Falling Demand Forces Shift in Delivery Days

Falling Demand Forces Shift in Delivery Day

For many postal customers, receiving mail six days each week has been a welcome sight every since the first letter was pulled out of a post box. As changing customer demands necessitate new business strategies, one postal organization is seeking to reduce the number of days they deliver mail to three per week.

Like most postal organizations, New Zealand Post is under financial pressure as it sees the need for its letter delivery service falling steadily each year. Increased automation efforts and self-service kiosks have helped, but reductions in revenue have outpaced efforts to compensate for the loss.

To help reduce costs even further, New Zealand Post is seeking to modify their Universal Service Obligation to decrease the number of days it delivers mail from six to three. Currently, they are required to deliver mail to 95 percent of addresses six days per week. The new proposal seeks to adjust that to 99.88 percent of addresses three days per week.

What do you think are some of the advantages or disadvantages of reducing mail delivery to fewer than six days per week?

Would Two Years Be Enough to Retire Early?

Would two years be enough

Early out incentives are common for businesses looking to reduce expenses without resorting to layoffs. For some businesses, those particular incentives can be more generous than others.

Coming this spring, FedEx will be offering some of its employees up to two years of pay as an early out incentive. It’s an organizational effort to reduce costs by up to $1.7 billion within the next two years.

Employees who volunteer to leave FedEx by May 31 will receive four weeks of pay for every year of service. That incentive maxes out at two years of total pay.

What do you think of the early out incentive?

Post Danmark to Reduce Mailbox Access

Post Danmark

Digital migration has forced Post Danmark to consider cost cutting efforts that wouldn’t have been conceivable just ten years ago. That’s because the amount of letters sent through the system has been cut in half since that time.

Post Danmark will be removing 1,500 mailboxes from service within the next few months to rein in costs of service. The remaining boxes will be redistributed to ensure adequate availability. In addition to new placement, collection frequency from these boxes will be reduced to further trim costs.

Earlier this year, the struggling postal organization announced that it would be reducing the number of post offices around the country and adding services inside strategic supermarket locations. Post Danmark encourages customers to search its website for a mailbox or facility near them to avoid confusion with network changes.

What do you think of Post Danmark’s solution to reduced mail volume?

New Plan Keeps Offices Open, but Reduces Hours for Some

The U.S. Postal Service announced a new strategy yesterday that could keep the nation’s smallest Post Offices open for business, while providing a framework to achieve significant cost savings as part of the plan to return the organization to financial stability. 
The plan would keep existing Post Offices in place, but with modified retail window hours to match customer use. Access to the retail lobby and to PO Boxes would remain unchanged, and the town’s ZIP Code and community identity would be retained.
The new strategy would be implemented over a two-year, multi-phased approach and would not be completed until September 2014. Once implementation is completed, the Postal Service estimates savings of a half billion dollars annually. 
A voluntary early retirement incentive for the nation’s more than 21,000 non-executive postmasters was also announced.
So, what do you think about the plan?  What are postal customers saying? Comment here.
  • Hello, I'm Benny the Blogger: I'm the world's most famous postal employee. My hobbies are snappy quotes, kite flying and publishing. I was born Jan. 17, 1706, but don't call me old.

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