur. However, there are indeed some services which have to be provided for the collective "common good", and the post office is one such service. Moreover, there is always the need to balance the need for collective good with the issue of sustainability - social entrepreneurship. It is quite a balancing act! All development programs can only succeed if the will of the people is burning bright. We have to selectively get rid of obsolete and non-sustainable services, and usher in those that will contribute and sustain themselves, in every respect. This is not an easy process and requires the will of the people to find the "win-win" solution. Human beings have a great propensity to "throw the baby out, with the bath water". In the end the solution has to bear all the threads of social justice - our heritage is as important as the global political - economy and its imperativeto make profits at all costs.
    Throughout the debate, I have read some very good suggestions - for and against - we need to find the middle ground.

  •  
    54

    barcodeguy

    09/02/09 | Report as spam

    RE: How Would You Fix the Post Office?

    SterlingDevelop
    The meaning of quotes always changes when taken out of context, but that is a common practice of arguements that do not hold water. I'm sorry if I was a little oversealous using idiotic. I apologize. As I stated before, why don't we eliminate all of the functions of government that are not "profitable"? Such an idea would be.... Well, I think you know the word I'm looking for. I guess we can just agree to disagree. Private enterprise fueled the Wall Street boondogle, and that didn't work out so well.

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