The United States Postal Service has suffered a great amount of loss in revenue, due to the rise in competition of electronic mail and other package delivery services. With the world changing, USPS must make changes also. With the United States Postal Service declining, they must start to embrace technology. Over the years, the USPS has declined in popularity. With the world ordering from other package delivery services and people using electronic mail, the USPS has suffered from loss of revenue. In a graph that is excerpted from a 2009 annual report of the United States Postal Service, shows that there was a drop-in mail volume in the years of 2007 to 2009 (Source B). This shows that many people are going away from the USPS and are using other services. Not only is the USPS effected with revenue, but also financially. With a thirteen percent drop in mail volume, the USPS lost 3.8 billion dollars in 2010 (Source C). The USPS cannot keep taking big hits like this financially. Therefore, something must change. …show more content…
In today’s time, most people have cellphones, laptops, etc., therefore, they are more likely to use email and shop online. To improve the USPS, they should get into the e-business states futurist Watts Wacker (Source A). By doing this, it benefits the USPS by creating more opportunities for business. To also help the United States Postal Service, they should have some post offices just for letters and other post offices just for packages states business strategist Gurumurthy Kalyanaram (Source A). By doing this, it spreads out where people need to go and each post-office is being used. Also, with laptops and cellphones more people are turning to the internet (Source C). By going to the internet, people are finding cheaper postal services, which hurts the United States Postal
In July 2009, the Government Accountability Office (GAO) listed the budget of the United States Postal Service as “high risk” and recommended oversight from Congress and the Executive Branch. Specifically, the GAO stated that “Amid challenging economic conditions and a changing business environment, USPS is facing a deteriorating financial situation in which it does not expect to cover its expenses and financial obligations in fiscal years 2009 and 2010” (“Restructuring”, 2009, pg. 1). The GAO claimed that the mail volume in 2009 would likely decrease by about 28 billion as compared to 2008 and that the USPS would likely see declining volumes for the next five years (“Restructuring”, 2009, pg. 1). Clearly, the USPS is currently facing a
Over the years, the Postal Service has played many roles. By statute, the mission of the Postal Service is to “bind the nation together.” This is typically thought of as providing hard copy delivery. But, historically, the mission of the Postal Service has been broader, including educating and informing the public, enabling commerce, and representing the federal government in local communities. The key to determining the appropriate future business model of the Postal Service is clarifying its role. What future role does the
There is still a need for the United States Postal Service (USPS) today then just as anytime during the history of the United States. The USPS provides valuable and equitable services to all Americans everywhere in the United States, regardless of distance from their nearest post office. “Universal Service” a key term provided in an article by the Bloomberg Business week journal, describes what the USPS provides. The cost of delivering mail in rural communities is much higher than in urban areas. The USPS chief executive officer stated “You cannot charge 46 cents to deliver a letter by snowmobile in Alaska and make it work” (Bloomberg Business, 2014). Privatization of the USPS would possibly cause regional price differences that can place many Americans in rural areas at a
To many individuals, this is traditionally seen as a bureaucratic problem; however, personally I do not believe that the problem is purely the result of public sector negligence. Like many government services, it is more likely that the answer lies in serious reform rather than complete suspension. Interestingly, I located an article about the nonprofit - National Academy of Public Administration – that suggested a kind of public/private hybrid approach to fix the USPS’s difficulties. The concept entails “farming out” much of the behind the scenes process while a federal letter carrier would still handle front-line delivery services.
In Daniel Stone’s editorial article, “Flying Like an Eagle”, he advises the USPS some guidance to boost up their profit and their usage to the community. One of his inputs on the
The Post Office Department known as the United States Postal Services (USPS) (Annual Report, 2009) today, is a dominate player in the mail delivery arena and has been existence since 1776. The Post Office was originally a governmental agency, but due to mismanagement by Congress, was reorganized in 1971 and no longer a part of the presidential cabinet; but became an independent establishment of the executive branch of the Government. To date, the USPS maintains a monopoly on the day-to-day delivery of mail but competitors do share the market on some of the other types of deliveries; shares the market on some of the other types of deliveries (i.e. express
Especially in urban cities buzzing with the latest technology, many would agree that, “you don’t need a full-service post office every few blocks in New York, for example” (Source A). In addition, I spend every summer with my dad in Chicago, and because there is a USPS post office right around the corner of our apartment building, I have noticed from passing it every day that it is the one store on State Street that is empty 90 percent of the time. In my experience, Postmaster General John Potter is correct in wanting to “close and consolidate 154 post offices”, significantly reducing operating costs and employment. Strategy is key; by shutting down the offices with the lowest production and necessity, USPS will no longer be uselessly spending money.
Another growing idea is the privatization of USPS and the removal of its monopoly on mail delivery. It seems the ultimate goal of this would be alleviating the government’s hold on the Post Office altogether, therefore reduce any burden that it has. Perhaps it would also allow the Post Office to expand its services in order to meet the growing needs of consumers and adapt to the
There are a great deal of changes that the USPS systems needs to make. For one, they need to stop bombarding their customers with junk mail. According to (SOURCE E), 44 percent of marketing mail isn’t opened. Nineteen states have opted to pass bills that would allow people to opt out
USPS is not the only parcel company in the United States. Other companies, such as FedEx and UPS, are in the same industry competing against one another. There is competition for USPS and it must have strategies and tactics to handle the competitive pressures. However, USPS had experience some major pressures that has shifted the way USPS do business. Fax machines and electronic communications have impacted USPS causing USPS to have low mail volume than before these inventions.
Royal Mail is the largest provider of postal services in the United Kingdom and one of the largest postal service providers in the world. This paper analyzes
Nowadays, a majority of people use online forms of mail, but the United States Postal Service is still used to send bill statements, letters, and packages. The USPS has been utilizing the same form of delivering mail for hundreds of years which is why many people say that this certain branch of government should be restructured to fit the needs of modern times. The postal service needs to be restructured in order to minimize the finances of the economy and make the environment a sustainable world for future generations to live in.
The loss of manufacturing jobs in the United States is extremely important. As this article states, when manufacturing jobs are lost so are service jobs. For every manufacturing job lost to things like outsourcing, 3 service jobs are lost. Not only are the people doing the manufacturing losing jobs, but
USPS should consider shifting part of its mail volume to rail. By making this change it has been estimated that USPS could save at least $100 million per year. Additionally, “because of its lesser sensitivity to fuel price increases and greater control of its own infrastructure, rail transportation has major, long-term strategic advantages over highway” (Berman, 2012).
The evolution of the express mail industry had become a quick on-time shipping and delivery of packages. The service had become effective, reliable, and prompt, which most of the top companies could deliver on these guaranteed promises 96-99% of the time. But, delivery services were only a portion of the services being offered to their customers. Carriers had mastered information management that they shared with their customers. Customers were now able to fill out labels, track the route of their package, and assisted in billing using both via carrier provided software or the Internet.