DRIVE INITIATIVE ON NETWORK OPTIMIZATION MOVES AHEAD
|Members of the Network Optimization team — including employees whose expertise spans most USPS functions — discuss the plant consolidation/closure study. Vice President, Operations, David Williams, the team leader, is second from right.|
The Postal Service’s Network Optimization Initiative — a study to determine whether more than 250 processing plants should be closed or consolidated — is well underway.
The goal of the network optimization initiative is to create a smaller, simpler and more flexible processing system scaled to mee t projected mail volume, which has declined by more than 43 billion pieces in the past 5 years. First-Class Mail has dropped 25 percent and single piece First-Class Mail has declined 36 percent in the same timeframe. The decline has created substantial excess capacity within the postal processing network.
The study — one of 36 initiatives that make up the Delivering Results, Innovation, Value and Efficiency (DRIVE) program — is being conducted by an integrated team of employees that span nearly all functions within the USPS. The cross-functional team is headed by Dave Williams, vice president, Network Operations.
Team members are coordinating the steps necessary to meet DRIVE goals. Operations representatives, for example, are designing the new network, while representatives from Government Relations and the Law Department are coordinating with Capitol Hill and the Postal Regulatory Commission (PRC). Additionally, members from Corporate Communications, Supply Management, Consumer and Industry Affairs, and other departments are managing the planning, communications, and implementation activities.
The team expects to submit its proposal to the PRC for review next month. If the PRC approves the proposal, the Network Optimization activities could begin early in calendar year 2012.
Administered by the Postal Service’s Strategic Planning department, the DRIVE program management process is based on a well-established methodology used by many corporations to improve the development and execution of major business strategies. The ambitious initiatives include revenue generation, cost reduction, and capability enhancement necessary for the Postal Service’s long-term success.
Click here to learn more about DRIVE.
source: USPS News Link