The Postal Service has opportunities to increase its share of federal shipping revenue, the USPS inspector general has said.
It said that during fiscal 2011 and 2012, federal agencies spent $342.6 million and $336.9 million on shipping services through GSA contracts but that USPS only took in $1.2 million of that in fiscal 2011 and $4.8 million in fiscal 2012.
According to the IG, two major challenges remain: pricing inflexibility and the lack of 2- and 3-day guaranteed express delivery products.
In addition, the Postal Service faces challenges resulting from a relatively late entry into the GSA market compared to competitors such as UPS, as well as the size and structure of its federal sector sales force, and limited payment methods it accepts, the IG said.
It said that by overcoming those challenges and enhancing customer intelligence to identify those federal agencies that predominantly ship lightweight packages that USPS could generate $17.4 million of additional revenue annually during fiscal 2013 and 2014.
