COO Pat Donahoe’s field updates focuses on reducing delivery costs
USPS Chief Operating Officer Pat Donahoe’s latest edition of Field Updates takes a look at several cost-reduction strategies for fiscal year 2009, with a focus on removing some of the fixed costs in deliveries.
Donahoe discusses two main strategies — maintaining the current hours per route through Quarter 1 and right-sizing route structures.
“Based on projected workload in city delivery, there’s over a billion dollars in savings associated with route reduction and route structure potential,” Donahoe said. Included in that USD 1 billion is a full-time street concept worth USD 424 million in savings.
Overall, the plan is expected to save USD 1.4 billion. And with mail volume down and an uncertain economy tightening everyone’s purse strings, Donahoe’s plan will help the Postal Service survive the challenging financial times ahead.
Chief Operating Officer Pat Donahoe’s latest edition of Field Updates takes a look at several cost-reduction strategies for fiscal year 2009, with a focus on removing some of the fixed costs in deliveries.
Donahoe discusses two main strategies — maintaining the current hours per route through Quarter 1 and right-sizing route structures.
“Based on projected workload in city delivery, there’s over a billion dollars in savings associated with route reduction and route structure potential,” Donahoe said. Included in that USD 1 billion is a full-time street concept worth USD 424 million in savings.
Overall, the plan is expected to save USD 1.4 billion. And with mail volume down and an uncertain economy tightening everyone’s purse strings, Donahoe’s plan will help the Postal Service survive the challenging financial times ahead.
