The US Postal Service is facing unsustainable financial losses due to declining mail volumes and revenues. Labor costs make up 80% of total costs but are fixed, creating financial challenges. Congress needs to pass postal reform legislation to allow changes like reducing prefunding retirement health benefit requirements and network realignment to improve the financial situation. The Senate passed a bill in April 2012 but the House has yet to vote, and industry groups are lobbying for reforms to ensure the long term viability of the USPS.
This document outlines the roles and responsibilities of members on a sales team for a social enterprise t-shirt company. It includes sections on each member's role, customer benefits, communication and sales strategies, core competencies, value chain processes, and lessons learned from the project. The VP's responsibilities included assigning tasks, consulting with customers, setting sales targets, and managing the team's work. Other members were responsible for finding customers, making sales, delivering products, and providing customer support.
The document discusses the future of the printing and mailing industry. It notes that while printing is a highly competitive environment, direct mail still accounts for over 15 billion mail items annually in the UK. The document advocates that companies in the printing and mailing industry should position themselves as part of an overall communications mix and focus on customer services rather than just manufacturing. Accessing customer data and using it to improve targeting, response rates, and personalization is key to the future of the industry.
The budget airline space is a competitive one, but the U.K.s airline bmibaby gets sky high results with its clever and strategic email marketing program. Techniques to be showcased include the following: Cutting through inbox clutter with enticing subject lines, Starting the relationship with a memorable welcome email,l Delivering one to one value through transactional emails, Extending your reach through social sharing.
Presentation was given at the Travel Distribution Summit in London, June 17th and 18th, 2010 by Will Schnabel, Silverpop and Marie Clare Dixon, bmibaby.
Integrated Marketing Proposal for USPS - BIC Class ProjectAlexandra Suazo
CCNY's BIC foundational course Business Strategy & Measurement, taught by Scott Elias, focused on business growth-specifically; how brands have been and are created and curated, acquired and sold. Students learned how to develop, design and implement branding and integrated strategies that optimize business growth, brand equity (value), vitality, and resonance.
Our final assignment focused on business process, facts and findings about the consumer, and the competition and societal landscapes of a brand of choice. As a small team of four, my group tackled the United States Postal Service (USPS). The final presentation included a situational review on the past and current brand perception as well as competitive research on the mail delivery and courier industry, a brand brief framework and identity, and finally an integrated marketing communications plan (IMCP) for the proposed repositioning of USPS.
As team lead, I managed the production (visual design and formatting) and editing of the final PPT presentation and led the content areas related to the consumer audience and their voice and the IMCP. I’m particularly proud of my Instagram idea and mockup on slide 33.
Semester: Fall 2013
The document provides an overview of the North Carolina General Assembly session including:
1) The session length is indeterminate, with a long session covering any issues and a short session limited to specific topics like the budget.
2) The budget process involves the Senate, House, and Governor exchanging budget proposals with negotiation over revenue forecasts and funding priorities.
3) Major legislative drivers this session include teachers' salaries, Medicaid reform, and environmental regulations, complicated by it being an election year.
SUCCESS STORY: How King County Treasury Reduced Taxpayer Late Fees by 62%, Fe...GoLeanSixSigma.com
Ana Schoenecker has worked for the King County Treasury for 14 years. She is the current Real Property Administrator for the Property Tax Office and she is a Lean Six Sigma Green Belt. Laura Wilson has worked for King County for almost 12 years and in Treasury for 6 years. She is a Fiscal Specialist in the Property Tax Office and she is also a Lean Six Sigma Green Belt.
After receiving many calls from angry taxpayers who were forced to pay extra interest and penalties on their mortgages, Ana and Laura knew that their mail blow backs were responsible.
The Challenge:
Mail blow backs are any returned mail that was unable to be delivered. In this case, payment deadlines were being mailed but due to outdated information in their system, many taxpayers weren’t receiving these notices. When this mail is not received, taxpayers end up paying later and larger delinquency fees - resulting in lower customer satisfaction with the county.
