Background
The U.S. Postal Service is redesigning its network with the goal of creating a best-in-class mail and package processing network as part of its 10-year strategic Delivering for America plan. The Postal Service plans to invest $40 billion to create a modernized network based around Regional Processing and Distribution Centers (RPDC), Local Processing Centers, and Sorting and Delivery Centers. The Postal Service plans to create about 60 RPDCs to consolidate mail processing operations with fewer points in the processing and transportation networks. The Portland RPDC is one of the first RPDCs in the network.
What We Did
Our objective was to assess the operational impacts related to the launch of the RPDC and identify successes, opportunities, and lessons learned. We conducted observations of the Portland RPDC and surrounding mail processing facilities from March through June 2024.
What We Found
The Postal service implemented several lessons learned from a prior RPDC conversion, such as administering the conversion in phases, including personnel and stakeholders in planning and implementation, and ensuring adequate staffing for key positions. However, we also identified opportunities for the Postal Service to improve performance in the region and during implementation of future RPDCs. Specifically, (1) the Integrated Operating Plans (IOPs) did not align processing, logistics, and delivery operations; (2) management did not adhere to the planned layout after the RPDC implementation date; and (3) transportation schedules did not support local needs. Service performance was managed effectively throughout the implementation and generally only minimal negative service impacts were felt for most products. However, Express Mail remained consistently and significantly below target before and after implementation.
Recommendations and Management’s Comments
We made three recommendations to address the issues identified in the report, to include communicating and documenting the IOPs, documenting lessons learned regarding miscommunication of unplanned changes to the facility layout, and completing a review to align transportation schedules at the RPDC. Management agreed with all three recommendations, and its comments and our evaluation are at the end of each finding and recommendation. The U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive to the recommendations, and corrective actions should resolve the issues identified in the report.
