November 2009

CONTENTS

NEW USPS eSOURCING SOLUTION ›

DISTRICT PURCHASING, ASSET MANAGEMENT ORGANIZATIONAL CHANGES TO IMPROVE SUPPLY CHAIN ›

POSTMASTER GENERAL BEGINS NATIONAL DIALOGUE ›

U.S. POSTAL SERVICE ANNOUNCES 2010 SHIPPING PRICES ›

USPS.COM GOES MOBILE ›

NEW USPS eSOURCING SOLUTION
Don’t Forget to Register!

Since the launch of the new USPS eSourcing solution earlier this year, we have had more than 730 suppliers register and have conducted a number of electronic solicitations with the solution. As a reminder, this is the solution the USPS is using to conduct electronic competitive solicitations, such as RFIs, RFPs, optimization events, and reverse auctions.

How do suppliers register?
For instructions on how to register your company in the USPS eSourcing solution, please visit the USPS supplier registration site: http://about.usps.com/suppliers/becoming/registration.htm

The person registering the supplier organization (i.e., account executive, sales manager, etc.) is the Application Manager and is responsible for managing the supplier account. This person will have overall account administration responsibilities, including entering and maintaining supplier data and authorizing additional users within the supplier’s organization. Suppliers will need to review and update their data on a yearly basis.

After completing the eSourcing registration process, the Postal Service will review the registration entry for completeness and accuracy within one business day of supplier entry. Once the entry is approved, the supplier will be notified the same day via e-mail of their log-in credentials, enabling them to participate in events.

Questions? Contact the USPS eSourcing technology support team at eSourcing@usps.gov.

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DISTRICT PURCHASING, ASSET MANAGEMENT ORGANIZATIONAL CHANGES to IMPROVE SUPPLY CHAIN

You may have heard that organizational changes involving Supply Management are continuing in two areas. First, purchasing specialist responsibilities at the District level will now fall under the Supply Management organization and will be consolidated into two new Purchasing Shared Services Centers (PSSCs); one in Windsor, Conn., and one in Denver. The PSSCs will consolidate resources into a single Supply Management customer-focused organization that will provide local purchasing guidance and support the long-term demand management goals of the organization. Overall estimated impact of this reorganization will be annual cost savings of $1.1 million.

The second change, part of our Asset Management Initiative (AMI), includes consolidation of eighty field Stamp Distribution Offices (with the exception of Hawaii, Puerto Rico, and Alaska) and the Accountable Paper Depositories into six Stamp Distribution Centers, and the realignment of the two Stamp Service Centers under Supply Management. The new stamp fulfillment and distribution network will be supported with the deployment of technology to standardize asset tracking, improve visibility, automate replenishment, and provide a forecasting function. Overall estimated impact of the AMI reorganization will be annual cost savings of $8.8 million.

These consolidations, which began on October 7, will be phased in over the coming months and are part of our ongoing efforts to reduce costs, improve operational efficiencies, and identify opportunities to leverage and improve our supply chains.

While these reorganizations may not directly impact many of our suppliers, some of you may now — or soon — have new Postal Service contacts. We appreciate your support, patience, and understanding as we work further to improve our operational effectiveness in these important areas.

If you have questions about these changes, please contact SMcommunications@usps.gov.

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POSTMASTER GENERAL BEGINS NATIONAL DIALOGUE
Future of the Postal Service to Reflect a Changing America

The U.S. Postal Service of the future will remain relevant, meet the changing needs of the people it serves and reflect the demands of the marketplace, Postmaster General John Potter said in a recent speech at The National Press Club in Washington, DC.

“I want to establish a public dialogue about the future of the Postal Service, not as it existed yesterday, nor as it exists today, but as it evolves and changes for tomorrow,” said Potter. The Postmaster General said he is looking at the long-term future, “seven, 10, and 15 years from now.”

Potter underscored that the public policy dialogue he is proposing is not about the needs or preferences of postal management. “This is about determining the role for the Postal Service, so that is has a relevant and viable place in the fabric of our nation, decades into the future,” he said.

Acknowledging that the Postal Service has seen steep mail volume declines in the past two years because of the recession, electronic diversion by the Internet, and changing customer needs, Potter asked the multibillion dollar mailing industry to join him and come to the table without preconceptions, except one – “the Postal Service has to offer affordable, universal service for the nation.

 “If we don’t take advantage of the opportunity in front of us today, we will do America a disservice. The status quo simply won’t do.”

During his remarks, Potter stressed that delivery performance on First-Class letter mail remains at near record levels.  He also noted that operations management “reacted aggressively and intelligently and reduced expenses by $6 billion.”

Career employees were reduced by 40,000 positions in 2009, and since 2001, the number of career employees has declined by 20 percent, Potter said.