The Discovery:
Ana and Laura started their project by gathering the Voice of the Customer to better understand their customer requirements. They then created a SIPOC to understand the scope of their project and used an “As-Is” Process Map to understand the full process end-to-end.
After mapping their process, they formed a Data Collection Plan, collected sample baseline data from 2016, and found that taxpayers who did not receive their notice letter paid an average of $409 in late fees! Taxpayers who were not able to be notified for years were even approaching foreclosure. Not good!
So Ana and Laura decided to create a Fishbone Diagram to identify potential root causes for this issue and verified their Root Causes to vet the suspected problem-causers. One discovery was that there was no follow-up process to ensure that returned mail would eventually reach taxpayers and this needed to change.
The Improvements:
Ana and Laura completed a Solution Selection Matrix and were able to identify the best solution for their problem. They decided to add steps to their process to follow up on this returned mail in order to better provide taxpayers with the ability to avoid increased interest payments and penalty fees.
The steps they added were:
Revenue Collections would forward the returned mail to Treasury
Treasury Customer Service would research returned notices, update address information in their system, reissue the notices, and track them to ensure they are delivered
After implementing these two steps into their process, they saw an enormous benefit to their taxpayers:
- In 2018, taxpayers paid an average of $253 less in interest and penalties than in 2016
- In 2018, Taxpayers paid an average of 2.5 months faster than they did in 2016
This document outlines the roles and responsibilities of members on a sales team for a social enterprise t-shirt company. It includes sections on each member's role, customer benefits, communication and sales strategies, core competencies, value chain processes, and lessons learned from the project. The VP's responsibilities included assigning tasks, consulting with customers, setting sales targets, and managing the team's work. Other members were responsible for finding customers, making sales, delivering products, and providing customer support.
The document discusses the future of the printing and mailing industry. It notes that while printing is a highly competitive environment, direct mail still accounts for over 15 billion mail items annually in the UK. The document advocates that companies in the printing and mailing industry should position themselves as part of an overall communications mix and focus on customer services rather than just manufacturing. Accessing customer data and using it to improve targeting, response rates, and personalization is key to the future of the industry.
The budget airline space is a competitive one, but the U.K.s airline bmibaby gets sky high results with its clever and strategic email marketing program. Techniques to be showcased include the following: Cutting through inbox clutter with enticing subject lines, Starting the relationship with a memorable welcome email,l Delivering one to one value through transactional emails, Extending your reach through social sharing.
Presentation was given at the Travel Distribution Summit in London, June 17th and 18th, 2010 by Will Schnabel, Silverpop and Marie Clare Dixon, bmibaby.
Integrated Marketing Proposal for USPS - BIC Class ProjectAlexandra Suazo
CCNY's BIC foundational course Business Strategy & Measurement, taught by Scott Elias, focused on business growth-specifically; how brands have been and are created and curated, acquired and sold. Students learned how to develop, design and implement branding and integrated strategies that optimize business growth, brand equity (value), vitality, and resonance.
Our final assignment focused on business process, facts and findings about the consumer, and the competition and societal landscapes of a brand of choice. As a small team of four, my group tackled the United States Postal Service (USPS). The final presentation included a situational review on the past and current brand perception as well as competitive research on the mail delivery and courier industry, a brand brief framework and identity, and finally an integrated marketing communications plan (IMCP) for the proposed repositioning of USPS.
As team lead, I managed the production (visual design and formatting) and editing of the final PPT presentation and led the content areas related to the consumer audience and their voice and the IMCP. I’m particularly proud of my Instagram idea and mockup on slide 33.
Semester: Fall 2013
The document provides an overview of the North Carolina General Assembly session including:
1) The session length is indeterminate, with a long session covering any issues and a short session limited to specific topics like the budget.
2) The budget process involves the Senate, House, and Governor exchanging budget proposals with negotiation over revenue forecasts and funding priorities.
3) Major legislative drivers this session include teachers' salaries, Medicaid reform, and environmental regulations, complicated by it being an election year.
