Logistics Revenue

Internal logistics

Entrepreneur success stories are welcome news to those who seek to take an idea and develop it into a profitable business. As a business transitions from the drawing board into a budding product line, how does it manage the storage and shipping of items when a home-based garage can no longer handle larger volumes? It might just be possible for a familiar shipping company to offer the perfect solution for this and other similar scenarios.

Besides its superior mailing services, the Postal Service stages and distributes mail, packages, and the equipment to move them throughout its many facilities nationwide. It has developed a powerful skillset to know exactly where each item of mail is located in a building, and it has a large number of knowledgeable people to deftly handle the processing and distribution of these items in a highly efficient way.

If the Postal Service were to adapt its staging and distribution expertise into a service for businesses looking to increase its capacity without the expense of going it alone, the opportunity could yield a potentially profitable new source of revenue. USPS could transform sections of buildings with capacities greater than it needs into storage centers for businesses. Whenever a customer of a small to mid-sized business places an order, the business can turn to USPS to ship the item from its storage center. The faster response time could even allow businesses to offer same-day shipping should the storage center be located near an end customer.

In a competitive business environment, the combination of delivery and storage center service could very well offer another stream of income to boost revenue at America’s original mail delivery service.

Do you think the Postal Service should look into the possibility of entering the warehouse business?

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3 Comments

  1. grannybunny

     /  January 6, 2015

    I think USPS should look into every possible avenue of raising revenue. However, going into the warehouse business would probably require Congressional approval, which pretty much makes that idea DOA. Furthermore, since the Postal Service is in the process of shutting down its excess capacity, the window of opportunity for implementing a warehousing option is rapidly closing.

  2. grannybunny

     /  January 7, 2015

    According to PMG Donahoe’s Press Club speech, USPS has a pilot project involving warehousing.

  3. Anonymous

     /  January 9, 2015

    USPS can’t even keep track of the leased trailers…

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