Network Optimization

USPS OIG

 

The Postal Service’s mail processing and transportation network is one of the largest in the world with 675 facilities, 16,727 highway network routes, and approximately $25 billion in operating costs per year.  The President’s Commission on the Postal Service indicated there was more infrastructure than needed and many assets were not effectively aligned with changing requirements.  Postal Service management recognized the need for a comprehensive redesign of its vast network and identified network optimization as a key objective in its Strategic Transformation Plan: 2006-2010.  The Postal Accountability and Enhancement Act, signed into Law on December 20, 2006, further encourages the Postal Service to continue streamlining its processing and transportation network to eliminate excess costs. 

The Network Optimization Directorate seeks to determine whether the Postal Service is creating a flexible logistics network that reduces costs, increases operational effectiveness, and improves service. To accomplish this, they plan and direct audits and reviews focusing on the management and coordination of the network optimization efforts including the economy, efficiency and effectiveness of individual Area Mail Processing consolidations.