The USPS introduces Delivery for America. Is Your Mail Program Ready?

The USPS introduces Delivering for America. Is Your Mail Program Ready?

On March 23, 2021, the USPS announced their “Delivering for America” initiative outlining their 10-year plan to achieve financial sustainability and service excellence to modernize the Postal Service.

The USPS confirmed, “Our plan establishes clear strategies to quickly achieve financial stability and service excellence. Our plan will generate enough revenue to cover our operating costs, enable investments in our people, infrastructure, and technology, and simultaneously provide our customers and the American people with the excellent service they expect and deserve. By implementing the totality of the strategies identified in the Delivering for America ten-year plan. In doing so promptly, we will operate with a positive net income beginning in FY2023 or FY2024 and reverse a projected $160 billion in losses over the next ten years.”

How will this plan impact your business?

The USPS intends to modify existing service standards for First-Class Mail Letters and Flats from the current 1- to 3-day service standard within the continental United States to a 1-to-5-day service standard. The plan is specific to First-Class Letters and Flats only, which includes Courtesy letters, Business Reply Letters, and Flats. This adjustment will enable 43 percent of First-Class Mail to transition from air to surface transportation with investments in new delivery vehicles, upgrades in processing networks, and technology.

The USPS projects aligning service standards and adopting best practices across the logistics industry will dramatically improve service reliability and drive greater efficiencies. The implementation date has not been confirmed, but this change could be in place beginning late summer or early fall of 2021.

The graphic below summarizes how the new delivery standards will be applied based on destination distance.

Will USPS rates increase again in 2021?

While the answer is unclear at this point, there is much industry speculation around another USPS rate increase in 2021.

The USPS provided the following information:

“New prices for 2021 took effect January 24. No decisions have been made regarding any additional price changes for 2021. Our plan will utilize judicious and prudent strategies to optimize prices for our market-dominant products within applicable regulatory constraints, and by more effectively aligning prices to the marketplace for our competitive products. Any price change would need to be approved by the Postal Service Governors and reviewed by the Postal Regulatory Commission.”

Where can I find more information?

Additional information regarding the USPS Delivering for America plan can be found through this link: https://about.usps.com/what/strategic-plans/delivering-for-america/#conference. We encourage you to become familiar with the initiative and evaluate the impact on your business. The USPS will be filing a federal register soon and will accept public comments. Don’t miss the opportunity to make your voice heard.

Venture will continue to be a trusted partner and advocate, keeping you informed on USPS current events. Please reach out if you have further questions. We are here to help!