USPS: Unveiling the Five Year Plan

The USPS assembled in November to report the 2016 fiscal year results which concluded a net loss of $5.6 billion due to the cost of mandated health benefits. However the USPS saw heightened growth with shipping and packages.

A white mailbox against a fresh blue sky.

Megan J Brennan, Postmaster General and CEO stated, “To drive growth in revenue and better serve our customers, we continue to invest in the future of the Postal Service by leveraging technology, improving processes and adjusting our network. In 2016 we invested $1.4 billion, an increase of $206 million over 2015, to fund some of our much needed building improvements, vehicles, equipment and other capital projects.”

The USPS recently released a comprehensive 5 year strategic plan promising to work on and maintain a network of trust with their customers and communities. This includes embracing change and growing with digital technology. The USPS plans to enhance the mobile technology and sharpen Informed Delivery. What does this mean for your catalog delivery?

The USPS wants to add value to the mail customers receive and strengthen their delivery of mail by placing customers in the driver’s seat. The USPS states, “We must increase the loyalty of current customers while developing deeper relationships with digitally connected customers who may not fully appreciate the value of mail.”

This includes investing time on projects such as:

Optimize Network Platform Initiative: This focuses on the mail-processing framework and transportation, improving equipment, and training employees as technology changes.

Delivery: The areas to which the postal service delivers are growing and will continue to climb. The USPS states, “The number of delivery points we serve grows by almost a million every year.”

Taking care of the environment: The USPS wants to establish and ensure compliance with environmental and energy regulatory requirements. The Postal Services feels this will have a direct effect on the longevity and suitability of the USPS.

As the USPS noted, mail delivery is their primary source of revenue and their ultimate goal is to promote customer use of technology and other digital services. Even with plans in place, one fact cannot be ignored: the net loss for 2016. With the high cost of employee retirement health plans, lost revenue is in the foreseeable future as well. Brennan stated, “This is why legislative and regulatory reforms remain critical for us to meet the needs of American public now and well into the future.”

The USPS states they will continue to collaborate with the mail industry, working with groups such as the National Postal Forum (NPF), the Mailers’ Technical Advisory Committee (MTAC), and the Postal Customer Councils (PCCs) to improve the future of mail delivery. However, The Postal Service will need to continuously assess and reassess cost and spending to offset a billion dollar loss in 2016.

About the Author: Jim Gibbs

Vice President of Sales & Marketing at The Dingley Press. Jim has been with Dingley since 2002 and lives in Maine near our Lisbon, Maine plant location.