SUCCESS STORY: How King County Treasury Reduced Taxpayer Late Fees by 62%, Fe...GoLeanSixSigma.com
Ana Schoenecker has worked for the King County Treasury for 14 years. She is the current Real Property Administrator for the Property Tax Office and she is a Lean Six Sigma Green Belt. Laura Wilson has worked for King County for almost 12 years and in Treasury for 6 years. She is a Fiscal Specialist in the Property Tax Office and she is also a Lean Six Sigma Green Belt.
After receiving many calls from angry taxpayers who were forced to pay extra interest and penalties on their mortgages, Ana and Laura knew that their mail blow backs were responsible.
The Challenge:
Mail blow backs are any returned mail that was unable to be delivered. In this case, payment deadlines were being mailed but due to outdated information in their system, many taxpayers weren’t receiving these notices. When this mail is not received, taxpayers end up paying later and larger delinquency fees - resulting in lower customer satisfaction with the county.
The Discovery:
Ana and Laura started their project by gathering the Voice of the Customer to better understand their customer requirements. They then created a SIPOC to understand the scope of their project and used an “As-Is” Process Map to understand the full process end-to-end.
After mapping their process, they formed a Data Collection Plan, collected sample baseline data from 2016, and found that taxpayers who did not receive their notice letter paid an average of $409 in late fees! Taxpayers who were not able to be notified for years were even approaching foreclosure. Not good!
So Ana and Laura decided to create a Fishbone Diagram to identify potential root causes for this issue and verified their Root Causes to vet the suspected problem-causers. One discovery was that there was no follow-up process to ensure that returned mail would eventually reach taxpayers and this needed to change.
The Improvements:
Ana and Laura completed a Solution Selection Matrix and were able to identify the best solution for their problem. They decided to add steps to their process to follow up on this returned mail in order to better provide taxpayers with the ability to avoid increased interest payments and penalty fees.
The steps they added were:
Revenue Collections would forward the returned mail to Treasury
Treasury Customer Service would research returned notices, update address information in their system, reissue the notices, and track them to ensure they are delivered
After implementing these two steps into their process, they saw an enormous benefit to their taxpayers:
- In 2018, taxpayers paid an average of $253 less in interest and penalties than in 2016
- In 2018, Taxpayers paid an average of 2.5 months faster than they did in 2016
2015-03-26 Minimum Wage, Overtime Expansion and DC Wage Theft Protection ActRaffa Learning Community
This document summarizes recent changes to wage and hour laws including minimum wage increases at the federal, state and local levels. It discusses the expansion of overtime protections and an expected update to the federal overtime exemption regulations. It also reviews recent increases in wage and hour litigation and record breaking settlements and back wages collected by the Department of Labor. The document predicts further increases in litigation if the overtime regulations are expanded to cover more workers.
Staff presented this material to the Anna City Council on the many challenges and concerns for FY19/20, to get feedback and consensus to prepare the annual budget. Later in the year the actual budget will be presented for review, approval and implementation.
The document discusses the evolving economics of direct marketing across different channels such as print, online, mobile, and search. It provides a history of catalogs and direct marketing. It then discusses how different channels such as email, catalogs, search, internet, and mobile have changed in terms of budgets and usage from 2008 to 2009. The document also discusses strategies to reduce postal costs and add value through various direct marketing techniques.
The city of Lambertville faces significant budget challenges, including a structural deficit of $2.5-5 million over the next five years and $9 million in deferred infrastructure maintenance. Simply borrowing more or cutting services further will not solve the problems and raise costs long-term. Raising taxes alone would impose an unaffordable burden on homeowners and businesses. The city aims to get buy-in for commercial redevelopment to expand the tax base and generate non-tax revenue through an aggressive community outreach plan, including budget presentations, community events, newsletters, and social media, to educate residents and address concerns before final decisions. While time-intensive, the goal is to change the public conversation from opposition to support.
DCLG Statistics User Engagement Day - Local Government FinanceDCLGStats
The document discusses plans by the Local Government Finance Directorate to improve engagement with users of their statistics. It describes holding a session to get feedback from users on how to better design data collection forms and processes. It also outlines upcoming statistical releases and events. Plans to improve user engagement in 2014 include reviewing how evidence is collected and used, exploring data visualization tools, and increasing visits to local authorities to understand user needs.
