Federal Manager's Daily Report

Postal management agreed with recommendations to address packages not being separated according to guidance at delivery units. Image: photosince/Shutterstock.com

Postal Service employees generally have a favorable view of the recently launched Ground Advantage process, but during its initial nine months of operation it did not meet its performance goals, an inspector general report has said.

In starting Ground Advantage in July 2023, it noted, the USPS discontinued its Retail Ground, Parcel Select Ground, and First-Class Package services, intending to streamline package shipping options, increase customer satisfaction through a more reliable and cost-effective product, and grow revenue. The USPS meanwhile continues to offer two other package shipping services, Priority Mail Express and Priority Mail.

“During site visits at mail processing facilities, employees stated Ground Advantage allowed for more efficient and faster processing. Further, we learned from employees at select delivery units that advantages included a simplified package separation process, resulting in less handling and more straightforward employee training,” it added.

However, “While the introduction of Ground Advantage simplified the sorting, processing, and flow of packages through the Postal Service network, the Postal Service did not meet service performance goals for any package shipping from July 2023 to March 2024,” although the exact on-time performance figures were redacted.

Also, “guidance issued to further streamline package processing was not always followed,” it said. Specifically, “delivery units did not always follow guidance to separate packages when preparing mail for dispatch, making identification of packages that require priority processing difficult.”

“Failing to achieve intended efficiencies could impact customer satisfaction and the Postal Service’s ability to increase its market share in the growing package industry,” it said.

It said management agreed with recommendations to address packages not being separated according to guidance at delivery units. USPS said last July that Ground Advantage was a key cog of its Delivering for America plan, comprising the shipping portfolio of Ground Advantage, USPS Connect Local and USPS Connect Regional — helping the service compete for package business under 25 pounds that can be transported by ground nationwide. The offering includes package pickup at homes and offices, as well as $100 of insurance.

The IG in June issued findings that revenues were above projections in the first two years of the Delivering for America program, but costs were higher as well, including those related to employees, an inspector general audit has said.

The report comes as the USPS has put a general pause, under pressure from Congress and postal regulators, on a key element of that plan involving consolidating and moving work in its processing and delivery network.

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