2012 Annual Report to Congress and Comprehensive Statement

Mail Processing

Adjusting the Postal infrastructure to changing technology, workload and demographics is not a new activity. Processing centers moved out of city centers as highway and air transport replaced dependence on rail.

Operational needs changed again as mail volume grew. Processing became highly automated as new equipment was introduced. Today, the operating network continues to adapt as mail workload changes.

Consolidation

In 2006, the Postal Service operated 673 facilities. By 2012, operations were consolidated into 461 facilities, before the Postal Service agreed to a temporary delay in closings and consolidations to remain responsive to concerns by some members of Congress, and to help facilitate enactment of pending comprehensive Postal reform legislation.

In 2012, no additional consolidations tools place during the peak political mailing and fall holiday season. By working closely with mailers, service disruptions have been minimized.

Forty-six full or partial consolidations were completed during the summer of 2012. A second phase of consolidations will resume in February of 2013. In some cases, consolidation occurs in stages, with either outgoing or incoming processing shifting to another facility while other operations remain, at least temporarily. An existing review process, which incorporates customer and community involvement, has been refined.

Engineering, Research and Development

Our Postal engineering group is focused on mail processing equipment improvements, upgrades and replacements. In 2012, replacement of the Automated Facer Canceller System (AFCS) was completed.

A new, smaller version of the Flats Sequencing System (FSS) is under evaluation, and tests of next-generation scanning devices are underway. These upgrades will reduce cost, improve quality and improve service.

Service Standard Changes

Consolidation includes adjustments in service standards. This will allow for more efficient use of machine capacity and reductions in staffing.