Dynamic Route Optimization graphic
  • Project Title:
  • Dynamic Route Optimization
  • Start Date:
  • Monday, February 11, 2019
  • Estimated Report Release Date:
  • August 2019

The U.S. Postal Service currently spends about $4.3 billion annually on highway transportation costs and intends to reduce these transportation costs through various initiatives. Dynamic Routing Optimization (DRO) is an initiative that targets the optimization of USPS  Highway Contract Route (HCR) and Postal Vehicle Service transportation mileage and costs. 

Surface transportation routes are normally static (fixed schedule) and operate regardless of mail volume. These static routes limit the ability to gain efficiencies from combining service and reducing overall miles within the transportation network. The DRO initiative allows surface transportation routes to be more flexible and responsive to demands, giving it the ability to consolidate and expand routes based on real-time and projected service demands and mail volumes. This DRO approach requires the use of a Transportation Management System and forecasted mail volumes, which are used to optimize local distribution networks at the Postal facilities. 

Our objective of this audit is to evaluate the cost savings for the implementation of the Postal Service’s DRO initiative. 

  • What dynamic routing processes are working/not working?  
  • What can the Postal Service do to ensure the forecasted manifests are timely and accurate? 
  • What are the challenges, efficiencies and deficiencies of the DRO program and what improvements can be made?   

Comments (3)

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  • anon

    The DRO is not a dynamic routing program currently, as it is a static schedule. If the DRO were to be successful it would be Dynamic - leaving when full and then returning as soon as the driver arrived at the destinating facility. This would greatly enhance the productivity of the processing facilities as they would have mail all through the day. Once this process is initiated, then the local AFO's would understand that all mail would be tendered as soon as the inbound arrived and not wait until all carriers are in for the night. This would eliminate layovers, that are an added cost to moving the mal. This would save the USPS millions!!

    Feb 21, 2019
  • anon

    I never receive any of my stuff when it comes Through UPS.

    Feb 12, 2019
  • anon

    Thanks for your message. For lost or missing packages, the U.S. Postal Service (USPS) recommends contacting the Consumer Affairs Office (www.usps.com/help/welcome.htm or 1-800-222-1811) and they will be able to assist you.

    Feb 19, 2019

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