Council will face a $92 million funding shortfall over the next 10 years due to rising costs and slower revenue growth. It is consulting the community on two options to address this - a 7.25% annual rates increase for seven years to maintain current services, or an 8.95% increase to enhance some services. Feedback is sought on preferred services and willingness to pay more rates through an online survey closing October 4. The preferred option will be developed and released for further input before a rate increase application is submitted.
The document summarizes presentations from a 2012 ILG conference. It discusses themes from the conference, including that not much is new regarding OFCCP initiatives, OFCCP is in a holding pattern until after the 2012 election, and OFCCP is "screwed up" and not getting a return on investment from increased compliance officers. It also provides brief summaries of four conference presentations on workforce metrics, new census data, OFCCP's new scheduling letter, and recent OFCCP developments. The document concludes with recommendations for federal contractors to prepare for potential OFCCP audits.
This document summarizes information presented at a social planning workshop about Bankstown City Council's investigations into becoming "fit for the future". It discusses that Council is considering both remaining standalone and merging options. Council has distributed a survey to residents and will assess feedback to inform its preferred option. Regardless of the choice, service levels may need to decrease or costs may need to increase to maintain facilities and programs with reduced funding. The document provides details on community facilities and potential impacts and urges community members to provide input to Council's decision-making process.
The document summarizes Governor Corbett's reform plan for Pennsylvania's government, which includes changing to a biennial budget, increasing transparency, establishing performance goals for agencies, consolidating services, reviewing boards and commissions, reducing the size and cost of government, and banning gifts during the procurement process. It also provides updates on Pennsylvania's legislative priorities, schedule, and newly elected leadership.
Different ways to recover lost postage from dormant accounts and create visibility across the enterprise. Here are the topics that will be covered:
1. What is dormant postage?
2. Why do funds get lost?
3. How do we get our information?
4. Where does the money go?
5. How much money is out there?
6. How to search for your money?
7. What can be done to avoid this in the future?
8. How can Postal Advocate help?
9. What are other areas of postage and equipment savings?
10. Summary
Benefit and Budgeting Calculator Steering Group 23 January 2020Policy in Practice
in Practice clients including housing associations, local authorities, utility and third sector organisations.
For more information contact hello@policyinpractice.co.uk, call 0330 008 9242 or visit www.policyinpractice.co.uk
This document discusses utility on-bill repayment programs in California. It provides background on California's focus on financing energy efficiency incentives to meet aggressive goals. It reviews the policy and implementation issues California considered for its on-bill programs, including eligible sectors, measures, sources of funds, instruments, underwriting criteria and data collection. It describes California's pilot programs and the statewide "hub" used to coordinate financing activities. Key implementation challenges involved credit enhancements, data privacy, IT systems and balancing utility requirements with private capital needs.
Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. This webinar focused on the different rate increases across all carriers and how it will impact your organization.
Items We Covered:
1) Rate increases for all Carriers
2) Savings areas to consider to reduce the impact of the increases
3) Details of accessorial charges and what you need to know
4) Rate Shopping savings opportunities
5) Visibility – This is the key to optimizing your mailing & shipping portfolio
6) Best practices and tips
Slideshow presentation from the NC Association of County Commissioners' update at the 2016 City-County Management Association Winter Seminar on Feb. 5.
The document is a presentation on the USPS Network Rationalization Update for Phase 2. It provides an overview of the business imperative for network changes, outlines specific changes to service standards and critical entry times. It discusses the concept of 24-hour plant operations and the modeled Phase 2 processing network. The presentation covers the consolidation timeline, commitments to employees and customers, communication plans, and project management approach to ensure a seamless transition.
Spring 2013 Retirement Plan Legislative UpdateNICSA
This document summarizes a presentation on retirement plan legislative updates and the regulatory environment. It discusses potential changes being considered in Congress, such as limits on pre-tax retirement contributions and deductions for higher income individuals. It also covers regulatory issues like the potential expansion of the fiduciary definition by the Department of Labor. Lawsuits around retirement plan fees are also summarized, highlighting the need for plan sponsors to understand and monitor fees.
