The U.S. Postal Service has a broken business model, David Williams, Vice Chairman of the Postal Service Board of Governors said. But instead of waiting on Congress to move, what if we figure out a new model and take it to Congress, he asked.
That was Williams’ opening volley in a lively exchange at the Women in Logistics and Delivery Services (WILDS) annual meeting and luncheon on November 29. As he had done for many years as the Inspector General, Williams teed up thoughtful, and thought-provoking, ideas.
“We could begin the process [of reform] with a business question: How do we provide universal service in the 21st Century?” Williams said. “What does the universal service obligation (USO) mean and what are Americans willing to pay for it?”
The Postal Service owes customers affordable prices and access to post offices. It provides end-to-end service across the country and access to a uniform rate. It’s an odd balance, and it doesn’t always work. Yet, the USO is essential, Williams said.
As we consider the definition of the USO, Williams suggested we keep these things in mind:
– We need updated products and new technologies – What do today’s customers need?
– Our solutions should match those needs.
– But we need to understand what customers are willing to pay for these solutions.
– How often should mail be delivered?
– What does America want their Post Office to look like?
– If we can agree on some of this, we should be able to find a way forward.
Williams said the USPS model is very American: wrapped around a “postal core” is a layer of mail service providers, which allows it to be scalable. The Postal Service does certain things very well, but it faces challenges in other areas.
It should tap its strengths, which include:
– Package Business – the Postal Service delivers roughly 60% of small packages. It has an opportunity to control the returns business too.
– International Money Orders – we should look to expand into other countries.
– Advertising Mail – This is such a good service at a good price.
– Network effect – We can “network” everybody.
– Pharmaceuticals and food delivery – USPS in a good position for these growing markets.
– Front office for e-government – Post offices can provide a retail “front office” for other government services.
Its challenges:
– Huge network but narrow ability if USPS can use post offices only for what they provide today. We need to use the network more expansively.
– Need precision costing.
– Pricing and price cap need a closer look.
– Prefunding needs a second look.
– “Middle mile” is costly and slow. How do we fix it?
– We need some kind of “continuous update mechanism” that Congress is comfortable with and that allows for adjustments and fixes because the legislative process is slow.
Williams floated the concept of a “solutions machine” – inputs are constantly changing but what if we fed in data and then could play with levers to improve outcomes? Among those levers would be worksharing, contractor costs, mission support management, new products, and investment strategies.
– Submitted by Kate Muth
- Featured Speaker Vice Chairman USPS BOG David Williams sharing his insights with an attentive audience
- Anita Pursely, WILDS Co-Chair, Sr Mgr, BCC Software
- Shoshana Grove, WILDS Chair and International Bridge CEO
- WILDS Secretary/Treasurer, Kathryn Kobe
- Shoshana Grove introduces Kate Muth
- Nancy Sparks posing a question
- Margaret Cigno and Anita Pursley listening attentively
- Bobbi Richardson taking in all that Dave had to say
- Beth Fluto and Dave Williams
- Dave Williams and Violette Jacobson
- Bob Reisner and Dave Williams
- Don Vitti, Joe Reiliey, Nancy Sparks, Kate Muth, Mike Plunkett, Keith Kellison
- Shoshana Grove, Erik Galas, Kim Waltz, Paula Stoskopf, Anita Pursley, Dave Williams, Karen McKormick
- Scott Williams ,Denise Wilson, Violette Jacobson, Paola Piscioneri, Bruce March, Katherine Kobe, Bobbi Richardson
- Bob Reisner, Chris Lein, Mary Ann Castillo, Jennifer Daehn, Ruth Ann Abrams, Carolyn Lowry
- Kate posing a question.
- Carole Kliewer, Phil Tabbita, Art Sackler
- Kim Waltz and Paula Stoskopf
- Kathleen Siviter and Rita Cohen
- Kate Muth taking notes
- ?, Anne Fisher, Virgil Griffin
- Nadia (?), Maryam Nasimov , Nora Taylor, Felicia Hawkins, Kimberly Benoit
- Dave Williams and Shoshana Grove
- Darryl Anderson and Dave Williams
- Mary Guthrie, Maureen Goodson, Rueben Richards, Sofia Victor, John Guenter, Kirk Kaneer
- SAAS in da house!
- She Delivers!
- WILDS Annual Luncheon at Officina on the Wharf