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Details Emerging About Delivery Unit Consolidations

Documents provided by the Postal Service to its labor groups detail the initial moves to implement the network redesign contained in the Postmaster General’s 10-year Plan. Generally, the redesign would impact the mail processing, transportation, and delivery infrastructure; similarly, sweeping changes are not anticipated for retail facilities.

SDCs

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Caveat Emptor: Buyer Beware – Commentary

Attention members of the commercial mail production community: You’re being pitched. After nineteen months in office, and ten months after issuing his 10-year Plan, Postmaster General Louis DeJoy is getting out of his office at USPS HQ and taking his sales pitch to the people.

Actually, his Selling the Plan tour began last year; he appeared at selected USPS facilities, at carefully arranged Postal Customer Council meetings, and in a protracted infomercial during the virtual National Postal Forum. His most recent venue to win friends and influence customers was last week’s Mailers Technical Advisory Committee meeting.

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USPS Service Claims Require Readers’ Scrutiny

For the last seven months of 2021, the Postal Service’s public relations office has issued weekly releases touting service performance improvements.  However, a closer look at those releases suggests that, while the authors’ purpose seems to be to create a perception of improvement, that scenario isn’t supported by their own data, and shows a trend that actually isn’t as impressive as they want readers to believe.

Contexts

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Exceptions and Selective Data Skew USPS Service Reports

In any public statement about its products or services, it’s to be expected that a private company will present information that frames those products and services as favorably as possible. Any commercial or advertisement is an example.

Whether the Postal Service should engage in such a practice is another matter. Though it’s supposed to operate in a “businesslike manner,” it’s fundamentally a government agency whose vaunted trustworthiness would make the transparency of operations and complete honesty of information no less than core values.

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The 10-Year Plan and The Virtual NPF

The unrelenting impact of the pandemic caused the National Postal Forum to be virtual again in 2021 – actually as two online events, one last spring and a second last month that coincided with National PCC Week.

However, the September session’s presentations offered less than the usual wide variety of topics and instead were dominated by a Postal Service multi-part infomercial touting Postmaster General Louis DeJoy’s 10-year Plan.  From the opening session to individual panel discussions, viewers were repeatedly presented with scripted “conversations” in which the PMG was fed softball questions, all designed to elicit planned answers that framed the Plan and its contents in the most favorable terms.

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Caught in the Spin

As everyone involved in commercial mail production realizes, we’re heading into a second atypical fall mailing season.  Supplies of the essential raw material – paper – are tight, trucking companies are busy moving backlogged shipments from ports, drivers are still in short supply, and companies are struggling to find workers despite high unemployment.

Concurrently, the Postal Service is reworking its processing and logistics networks – consolidating some operations while adding annexes and installing package sorting equipment – and planning to move more mail by truck and reduce its service commitments.

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Mailers Warn the USPS: Service Cuts, Price Increase Will Cost Business

Postmaster General Louis DeJoy may have just celebrated his first year in office but he remains resistant to customer input that differs from his perspective about the Postal Service.

Nonetheless, another group of commercial mailers has offered its own warning to DeJoy that his ill-advised service reductions, combined with an exceptionally large price increase, will cost the agency volume (and revenue) it can ill-afford to lose.

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Distilling Information from USPS Responses

Part of the Postal Regulatory Commission’s process for considering a Postal Service request for an advisory opinion – like the one now before it regarding changes to USPS service standards – is the opportunity for intervening parties to ask questions of Postal Service witnesses, based on their written testimony.

Last month, as an intervenor in the case, Mailers Hub submitted questions to three USPS witnesses: Logistics VP Robert Cintron; Stephen Hagenstein, Director, Logistics Modeling and Analytics; and Acting Budget Director Curtis Whiteman.  Some were about vehicle utilization and dispatch times, while others focused on the reasons for the changes that were proposed.  After some debate over what constitutes a “question” (the number that can be submitted is limited at 25), the USPS witnesses filed their responses on June 1.

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USPS Reports Small Net Loss for PQII

In its Form 10-Q released May 7, the Postal Service reported an $82 million net loss for the second quarter of its 2021 fiscal year (January-March).  Adding its $318 million net income for PQI, the USPS is $236 million in the black halfway through FY 2021, nearly $3 billion better than it had planned and over $5 billion ahead of where it was in the middle of FY 2020.

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Operational Issues May Explain Service Standard Failures

A major focus of the Postal Service’s 10-year Plan, issued March 23, is the need to downgrade service standards for First-Class Mail because the current standards, which haven’t been met for several years, are “unattainable.” The Plan recites various reasons for this situation, including failures in air transportation and in compliance with facility operating plans.

The fundamental absence of operating discipline in USPS processing facilities was highlighted in two audits published in mid-April by the Postal Service’s Office of Inspector General: Delayed Mail at the Lehigh Valley, PA Processing and Distribution Center, issued April 12, and Delayed Mail at the North Houston, TX Processing and Distribution Center, released April 13.

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Will Lowering the Bar Enable Success?

On April 21, the USPS filed its Request for an Advisory Opinion on Changes in the Nature of Postal Services, seeking the Postal Regulatory Commission’s input on changes to the service standards for First-Class Mail and time-sensitive Periodicals. The fifteen-page filing was accompanied by direct testimony from five witnesses and eight “library references” containing supporting data.

Proposal

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Exchange of Letters Shows Rift

Letter exchanged this month between a coalition of industry groups and the Postmaster General illustrate the gap between them regarding the Postal Service’s 10-Year Plan, released March 23.  The industry letter presents a series of concerns, to all of which the PMG takes exception.  Readers can form their own conclusions. Links below. 

Industry Response to 10-Year Plan

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