Dec. 5, 2011

Link Extra

USPS PROPOSES SERVICE STANDARDS CHANGES

The Postal Service today will file a request with the Postal Regulatory Commission (PRC) for an advisory opinion on proposed changes to mail service standards. The Postal Service also will seek public comment on proposed service standard changes for various mailing services products through an upcoming notice in the Federal Register.

This action follows the solicitation of public comment on service standard changes previously published (Link EXTRA, 9/15), along with numerous outreach efforts to the mailing community.

The most significant revisions would eliminate the expectation of overnight service for significant portions of First-Class Mail and Periodicals. In addition, the 2-day delivery range would be modified to include 3-digit ZIP Code origin-destination pairs that are currently overnight, and the 3-day delivery range also would be expanded.

 These revisions would allow for a significant rationalization of the Postal Service’s mail processing and transportation networks. The Postal Service is completing the facility reviews using the well-established Area Mail Processing guidelines, which will continue as announced in September.

If the proposed service standard changes are adopted, they could go into effect in 2012. 

“The Postal Service must reduce its operating costs by $20 billion by 2015 in order to return to profitability,” said David Williams, vice president, Network Operations. “The proposed changes to service standards will allow for significant consolidation of the postal network in terms of facilities, processing equipment, vehicles and employee workforce and will generate projected net annual savings of approximately $2.1 billion.”

These proposed changes are part of overall savings expected from the Postal Service’s network optimization initiative that is projected to save up to $3 billion by 2015.