Potter Warns of ‘Uncertainties’ for USPS
The U.S. Postal Service will face challenges, opportunities and uncertainties in 2006, Postmaster General John E. Potter warned the USPS Board of Governors yesterday.
“Preliminary revenue and volume numbers in December were sluggish — even while total cancellations of mail on the busiest day — Dec. 19th — achieved a new record,” Potter said.
He noted that the USPS faces the dual challenge of developing new business and increasing revenue, while maintaining efforts to continue productivity growth into a seventh consecutive year.
He also pointed to unknowns He that could have a significant impact on the USPS planning for 2006, such as, legislative reform, consumer behavior and higher energy costs.
Just the same, Potter expressed confidence that the USPS can succeed by sticking to the updated Strategic Transformation Plan that will act as “a roadmap for 2006 and the next five years.”
Potter outlined several steps the USPS will take to further improve its efficiency and cost savings. They include:
* Replacing 646 multi-line optical character readers by adding 395 DBCS and OCR kits to the existing equipment to sequence mail in order of delivery and eliminate manual mail sorting within the next 18 months.
* Deploying an automated package processing system that sorts bundles of mail and priority mail packages throughout the year. * Installing and testing a prototype flats sorting sequencer machine at the Indianapolis Mail Processing Annex beginning in April. In other action, the BOG approved $224 million for design and construction of a new Northeast Metro Michigan processing and distribution center in Pontiac, MI.
