United States Postal Service Management Strategy
MGT 323 Principles of Supply Chain Management
United States Postal Service Management Strategy
The United States Postal Service (USPS) has been around for over 240 years by bridging physical to digital, and innovative technologies they are able to deliver to over a 150 million addresses town, city, and state in the country. They are able to serve a growing population by continuously incorporating new technologies. Geographically the United States Postal Service delivers and services more addresses than anyone else in the post business in the world. In rain, sleet or snow the mail gets through. Anywhere from delivery of mail to providing stamps the Postal Services are there. Not only does the Postal Service provide service to households they service businesses. According to Postal Facts “The Postal service main function is to provide reliable, secure, and affordable delivery of mail and packages to addresses in the United States, its territories and its military installations worldwide.” The Postal Service is known for connecting the nation together and delivering for America. No matter where the USPS services or products are accessed in the world the cost of a First-Class postage stamp is the same regardless of location. In order for the United States Postal Service to remain successful and continue to serve its millions of customers, it has to have a good business strategy and supply chain strategy. According to Delivering – USPS “there are four core business strategies that Postal Service go by they are Strengthen our business-to-consumer channel, improve our customers’ experience, compete for the package business, become a leaner, faster and smarter organization (para 1).”
Strengthen our business-to-consumer channel
The Postal Service number one business strategy is to strengthen its business to consumer channel. The businesses rely on the Postal Service to ensure that the consumer receives their mail. Not just receive their mail but also receive it in a timely manner. This business to consumer mail is sent First-Class containing billing statements and notifications; it also contains offers and advertisement sent Standard Mail. This Standard Mail containing offers and advertisement is the Postal Service primary revenue base.
American receive a lot of information digitally through email, text, etc., but they still rely on mail physically being delivered when it comes to making purchasing decisions and some people like spending time looking at and receiving their mail. The USPS took steps to improve and strengthen the services the businesses receive from the mail service. By strengthening, these services help ensure a great return on its investment and provide the receiver with compelling experience.
The Postal Service, realize that customer care is critical to helping to retain customers and revenue. Customer Care also helps determine opportunity in areas of improvement. The USPS determined that customer satisfaction, timeliness, and quality of information are the area they have determined for their performance metrics (uspsoig, 2015). The Postal Service will use the various toll-free number for businesses and customers to call in for common questions such as hours of operation, services issues, price inquiries, and other postal questions. The customer care center has about 1,500 personnel to answer the calls and respond to routine questions (uspsoig, 2015).
The United States Postal Service competes for the package business by focusing on smaller business owners by putting a renewed focus on the customer experience. The USPS provides the service of the Priority Mail Flat Rate Box shipping service. The Flat Rate Box is a great deal for shipping small heavy items that will fit in the box for a standard rate, unlike other shippers that usually price by weight, the USPS normally has the lowest shipping price (USPS, 2011).
To support Client’s operational needs, you have to have Logistics in place to take care of the Client’s needs, goals, and strategies.
First, you must determine what the customer’s needs are by determining what type of product the client needs and how quickly they expect to receive them by the time of need is determined. Depending on what type of product determines what of support is required.
The unique characteristic of the commodities will influence what type of logistics is required. For example, mail processing equipment requires a major supply chain to reach installation sites. Then technicians must be trained in how to install, repair, and maintain the equipment to keep it operational. How to use tools, test equipment for diagnostics, and spare components and supplies.
Customer service plays a major part in customer satisfaction by providing the customer where and how to access customer support to get answers to questions and get problems resolved can help keep the customer satisfied. By having reports of frequency and the nature of the call may capture and provide insight on how to take care, resolve problems and what the customer’s needs are (about.usps.com, 2018).
The Postal Service become a leaner, faster and smarter organization.
The Postal Service attempts to provide to its customers with a standard level of service by setting timeline goals for delivering First Class Mail once it has been received from the customer. For overnight service 2-Day, on-time service, First Class Mail 3-5 Day service depending the geographic location, where the mail originates from and its destination determines the service standards. According to the Office of Inspector General “the Postal Service uses an internal system to measures the performance of First-Class Package Service – Retail delivery it measures the transit time from mailing to delivery and measures service performance for Commercial FCM (business mailings with a minimum of 500 pieces) from the date the Postal Service takes possession until a barcode scan to document delivery (para 5).”
Since the Postal Service was founded in 1775, it has been well known for its delivery service. The USPS mail carriers have been a major part of connecting friends, family, businesses and consumers for almost two and a half centuries. One of its core competencies is Tracking customers the satisfaction of deliveries, it gives them an opportunity to gather feedback from the customers of their want and need are. It also helps them understand their performance level and identify where they can use improvement.
The United States Postal Service has been known for its delivery service since way back when there was the Pony Express. Services and technology have changed over the Century. In order for the Postal Service to stay relevant, its services and technology have to change also. By having a business and supply chain strategy for the organization can help satisfy the consumer and the organization stays relevant.
Delivering – Usps. (n.d.). Retrieved from https://about.usps.com/publications/annual-report-comprehensive-statement-2011/a
Postal Facts – U.S. Postal Service. (n.d.). Retrieved from https://facts.usps.com/
Wisner, J.D., Tan, K.-C., & Leong, G. (2012). Principles of Supply Chain Management (3rd ed.). Mason, OH: South-Western Cengage Learning. ISBN: 9780538475464