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We are driven to perform our best for our customers.
With a fully engaged workforce committed to success, we’re keeping service and productivity levels high while working to reduce costs.
We’re more efficient than ever in all our operational and business processes. Total factor productivity (TFP) has increased for seven straight years. TFP includes all factors of production and measures the growth in the ratio of resources we use — the inputs — to the products and services they produce — the outputs.
Every year our delivery network grows by almost 2 million new homes and businesses. In 2006, we faced additional upward cost pressures from rising fuel prices and inflation-triggered benefit cost increases outside our control. We aggressively pursue reducing costs that are under our control.
We’re using automation to remove processing costs. We’re driving productivity increases through standardization. With one of the largest logistics and distribution networks in the world, we’ve introduced more flexibility in our transportation network. We’re working closely with our customers and industry partners to better align customer mail preparation with postal operations so it results in the lowest handling costs for both.
As new service offerings have been added and new technologies have become available, our delivery network has been adjusted to increase efficiency. In today’s network, plants generally process all classes of mail. However, some plants have specialized responsibilities, linking transportation and distribution for specific classes or types of mail. We’re transitioning from these single-product networks to a more efficient network designed to handle multiple products.
We’ll continue to make advances in our automation capabilities, including the development of a system to get flat-shaped mail ready for delivery in the order that carriers work the streets. Enhancements to commercial mail acceptance will dramatically cut paperwork and streamline payment.
We’ll continue to improve address quality to dramatically reduce undeliverable-as-addressed mail, expand the use of new barcode technology and mail tracking tools, and improve workforce planning.
We’re driven to cut costs to keep mail affordable — so we can continue to provide the service that connects all Americans.
We’re working closely with our customers and industry partners to better align customer mail preparation with postal operations so it results in the lowest handling costs for both.