- Project Title:
- Consolidation of Mail between Network Distribution Centers-Chicago and San Francisco
- Start Date:
- Tuesday, May 2, 2017
- Estimated Report Release Date:
- October 2017
The Postal Service has 21 network distribution centers (NDCs), which consolidate mail processing and dispatch to increase operational efficiency. At 19 NDCs, there are also consolidation deconsolidation facilities (CDFs). When the combined contents of one to three trailers exceed 100 percent of a trailer’s floor space, CDF contractors remove the mail from containers and load it back onto one trailer, a process referred to as bedloading. This maximizes trailer cubic space, increases operational efficiency, and reduces transportation costs.
In our audit of the Memphis CDF, we found that Postal Service NDC personnel were sending trailers to the CDF when bedloading was not necessary and Postal Service NDC personnel could have consolidated the mail. The Postal Service disagreed because CDF contracts are fixed-priced with established schedules. However, the CDF contract allowed the Postal Service to cancel or modify operations with seven days notice to the supplier.
- How can the Postal Service evaluate and modify the CDF contract to reduce unnecessary CDF consolidations?
- What can the Postal Service do to maximize trailer capacity and reduce transportation costs?