PRC Questions Proposed Savings From Five-Day Delivery Week

The lack of a day could increase competition.

06/15/11

One of the ways the United States Postal Service planned to reduce expenses was by ceasing deliveries on Saturdays, which it anticipated would help save $3.1 billion annually. However, the Postal Regulatory Commission questioned the move, saying the USPS would only save $1.7 billion according to its research.

Now, the USPS has fired back at the PRC, saying the organization didn't take into account the $760 million in savings from improved city carrier productivity and $260 million from mail processing upgrades, Direct Marketing News reports.

"The Postal Service finds it unfortunate that the PRC relied upon a questionable financial analysis in developing its nonbinding advisory opinion. The total impact of transitioning to a five-day delivery schedule will significantly improve the Postal Service's financial stability by reducing annual net costs by about $3.1 billion annually," the USPS reaffirmed.

Some small businesses are concerned that a five-day delivery schedule would reduce the visibility of their postcard printing campaigns, as there would be more mail delivered per day to make up for the missing day.

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