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Leaked Documents Suggest PMG Seeking Cost Reductions

When the new Postmaster General took office last month, it was widely assumed that he would make significant changes, though the nature of what those changes would be was then no more than speculation.  However, if the information in a leaked PowerPoint presentation that appeared on postalnews.com last week is credible, change may be starting and is focused on cost reduction.

Quick reference links: "The Source", "Document Two", "Publicity", "Another Talk" 

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Advocacy Group Urges New PMG to Act on Old Challenges

When a new leader is appointed to any significant government entity, it’s not unusual for groups to contact that individual to urge action on the writers’ key issues.  So it was when Tom Schatz, president of Citizens Against Government Waste, a conservative DC think tank, wrote on June 19 to new Postmaster General Louis DeJoy, urging DeJoy to take his recommendations on topics of interest to that group.

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High Costs and High Overtime: USPS Reports Challenge Insight

In its May financial data (see the article on page 8), the Postal Service reported mail processing costs that were 8% over plan and workhours that exceeded plan by 8.5%.  The agency commonly attributes this situation to the workload associated with higher parcel volume.  However, while it’s reasonable that more work hours are needed to handle surging parcel volume, there’s been no indication whether the USPS is concurrently capturing workhour savings because of greatly decreased letter and flat mail volume.

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OIG Finds Network Changes Failed to Yield Planned Results

An audit report by the Postal Service’s Office of Inspector General revealed that changes the USPS has instituted in its processing operations have failed to produce savings at a pace commensurate with the overall decline in mail volume. Released September 9, the report (NO-AR-19-006, US Postal Service Processing Network Optimization) evaluated “trends and practices the U.S. Postal Service uses to optimize its processing network.”

Summary

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