Project Storyboard: Reducing Cycle Time for Bid Tab Creationby 33%GoLeanSixSigma.com
Think it's impossible to make a significant change in government? Well, it's not easy, but GoLeanSixSigmna.com Black Belt Pamela Kuehling made a real difference from the inside. She overturned countless "honest wrong beliefs" with facts and data by modeling the Lean Six Sigma approach in her work and won over the doubters.
Initially the overall procurement process was the focus, but when that proved to be too big, she scoped it down to a more manageable project that can now be the basis for an expanded improvement. Her improvement was meaningful, but a bigger victory was in bringing critical and logical thinking into an environment often impacted by less scientific influences!
Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America.
At this session, we discussed the challenges organizations have with enterprise postage management and carrier services, presenting different strategies to manage these categories and how to optimize savings and efficiency.
Here are the topics that we covered:
1. Challenges of managing enterprise postage
2. Visibility and Insight – Gathering all the data and reporting
3. Network Connections
4. Best in Class Processes
a. Billing
b. Postage Management
c. Web Access
5. Managing the Day-to-Day Requests – Adding new users, first line responders, password resets etc.
6. Expanding to a multi-carrier solution
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2015-03-26 Minimum Wage, Overtime Expansion and DC Wage Theft Protection ActRaffa Learning Community
This document summarizes recent changes to wage and hour laws including minimum wage increases at the federal, state and local levels. It discusses the expansion of overtime protections and an expected update to the federal overtime exemption regulations. It also reviews recent increases in wage and hour litigation and record breaking settlements and back wages collected by the Department of Labor. The document predicts further increases in litigation if the overtime regulations are expanded to cover more workers.
Staff presented this material to the Anna City Council on the many challenges and concerns for FY19/20, to get feedback and consensus to prepare the annual budget. Later in the year the actual budget will be presented for review, approval and implementation.
The document discusses the evolving economics of direct marketing across different channels such as print, online, mobile, and search. It provides a history of catalogs and direct marketing. It then discusses how different channels such as email, catalogs, search, internet, and mobile have changed in terms of budgets and usage from 2008 to 2009. The document also discusses strategies to reduce postal costs and add value through various direct marketing techniques.
The city of Lambertville faces significant budget challenges, including a structural deficit of $2.5-5 million over the next five years and $9 million in deferred infrastructure maintenance. Simply borrowing more or cutting services further will not solve the problems and raise costs long-term. Raising taxes alone would impose an unaffordable burden on homeowners and businesses. The city aims to get buy-in for commercial redevelopment to expand the tax base and generate non-tax revenue through an aggressive community outreach plan, including budget presentations, community events, newsletters, and social media, to educate residents and address concerns before final decisions. While time-intensive, the goal is to change the public conversation from opposition to support.
DCLG Statistics User Engagement Day - Local Government FinanceDCLGStats
The document discusses plans by the Local Government Finance Directorate to improve engagement with users of their statistics. It describes holding a session to get feedback from users on how to better design data collection forms and processes. It also outlines upcoming statistical releases and events. Plans to improve user engagement in 2014 include reviewing how evidence is collected and used, exploring data visualization tools, and increasing visits to local authorities to understand user needs.
Council will face a $92 million funding shortfall over the next 10 years due to rising costs and slower revenue growth. It is consulting the community on two options to address this - a 7.25% annual rates increase for seven years to maintain current services, or an 8.95% increase to enhance some services. Feedback is sought on preferred services and willingness to pay more rates through an online survey closing October 4. The preferred option will be developed and released for further input before a rate increase application is submitted.
The document summarizes presentations from a 2012 ILG conference. It discusses themes from the conference, including that not much is new regarding OFCCP initiatives, OFCCP is in a holding pattern until after the 2012 election, and OFCCP is "screwed up" and not getting a return on investment from increased compliance officers. It also provides brief summaries of four conference presentations on workforce metrics, new census data, OFCCP's new scheduling letter, and recent OFCCP developments. The document concludes with recommendations for federal contractors to prepare for potential OFCCP audits.
