Special Update from the U.S. Postal Service 

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June 30, 2014 

 

CONTENTS 

 

U.S. Postal Service Network Rationalization Update 

 

Dear Valued Suppliers, 

 

You are receiving this newsletter from the Postal Service as you have registered your interest 
to do business with the Postal Service or your e-mail is on file as a point of contact for a 
current or past contract. Please share this newsletter with your colleagues within your 
company as it contains important supplier related information about the Postal Service. 

 

As part of our communications plan to keep our suppliers fully informed of all major initiatives 
affecting them, please see the recently released information from the U.S. Postal Service. 

 

This issue is simultaneously being sent to USPS Supply Management employees for 
their information. 

 

Thank you! 

 

U.S. Postal Service Network Rationalization Update 

USPS to Resume Efforts Early Next Year 

 

The United States Postal Service is planning to resume 
the rationalization of our network of mail processing 
facilities which began in 2012. To provide adequate time 
for planning and preparation, the Postal Service is 
providing this six-month advance notice of 
consolidations, for up to 82 facilities, which will begin 
early January 2015 and be completed by the fall mailing 
season. 

 

The Postal Service will provide detailed information 
about its network rationalization planning in the coming weeks. As with prior network 
rationalization efforts, the Postal Service will work closely with customers to mitigate potential 
issues associated with transportation and logistical requirements. 

 

In 2012 and 2013, the Postal Service consolidated 141 mail processing facilities. This 
rationalization was highly successful, resulted in negligible service impact, generating 


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annualized cost savings of $865 million and required no employee layoffs. The Postal 
Service expects the completion of this phase of network rationalization will generate an 
additional $750 million in annual savings. 

 

Why are we taking this step now? 

 

Over the past three years, the Postal Service recorded financial losses of $26 billion. The 
Postal Service receives no tax-payer funds to pay for operating costs and derives all of its 
revenues from the sale of our products and services, and continues to face significant 
financial challenges associated with the decline of First-Class Mail volume and revenue, 
wage and benefit inflation, increasing operating costs, as well as legislative mandates and 
significant debt pressures. Moreover, the uncertainty regarding legislative reform and review 
of postal rates in the courts continues to delay needed capital investments to acquire 
package sorting equipment and replace an aging mail delivery fleet. 

 

We believe strongly that this phase of network rationalization will establish the low-cost, 
technology-centric delivery platform necessary to serve the mailing and shipping industry for 
decades to come. We look forward to discussing our specific plans for our network in the 
coming weeks. 

 

The list of facilities to be consolidated after January of 2015 is available at 
http://about.usps.com/news/electronic-press-kits/our-future-network/welcome.htm. 

 

RETURN TO TOP 

# # # 

 

The Postal Service™ receives no tax dollars for operating expenses and relies on the sale of postage, products, 
and services to fund its operations. 

 

 

ARE YOU REGISTERED TO DO BUSINESS WITH 
THE U.S. POSTAL SERVICE? 

 

More than 11,000 suppliers have registered since our 
launch of the Supplier Registration site in July 2009. 

 

All suppliers interested in doing business with the U.S. 
Postal Service should register their company in the Postal 
Service Supplier Registration system. 

 

For more information, please go to 

http://about.usps.com/suppliers/becoming/registration.htm. 

 

 

CONTACT US! 

 

 

We value your questions and feedback 
to this newsletter. Please feel free to 
reply to this message with your 
feedback or mail to: 

 

U.S. Postal Service 
Supply Management Communications 
475 L’Enfant Plaza, SW, Room 1100 
Washington, DC 20260-6201 

 

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