Background
Each year, increased mail volume and operational changes during the U.S. Postal Service’s peak season — Thanksgiving through New Year’s Eve — significantly strain the Postal Service’s processing and distribution network. As noted in prior audit reports, Postal Service management continued to develop a year-round strategy in preparation for peak season by implementing permanent operational changes.
What We Did
Our objective was to evaluate the Postal Service’s performance during the fiscal year (FY) 2024 peak season and the implementation of its peak season preparedness plan.
What We Found
The Postal Service was able to successfully implement most of its peak season initiatives. While First-Class Mail, Marketing Mail, and Periodical Mail volumes decreased by 12.1 percent and package volume increased compared to last peak season, the Postal Service met some processing and distribution goals, all logistics goals, and most retail and delivery goals. Specifically, in processing and distribution operations, processing facilities hired above plan and successfully completed internal audits, but they did not meet their planned operational schedule goals. For logistics operations, management successfully forecasted mail volumes, assigned transportation, and decreased late and canceled trips, although there was an increase in extra trips. In retail and delivery operations, customer inquiries overall decreased and retail measurements were relatively flat compared to last year, but the Postal Service did not meet their peak season hiring goals. Regardless of the successful implementation of most initiatives, service performance scores decreased for most products during the FY 2024 peak season. Specifically, service performance declined for most market dominant products and all competitive products, compared to the previous peak season. For example, First-Class Mail and Ground Advantage decreased compared to last peak season, respectively.
Recommendations and Management’s Comments
We made one recommendation to address the issues identified in the report. Postal Service management agreed with the recommendation, and the U.S. Postal Service Office of Inspector General (OIG) considers management’s comments responsive, as corrective actions should resolve the issues in the report. Postal Service management’s comments and our evaluation are at the end of each finding and recommendation.
