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The Postal Service will take a number of actions to ensure that the IT infrastructure continues to meet performance and productivity demands. By 2007 it will implement computing connectivity and deploy computers to additional sites, eliminating paper and manual processing wherever cost effective. This will be achieved by replacing 14,000 dial-up locations with DSL or cable connectivity. Centralization of technology functions within the IT organization will be accelerated and field IT support functions will be realigned to better meet demand and reduce costs. Use of high-cost IT contractors will be greatly reduced as the Postal Service transitions IT knowledge to career employees to improve service and reduce costs. By 2008 the capabilities of the existing Enterprise Data Warehouse will be broadened to allow full cross-functional analysis and decision-making. The Postal Service will standardize printers, scanners, photocopying, and other equipment to reduce costs by 2009.

Establish a Single Shared Services Organization

Shared Services centralizes transactional, non-core business services within a separate internal entity. Centralizing transactions previously performed by multiple units achieves economies of scale. In 2003 Shared Services was successfully implemented for the Accounting function. The Postal Service reengineered and automated accounting processes and consolidated residual transactions, eliminating transactional processing in the field and enabling 80 district accounting offices to close.

Applying lessons learned from that initiative, the Postal Service currently is developing a Human Resources (HR) Shared Services initiative that will centralize certain transactional HR services. The PostalPEOPLE system will standardize and automate these processes by replacing multiple existing processes with one, fully integrated HR system by 2007. The Postal Service will consider centralizing other non-core support services in Shared Services applications that can yield gains in enhanced customer service, reduced cost, improved service quality, and improved control. Examples of transactional services with potential for centralization include IT services, facility services, insurance support services, legal, and purchasing.

Broaden Supply Chain Management

Great strides have been made in managing the postal supply chain, with a total of $1.7 billion in cost reduction and cost avoidance from mid-2000 through mid-2005. Most was achieved through over 200 initiatives focused on the roughly $12 billion spent annually with suppliers for goods and services. The Postal Service will continue to build on this success through broader penetration of supply chain practices. It will benchmark successful industry applications, identify opportunities to integrate supplier capabilities, and seek new opportunities to involve suppliers in product design and enhancements. Teams with the right mix of knowledge, skills, and expertise will implement specific initiatives designed to improve processes and reduce costs. Integrated supply chain management activities will continue to contribute to the $1 billion annual cost reduction commitment.