This document summarizes information presented at a social planning workshop about Bankstown City Council's investigations into becoming "fit for the future". It discusses that Council is considering both remaining standalone and merging options. Council has distributed a survey to residents and will assess feedback to inform its preferred option. Regardless of the choice, service levels may need to decrease or costs may need to increase to maintain facilities and programs with reduced funding. The document provides details on community facilities and potential impacts and urges community members to provide input to Council's decision-making process.
The document summarizes Governor Corbett's reform plan for Pennsylvania's government, which includes changing to a biennial budget, increasing transparency, establishing performance goals for agencies, consolidating services, reviewing boards and commissions, reducing the size and cost of government, and banning gifts during the procurement process. It also provides updates on Pennsylvania's legislative priorities, schedule, and newly elected leadership.
Different ways to recover lost postage from dormant accounts and create visibility across the enterprise. Here are the topics that will be covered:
1. What is dormant postage?
2. Why do funds get lost?
3. How do we get our information?
4. Where does the money go?
5. How much money is out there?
6. How to search for your money?
7. What can be done to avoid this in the future?
8. How can Postal Advocate help?
9. What are other areas of postage and equipment savings?
10. Summary
Benefit and Budgeting Calculator Steering Group 23 January 2020Policy in Practice
in Practice clients including housing associations, local authorities, utility and third sector organisations.
For more information contact hello@policyinpractice.co.uk, call 0330 008 9242 or visit www.policyinpractice.co.uk
This document discusses utility on-bill repayment programs in California. It provides background on California's focus on financing energy efficiency incentives to meet aggressive goals. It reviews the policy and implementation issues California considered for its on-bill programs, including eligible sectors, measures, sources of funds, instruments, underwriting criteria and data collection. It describes California's pilot programs and the statewide "hub" used to coordinate financing activities. Key implementation challenges involved credit enhancements, data privacy, IT systems and balancing utility requirements with private capital needs.
Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America. This webinar focused on the different rate increases across all carriers and how it will impact your organization.
Items We Covered:
1) Rate increases for all Carriers
2) Savings areas to consider to reduce the impact of the increases
3) Details of accessorial charges and what you need to know
4) Rate Shopping savings opportunities
5) Visibility – This is the key to optimizing your mailing & shipping portfolio
6) Best practices and tips
Slideshow presentation from the NC Association of County Commissioners' update at the 2016 City-County Management Association Winter Seminar on Feb. 5.
The document is a presentation on the USPS Network Rationalization Update for Phase 2. It provides an overview of the business imperative for network changes, outlines specific changes to service standards and critical entry times. It discusses the concept of 24-hour plant operations and the modeled Phase 2 processing network. The presentation covers the consolidation timeline, commitments to employees and customers, communication plans, and project management approach to ensure a seamless transition.
Spring 2013 Retirement Plan Legislative UpdateNICSA
This document summarizes a presentation on retirement plan legislative updates and the regulatory environment. It discusses potential changes being considered in Congress, such as limits on pre-tax retirement contributions and deductions for higher income individuals. It also covers regulatory issues like the potential expansion of the fiduciary definition by the Department of Labor. Lawsuits around retirement plan fees are also summarized, highlighting the need for plan sponsors to understand and monitor fees.
Project Storyboard: Reducing Cycle Time for Bid Tab Creationby 33%GoLeanSixSigma.com
Think it's impossible to make a significant change in government? Well, it's not easy, but GoLeanSixSigmna.com Black Belt Pamela Kuehling made a real difference from the inside. She overturned countless "honest wrong beliefs" with facts and data by modeling the Lean Six Sigma approach in her work and won over the doubters.
Initially the overall procurement process was the focus, but when that proved to be too big, she scoped it down to a more manageable project that can now be the basis for an expanded improvement. Her improvement was meaningful, but a bigger victory was in bringing critical and logical thinking into an environment often impacted by less scientific influences!
Postal Advocate manages the mailing and shipping spends for some of the largest organizations in North America.
