In March 2009, in response to sharp declines in volume, changes in customer mailing practices and a worsening economic recession, the Postmaster General directed that a cross-functional team be organized to study five-day delivery.
The team looked at the feasibility, economic value, and business risk of eliminating one day of delivery. It included subject-matter experts in delivery operations, mail processing, retail operations, transportation, engineering, employee and labor relations, financial analysis, customer relations, information systems, service measurement, market research, government relations, strategic planning, corporate communications, sustainability and law.
The team was asked to develop guiding principles for a five-day model that would generally eliminate delivery to street addresses on Saturday, while preserving access to Post Offices. It also was asked to gather relevant data and solicit input from stakeholders, including the public, mailing industry, and postal unions and management associations.
The team also was to assess the impact of five-day delivery on costs involving facilities, transportation, fuel, information technology, employees, and implementation.
It looked at legal, legislative and contractual elements that could affect implementation, and it performed market research to assess possible changes in customer mailing behavior, impacts on customer loyalty, effects on brand recognition, and shifts in the Postal Service’s competitive position in the marketplace.
Finally, the team projected impacts to revenues and contribution caused by a change to five-day delivery.
