USPS implements new service standards; here are new changes in US postal service

The United States Postal Service (USPS) partially initiated the implementation of its new 'refined service standards' on April 1. The second and final phase of the planned set of measures will come into effect later this year, on July 1. According to the USPS, the new approach aims to refine the service standards for first-class mail, marketing mail, periodicals, and package services.

First-class mail service standards to remain unaffected

As per previous announcements by the USPS, the adjustments also affect USPS Ground Advantage, Priority Mail, and Priority Mail Express. While the service standard for first-class mails, 1-5 days, and USPS Ground Advantage remains unchanged, the timeframe for end-to-end periodicals, marketing mail package services have been shortened, as per USPS communiques issued in the months preceding the implementation.

USPS new service standards likely to save billions

The USPS has said that the new initiative will save it an estimated $36 billion over the course of 10 years. Reduction in transportation, real estate, and mail and package processing will contribute towards the cost-savings, according to the USPS. The execution is being carried out in two phases to ensure effective operational implementation, the postal service had said in a release on March 20.

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"As part of the ongoing Delivering for America 10-year plan, USPS has already achieved $2.2 billion in annual transportation cost reductions by streamlining networks and optimizing air and surface options," the USPS had noted in the communique. The long-term plan has already decreased work hours by 50 million, the postal service says.

The reduced work hours translate to $2.5 billion in annual savings. The results were achieved by enhancing plant productivity and closing unnecessary facilities, as per the official release. At the same time, the USPS has witnessed an increase of $3.5 billion in annual revenue by adapting product offerings amid significant decline in volume of first-class mail, it said.

As part of the new refinement standards, 75 per cent of first-class mails will be delivered at the unchanged timeframe. Meanwhile, 14 per cent of the remaining volume will be delivered as per a faster service standard. The remaining 11 per cent will witness a slower service standard, while still being sent within the original 1-5 days timeframe for first-class mails.

USPS’ new service standards benefits

Enhanced service predictability and reliability is one of the benefits that the USPS hopes the refinement standards will bring along. The new set of measures also allows for '2-3-day turnaround service within regions and specific local areas'.

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FAQs

1 . When will the second phase of the new USPS 'refined service standards' be implemented?
The USPS is scheduled to begin the implementation of the second phase of its plans to offer 'refined service standards' from July 1 this year.

2 . Why is the plan being executed in two phases?
This is being done to ensure effective operational implementation, the USPS says.