Although postal finances for 2009 are still being audited, Potter said recent legislation passed and signed by the President provides USPS with much needed 2009 financial assistance and is much appreciated.  While Congressional action will be needed again in 2010, Potter said that, ultimately, a long-term solution is needed, and that as Postmaster General, he will balance the needs of the future with the needs of the people he serves.

The partnership with the legislative branch and all stakeholders needs to continue, he said, as delivery frequency, the types of products available in retail lobbies, and other changes to the Postal Service’s infrastructure are considered.

“I want to do what’s right for America,” Potter said. “That is my sole motivation.” Back to Top ›

U.S. POSTAL SERVICE ANNOUNCES 2010 SHIPPING PRICES
Price of First-Class Postage Will Not Change

In case you the missed this news statement on November 4, here it is in its entirety:

WASHINGTON — The simpler way to ship — with convenient Priority Mail Flat Rate Boxes from the U.S. Postal Service — will be just as simple in the New Year, when new prices take effect. 

Prices for Priority Mail, a product familiar across America through popular television and online advertisements featuring Al the Letter Carrier, will change on Jan. 4, 2010. Customers also can look forward to several Priority Mail innovations.

In a first for the shipping industry, the Postal Service is introducing cubic volume-based pricing for large volume commercial Priority Mail shippers. Customers who ship small, dense, space-efficient packages will receive a financial incentive through a new, tiered pricing option. This encourages greener, more efficient shipping and is one more way the Postal Service is eco-friendly.

Other benefits for Priority Mail customers effective in January include a decrease in the domestic Priority Mail Flat Rate Envelope retail price from $4.95 to $4.90. The popular Priority Mail Small Flat Rate Box will continue to be one of the best consumer values in the domestic shipping market at under $5. Its 2010 price will remain at $4.95.

Cubic volume-based pricing will not be the only first in January for customers who qualify to ship at Commercial Plus prices. A Priority Mail half-pound price, based on distance, will be added only in the Commercial Plus pricing category. And, a new Priority Mail Flat Rate padded envelope measuring 9.5 x 12.5 inches will be available exclusively for Commercial Plus shippers. This envelope is specially designed for jewelry, electronics, and other delicate goods.

“We have put together a range of creative and innovative products and services for our customers,” said Robert Bernstock, president, Mailing and Shipping Services. “With these new offerings, the Postal Service is reinforcing the value of Priority Mail as the right product at the right time,” he said.

In addition to an overall price increase of 3.3 percent, on average, for Priority Mail, there will be new prices for Express Mail, Global Express Guaranteed, Express Mail International, Priority Mail International, Parcel Select, and Parcel Return Service, also effective Jan. 4.

Prices for First-Class Mail, Standard Mail, Parcel Post and other mailing services products will not change in 2010, with the cost of a First-Class Mail stamp remaining at 44 cents.

“The Postal Service is the best buy in the market, whether you’re watching your budget or gearing up as the economy starts to rebound,” Bernstock said, noting that other shippers have announced price increases of nearly 6 percent for 2010, excluding fuel surcharges. Most shippers add extra fees for fuel, rural delivery, Saturday delivery and other items to a customer’s final bill. The Postal Service has no comparable surcharges.

Customers who pay for their shipping services online will continue to save compared with retail prices. Online costs will be, on average, 5 percent less than retail for Express Mail and 5.7 percent less for Priority Mail. Online savings for international shipping will be 10 percent less than retail for Global Express Guaranteed, 8 percent less for Express Mail International, and 5 percent less for Priority Mail International.

A complete listing of 2010 prices is available at www.usps.com/prices/pricechanges.htm. The new prices and product innovations are pending Postal Regulatory Commission review.

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

USPS.COM GOES MOBILE
It’s a Post Office on Your Phone

Some of the most popular functions currently available on usps.com are now available on Web-enabled cell phones and other mobile devices. This includes Track & Confirm, Post Office locator, and ZIP Code lookup. 

With more than 232 million mobile communications devices in the United States — a growing number of which can access the Web — the promise of Internet access from virtually anywhere in the country is fast becoming a reality.

“Our new mobile capability makes USPS services even more convenient for our customers,” said Robert Bernstock, president, Mailing and Shipping Services.

Any mobile user with Web access will be able to log on to the Postal Service mobile site no matter where they are, without having to use a personal computer, Bernstock said.  “If they’re on the road, they’ll be able to use the Post Office locator function to find a Post Office that’s close to them. And they’ll also be able to track and confirm delivery of their mail or packages using their mobile phone,” he said.

The Postal Service also is designing applications for “smartphones” like the Apple iPhone, BlackBerry, and iPod Touch which take advantage of additional capabilities, such as GPS.

Bringing the Post Office to the People™ Back to Top ›

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:

US Postal Service
Supply Management Communications
475 L’Enfant Plaza, SW Room 4320
Washington DC  20260-4320

If you prefer not to receive future issues of re:supply from the U.S. Postal Service, please contact SMCommunications@usps.gov to stop future e-mails.