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The following trends will place continuing cost pressure on the Postal Service as it pursues cost savings between now and 2010:
Two factors — standardization and innovation — were most responsible for the Postal Service's cost savings achievements under Transformation. The organization very effectively implemented a methodical, data-driven, and persistent effort to standardize dozens of its critical processes. The effort succeeded because it engaged employees at all levels and functions to identify process improvement opportunities and target cost saving solutions.
In this new Plan standardization and innovation will again be central to the Postal Service's cost reduction strategies. Potential exists to further reduce costs in all operations and functions. The introduction of new technologies will drive investments in new systems and equipment, and will continue to influence mailer behavior. As equipment is deployed and mailing practices evolve, the Postal Service will aggressively review and update its processes, establish new standards, train its employees on best practices, and manage to challenging process management objectives.
As in the past, the introduction of new equipment and technology will provide new opportunities to reduce costs. But fully capitalizing on the opportunities will depend largely on standardization and innovations developed by employees and mailing industry partners. The goal is to ensure that postal customers recognize the full benefit of mail, achieving an even greater return on their investment. The Postal Service's cost savings effort will focus on the following six strategies: