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Link to "Sustain Controllable Income" Link to contents for "United States Postal Service2014 Annual Report to Congress"      Link to "Net Operating Income"

Deliveries per Hour

In FY2014 the target for Deliveries per Hour was 42.9. The actual result for FY2014 was 42.0 — a difference of 0.9. The FY2014 target was not achieved due to the overrun of an aggressive work hour plan. In addition, we did not capture all of planned savings associated with Phase 1. Other drivers included additional workload from Sunday package delivery, additional hours used to avoid delaying mail and to keep our network moving during the Christmas season and the hiring and training of many new non-career employees. In addition to trying to hire up to our contractual limits of non-careers, we also experienced a high turnover rate (in excess of 40 percent) for CCAs. The non-career employees are generating significant rate savings, but are costing additional hours in hiring and training them, as well as in developing needed delivery experience.

The FY2015 Deliveries per Hour target was revised from 43.3 to 42.4 to reflect the delay of Phase 2 of the Network Rationalization project.

We have missed the past several years’ targets for Deliveries per Hour due to the aggressive work hour stretch. For FY2015, we believe the work hour target is much more representative of the cost-savings opportunities and anticipated growth in package workload; barring any further external delays, there are initiatives in place to achieve the FY2015 planned savings.




Link to "Sustain Controllable Income" Link to contents for "United States Postal Service2014 Annual Report to Congress"      Link to "Net Operating Income"
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