The Postal Service routinely measures service performance in terms of speed and reliability as part of its commitment to improving performance for its customers. Of particular focus are First-Class Mail Overnight, Two-Day and Three-to-Five Day Service, which are among the most widely used mail categories. Individual consumers, small businesses and larger commercial firms all rely on First-Class Mail, which comprises nearly all parts of the Postal Service’s operations and supply chain, from collection boxes and retail counters to final delivery. In FY2014, the Postal Service continued to measure service performance through a combination of both Single-Piece First-Class and Commercial First-Class performance for an aggregate of Overnight, Two-Day and Three-to-Five Day Service. Single-Piece First-Class Mail International provides a measure of the domestic leg of travel for Single-Piece International mail and may increasingly be assessed in FY2015 and beyond.
The Postal Service has contracted an independent third-party entity since 1990 to objectively measure performance for Single-Piece First-Class Mail via the External First-Class Mail (EXFC) system. This external sampling system measures the time it takes from when mail is deposited in a collection box or lobby chute to when it is delivered at a home or business. Performance is measured in 892 ZIP Codes for Single-Piece First-Class Mail cards, letters and flat envelopes. Service performance for Single-Piece First-Class Mail parcels, which is measured using an internal Postal Service system, is combined with EXFC performance to generate overall Single-Piece First-Class Mail results.
Similarly, Presort First-Class Mail in FY2014 was measured through a hybrid measurement approach that combined Full-Service Intelligent Mail data from commercial mailers and relied on data collection by an external entity. This process measured the time from mail acceptance to final processing, which involved the collection of data on transit time from final processing to mail processing equipment and through to delivery. The processing and delivery data were aggregated, combined and reviewed by the external entity to measure overall commercial mail performance.
For FY2014, the Postal Service fell short of the target for Single-Piece First-Class Mail. The Presort First-Class Mail target performance score for Overnight delivery was met, but fell short for Two-Day and Three-to-Five Day delivery. Targets were not reached for the categories of Single-Piece First-Class Mail delivery and two categories of Presort First-Class. However, FY2014 performance scores have remained remarkably high and relatively stable considering the changes made in the network. A positive improvement was also realized in the service performance of Standard Mail during FY2014. Weather variability also affects year-to-year comparisons.
We have missed the past several years’ targets for Service due to an aggressive work hour stretch and the hiring, training and replacement (due to turnover) of many new employees. For FY2015, we believe the completion of the Phase 2 Network Consolidation Project and the benefits of a fully trained non-career workforce to supplement our career employees will improve service and allow the Postal Service to meet its targets.
U.S. Postal Service FY2014 Results and FY2015 Targets for Corporatewide Goals
