MAIL DELIVERY: FIVE OR SIX DAYS?
Although at one time it may have seemed unthinkable, one cost-cutting option that has come to the forefront is the reduction of the established six-day delivery system to five days. The cost-benefit tradeoffs of eliminating a day of delivery service have been questioned, however. A number of groups estimate varying degrees of financial relief from such a measure, and many, including DMA, have expressed concerns about the potential impact of this reduction in service.
Many variables surround such proposals, including which day of delivery would be dropped, and whether such a reduction in service would be year-round or limited to the slower months. It also calls into question whether the reduced delivery days would lead to a perceived deduction in the Postal Service’s overall value, and in turn to a further decline in mail volume.
Assuming no additional decline in volume, the Postal Service has projected savings as high as $3.5 billion per year. An alternative projection from the PRC, assuming cost and volume impact with the elimination of one day of service, casts the savings at $1.9 billion per year.
Regardless of the numbers and concerns, any change would require Congress to rescind the annual appropriations rider requiring the Postal Service to “provided (further), that six-day delivery and rural delivery of mail shall continue at not less than the 1983 level.”
The only true consensus is that the current path will not lead to financial stability and viability for the Postal Service. It is also likely that some combination of the solutions mentioned, as well as other cost-cutting efforts, will be required for the USPS to recover from the financial impact of a rapidly declining mail volume.
DMA supports the review of all aspects of USPS operations, and will continue to cooperate with the Postal Service to ensure a mutually-beneficial future for the USPS and the marketing community at large.
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1 comment:
Mail delivery is a fastener part of the social and global network, allowing people to converse and exchange goods with ease and security. It is a service available to all and used for a vast number of purposes.
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