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Customers of all sizes will see continued improvements in package delivery services as the Postal Service continues to automate operations, increase ease of use, and expand track and trace capabilities. These changes will better serve households and small businesses that use end-to-end package service. Improvements will also benefit consolidators who rely on the Postal Service for delivery only.

The Postal Service earns 85 percent of its revenue from businesses and institutions, all of which have choices in how they communicate, bill, and ship. To keep prices predictable, the Postal Service will transition to adjusting commercial rates annually, generally in line with the Consumer Price Index. To meet the unique needs of business customers, customized prices will be developed where possible.

Customers are now finding that the Postal Service is more convenient. Services are available via usps.com, 1-800-ASK-USPS, by mail, at Post Offices, self-service kiosks, grocery stores, and ATMs. The Web is making it easier and faster to deposit commercial mailings as transactions such as manifesting, postage payment, and entry scheduling move from paper to electronic media.

BEST RUN COMMUNICATIONS AND DELIVERY SERVICE

Each day the Postal Service receives and delivers over 680 million pieces of mail. Distribution and transportation of these letters, parcels, catalogs, and magazines occur across a network of 38,000 Post Offices and retail outlets and 400 mail processing facilities. The mail is securely and reliably delivered to 143 million addresses. No single operation in the world comes close to this level of connectivity with households and businesses across America.

Over the past 4 years, operations have improved to produce better, more consistent service with fewer resources. Today, the Postal Service delivers more than twice as much mail as it did 2 decades ago, with the same number of employees. In the next 5 years, there will be more change. Delivery remains the largest cost center and will be the focus of intensive efforts to find new savings. The entire mail flow will be streamlined, made more flexible, and managed as a single, integrated network, not as multiple separate operations.

In the longer term, a standardized postal network will contain fewer types of processing facilities. Larger regional distribution centers will serve as primary nodes for multiple products, and smaller local processing facilities will process all mail destinating in their geographic areas. These changes will reduce costs and improve reliability.