USPS, take 2
I’m pleasantly surprised how much feedback the USPS figures got from my last post. Just to elaborate a bit on what I recall from the article:
- Forecasting: The postal service is counting on bulk mail taking up a higher percentage of mail in the future than it has (even) in the past. The author makes the point that this forecast is very unlikely to end up being accurate. Internet advertising is cheaper and more targeted, and so the postal service should focus on delivering mail that actually is wanted. Since fuel costs over time will rise, and since advertising doesn’t rely on paper as a medium (and therefore isn’t guaranteed to require the postal service in the long run) the postal services strategy of promoting bulk mail is flawed.
- Number of deliveries/week: There’s no reason the postal service needs to visit every house 6 days a week. I find this to be a pretty compelling argument to begin with – mail is a variably high latency medium – but consider how much more this would be true if no one got any bulk mail. What percentage of mail is actually worth receiving, and how frequently does one actually need to receive it? Consider what would happen if mail only got delivered on demand. The savings in fuel costs alone would be impressive. The author pointed out that this is one of the primary ways UPS and Fed-Ex save money; they only deliver mail people actually are paying for, so they don’t have to drive around to every house every day, wasting time and fuel.
- Medium vs. Message: Of the first class mail that one receives, how much of it actually needs to exist in physical form? The author makes the point that much of the mail we receive starts out in a digital format, is printed on paper, sent out physically, and then opened, just to be thrown into the trash. This is certainly true for bulk mail, but even true for a lot of first class mail. There’s really no reason we need to receive much of it in a physical format. The trend clearly is moving in the direction of digital media — think e-bills, statements in PDF, automatic billing, netflix on demand, etc. — and the postal service should align itself with this shift. Over time there’s no compelling reason why we will have more paper mail than we have in the past.
- Hybrid digtial mail systems: The author mentioned some systems in place (Switzerland, perhaps?) that involved a secure online service for citizens to view their mail. Basically letters are opened and scanned automatically for viewing. If they are needed, they can be delivered physically. If not, they can be securely discarded.
I have to admit that I find the current system fairly depressing and frustrating. It seems like such an obvious waste of resources that doesn’t even primarily meet the needs of the public good for which it was originally intended. I suspect that over time other countries will appropriately price the delivery of mail and will leapfrog our system. Much of the media that gets delivered via the postal service doesn’t actually need to be printed on physical medium. Most of the mail I receive goes directly into the recycling, and of the few pieces of mail I receive that are important, most of those could easily be emailed to me. It reminds me of trying to apply for an apartment in Seattle and needing to mail a letter overnight because a fax machine / email attempt didn’t work. It amazes me that this transition isn’t happening faster.

March 9th, 2010 at 8:18 pm
Totally agreed that the USPS needs to be more imaginative with their future business models. Indeed, starting a scanning system like the one you mentioned in Switzerland would make consumers very happy and eliminate a lot of problems. (I know there are expats using a similar service while they’re abroad.) Agile routing and higher charges for people who realized they truly want to send hard copies seems like a vision. Really hope that pursue it. And I really hope they stop screwing up my mail forwarding – not very inspiring, USPS.
March 10th, 2010 at 10:57 am
The NYT is with you.
A digital mail scanning service would raise some privacy concerns, in my opinion.
March 10th, 2010 at 11:03 am
Agreed. Perhaps it was opt-in scanning and/or delivery? I’m surprised they didn’t mention anything about the breakdown of first class/bulk mail…
March 10th, 2010 at 11:54 pm
Good points, though I think it’s important to consider how difficult it is to change a large institution like the Postal Service — e.g. to implement on-demand mail delivery, you have to change the job descriptions of most of its 600,000+ employees, lay off a substantial number of employees (once you figure out how many will be needed), revamp the sorting machines at every processing center, change how trucks carrying mail are scheduled and routed, etc., etc. You have to change almost every single aspect of how the organization functions, in an environment where each change requires the involvement of thousands of different people. This is a good reason to start thinking about and working on fundamental changes now, of course, but I guess I’m just saying that the fact that they haven’t made these sorts of moves yet is understandable, and it’s going to be really hard.
And since Congress has authority over any major policy decision (while the Postal Service is responsible for balancing its budget), it’s going to be even harder. I know I’ve seen a number of different statements from members of Congress taking credit for getting local post offices removed from the list of those to be closed. There are also union contracts constraining how quickly the Postal Service can change basic elements of how it operates…
March 25th, 2010 at 7:22 pm
Yesterday I heard a story on the radio that mentioned the fact that “bulk mailers” make up 70% of US mail volume. I think that fits perfectly with my experience.