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The Postal Service will use external benchmarking, increased spend analysis capability, and a second round of strategic sourcing to reduce costs in office products, utilities, vehicles, equipment, telecommunications, and information technology. It will target cost reductions for a variety of services essential to day-to-day operations, including janitorial and maintenance, travel, advertising, printing, and environmental and emergency preparedness services. The Postal Service has established an efficient framework for managing environmental responsibilities. In particular, it developed the Environmental Management System (EMS) to identify high-priority areas for improvement, and used it to implement several cost-saving recycling and energy programs.

For mail equipment and facilities, the Postal Service will use strategic sourcing, lean manufacturing, and total cost of ownership techniques to better align supplier capabilities and improve life cycle costs. The Postal Service will increase inventory visibility, improve parts availability, and reduce inventory investment by implementing a best-in-class service parts management system and efficient logistics. Costs for mail processing equipment spare parts will be reduced through inventory pooling at strategic locations.

The Postal Service will continue to develop and maintain a strong, competitive supplier base that reflects the diversity of the American supplier community. Small, minority-owned, and woman-owned businesses are integral to the supplier base. They are agile, responsive, and effective, continuously providing a valued source of innovation.

Dedicate Teams to Identify Major Process Improvement Opportunities

The Postal Service will accelerate the integration of business processes across functions (e.g., operations, finance, marketing), for complex initiatives that require significant effort. Dedicated cross-functional teams will be established to determine where the greatest value can be added through process integration. Teams will identify both non-value and new value-added processes, increase standardization, and improve essential processes and cycle times. Examples under consideration where dedicated teams will be used to concentrate attention are insurance claims procedures, distribution of materials and supplies to Post Offices, and the stamp production process, including printing, distribution, and inventory management.