US Postal Service 2010 Annual Report Download - page 13

2010 Annual Report United States Postal Service 11
In our March 2, 2010 Ensuring a Viable
Postal Service for America: An Action Plan
for the Future, the Postal Service high-
lighted the need for expanded access to postal
products and services to meet the changing
needs and behaviors of customers and provide
services in locations already frequented by
customers. We outlined a plan to accomplish
this goal through partnerships, kiosks, and im-
proved online offerings, all while reducing costs
through a more effi cient network. Here too,
2010 has proven to be a year of progress.
In August, we announced a new partnership
with Offi ce Depot to make Postal Service ship-
ping and mailing products available at almost
1,100 Offi ce Depot stores across the country.
Now customers, especially small business
customers who are already visiting Offi ce Depot
stores, will have more convenient access to
Priority Mail Flat Rate boxes and envelopes,
Express Mail, Parcel Post and stamps.
This is just one way in which we are modern-
izing the existing retail network to better match
the changing needs of our customers, while
effi ciently managing costs. In the past year, we
have also improved and expanded our online
offerings, allowing greater numbers of custom-
ers to access a full range of postal services
from the convenience of their homes or busi-
nesses. In addition, we continue to expand
access to stand-alone kiosks and explore ad-
ditional retail partnerships and to expand online
offerings via USPS.com.
Providing more convenient access to postal
products where customers live, work and
shop will ultimately allow the Postal Service
to operate with much more effi ciency. Once a
robust network of alternative, better-situated
retail access points has been established, we
can thoughtfully assess less frequented ac-
cess points, and determine whether they are
still needed. Closing redundant facilities would
allow signifi cant and valuable cost savings
necessary for future viability.
The American public supports this shift to
greater access where it is most convenient.
Current customer research has revealed that
PROGRESS AGAINST THE PLAN
OUR CHECKLIST
Expand
Access
79 percent of Americans surveyed were not
concerned about closing Post Offi ces if postal
services were available at other retail loca-
tions. Many actually preferred to have these
services available in locations where they are
already shopping during expanded hours in
many cases. Since the Postal Service does not
receive appropriated funds to maintain its net-
work, closing redundant facilities also protects
customers from the higher costs they might
otherwise experience if these unused facilities
were to remain open.
With the announcement of the Offi ce Depot
partnership, among other initiatives, in 2010 we
have established a fi rm foundation for our vision
of convenient, cost-effi cient access to our prod-
ucts and services. We will continue to pursue
these partnership opportunities, as well as other
access innovations, to provide customers with
the services they need, when and where they
need them. ■
CHALLENGE
The existing postal
branch network is
expensive to maintain
and neither profi table
nor convenient.
SOLUTION
Reduce costs and
enhance revenue by
shifting retail locations
from brick and mortar
Post Offi ces to kiosks
and retail partners in
existing high-profi le
shopping areas.
Survey Data: Consumer Acceptance
of Retail Service Options
HOW WOULD IT AFFECT YOU IF THE POST OFFICE
NEAREST TO YOUR HOME CLOSED AND ITS
SERVICES MOVED TO A USPS SERVICE COUNTER
AT A NEARBY STORE?
Share of respondents, percent
Source: Consumer survey, December 2009,
conducted by McKinsey
9
13
20 24
35
a benefi t
an inconvenience
I would notice for a
long time
a serious problem
or handicap
no affect on me
an inconvenience
I could adapt to
relatively easily
USPS products and
services are increasingly
available via kiosks and other
non-traditional access points.