U.s. postal task force provides recommendations- some good and some with bias supply chain matters hair electricity song


In April 2018 blog, we addressed President Trump’s rant on Amazon , more pointedly, how the online retail giant was ripping off the USPS and taxpayers. arkla gas phone number We humbly suggested that the President channel his energies in a far more appropriate direction, providing the leadership and influence to help the USPS to become a modern and competitive agency for this new era of the online economy.

The brute reality is that Amazon is not alone in actions that might take advantage of USPS services or rate structures. Many other businesses, and indeed two of the globe’s other parcel transportation providers , FedEx, and UPS, are reliant on the postal service for a significant amount of last-mile delivery needs, including premium Sunday delivery services. FedEx itself remains a multi-billion prime air freight services contractor to support USPS’s overall air shipment needs and in-turn, its own divisions sub-contract certain of its own last-mile parcel delivery needs to the agency. Hence a symbiotic business relationship.

The task force included a broad list of stakeholders including employee organizations, key industry associations reliant on public mail delivery, consumer action, state, local and tribal groups. jokes gas prices It further included select private sector companies that included the likes of Amazon, DHL, FedEx and UPS, each of which could be argued have mixed agendas related to the future of the USPS as a services provider or as an industry competitor. k electric company What we feel was missing were external experts or noted consultants in logistics, transportation and operations management.

In the first category, there was a declaration that the agency is on an unsustainable financial path to lose billions of dollars over the next decade. Declines in mail volumes have been compounded by caps on mail pricing. la gas prices 2016 A further recommendation was that the postal service price packages “ with profitability in-mind” including the imposition of higher rates on e-commerce movements and other deemed non-essential items destined for mail delivery. Meaningful recommendations include specific clarity on definition of Universal Service Obligations required by a postal service and establishing a separate balance sheet for packages to help prevent cross-subsidization.

From our lens, a humorous statement was that as the USPS delivers more packages, the agency has been distorting overall pricing in the package delivery market. tropico 5 power plant Our observation remains that distortion in parcel pricing comes from all of the existing private industry participants, and if anything, the USPS has been charging market- based rates despite the President’s perceptions or disfavor. Another recommendation in the category of humorous was to augment revenues with the issuing of hunting and fishing licenses., which lacks any quantification as to what added revenues that activity would garner for an operation that garners nearly $70 billion in annual revenues.

The task force called for stronger oversight by the Postal Board of Governors, yet the reality is that the Board has had little appointment of new members for much of the current past or current Administrations despite Republican party legislative majorities. The recommendation points the finger toward a continuing flawed political appointment process that has been so evident for many years.

In the category of overt political bias are recommendations that suggest eliminating collective bargaining over compensation for agency employees, pursuing reforms consistent with the President’s draconian FY19 Budget related to federal workforce reductions, along with calling for alignment to the Administration’s proposed Federal Employees Retirement System that would increase employee contributions and move toward a defined contribution system.

The biggest legacy flashpoint has long been the Congressional requirement that the USPS make mandatory payments into a retiree benefits fund in order to prefund benefits for 75 years. world j gastrointestinal oncol impact factor No other U.S. government agency is tied to that requirement. The report would seem to ignore this flashpoint in favor of the Administration’s broader federal budget agenda noted in the prior paragraph.

To the President’s rant that Amazon has been ripping off U.S. taxpayers, the task force report lacks any evidence supporting such a charge. The realization that many other businesses and parcel carriers are taking advantage of the USPS will only come with more objective and balanced viewpoints. In everyday business, teams sometime encounter management directives that call for task force analysis that for career purposes, should support certain of the boss’s perceptions.

Regarding our recommendation that the President channel his energies in a far more appropriate direction, providing the leadership and influence to help the USPS to become a modern and competitive agency for this new era of the online economy, there are some nuggets to that direction. wholesale electricity prices by state However, there are as noted, political biases and flashpoints that will entrench stakeholders, active or retired postal workers and other political groups.