Dissecting the USPS’ ‘Delivering for America’ Plan
On March 23, 2021, the United States Post Office® held a press conference to introduce “Delivering for America,” their ten-year plan to modernize their network and achieve financial stability. They hope to transform their current, archaic processes and operate with a positive net income beginning as soon as FY2023. If achieved, this would reverse the projected $160 billion in losses over the next ten years. However, any changes made to the organization’s strategy are subject to congressional approval.
The USPS® established nine areas within their operations worth addressing during the plan; they are: [i]
- The hastened shift in demand away from mail to packages
- Misaligned mail and package processing operations
- Underperforming air and surface transportation network
- Unattainable First-Class Mail® service standards
- Prolonged Underinvestment in retail and delivery network
- Misaligned and redundant organizational design
- High turnover rate within our non-career employee workforce
- Long-overdue pricing regulation changes from the PRC
These changes will serve to accomplish the 11 transformational goals the organization has listed and deemed important. These goals include:
- A strengthened public service mission including 6 and 7 days of mail and package delivery
- Service standards that foster service excellence – 95 percent on time reliability
- A bold approach to growth, innovation, and continued relevance – $24 billion of new revenue
- With congressional support, electric delivery fleet by no later than 2035
- Best-in-class mail and package processing and delivery operations
- A modern, transformed network of Post Offices designed as go-to destinations
- A fully optimized surface and air transportation network
- A stable and empowered workforce including reducing non-career turnover by 50 percent
- An organization structured to support effectiveness
- A supportive legislative and administrative framework
- A more rational pricing approach including the judicious implementation of new and existing pricing authority
Chris Lein, president of BCC Software, talks about the proposed plan and offers insights in his most recent Industry Corner Podcast, found here. Chris will be joined by other industry experts on Wednesday, April 14, to discuss how the plan could ultimately help or hurt the industry supply chain that enables the USPS to “bind the nation.” For more information or to register for the roundtable discussion, click here.
[i] ‘Delivering for America: Our Vision and Ten-Year Plan to achieve Financial Sustainability and Service Excellence’, United States Post Office, accessed 4 April 2021, https://about.usps.com/what/strategic-plans/delivering-for-america/assets/USPS_Delivering-For-America.pdf.
