In response to declining mail volume,. the. U.S. Postal Service is challenged with rightsizing its transportation network and adjusting its [REDACTED] while reducing costs and maintaining delivery service. In fiscal year (FY) 2011, the Postal Service established 36 Delivering Results, Innovation, Value, and Efficiency (DRIVE) initiatives to improve its business strategy. DRIVE aims to bring revenue in line with expenses through strategic initiatives with measurable outcomes. Each initiative has process road maps that track whether initiatives remain on schedule and achieve their objectives.
The strategy for rightsizing the transportation network is DRIVE Initiative 1.13, Ground Transportation. This initiative is designed to reduce transportation spending by $1 billion from FY 2014 through FY 2017. In FY 2015, annual network transportation costs of about [REDACTED] Billion were the Postal Service’s largest operating expense after compensation and benefits.
During our audit we did a comparative analysis of strategic planning best practices used by 15 international posts, corporations, and advisory boards. We found that effective strategies include contingency planning.
Our objective was to evaluate the Postal Service’s strategy to effectively optimize its [REDACTED] network.