The agency expects the changes won’t significantly hurt package volume, and may actually result in modest growth. USPS expects the new standard would save the agency $42 million a year and would allow it to provide more reliable and consistent package delivery. “Modifying these service standards will allow for additional transport time for long-distance package deliveries and increased network efficiencies,” the agency wrote. The agency said air transportation was growing too expensive and wasn’t providing reliable service. The new standard will allow the agency to shift more of its volume onto its own ground transportation delivery network, rather than rely on contracted air transportation. USPS, however, estimates that nearly all prescription drugs currently subject to two-day delivery and the majority of prescriptions taking three days to deliver would remain unchanged under the new standards. The commission found USPS didn’t conduct a detailed analysis of how the service standards would impact customers, such as those who rely on the first-class package service to receive prescription drugs. These conclusions echo the commission’s non-binding advisory opinion from July, when it found plans to slow first-class mail wouldn’t result in “much improvement” to its long-term financial troubles. The Postal Regulatory Commission, in an advisory opinion last September, warned new service standards for the Postal Service’s first-class package service would not “substantially affect the Postal Service’s overall financial condition.” USPS is implementing these standards despite some concerns from its regulator. Postmaster General Louis DeJoy said in a recent interview that USPS, more than one year under the plan, is on track to have an “exponentially improved year,” compared to 15 consecutive years of net losses. The service standards are just one element of the agency’s 10-year reform plan released last year. The agency initially considered implementing the new first-class package service standard on Oct. Service standards, USPS added, are not the same as percentage targets or actual measured service performance. The agency said the service standards are “delivery benchmarks” for how long customers can expect USPS to deliver different types of mail and packages, from their point of origin to their destination. USPS implemented slower delivery standards for nearly 40% of first-class mail last fall. Here’s the hoping it helps your team with insights for thinking through that challenge as well. Insight by Thundercat Technologies: In this exclusive ebook, we delve into how tech leaders are working to achieve that delicate balance where risk doesn’t outpace return. Businesses rely on first-class package service for items that include small electronics and prescription drugs. Packages sent via first-class package service weigh less than a pound. The new standard will allow USPS to add an extra day or two to deliver these packages and still consider them on-time. The agency expects the new service standard will impact 32% of first-class package service volume. The new standard will allow USPS to add an extra day or two to deliver these packages and still consider. USPS announced Monday it will implement its new service standard for its first-class package service starting May 1. The Postal Service is moving ahead with plans to implement a slower delivery standard for nearly a third of small, lightweight packages.
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