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The Post Office Strikes Back…

US Postal Service vs CongressPostmaster General Patrick R. Donahoe made a plea to the House committee today to ask for their assistance in updating what he called “a broken business model.” In February, the Post Office announced its plans to change its delivery schedule, which received quite a buzz in the media. On March 21 however, Congress halted those plans by claiming that according to the Government Accountability Office’s findings, the Post Office does not have the authority to change its delivery schedule. 

This Star Wars-like saga seems to have pit the US Postal Service against the Congress with an epic battle to look forward to. The Postmaster General was adamant about including delivery flexibility as part of their legislative provisions stating, “…we do not have all of the flexibility we need to grow revenue, reduce costs and adapt to a changing marketplace.”

Over the last decade, the Post Office has reduced their workforce by almost 200,000 career employees, consolidated over 300 facilities, modified hours of operation, and eliminated 21,000 routes for reducing the annual cost base by $15 billion dollars. Having made significant strides in cost-savings, without significantly impacting service is a rather impressive accomplishment. There are really only 2 possibilities for this achievement… 1 – the Post Office has been one of the most inefficient business models the world has ever seen, so these cost-savings were in effect streamlining a poorly run organization, or 2 – the Post Office has gone leaps and bounds using all of its resources and capabilities to tighten its belt and do more with less, which would be a most impressive feat. One can only hope its the latter, but likely to be some combination of both. 

In either case, the Post Office is clearly make efforts to be nimble and function like a private enterprise, and its still murky as to why Congress is keeping them from doing what they feel will be best for the organization. The Post Office most certainly needs a Jedi to go to battle for them and maybe that Jedi is Postmaster General Patrick R. Donahoe… lets just hope he doesn’t succumb to the dark side. 

If you have an idea that would help the USPS save money, please leave a comment.

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US Postal Solutions is the nation’s leader in the student housing mail management industry, for both on/off-campus mail management services. The US Postal Solutions, Inc. companies offer mail delivery management, delivery services and package logging / package management software. For more information regarding US Postal Solutions, please call us today at (866) 378-8157 or visit us online at www.uspostalsolutions.com.

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NO LOVE: Why the Post Office Hates Your Student Housing Property

usps hates student housingNot even on Valentine’s Day

On this Valentine’s Day, the focus of today’s blog will be on why the Post Office has perfectly legitimate reasons for not playing nice with your student housing property. If you think you have reason to hate them, that list is likely a whole lot shorter than theirs. Its not that the Post Office actually hates your property, the problem is that its just costly and a logistical nightmare for the US Postal Service to manage mail to transient properties designated as Single-Point Delivery properties. Unfortunately, that means you are left with the burden of sorting and final delivery of mail.

They don’t have it out for you

Its also important to emphasize that while the US Postal Service is technically an independent agency that does not receive any tax revenue, it is still subject to Congressional approval. As anyone can imagine, this hinders the ability for the Postal Service to be nimble and creative to better address these types of issues effectively. Imagine being a business that has to wait for Congress to make a decision about changing your hours of operation.

Understanding makes all the difference

To get a better understanding of the issues, here are some of the issues from the Post Office:

  • Transient residents - The USPS absorbs huge cost by servicing properties that experience a high turnover in residents, especially give that the USPS does not collect a fee for the forwarding of mail.
  • Mail box maintenance - When the USPS provides physical mail boxes with the intent to provide full service they are required to absorb the costs associated with maintaining the mail boxes. This may include parts, repairs, work hours, name tags and sleeves, etc. 
  • High volume of packagesWhen the USPS offers full service they must attempt delivery of all packages and items requiring signature or postage to the resident’s door.  In most cases delivery can not be completed because students are not traditionally home during typical delivery hours, which makes this process a very expensive aspect of service given the USPS employee is typically paid hourly for a non productive task.
  • Excessive Customer Service issues - The USPS must dedicate costly resources to assist customers (in lobby, by email and by phone) for issues that are more often than not have little to do with USPS.  Customers are usually trying to locate an item that is simply not yet available.
  • Often inefficient modes of delivery, especially on campus - Delivery to on campus locations can be among the most costly for the USPS as there are time consuming obstacles associated with these deliveries.  Delivery managers are accountable for productivity indicators such as SEI (Street Efficiency Indicator). On campus (and many off campus) student housing are among the most inefficient deliveries that have a negative impact on SEI.
  • High management turn over on property - USPS supervisors and managers are generally not able to enjoy a sustained business relationships with property management staff on student housing properties due to the high turnover.  This makes long term and repeat problem solving much more complicated for USPS staff.
  • Storage during holiday season and summer - Most USPS facilities barely have room for normal hold mail and parcel awaiting pick up.  Student housing properties can have far greater needs for storing these items during semester changes, holidays and summer months.
  • Increased workload at peak times – USPS staffing does not have the ability to compensate for explosive volume increases.  these increases occur at new semester starts, after holidays and other key times during the year.  The increases impact entire operations and cause processing and delivery delays for unrelated properties.
  • Easy operational cost recovery for USPS - When a Postmaster correctly identifies a property as SPD that Postmaster is able to recover costs compared to full service delivery.  These are far reaching costs that can even multiply as a new property fills to capacity and generates more transient volume.
  • Employee complement control - New properties and new deliveries quickly translate into additional line items such as staff, fuel, vehicles, etc.  There is plenty of incentive for a local Postmaster to select Single-Point Delivery over full service when the property fits the criterion. 
  • Dollars and cents – Rural carriers are paid according to number of deliveries. A 1000-bed property equals 1 delivery for a rural route as Single-Point Delivery property. The same property as a full service property equals 1000 deliveries, which can equal an entire route in some cases. With so many budget cuts and limited capacity to adjust product and service fees, USPS makes use of whatever it can to keep solvent. 
  • Delivery often complicated (or impossible) during game day activities (on and off campus) - Game day and many other on and off-campus activities make delivery complicated, costly and often impossible.  

Hopefully, this clarifies some of the issues the Postal Service deals with relating to Single-Point Delivery properties. Remember, its not the postman that delivers the mail that has designated your property as a Single-Point Delivery property… s/he is, after all just the messenger.

Have a Happy Valentine’s Day!

If you have anything you would like to add or an experience you would like to share, please comment below.

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US Postal Solutions is the nation’s leader in the student housing mail management industry, for both on/off-campus mail management services. The US Postal Solutions, Inc. companies offer mail delivery management, delivery services and package logging / package management software. For more information regarding US Postal Solutions, please call us today at (866) 378-8157 or visit us online at www.uspostalsolutions.com.

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Postal Service Stops Mail Delivery on Saturdays

No Mail TodayNo mail on Saturday

In an attempt to cut over $2 billion from their budget, the United States Postal Service has announced that they will no longer be delivering regular mail on Saturdays, beginning August 5, 2013. However, they will continue to stay open on Saturdays to handle the ever increasing number of packages now dominating their delivery routes. This is primarily due to the 14% increase in package volume since 2010 and projections for strong package growth in the coming decade, according to the PCC Insider. This moves comes as the Postal Service continues to face challenges trying to stay solvent and competitive in the mail and package delivery market.

70% of people approve

The Postal Service has unsuccessfully proposed a five-day delivery schedule in previous years, so this seems to be a pre-emptive announcement in an effort to push Congress to pass the measure. The Postal Service, while an independent agency that receives no tax dollars to operate, still requires congressional approval to make such a move. According to market research from both the Postal Service and major media outlets, 70% of people approve this service shift, which is what the Postal Service will likely leverage to affirm their position.

Legislative approval from the 113th Congress is what the Postal Service is waiting to hear. Having already slashed about $15 billion from their operating budget since 2006 (source PCC Insider), while continuing to provide uninterrupted service should be a compelling argument to allow this mail delivery shift.

Volume will be overwhelming

Single-point delivery designated properties like military and university housing are expected to be impacted with higher volumes of mail on Mondays and with the continued increase of package deliveries throughout the week. Both FedEx and UPS have seen a 14% increase in package volume since 2010, partially attributed by the 16% increase in online shopping since 2011 with projections expecting to increase by about 7% every year through 2016. If it was busy before, then this shift combined with high overall package volume, properties can expect some additional challenges with this unprecedented move by the Postal Service.