At this session, we discussed the challenges organizations have with enterprise postage management and carrier services, presenting different strategies to manage these categories and how to optimize savings and efficiency.
Here are the topics that we covered:
1. Challenges of managing enterprise postage
2. Visibility and Insight – Gathering all the data and reporting
3. Network Connections
4. Best in Class Processes
a. Billing
b. Postage Management
c. Web Access
5. Managing the Day-to-Day Requests – Adding new users, first line responders, password resets etc.
6. Expanding to a multi-carrier solution
Similar to USPS News: The Status, The Legislation, The Grassroots Effort— and YOU (20)
USPS News: The Status, The Legislation, The Grassroots Effort— and YOU
1. USPS NEWS: THE STATUS, THE
LEGISLATION, THE GRASSROOTS
EFFORT
…AND YOU
Ken Garner -Mailing & Fulfillment Service Association
Ben Cooper – Williams & Jensen
3. USPS IS INCURRING UNSUSTAINABLE
LOSSES
USPS’s financial losses are at unsustainable levels
Declines in revenue are being driven by lower First-Class Mail volumes (down 25%
since peaking in 2006)
Reduced volumes are, in turn, reducing density and Contribution(1) across the USPS
network
Note: Bolded figures after 2007 represent Net Profit / (Loss) after RHB Pre-Funding
(1) Contribution is revenue less attributable cost as shown in the Cost & Revenue Analysis for fiscal year 2011 that was filed
with the Postal Regulatory Commission (“PRC”)
(2) In 2009, $4.0bn of RHB Pre-Funding was deferred and will be re-evaluated in 2017
(3) In September 2011, Congress deferred the 2011 required RHB payment of $5.5bn until August 2012
4. RELATIVE REVENUE AND VOLUME BY
MAIL TYPE
Source: Volume includes total mail only. Revenue includes mail and ancillary and special services revenue
5. CONTRIBUTION BY PRODUCT
First-Class Mail is the most significant contributor to profit; however, it is also
experiencing declining revenue
Source: Public Year Cost and Analysis, FY 2011 - Contribution is revenue less attributable cost as defined by the PRC
(1) Shipping includes Express Mail, Priority Mail, Parcel Select / Returns, Competitive International
(2) Other includes Periodicals, Package Services, Special Services, and other miscellaneous products which make up Total All Mail
and Services
6. COSTS MUST BE ADDRESSED TO
ENSURE VIABILITY
Costs are projected to outpace revenues at an alarming rate
Labor costs, which are approximately 80% of total costs, create a fixed cost
structure which is not readily scalable in response to changes in volume and revenue
7. MAGNITUDE AND TIMING OF CASH FLOWS
REQUIRES A NEAR-TERM RESPONSE
Note: Liquidity at end December 2011 $2.9bn
(1) Total cash flows prior to any borrowings or principal repayments of debt
(2) $38bn of RHB Pre-Funding before 2011 not reflected in chart
(3) Represents $220mm of daily operating costs, times six day work week
8. EXECUTING IDENTIFIED INITIATIVES IS
CORE TO ADDRESSING USPS’S FINANCIAL
CHALLENGES
USPS has identified over $20 billion of annual savings within the next five years,
of which approximately $10 billion require legislative action
Each of the Strategic Initiatives is essential in order to restore the Postal Service
to financial viability
(1) Annual savings amount includes projected savings resulting from the elimination of approximately $5.8bn in RHB Pre-Funding
in 2016
9. STRATEGIC INITIATIVES
(1) Portion of savings requires legislative changes to achieve
(2) Does not include impact of employee separation costs
10. POTENTIAL “SOFT LANDING” FOR
EMPLOYEES
(1) Includes estimated Social Security and TSP impacts for FERS
11. INCOME STATEMENT
(1) Portion of these savings require legislative changes to achieve
(2) Reflects the one-time costs of any collection of layoffs/RIF’s, VERA, and reassignments
12. STATUS OF INITIATIVES
• Healthcare
‒ USPS – provided employee health insurance: no progress; lack of
union support
‒ RHB prefunding requirement: no progress; Congressional opposition
