In 2001, Expedited/Package Services served as the focal point for all Postal Service package initiatives. As with all other Postal Service products and services, Expedited/Package Services aimed to provide consumers a reliable, affordable, and dependable delivery product.
We sought to position the Postal Service as one of the top providers in the package delivery market by emphasizing customer value with its service to everyone, everywhere, every day. We also provided a variety of solutions to meet the business needs of individuals, and small and large businesses by concentrating on a few strategic goals – customer ease-of-use, consistent service, and price advantage.
Growing the Postal Service’s package business entails meeting the following objectives:
- Image — Increased customer ease-of-use and continual positive advertising to enhance and establish the Postal Service’s position in the package business.
- Service — Consistent, reliable service and continuous improvements in overnight, 2/3-day and ground parcel services.
- Price — Ensuring price advantage as a key strategy to maintaining the competitive edge for postal package products.
1. Package Products
Prior to the events surrounding September 11, Express Mail saw modest growth in concert with the entire overnight package service industry. Since that date, the overall industry has seen a flattening in the overnight market. Customers continue to view Express Mail as a reasonably priced alternative in the overnight market.
Priority Mail maintained its position as leader in 2-3 day service. However, as a result of the rate increase and aggressive competition, Priority Mail began losing market share.
Throughout 2001, Expedited/Package Services worked with functional areas throughout the Postal Service to develop strategies to enhance the growth and development of Package Services.
The Postal Service’s Package Services menu also includes Parcel Post, Parcel Select, Media Mail, Bound Printed Matter and Library Mail. These services continue to provide valuable options in the ground parcel category.
Parcel Select has emerged as a growing force in the package delivery market, quickly becoming a key part of many companies’ service strategies. The number of service providers for Parcel Select has grown rapidly, giving shippers a strong network of national and regional parcel consolidators and expeditors to work with.
Parcel Select represents a real value alternative for package shippers who can save on their parcel shipping costs and choose a level of service which best meets their shipping needs. The concept behind Parcel Select originates from a term that parcel shippers have known for years – zone skipping.
Through this concept, parcel shippers who can provide their own transportation are able to bring their parcels directly to a postal facility. Since distance and transportation are major cost factors in postage rates, the Postal Service is able to reduce its costs and pass those savings on to the shipper as postage discounts. The closer the mail is dropped to its final destination, the greater the savings. Overall, Parcel Select is an economical way to leverage the Postal Service’s greatest strength, its nationwide six-day a week neighborhood delivery network.