If you have anything you would like to add or an experience you would like to share, please comment below.

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US Postal Solutions is the nation’s leader in the student housing mail management industry, for both on/off-campus mail management services. The US Postal Solutions, Inc. companies offer mail delivery management, delivery services and package logging / package management software. For more information regarding US Postal Solutions, please call us today at (866) 378-8157 or visit us online at www.uspostalsolutions.com.

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Why Was My Property Chosen for Single-Point Delivery?

photo 4The USPS decided in 1978 to designate certain properties for single-point delivery, and in 2000 it further confirmed this notion with specificity toward university student housing.

“For it is the status of the majority of the residents as students and not any particular characteristic of the building, that compels single point delivery” — Francia Smith, Vice President and Consumer Advocate, USPS (Smith 2000).

The USPS has reasoned that student resident communities fall under the Postal Operations Manual’s definition of “transient communities”.

“The reason for the policy is that unmarried college and university students are a highly transient group, and single point delivery is the most efficient method of delivery to a transient population. Single point delivery is similarly the only delivery option available to on-campus dormitories and other types of transient communities for similar reasons. ” – See Postal Operations Manual 631.5.

There was some backlash to this requirement (specifically from the NMHC), but the post office stood firm and this policy is still the standard. Due to the severe budgeting issues seen with the USPS today, this trend is being extended to new developments by requiring them to use Cluster Box Units rather than individual mailboxes. This assists in keeping the USPS as efficient as possible as it relates to the mail delivery process.

Though new developments will usually have a few options to choose from, student housing properties fit directly in the policy and are typically not given any other option. This is where companies like US Postal Solutions comes in as a partner to assist with mail delivery management. In combination with PackageLog, an inbound package management software, US Postal Solutions is able to efficiently manage all university mail on property. It’s a kismet public-private partnership that universities across the nation take advantage of to not get bogged down by the enormous amount of mail received each year. 

If you have anything you would like to add or an experience you would like to share, please comment below.

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US Postal Solutions is the nation’s leader in the student housing mail management industry, for both on/off-campus mail management services. The US Postal Solutions, Inc. companies offer mail delivery management, delivery services and package logging / package management software. For more information regarding US Postal Solutions, please call us today at (866) 378-8157 or visit us online at www.uspostalsolutions.com.

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Hybrid Shipping Helps To Bring Down Package Management Expenses

Hybrid Shipping ModelAs with any business, there are a lot of expenses to take into consideration. Shipping is one that many businesses still struggle with, but finding a solution alludes them.

However, there is a viable alternative that is cost-effective and works for most businesses… Hybrid shipping! This was a service formally only for high-volume warehouses and the like, but hybrid shippers are popping up everywhere for small volume websites, home-based business, and small businesses.

Hybrid shipping is when multiple companies are coordinated for the delivery of your packages. For example, FedEx or UPS would pick up your packages and deliver them to the US Post Office for final delivery.

The only drawback from this type of system is that there is a higher chance of some delays in delivery due to the exchange between multiple vendors. In any case, if you spend a little time to plan you can save time and money. This is a great option for those who don’t have time to go to the post office, but can’t afford to send packages via a private service like DHL or UPS regularly. Managing packages and the expense that goes along with it is a daunting task. As a leader in outsourced collegiate mail as a university housing service, we handle over 600,000 packages per year for mail delivery services in some of the most transient locations in the nation… residence halls and student housing; as well as multi-family housing communities – so we understand. Not only do we need to where packages were originally addressed, but inevitably forward them to their new location. Try that one with over 35,000 students every year. As a matter of fact, we even developed PackageLog(TM) - a package management software designed to streamline productivity and bring down expenses. What are you doing to save time and money. We would like to hear about it.

If you have anything to add or would like to comment, we would love to hear from you. Please leave a comment.

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US Postal Solutions is the nation’s leader in the student housing mail management industry, for both on/off-campus mail management services. The US Postal Solutions, Inc. companies offer mail delivery management, delivery services and package logging / package management software. For more information regarding US Postal Solutions, please call us today at (866) 378-8157 or visit us online at www.uspostalsolutions.com.

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