OIG: USPS could save $4.5 billion by eliminating door to door delivery

The US Postal Service’s Inspector General claims that the USPS could save more than $4.5 billion a year by eliminating door to door delivery:

The delivery operation is the Postal Service’s largest cost center with mail delivery occurring 6 days a week. Door-to-door delivery is the most expensive mode of delivery, costing the Postal Service as much as $353 per delivery point, totaling $12 billion annually. Curbside delivery is more cost effective, because it allows the carrier to remain in the vehicle and deliver mail from the street to a mailbox or grouping of mailboxes. Furthermore, it lessens the possibility of carrier injuries such as falls, stress and strain on shoulder joints due to carrying a mail satchel, and dog bites. Centralized delivery is even more cost effective and efficient, because carriers deliver mail to a group or cluster of mail receptacles at one delivery point.

Converting existing door-to-door to curbside delivery could save the Postal Service more than $4.5 billion. If the Postal Service converted all delivery modes to centralized delivery, it could save an additional $5.1 billion.

But the IG admits that the suggestion is unlikely to be fully implemented:

We acknowledge it could be difficult to make these changes, as the Postal Service may never fully mitigate customers’ resistance to eliminating an existing service.3 Likewise, we acknowledge some deliveries may never be candidates for conversion. On the other hand, the Postal Service must take every opportunity to cut these significant delivery costs.

As a starting point, the Postal Service could mandate centralized delivery for all new delivery points. We estimated the Postal Service could save more than $35 million if it took action to centralize new delivery points. See Appendix B for our detailed analysis of this topic and Appendix C for our calculation of monetary impact.

USPS OIG Audit Report – Modes of Delivery

  • brian

    Hey Issa..read this one…Why don’t you and Ross take this on and set up a committee to handle this one.. I’m none of the people in your distrcit will complain…

  • Mark

    Go one step further. Make every post office a mass box section for every delivery point in the city . Allow a small number of carriers to convert to clerk craft. Get rid of the rest of them…………..

  • Yoshi

    That sounds great mark, You can take grams mail to her everyday because she doesn’t drive and has a walker. Yes changing deliver points will help. But the true needs is a total change, from delivers all the way to top heavy system.

  • Tom

    USPS could save 60 billion annually by shutting down! And think of all the bucks the govtt would get from selling off its property. The IG has crossed over the line. When USPS senior folks start saying why deliver to doors, it’s time to start talking a) either replacing all of them or b) just shutting USPS down.
    Has everyone given up on the public service function of the mail? Oh, the public service function today is enriching the big mailing houses. I forgot

  • mike

    so many accidents occur just in our office from trips, or someone steps in a hole ect, It would cost billions but it might be worth it in the long run for the post office to pay for curbside boxes for walking routes. people who have had door service will be so angry that they lost it and have to walk to the street for mail, but in the long run it would save even more billions. carriers could carry more stops more mail with less injuries occuring

  • Bigwheel

    Looks to me like “saving” money in this case means GETTING RID OF CARRIERS.
    I thought we were trying to create jobs in America today!!!
    Let’s get rid of these republican talking points: save money,. cut-backs, reduce the size of government, take away workers rights, destroy unions. This is why we are not producing any jobs– UNLESS THE JOB PAYS PEANUTS.

  • jake

    Door-to-door delivery is the most expensive mode of delivery

    really ??? let’s see usps deliveries mail. ! No kidding ! WHO would have thunk ?!?!?!

  • cj

    I agree with Mike. We all know that accidents involving motor vehicles are incredibly rare, and only lead to minor injury and property damage, if any.

  • cb196

    Hate to say it, but what is going on in other countries is coming to this country. Never thought it would happen in my life time, but I think it will. The young people of this country are going to get fed up with no jobs, no money. It is ashame what these so called Politician are doing to this country.

  • Bobby Glasses

    Curbside delivery has been discussed for city delivery for the past 20 years. Rural delivery has been curbside forever. It’s a no brainer.
    Sure it can’t be implemented 100% i.e. handicapped, elderly and inner city areas but it would be more cost efficient. The public should support this move in order to keep the Postal Service in business. Think of the jobs that will be lost if the Postal Service goes out of business.

  • Be More Creative

    The OIG is thinking inside the box. Anyone could figure out how to tell Dean Granholm to save by eliminating door to door delivery. They should have said “due to Congressional neglect, there will likely be a shutdown of USPS services if radical changes aren’t implemented. We have decided to incorporate a new mobilized Neighborhood Delivery Box Collection Unit that will allow the Postal Service to take 1 of your 2 identical NDCBUs to the office and sort the mail directly into the delivery point while in the office. The NDCBU will then be transported to your neighborhood the next afternoon and replace the other NDCBU. This would not only cure the ‘door to door’ problem, it would completely eliminate the carrier craft.”

  • kurt

    hey grams , that package i sent will be at the bus stop in saturday the 12th, oh,there is no delivery on saturday anymore, wull, just drive by ther….or wait maybe i`ll have up or fed ex deliver it on saturday for me, just cost 20 dollars more,,,,yeah

  • Lee

    This is a joke, grew up in the inner city, can’t do curbside delivery in any big city!

  • James

    The USPS is the only place with their own police force. We could save millions by getting rid of the OIG and Postal Inspection Service and contracting out to private security firms.
    Government could save even more by getting rid of Issa.

  • Name (not required)

    Have customers install a curbside box right next to the sidewalk. This way the carriers won’t be walking on nice lawns, entering dog territory, or going up and down icy, slippery steps all day. Save on time and injuries!!

  • Peggy

    This is not a new idea. The upper management is mostly interested in keeping their own jobs at the expense of the carriers and clerks who actually work the mail.
    USPS needs to charge businesses what it actually costs to deliver bulk mail and raise the cost of first class mail. As the mail goes away, so too will the routes and the jobs.

  • july4

    Their plan includes dumping entire “complexes” mail into one “community” mail box. One stop “shopping” for thieves. YOU FIRST CONGRESS – We want all Congressional mail dumped into one “community” mail box – no door to door delivery to individual representative’s offices. THIS WILL KILL POST OFFICE – I will STOP MAILING ANYTHING via post office – do everything online from now on and use FedEx and UPS for packages. WE DESERVE OUR PRIVACY. The only UP side of this, it will also probably destroy junk mail too.