Frequently asked questions
Area mail processing study decision 2014
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What is a service standard?
A service standard is the number of days between the acceptance and delivery of a piece of mail that the Postal Service considers to be timely delivery. It is a stated goal for service achievement for a mail class. It represents the number of days it takes to deliver mail between specific 3-digit ZIP Codes within the United States and its territories. Service standards are based on, among other things, origin and destination locations and the particular mail product within the U.S. postal system.
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What were the service standards prior to the modification?
Priority Mail: 1–3 days First-Class Mail: 1–3 days Periodicals: 1–9 days Package Services: 1–8 days Standard Mail: 3–10 days -
How were they modified for Phase I?
The Postal Service modified service standards for First-Class Mail and Periodicals (magazines, etc). The principal impact of the change decreases the area of overnight service and 2-day mail. First-Class Mail that originates and is to addressed for delivery in the same mail process center service area will be delivered overnight. First-Class Mail that originates in one location and is within a 6-hour drive to its destination will be delivered in 2 days. First-Class Mail that originates in one location and is more than a 6-hour drive to its destination will be delivered in 3 days.
Priority Mail: 1–3 days First-Class Mail: 1–3 days (smaller window, but the service standard will remain the same) Periodicals: 1–9 days (smaller window, but the service standard will remain the same) Package Services: 1–8 days Standard Mail: 3–10 days -
How much mail is considered overnight mail?
Prior to the service standard modifications, about 41% of the First-Class Mail volume received was considered "overnight mail" based on where it was entered and where it was to be delivered — this equates to approximately 30 billion pieces. Nearly 27% of First-Class Mail volume was two-day delivery and 32% was three-day day delivery.
The graphic below illustrates an approximate breakdown in service prior to the modifications being made:
Since the modifications went into effect, nearly 35% of the First-Class Mail volume received is considered overnight mail, more than 21% is considered 2-day and about 44% is considered 3-day mail.
The graphic below illustrates an approximate breakdown in service during phase one of implementation:
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Prior to this, when was the last time the Postal Service changed its service standards?
The Postal Service makes changes to its service standards quarterly based on changes to the network, which includes AMPs as well as other logistical changes. The proposal that prompted this modification changed the business rules that comprise the service standards and involve comprehensive changes. Prior to this, the last time service standard rules were updated was in 2007 as part of the Postal Accountability and Enhancement Act. However, the last time the Postal Service changed its service standards to this extent was in 1971.
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What happens to Priority Mail Express?
Priority Mail Express will continue to provide overnight service in most locations.
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How will Priority Mail service be affected?
Priority Mail will continue to be a 1-3 day product.
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What does this change mean to the average customer?
This change will likely go relatively unnoticed by the average customer.
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What about customers who receive daily publications? Will their service change?
Customers could receive their daily publications a day later than they currently do.
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What about customers who subscribe to NetFlix?
The Postal Service is reaching out to our major mailers, including Netflix, to review operational concepts to determine how the proposed changes may impact their businesses and will be working with them to resolve those issues.
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What about customers who receive prescription medicine through the mail?
Customers who receive medication through the mail should see no change in their service.
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How has this change impacted major mailers?
Major mailers may have had to realign their operations to conform to the new service standards. The Postal Service has been working with the mailing industry to ensure a well-integrated implementation plan. In addition, due to the optimized mail processing network, mailers may have to take mail to a different location for processing.
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How has the service standard change impacted small mailers?
Small mailers may have had to realign their operations to conform to the new service standards. In addition, due to the optimized mail processing network, mailers may have to take mail to a different location for processing.
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Could the service standard change save the Postal Service money?
Yes. The service standard change could lead to significant mail processing efficiencies which would result in cost savings. The service standard change, in conjunction with the network optimization plan, could save approximately $2.1 billion annually.
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Does this have anything to do with the Nationwide Change in Service filed with the PRC in July?
The PRC filing in July was related to post office consolidation and does not have anything to do with this announcement, but it is all part of the Postal Service’s strategy to align its network and increase efficiencies.
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How will this service change impact the non-contiguous states (i.e. Alaska, Hawaii, and U.S. territories)? America Samoa, Northern Marianna Islands, and Guam already have slow service. How much worse will it get after these changes are implemented nationwide?
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We have already seen a significant degradation in service with other AMP consolidations. If this service change takes place and you find severe degradation of service in some areas, how will such issues be handled? Can a service change be reversed?
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Won’t slowing down service harm the Postal Service competitively? How will slower service impact the Postal Service’s customer base?
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So, essentially, with this service standard change and the closing of additional plants, the Postal Service is conceding that First-Class Mail is basically as Standard Mail product. Is that an accurate assumption?
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Will this service standard change impact international mail?
NETWORK OPTIMIZATION
The Postal Service is continually improving efficiencies by making better use of space, staffing, equipment and transportation to process the nation's mail. Improving efficiencies has become increasingly important, given the significant reduction in the amount of First-Class Mail that enters the postal system. The decline in mail volume is why the Postal Service is actively looking into opportunities to increase efficiency by consolidating mail processing operations.
