The U.S. Postal Service is continually improving its efficiency by making better use of space, staffing, equipment, and transportation in processing the nation's mail. This practice has become increasingly important as we have experienced a significant reduction in the amount of single-piece First-Class Mail that enters our system. In fact, from fiscal year 2001 though the end of fiscal year 2010, mail volume for this category has declined by almost 23 billion pieces, approximately 42 percent. At the same time, the deployment of state-of-the-art automated mail-processing equipment allows us to sort this type of mail more efficiently than ever. In many cases, larger mailers are entering their mail deeper into our system, closer to its final delivery point, bypassing many Postal Service processing and transportation operations.

Considered together, these factors have created excess processing capacity at many postal facilities where mail is canceled and sorted. The Postal Service is actively looking into opportunities to increase efficiency by consolidating mail processing operations, allowing us to make better use of our resources. Area Mail Processing is a key element of this important effort.

Our Future Network

Faced with a massive nationwide infrastructure that is no longer financially sustainable, the U.S. Postal Service has proposed sweeping changes designed to save the organization up to $3 billion a year by cutting its network of processing facilities by over half and adjusting service standards.

For more information, click here.

This website contains copies of studies that support decisions made by the Postal Service to consolidate mail processing facilities approved under the Network Optimization Initiative, pending the adoption of proposed service standard changes.  The redacted or obscured information consists of commercially sensitive, proprietary business information that the Postal Service is permitted to withhold from public disclosure under the Freedom of Information Act.  This information includes facility-specific and product-specific mail volumes and related data from which such volumes could be deduced.  In addition, commercially sensitive transportation cost information has been withheld since its premature disclosure could negatively impact the Postal Service’s future negotiating and bidding processes with third-party service providers.

Last updated: 2/12/13

More Information About Area Mail Processing

What is Area Mail Processing? ›
AMP Guidelines ›
Benefits of Consolidation ›
Overview of the AMP Process ›

What is Area Mail Processing?
Area Mail Processing (AMP) is the consolidation of some mail processing operations from one or more postal facilities to other facilities to improve operational efficiency and/or service. AMP may involve the consolidation of originating operations (canceling and sorting locally generated mail), destinating operations (sorting and preparing mail received from more distant areas for local delivery), or both. The intent is to make more efficient use of Postal Service assets such as equipment, facilities, staffing, and transportation.

Today's mail processing system-a network of large, centralized mail processing facilities-represents about three decades of experience with AMP initiatives. However, as we continue to experience shifts in the types of mail we handle and changes in how and where mail enters our system, we must continue to examine opportunities for improvement. 

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AMP Guidelines

The Postal Service has developed a formal process for the review and implementation of Area Mail Processing proposals. This process is defined in Handbook PO-408, Area Mail Processing (AMP) Guidelines PDF | HTML.

Benefits of Consolidation
The benefits of AMP are as follows:

• AMP centralizes mail processing operations to better use resources, including space, staffing, processing equipment, and transportation.
• AMP takes advantage of state-of-the art technologies available at the gaining facility so originating and/or destinating mail can be processed more efficiently.
• AMP supports network rationalization and reduces redundancies.
• AMP should have minimal impact to customer services. Business mail entry, retail, and delivery services are expected to remain unchanged in most cases. Indicia requirements for postal meters and permit imprints for local mailers remain the same. Local postmarks will continue to be available at Post Offices. ZIP Codes will not change as a result of AMP.

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Overview of the AMP Process
The major events that occur during the AMP process are summarized below:

• With the bottom-up approach, the process begins when the district manager or senior plant manager notifies the area vice president (AVP) about their intention to conduct an AMP feasibility study. The AVP informs Headquarters' vice president, Network Operations (VPNO). With the top-down approach, the VP Network Operations contacts the AVP about initiating a feasibility study.
• When either one of the approaches is used, communication to stakeholders must occur when there is a clear intent to proceed with an AMP feasibility study. The notification of intent to perform the study will include an invitation to the public to submit any comments or concerns to a Postal Service representative.
• Within two months, the AMP feasibility study is completed, approved by the district manager (DM), and submitted to the AVP along with the required documentation.
• Within 45 days after submission of the study, the DM must conduct a public input meeting. Fifteen days are provided for the public's submission of additional written comments after the meeting and for the district's summary of the meeting.
• Also, after the DM's submission of the study, a 60-day review is conducted concurrently by the area and Headquarters management. Every AMP worksheet is verified and issues are resolved; after which, the study is provided to the AVP for consideration.
• Following receipt of public comments and finalized AMP worksheets, the AVP determines if the AMP proposal should advance to Headquarters. If the AMP is supported, the AVP must sign the Approval Signatures page and submit the AMP proposal to the SVP Operations. Generally, this step should be completed within two weeks. If the AMP is not supported, the AVP must submit an explanation to the VP Network Operations.
• The Consumer Advocate also receives a copy of the complete AMP proposal. A review by the Consumer Advocate ensures that adequate attention and resolution were given to the public input at the district and area levels prior to the consideration of the AMP by the VP Network Operations.
• The VP Network Operations takes into account costs and benefits outlined in the AMP proposal along with summaries of public input when making the final decision to approve or disapprove the consolidation. A decision is expected within two weeks of receipt of the proposal.
• Prior to the implementation of an approved AMP, national-level employee organizations must be notified and local employee organizations must be briefed in accordance with current employee agreements.
• The area must conduct two Post-Implementation Reviews (PIRs) to assess whether planned savings, work hours, and levels of service are met. The first PIR will cover the first and second full quarters after implementation, and the final PIR will cover the first full four quarters following implementation.
• The AMP process is completed once the final PIR has been evaluated by Headquarters and feedback is provided to the area.

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