Joe Schick
Director of Postal Affairs

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A Blueprint for Sustainability

Thursday 1/19/2012

Speak up mailers! It’s time to put the USPS on the path to sustainability for good!

Once again we’re at a pivotal point regarding the future of the U.S. Postal Service, and mailers have an opportunity to influence the outcome. The reality is that all of us MUST be involved in the discussion. In 2012 Congress will again attempt to pass legislation to provide the USPS with a path to a sustainable future, although we don’t expect it to happen until after the November elections. Meanwhile, the Postal Service has proposed an aggressive Network Optimization Plan to right-size the organization. The plan includes closing or consolidating about 300 processing facilities; changing First Class Mail Service Standards (essentially eliminating overnight delivery), which will also impact Periodicals and some Standard Mail; greatly reducing processing equipment and transportation; and, hopefully, reducing the number of employees by about 100,000 over the next few years. Many of these employees are retirement-eligible. Also, keep in mind that the current processing and delivery network was built to support 300 billion pieces of mail per year, but total mail volume in 2011 was only about 170 billion pieces.

These actions must be taken, or USPS operational costs will continue to outgain revenue, and then the only recourse will be higher prices that will undoubtedly increase the exodus from the mail. We’re supportive of this effort as long as it is done the right way. I don’t know about you, but I don’t trust Congress or the USPS to address initiatives as extensive as those mentioned above without the involvement of the people, businesses and industries that depend on the USPS. And that’s why we MUST become more engaged in the process. How do you do that?

On the Congressional front, you should be talking to your U.S. Representatives and Senators, explaining why the Postal Service is important to your business. In addition, your Congressional reps need to hear consistent messaging regarding what the mailing industry will support in any legislative proposal. You should utilize the support of industry associations (i.e. PostCom, DMA, ACMA, MPA, etc.) to help with that messaging. If you don’t currently belong to one of the major industry associations, joining one that serves your needs should be the first thing you do. The mailing industry has organized the Coalition for a 21^st Century Postal Service (C21) of which Quad is a member. C21 has become the face our industry on Capitol Hill. Its members are businesses and associations representing all sectors of the mailing industry. If you are a member of an association, find out if it is a member of the Coalition. If not, encourage their participation or consider becoming a corporate member.

In regards to the USPS Network Optimization Plan, you should provide your comments and concerns directly to the Postal Service. You can start by talking to your USPS Strategic Account Manager, if one has been assigned to your company. If not, contact the Customer Support or Marketing Manager at the District Office for your location. The Postal Service has reinstituted its Area Focus Group meetings so you can learn who your contacts are and meet them face-to-face. The meetings are held two to four times a year in each region, generally in a major metro area (i.e. the Eastern Area is meeting at the Philadelphia Processing & Distribution Center on February 9). They are informational and cost nothing but travel to the meeting location. If you are involved with an industry association that is a member of MTAC (Mailers Technical Advisory Committee), you have a direct voice to postal executives in Washington D.C. MTAC is working closely with the USPS on the network optimization project. Additionally, many major associations located in D.C are providing feedback, offering suggestions, and communicating updates and information to their members as the optimization process plays out.

As always, we are actively involved with these efforts and will continue to be involved. If postal reform is done correctly, the Postal Service will have more authority to manage its business and will operate a lower-cost organization that will ensure a more sustainable and predictable future. If it’s done the wrong way…let’s not go there.