USPS Costs Lower Compared To 2005, OIG Reports
Posted on March 20, 2017 by mailomg in Memo 97, Uncategorized // 0 Comments
The OIG’s recent white paper, Examining Changes in Postal Product Costs, found that over a 10-year period, the Postal Service has made good progress in cutting product costs, even though the number of delivery points increased. That is, when the main cost factors over which the Postal Service has no real control are accounted for, unit costs were lower in fiscal year (FY) 2015 than in FY 2006 for three of the four products studied — First-Class Mail, Standard Mail, and Package Services. Only Periodicals’ unit costs increased.
Unit costs are the costs of handling, processing, and delivering a mailpiece within a given mail category (without adjusting for weight, drop-shipping, or other specifics).
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