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What is Network Optimization?
For decades the Postal Service expanded its network and infrastructure to accommodate a growing nation and an exponential increase in mail volume. The nationwide expansion resulted in more vehicles, more processing facilities, more processing equipment and more employees. Through network optimization, the Postal Service can adapt its network and infrastructure to the realities it’s facing today — that for the first time in its history, the Postal Service must significantly reduce capacity across the board.
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Are processing facilities going to be studied for closure like post offices?
Yes. As a matter of practice, the Postal Service reviews its infrastructure to increase efficiencies. Mail processing facilities are reviewed using a proven, well-established process called an Area Mail Processing study — or AMP study.
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What is Area Mail Processing?
An Area Mail Processing (AMP) study involves reviewing mail processing facilities to determine the feasibility of consolidating operations to improve overall operational efficiency and/or service. An AMP study may involve the consolidation or closure of a mail processing facility in order to increase efficiency with regard to equipment, facilities, transportation and work hours.
Additional information can be found at http://about.usps.com/streamlining-operations/area-mail-processing.htm.
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What’s the status of previous studies?
The Postal Service constantly studies its infrastructure — this is an ongoing process that has been around for decades. AMP studies significantly increased in frequency beginning in 2006 due to declining mail volume and excess capacity in the postal network. Specific information about each study can be found at http://about.usps.com/streamlining-operations/area-mail-processing.htm.
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How many facilities have been studied?
On Sep. 15, the Postal Service announced it would study 252 processing facilities for possible closure; however, prior to the Sep. 15 announcement, eight facility studies had already been initiated and four additional studies were undertaken sometime thereafter — 264 facilities were actually studied.
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How many of the 264 processing facilities went through the AMP study process?
212 processing facilities went through the AMP study process. Of the 212, 183 have been found feasible to consolidate, all or in part.
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Why is this particular facility included in the study?
The Postal Service continually reviews its mail processing network for excess capacity. Since 2006, the Postal Service has closed more than 180 facilities, removed nearly 4,000 pieces of equipment, along with $1.9 billion in costs. This has been done using an extensive analytical process designed to assist in the identification of under-used assets.
In creating this list, the Postal Service used extensive modeling combined with local knowledge of the various logistics networks which combined geography, facility capacity, transportation networks as well as equipment sets to determine which sites should be studied from a macro level. During the study phase additional due diligence will ensure the consolidation is feasible.
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What criteria are being used to study the facilities?
Criteria include expected savings, service, transportation and logistics networks, capacity within the processing plant, amount of required capacity (mail volumes), using the least amount of equipment and maximizing capacity.
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How soon could a mail processing facility be closed?
The consolidations have not resulted in a facility closure at this time. The consolidations have consisted of mail processing operational and equipment moves. Other departments and operations — such as delivery, retail, vehicle maintenance and bulk mail acceptance remain in the facilities.
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Where are they located?
Processing facilities were built in strategic geographic locations around the nation to assist the Postal Service with the logistics involved in processing and delivering more mail to more addresses in a larger geographical area than any other post in the world — and to do it in the most cost-effective manner possible. Some facilities were built over a half-century ago or more, based upon the population and mail usage of that geographic location at the time. Because mail volume has decreased so dramatically, it is imperative that the Postal Service re-evaluate each facility to ensure it still provides a cost-effective solution.
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How many different types of processing facilities are there? What’s the difference among them?
There are nine different types of processing facilities:
Processing and Distribution Centers — P&DCs process and dispatch mail from post offices and collection boxes within a region. Customer Service Facilities — CSFs are post offices, stations and branches that contain processing equipment. Network Distribution Centers — NDCs consolidate mail processing, increase operational efficiency, decrease costs and maintain service while expanding the surface transportation reach. Logistics and Distribution Centers — LDCs provide mail processing and distribution to local post offices as well as other smaller distribution facilities. Annexes — Annexes provide the larger facilities with additional capacity for processing and distribution. Surface Transfer Centers — STCs distribute, dispatch, consolidate and transfer First-Class Mail, Priority Mail and Periodicals within a specialized surface transportation network. Air Mail Centers — AMCs process and distribute inbound and outbound domestically flown mail for a specific geographic location. Remote Encoding Centers — RECs process video images of letter mail to determine a barcode for the envelope. International Service Centers — ISCs process and distribute inbound and outbound international mail. -
How many of each kind of processing facility are there? How have the numbers changed in past years?
PROCESSING FACILITY TYPE 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 Processing and Distribution Centers (P&DC) 205 241 251 260 269 269 269 269 269 Customer Service Facilities (CSF) 33 84 115 164 195 195 195 195 195 Network Distribution Centers (NDC) 21 21 21 21 21 21 21 21 21 Total Processing Facilities 325 417 461 528 603 614 623 673 675