The U.S. Postal Service needs to grow revenue, not just rely on cost cuts, to achieve financial health and one way to do that is return to providing last-mile delivery service for large shippers, Postmaster General David Steiner told his bosses on Friday.
Consolidation of distribution centers and regional transfer hubs in the past four years under predecessor Louis DeJoy has allowed the Postal Service to dramatically improve its middle-mile logistics operations, but the organization should leverage its biggest advantage —the first-and-last mile delivery network, he said at the board of governor’s meeting.
DeJoy gradually dismantled a workshare program under which parcel consolidators injected bulk mail and parcels into the system at local post offices for final home delivery, culminating in the breakup with UPS late last year. The former logistics executive instead steered the Postal Service to handle parcel shipping from door-to-door.
