Overall transportation expenditures increased by $7.13 million for the 15 LTO implemented regions. Image: Karolis Kavolelis/Shutterstock.com
By: FEDweek StaffA local transportation optimization initiative, begun in October 2023, that was intended to reduce trips and increase mail volume per trip, wound up increasing costs and diminishing service quality, the USPS inspector general has said.
Beginning in Richmond, VA, and expanding to 14 other regions through August 2024, the plan aimed to streamline logistics by holding mail overnight before sorting. However, the initiative has faced significant challenges.
The investigation included: Analysis of service performance data from October 2022 through July 2024 for the first six LTO regions: Richmond, VA; Wisconsin; Phoenix, AZ; Atlanta, GA; Portland, OR; and Alabama; Visits to 26 of the 2,456 post offices optimized under LTO, and Review of 15 LTO regions implemented through August 2024.
“While safeguards were appropriately implemented to secure the mail held overnight at the LTO optimized offices, we found the LTO initiative negatively impacted service to customers,” the IG wrote.
It found that service performance scores for First-Class Mail dropped, in particular for rural populations. Customer complaints about mail delivery increased. Further, management did not maintain an accurate list of optimized offices, making it harder to calculate savings.
Overall transportation expenditures increased by $7.13 million for the 15 LTO implemented regions when compared to the same period last year, according to the report.
Management agreed with recommendations to improve customer outreach to enhance transparency, as well as to strengthen cost management by maintaining accurate records.
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