MCKINSEY PRESENTATION ON AMERICAN POSTAL SERVICES -- 2nd MARCH, 2010

Comrades,

Please go through the vision document of Mckinsey on the American Postal Services, USPS. To ensure a viable Postal Service for America, An Action Plan for the Future (year 2020), Mckinsey Company has given a presentation on 2nd March, 2010. Below are the some of the salient points. Is it difficult to identify the underlying central theme of the recommendations made and the ongoing experiments of Mckinsey on the India Posts!!

These are the Fundamental Changes suggested:

1. Fundamental Change : Service Level opportunities 

•  Change Service Levels from 1-3 day to 2-5 days for First Class  Mail.

• Change delivery location to curbside(the side of a pavement or street that is bordered by pavement) or cluster mail boxes.
• Reduce delivery frequency to 3 or 5 days a week. 

• Expand access through alternative channels.   a) Private Sector partnership b)Kiosks c) Direct (e.g. online, mobile)

2. Fundamental Change : Workforce opportunities

• As career employees leave, replace them with non-career employees. Improve workforce flexibility

• Take advantage of natural attrition (reduction in workforce)
• Align workforce costs with overall market trends.

3. Fundamental Change : Pricing opportunities

• Apply for exigent(urgent) price increase
• Increase prices on select products to cover costs vig. periodicals, non-profit mail, media and Library mail.

4. Non-Legislative Changes : 

• New product innovations such as Hybrid Mail
• Exigent Price increases.

5. Legislative Changes :

• Significant change in the retail net work through a combination of increased access with partners and eventual franchising and /or closure of existing locations.
• Eliminating / reducing subsidies non-profits.

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