USPS Overspent on Address Change Service: Corcoran
The U.S. Postal Service unnecessarily spent $20 million to physically return Address Change Service mail when mailers could have been notified electronically, said Postal Service Inspector General Karla W. Corcoran.
“If this continues, we estimate that an additional unwarranted $14 million could be spent over the two years,” she noted in a statement.
Business mailers who request Address Change Service receive notification when items they mail cannot be delivered as addressed. Mail that cannot be delivered generally falls into two categories: items that can be forwarded and items for which no forwarding address is known. When mail cannot be forwarded, mail can be physically returned to sender or mailers can be notified electronically, which is significantly less expensive.
She recommended that local post offices direct Address Change Service mail that cannot be delivered to one of 220 USPS computerized forwarding units. The unit then sends the address change information to the National Customer Support Center, which notifies the sender electronically.
The audit also determined that address change notification could be improved by updating system procedures and instructions; more effectively analyzing system performance data, improving employee training; and establishing a centralized customer service center.
