The highly anticipated ten-year plan from the United States Postal Service (USPS) was published last week. The goal of the plan, entitled Delivering for America, is for the Postal Service to achieve financial stability over the next ten years. In the plan, the USPS indicates that they will face losses of up to $160 billion over the next ten years if the plan is not adopted. Many in the mailing industry take issue with the size of the projected deficit, in part based on recent financial reports from the USPS indicating cash on hand of almost $13 billion.
The USPS proposes to combat the projected loss with four major funding sources:
1. Reducing retiree costs by legislative actions that would repeal the retiree health benefit pre-funding mandate currently in effect, and to maximize future retiree participation in Medicare. This will make up 36% of the shortfall.
2. Expanding the current USPS pricing authority above the current CPI cap. Twenty-eight percent of the shortfall will come from this initiative.
3. Cost improvements, including changes in service levels. This is an estimated 21% of the shortfall.
4. Revenue growth, primarily from parcels. This will comprise 15% of the shortfall.
Most mailers are supportive of the plans to continue with six- and seven-day delivery for mail and packages. Realistically, anything less would put the USPS at a serious competitive disadvantage.
Legislative actions to repeal the current retiree health benefit pre-funding mandate have long been supported by the mailing industry. In addition, better integration between the Federal Employees Health Benefit Plan and Medicare would reduce costs and increase participation.
Investments in upgrading postal processing equipment and information technology have been delayed due to financial constraints, and those improvements are desperately needed. In addition, much of the delivery vehicle fleet is reaching the end of its life and needs to be replaced, preferably with more electric vehicles.
Investments in employee retention, such as career planning, training, opportunities for growth, advancement and promotion are necessary to ensure a robust workforce.
The published plan did not include input from mailing industry customers or craft employees, two major stakeholders in the success (and execution) of the plan.
Focus on packages. The USPS plan does not include sufficient solutions to attract and retain mail volume, but rather focuses on package volume. While there are certainly improvements that need to be made to the efficiency of processing and transporting packages, most of the revenue and volume involves other types of mail, so the USPS needs to put into its plan solutions not just for packages.
Price increases. The mailing industry fought for many years to get a more stable, predictable process for USPS price increases, which was obtained by the PAEA. Now, the USPS plan includes above-CPI pricing authority, and the ten-year plan is unclear on exactly how the Postal Service will implement price increases. The mailing industry needs a plan that allows planning and budgeting for regular, realistic price increases.
Service standard changes. The USPS is proposing to reduce delivery standards for First-Class Mail (and some Periodicals), resulting in one- to two-day slower delivery. Mailers would prefer to see more discussion with customers to determine what service levels are needed and how to cost effectively meet those needs.
Partnering with TC Delivers has been one of the best choices we made. We have worked with them for a number of years and it has always been a great experience. I know I can rely on them to give us the best service possible. The team at TC is top notch and I know the future will only bring better things. Our salesperson makes sure to keep us up to date with any mailing solutions we need.
We have used TC Delivers as our presort service for the past five years. Although our output volumes have significantly increased during this time, their knowledgeable staff has maintained the same high levels of quality, efficiency, and care with our mail. I look forward to our continued business together and highly recommend TC Delivers for anyone looking for a professional, reliable, and friendly presort service.
Great communication & collaboration while working with this vendor.
Very professional, great company to work with.
TC Delivers has been a great partner to work with. They helped create an outstanding team environment that helps us achieve our mailing/processing goals and demands whenever a new challenge arises.
TC Delivers has done a great job growing along with our company, keeping up with the increased business and higher monthly mailing volumes associated with that growth. Our salesperson is always on top of quotes for projects, helps keep us on point for our escrow balances, and her expertise has helped to find cost savings for our company. The Senior Data Processing Technician does an incredible job with all the day to day processing, as it runs seamless. His attention to detail helps to account for the accuracy he displays on all the Special Mailing projects, as well as the new projects that he has to implement that are thrown his way. TC Delivers is a top notch vendor to utilize when looking for savings and accuracy on all your mail solutions.
Our company has been working with TC Delivers for the last 7 years and have always been completely satisfied with their performance. They are customer service oriented and always meeting the time frames we have for sensitive jobs.
When our company first opened an office in Florida in 2012, we used TC to ship all of our mail for us. In 2014 our corporate office decided that we should be unified with all of our offices throughout the country so they moved us to another presort facility. We had many problems with that other facility (mailings not reaching their destination in a timely fashion, etc).
At the beginning of the year we switched back to TC and we could not be happier. We have not had customer complaints about mail not getting somewhere on time. Our salesperson is very helpful and is always willing to answer any questions we may have. We are very glad we are back with TC and will recommend them to anyone!
I’ve been extremely satisfied with TC Delivers customer support, professionalism, and quality of work. I have thrown many different projects at TC Delivers and they always comes through for us. My favorite part of dealing with them is they never reply to a request with “NO we can’t do that”, they always start out with “Let’s see what we need to do to take care of that for you” and that is “CUSTOMER SERVICE”. Our everyday mailings, proof of mail, fulfillment and presort is always taken care of very professionally, their pick-up drivers are on time and courteous.
We have solely used TC Delivers mailing services for 2 years. Our account managers work diligently to not only meet, but exceed our expectations. Any questions and new efforts are quickly answered and assisted in planning. It’s so refreshing to do business with an affordable and professional family-owned and operated company.
Our company goes to TC Delivers for all of our printing needs. They always respond quickly to our requests for quotes and get the product out to us in a very timely manner. We use them for mailers, informational cards and specialized projects as well. Their prompt service and outstanding customer service is what keeps us coming back!
We have been with TC Delivers for many years and we have been very pleased with their service for us. TC has friendly staff and drivers, willing to be of help even when we need extra services like trays & sleeves. Their pricing is very competitive and they are willing to work with us on large projects as well as small. We will be using them in the future and would highly recommend their services.
Working with TC Delivers has truly been a great all around experience. They accommodate our schedule changes, and the drivers always provide quality customer service. We appreciate our relationship with TC Delivers, and look forward to a continued partnership.
TC was easy to do business with and delivered the campaign that we needed several times.
I have had the pleasure of working with TC Delivers for the past 12 years. We have produced a number of projects together- both large and small, and a number of ongoing ones. During this time, the service has been outstanding and it is their attention to detail that really shines. Once I turn it over to TC Delivers, I no longer have to worry about it. And that more than anything says more about working with them- it’s nice to have a partner who walks the walk. I would whole-heartedly recommend TC Delivers for pretty much any direct mail and fulfillment project that you would have. It’s worry free!
TC Delivers has delivered consistent quality service to us for over five years. Their prompt, professional and reliable customer service is what sets them apart, saving us time and money without any headaches.
The staff over at TC Delivers helps our daily mailings fulfill with ease. They are always eager to help, and wonderful to work with.