The USPS wants your parcel business… Let’s review DeJoy’s public and private plans that have been revealed in the past couple of months. - Elimination of Parcel Select Lightweight Service. Parcel Select now includes pricing at 4, 8, 12 oz weight breaks (effective Jan 2024) - Consolidation/closure of DDU’s (postponed until 2025) - Parcel Select 25% price increase (effective July 2024) - Elimination of DDU injection from high volume shippers and postal consolidators (effective date unknown but rumored to be anywhere between Sept 24’ - Jan 25’) A wave of change is coming. The USPS has the power and infrastructure to create a Tsunami. What steps (if any) are you taking to prepare?
Oscar here is the question I have for the community, Can the USPS handle the Tsunami? My gut says if they eliminate the DDU injection they can't.
Just be sure to insure the parcel parade. Their claims process is a nightmare!
Enhancing your logistics infrastructure with advanced technology can streamline operations and improve efficiency. Automated systems can help manage the complexity of using multiple carriers and adapting to changing shipping rates.
Consolidation/closure postponement is only until January 2025. That is not coincidental that DeJoy agreed to pause it until elections are over which is what the complaining senators and congressman were most worried about, mail-in ballots. Then he will likely rev it back up for the next 4 years.
Contract Transportation and Logistics Marketing and Strategy Consultant
5moA couple of thoughts. The USPS needs to greatly improve their front end logistics. Consolidators are far superior at managing and sorting inbound volume than the USPS. The USPS needs to significantly improve customer onboarding and billing. To use the USPS on a large scale you have to build the capability to submit electronic manifests. This can be expensive and time consuming to build the systems and data infrastructure and historically the USPS has offered little assistance to the customers in terms of electronic manifesting. Additionally, for large scale customers to use the USPS they must keep significant funds on deposit with the USPS to cover postage. The USPS does not send you a bill with payment terms, customers essentially pre pay when using the USPS directly. Finally, the current strategy and approach is all being driven by PMG DeJoy and is dependent on him remaining as the PMG. In the highly politicized environment that the USPS operates in that is not absolutely guaranteed.