This website uses cookies. Continued browsing of this site implies consent for the use of these cookies. Find out more here >>

Post & Parcel

powered by Triangle.

News

OIG report: USPS needs to diversify and expand logistics offerings

Wednesday, August 17th, 2016

A new report from the United States Postal Service (USPS) Office of Inspector General (OIG) has argued that the Postal Service “could better retain or even grow” its current package delivery business by taking steps to expand its logistics offerings.

While conceding that USPS is “not a logistics company”, the OIG report said thatĀ “many aspects of the logistics industry are central to its core business”.

The report pointed out that USPS isĀ operating in a changing environment and risks losing out to new competitors if it does not find way to capitalise more on its key strengths and use its infrastructure to deliver a broader range of services.

“The Postal Service is the dominant last-mile delivery provider in the United States because it visits nearly every address 6 days per week. As a result, no competitor can deliver small, low-revenue packages at such a low cost,” ,” said the OIG report.

“However, with competition for last-mile delivery intensifying in densely populated urban areas, the Postal Service may begin to lose significant market share to new entrants like crowdsourced delivery companies and regional carriers.

“As those competitors move into urban delivery, they could relegate the Postal Service to the role of making costly deliveries in rural or suburban areas with less density.

“Postal stakeholders and policymakers should note this potential urban-rural divide, as the Postal Service could end up being the only affordable way for Americans outside of urban areas to participate in ecommerce.

“In an era of declining and changing mail volumes, logistics may be one of the best options for posts and their partners to diversify their offerings and a key element of their long-term survival.

“Although the Postal Service is not a logistics company, many aspects of the logistics industry are central to its core business. By taking steps to expand its logistics offerings to the extent allowed under current law, the Postal Service could better retain or even grow its current package delivery business.

“In addition, by finding ways to leverage its existing resources and assets to provide or expand logistics services, the Postal Service could ensure that it best serves citizens and businesses and plays a valuable role in the quickly changing logistics industry.”

Click here to access a PDF of the full report.

 

 

Source: United States Postal Service (USPS) Office of Inspector General (OIG)

Tags: ,

Leave a Comment

You must be logged in to post a comment.

OIG report: USPS needs to diversify and expand logistics offerings

New Directory Members

Metafour Ltd

Our NetCourier software solutions are suitable for sameday, overnight, international Couriers, Storage Facilities and Corporate Mailrooms. Our solutions are the result of over 35 years of methodical re-investment in technology.

Sign-up

Post & Parcel Newsletters (Help)
  •  Daily newsletter


  •  Weekly newsletter


Latest Issue

About Post & Parcel

Post & Parcel is your key to the global mail and express industry. Every week Post & Parcel features the latest news, analysis of trends, insightful viewpoints, and exclusive interviews with leading industry experts.

Advertise with us

Advertise with us
We provide brands with an exciting range of advertising opportunities to reach the influential Post & Parcel audience. With campaigns suitable for every budget you can achieve your marketing objectives with Post & Parcel.