Thursday, March 24, 2011

PMG Reacts to PRC Opinion on 5-Day Delivery

We have received the Commission’s advisory opinion on our proposal to move to a five-day delivery schedule. We have been awaiting the document and look forward to studying the views expressed by the Commissioners. Five-day delivery is an integral part of our action plan for the future.

It’s important to remember that the Postal Service came well prepared to this undertaking. Based on extensive outreach to our customers and other stakeholders, we developed an operational plan, analyzed the potential cost savings and conducted extensive market research to document customer reaction and estimate mail volume changes that could result from implementation of this plan.

Following tremendous losses in mail volumes and revenues, the Postal Service remains in the midst of a period of great financial instability. On March 30, 2010, we presented a compelling case to the PRC, reflected in the testimony of Postal experts in operations, marketing and finance, as well as a highly respected market research firm and academician. Their testimony demonstrated that the plan would effect a $3.1 billion annual saving and allow the Postal Service to continue providing excellent service in an economical and efficient manner.

The Commission’s opinion is advisory only and therefore, is not a final determination on the merits of our proposal. We remain convinced of our findings. As such, we will also continue to press our case with the Congress on this matter.

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