Executive Briefings

Postal Service Has Unique Logistics Challenge--Serving Everyone

Susan M. Brownell, vice president, supply management, says the Postal Service, like many businesses today, is facing challenges from competition, rising fuel costs and ever-changing consumer habits. For example, the Postal Service estimates that for every penny increase in the cost of a gallon of fuel, the impact on the Postal Service is $8m. Although consumers are turning to e-mail and online bill payment programs, the number of delivery points (homes and businesses) continues to increase, despite lower first-class mail volume. In 1999, there were 133 million delivery points, compared to 148 million today, Brownell explains. While the Postal Service competes with private shipping companies with its products such as Express Mail and Priority Mail, it also must carry out its mandate of universal service - everyone, everywhere, every day.

Source: Inside Supply Management

Susan M. Brownell, vice president, supply management, says the Postal Service, like many businesses today, is facing challenges from competition, rising fuel costs and ever-changing consumer habits. For example, the Postal Service estimates that for every penny increase in the cost of a gallon of fuel, the impact on the Postal Service is $8m. Although consumers are turning to e-mail and online bill payment programs, the number of delivery points (homes and businesses) continues to increase, despite lower first-class mail volume. In 1999, there were 133 million delivery points, compared to 148 million today, Brownell explains. While the Postal Service competes with private shipping companies with its products such as Express Mail and Priority Mail, it also must carry out its mandate of universal service - everyone, everywhere, every day.

Source: Inside Supply Management