• Network
‒ Change in service standards: step 1 implemented 7/1/2012, step 2 in
2014
‒ Network realignment: under way; to be completed by spring 2014
‒ Retail services: new plan approved by PRC; implementation staring
soon
‒ Saturday delivery: no progress; Congressional opposition
• Revenue Management
‒ Exigent rate case: USPS won’t implement unless forced by legislation
‒ Decoupling single-piece and commercial First-Class rates: no progress
‒ Marketing initiatives: modest success for EDDM, mobile barcode
initiatives
‒ Customer access: continued expansion of USPS.com, Village POs
13. POSTAL REFORM 2012
• Senate approved S. 1789 on
April 25
• House likely will vote during
Lame Duck
14. WHY WE SHOULD CARE ABOUT
POSTAL REFORM
• One third of US paper manufacture is produced for the mail
• Over one half of all print is created for mail distribution
• Digital equipment is used for personalized direct mail
• The USPS is the primary distributor of print in the US
• Collapse of USPS would significantly change the printing
industry
15. SENATE BILL (S. 1789)
• Facility closing – delay process for two years
• Saturday service – delay decision for two yeas
• Return FERS overpayment with portion used for buyouts
• “Re-amortize” retiree medical pre-funding
• Reform federal workers’ comp
• Key – rejected proposals for rate increases
16. HOUSE PROCESS
• House has not focused on postal reform yet
• HR 2309 created problems for many members of the
House which delayed the vote
• Unlikely to have any Democrats voting for the bill in current
form
• Bill that passed committee will be altered in “manager’s
amendment”
• House and Senate may try to find agreement before bill
comes to a vote in the House
17. WHAT ARE THE HOUSE PROBLEMS
AND CAN THEY BE FIXED?
• Perception of HR 2309 is that it would close rural post offices,
end Saturday delivery and abolish union contracts
• Sponsors agreed to changes to address issues
‒ Limits closing of rural post offices to a small percentage per
year
‒ Will allow an “up or down” vote on Saturday delivery
‒ More onerous anti-labor provisions changed
• Postal labor union still oppose
• Most Democrats in House expected oppose
18. WHERE DOES IT END?
Option 1 – Reform Light
•Roughly along the Senate bill lines
•Will need to do it all again in two years
•Likely will not fix the problem
Option 2 – Kick the Can
•Transfer FERS Money
•Re-amortize REHB
•Slow facility closing and Saturday delivery decision
Option 3 – Do the Right Thing
19. TIMING
What If Nothing Happens?
•USPS will face a cash crisis some time in 2013
•Debt will continue to grow
•Confidence in delivery system may erode
•Solution no easier to find in 2013
•Fatigue on the part of legislators
•Exigency rate case?
20. WHAT DO WE EXPECT?
• During Lame Duck, House will likely agree to a bill that moves
closer to Senate version
• Likely to “re-amortize” FERS
• Likely to slow decision to allow USPS to go to five day delivery
• Likely to reform Workers’ Comp
• May need to revisit legislation within the next four years
21. WHAT IS INDUSTRY’S RESPONSE?
• Organized into Coalition for a 21st Century Postal Service (40
associations and corporations) to coordinate lobbying efforts
• MFSA and related trade associations active grassroots –
meetings with elected officials
• Letters, emails, phone calls to offices
• Providing technical and legal expertise to committee staff on
key issues
• More than 300 meetings this Congress with DC offices
22. IS IT ENOUGH?
• No – Industry overall is complacent about the future of USPS
• Question – If USPS fails, who moves printed products to
customers?
• Magazines, catalogs, advertising mail continue to depend on
postal delivery with no option
“Congress will not let the USPS fail”
– Fiscal Cliff!
23. Ken Garner – President/CEO
Mailing & Fulfillment Service Association
(Association of Marketing Service Providers 1/1/13)
kgarner@mfsanet.org
703-836-9200
Ben Cooper – Principal
Williams & Jensen, PLLC
bycooper@wms-jen.com
202-659-8201