The United States Postal Service has adopted a comprehensive strategy, "Delivering the Future," a balanced approach to close a projected cumulative $238 billion deficit by the year 2020.
The strategy includes legislative and regulatory changes, the flexibility to make necessary business decisions in a timely manner and greater control over the number of days mail is delivered.
Specifically, the Postal Service is working with Congress to address the prepayment of retiree health benefits, change frequency of delivery and restructure price caps mandated by the Postal Law of 2006.
Restructuring prepayment of retiree health benefits and changing delivery frequency from six to five days a week provide the greatest costs savings opportunities. These two changes could reduce cumulative costs by as much as $90 billion by 2020.
Immediate action on retireee health benefits and frequency of delivery will allow the Postal Service to avoid a double-digit price increase that will drive business away and place the Postal Service in even greater uncertainty.
In FY 2000, $1.80 in revenue was generated per delivery stop daily, based on six days of delivery. In FY 2009, $1.40 in revenue was generated per delivery stop. That number is expected to drop to $1 by 2020. Under current law, the Postal Service cannot determine the number of days to deliver mail, regardless of costs or declining revenue.
The Postal Service's strategy is to adapt to America's changing mailing habits by becoming leaner and more able to quickly respond to customer mailing needs.
To learn more about "Delivering the Future" please visit www.usps.com/communications/newsroom/deliveringfuture/welcome.htm.