Background
The U.S. Postal Service’s Delivering for America plan included offering new competitive products and services for customers. As part of this effort, the Postal Service launched a new package shipping service called USPS Ground Advantage and discontinued its Retail Ground, Parcel Select Ground, and First-Class Package services. Ground Advantage was intended to streamline package shipping options, increase customer satisfaction through a more reliable and cost-effective product, and grow revenue – and since its introduction, the Postal Service has experienced nearly a 3 percent increase in package volume nationwide. In addition to Ground Advantage, the Postal Service currently offers two other package shipping services: Priority Mail Express and Priority Mail. A successful launch of Ground Advantage is critical to the Postal Service’s efforts to retain existing customers, attract new customers, and remain competitive in the package industry.
What We Did
Our objective was to evaluate the service performance and effectiveness of package shipping services. We conducted site visits at select Postal Service facilities, interviewed management and employees, observed package entry, dispatch, and processing, analyzed service performance and package volume data from July 2023 through March 2024, and compared package volume to the same period the year prior. We also conducted a mail test to determine if packages shipped met service standards and to gain insight into the customer experience.
What We Found
While the introduction of Ground Advantage simplified the flow of packages through the Postal Service network, service performance goals were not met for Ground Advantage, Priority Mail Express, or Priority Mail from July 2023 to March 2024. Additionally, delivery units did not always follow guidance to separate packages when preparing mail for dispatch, making identification of packages that require priority processing difficult. Failing to achieve intended efficiencies could impact customer satisfaction and the Postal Service’s ability to increase its market share in the growing package industry.
Recommendations and Management’s Comments
We made two recommendations to address packages not being separated, according to guidance, at delivery units. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to both recommendations, and corrective actions should resolve the issues identified in the report. Postal Service management’s comments and our evaluation are at the end of each finding and recommendation.
