Network Optimization

The Postal Service is in the midst of a financial crisis due to the combined efforts of the economic recession, increased use of electronic communications and a Congressional mandate to prefund Retiree Health Benefits. The recession, coupled with the increasing use of email, text messaging and electronic bill payments, has led to significant declines in First-Class Mail volume. The obligation to prefund Retiree Health Benefits remains unresolved and this significant burden exponentially increases the organization's unstable financial condition. To date, legislative proposals to address the financial crisis have not been acted upon by Congress, leaving the Postal Service and the mailing industry in an increasingly precarious position.

For decades the USPS expanded its network and infrastructure to accommodate a growing nation and an ever-increasing volume of ail. The nationwide expansion included establishing Post Offices in communities across the country, building processing facilities to house the equipment to sort the mail, and purchasing the vehicles for transport and delivery.

USPS now is forced to deal with a new reality --- that for the first time in its history, it must significantly reduce operating capacity across the board.

The USPS's new reality calls for changes. Among those changes is a proposal to review service standards and entry times and significantly consolidate the postal network's facilities, equipment, transportation and workforce complement.