The new USPS 10-year “Delivering for America” plan, unveiled in March, will address longstanding financial issues while setting higher standards for service delivery.
Although the USPS has been projected to lose $160 billion over the next decade, this plan promises to achieve a positive net income by 2023 and break-even operating performance through 2030 and beyond. From a service standpoint, the plan aims to meet or exceed 95 percent network-wide, on-time delivery.
Affordable, six-day mail is staying put, while seven-day package delivery will be expanded to meet the increasing demands of e-commerce.
In an effort to improve the experience of both consumers and small businesses, the USPS is launching USPS Connect, a new suite of services that will connect small and large businesses with urban and rural communities across the country. USPS Connect will broaden access to the postal network and help businesses compete in the e-commerce market.
Capitalizing on its world-class end-to-end delivery network, the USPS will offer same-day, one-day, and two-day delivery for Priority Mail, Priority Mail Express, First-Class Package Service, and Parcel Select. This will generate $24 billion in new package net revenue growth.
Meanwhile, processing facilities will be adapted to reflect greater package volume and lower mail volume and support the new e-commerce offerings. The USPS will also seek to modify service standards for First-Class Mail Letters, Flats, and Package Service, shifting from air transportation to more reliable ground transportation.
According to the USPS, the 10-year plan will generate increased cash flow and cost savings that will enable $40 billion in long-delayed capital investments. This will not only improve the speed and efficiency of operations, but also increase employee retention rates and stabilize the USPS workforce.
The plan includes investments in technology, training, USPS facilities, and a new vehicle fleet to replace existing vehicles, which are more than 28-years old on average and lack the space for growing package volume. We could see new postal vehicles by 2023 and, with Congressional support, the delivery fleet can be completely electric by 2035.
Other upgrades that are expected to enhance service include the modernization of the USPS processing network and adoption of best-in-class logistics practices across delivery and transportation facilities.
As an entity that receives no tax dollars and relies solely on fees for postage, products, and services to operate, the USPS has been struggling with a financial crisis that has been decades in the making. Today, USPS leadership is confident that its new 10-year plan will lead to financial sustainability while improving service delivery and the customer experience.
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