• on Dec 30th, 2013 in Delivery & Collection | 23 comments

    The 2013 holiday season turned out to be a particularly eventful one for e-tailers and the shippers that deliver all those packages to your door.

    Factors like fewer than average shopping days between Thanksgiving and Christmas and an increasing comfort level with online buying helped push holiday e-commerce up significantly. In fact, demand exceeded expectations and stressed shippers’ capacity, causing some late deliveries of their goods.  

    Package delivery is clearly a growth industry and the Postal Service expects its piece of that business to rise 6 to 7 percent annually through fiscal year 2017. But is the Postal Service ready for all these packages? Can it meet the growing demand, or is it hampered by a delivery infrastructure that is largely geared toward letters and flats? We recently took a look at the issue and the results were mixed.

    Our audit report, Readiness for Package Growth – Delivery Operations, found the Postal Service has done a good job of managing package growth in terms of mail volume and workhours. But it could make some changes to better handle future increases. For example, to-the-door delivery works well but curbside mailboxes were primarily designed for letters, flats, and small parcels, and they can’t easily accommodate multiple or large packages. We suggested the Postal Service look at modifying cluster boxes to accommodate more packages.

    We also encouraged the Postal Service to explore investing in shelving space on delivery vehicles to accommodate packages and to continue to develop an advanced dynamic routing system. Dynamic routing analyzes individual addresses to tell the carrier how to get to them more quickly. The tool takes into consideration things like traffic congestion and left-hand turns, both of which can eat up time and fuel. These and other steps outlined in the report should help the Postal Service expand services and increase revenue to meet growing customer demand.

    So, what was your experience over the holidays? Were you among the many Americans who bought more gifts online than in previous years? Were your delivery services reliable or did any part of the experience discourage you from future online buying? What changes would you like to see in delivery and returns?

  • on Dec 23rd, 2013 in Post Offices & Retail Network | 1 comment

    Holiday mailings are as much a part of the American tradition as kids’ letters to Santa.

    We’ve talked a lot about the growth in packages, including those all-important holiday gifts. But the Postal Service is also doing its bit to make sure Big Red knows who’s been naughty and who’s been nice. As in years past, families with young “believers” have been taking advantage of the Postal Service offering that ensures letters from Santa have a North Pole postmark (so long as the request was made by December 10).

    Still others go to greater lengths to get in the spirit of the season. Each December holiday enthusiasts travel to the quiet town of Christmas, FL and visit its local post office, so their Christmas cards will be postmarked from Christmas itself. And for early planners, the Postal Service offers postmarks on letters and cards from other “Christmas-themed” towns, including Santa Claus, IN; Rudolph, OH; Antlers, ND; and any number of places called Bethlehem. Click here for the full list. 

    Whether you are mailing your holiday greetings and goodies from an exotic locale or putting them on the front stoop for your local carrier to pick up – Pushing the Envelope wishes you a wonderful holiday season and a very healthy and prosperous New Year.

    We also want to remind you to check back with us on Monday, January 6 when we will post our list of Top 10 Stories of the Year. As always, we welcome your feedback. 

  • on Dec 18th, 2013 in Strategy & Public Policy | 2 comments

    Let’s talk intellectual property and the U.S. Postal Service for a moment. IP, as it’s commonly called, refers to intangible assets involving creativity and invention. Things like movies, books, computer software, engine design, and even the ZIP Code.

    The Postal Service introduced the ZIP Code in 1963, but never patented it. Too late now, but imagine if someone or a business other than the Postal Service had. Odds are you would be paying – directly or indirectly – a fee to the patent holder every time you put a ZIP Code onto a letter or package, in addition to the postage or shipping cost. Moreover, the Postal Service as well as private couriers and shippers would likely be paying, too, as would the many other businesses that use and benefit from ZIP Codes, such as real estate and insurance companies.

    In short, all stakeholders in the ZIP Code system, from everyday citizens to global logistics companies, would be at the mercy of a patent holder’s legal rights – and potential licensing fees.

    While the ZIP Code is safely in the public domain, the same can’t be said of other mailing-related IP. And as our recently released white paper shows, while the Postal Service has patented some technologies, the agency lacks a fully developed, organization-wide strategy for managing and protecting its substantial IP assets. Such a strategy would help secure Postal Service and postal stakeholder access to useful innovations.

    At the request of the OIG, experts at ipCapital evaluated the Postal Service’s current IP strategy. In addition to examining the Postal Service’s intellectual asset management processes, the experts performed a data-driven analysis of the agency’s patent portfolio and explored strategic models for IP development. The results led the OIG to outline the critical points and considerations of building a formal, scalable, and organization-wide IP strategy for the Postal Service.

    Towards A Postal Service Intellectual Property Strategy could not be more timely. Patent claimants have alleged infringement and for the past year been pursuing legal action against mailers and other businesses for using bar codes and QR codes. Bar codes are a central part of operations not just for the Postal Service but the industry at large. The outcome of the cases, which are still pending, could have profound impact. If claimants prevail, will bar code users have to pay fees? What about mailpieces enhanced with some type of augmented reality – would they be subject to fees, too?

    Tell us what you think: What is the right IP strategy for the Postal Service? Do you or does your business benefit from postal innovations? Would you be affected if access to them were blocked? 

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