USPS Reveals FSS Is Increasing Operating Costs

WASHINGTON, DC—The last thing the U.S. Postal Service (USPS) needs is to find out that it is not operating in the most efficient and cost-effective manner. But noted mail blogger Dead Tree Edition reported that the USPS admitted that its Flats Sequencing System (FSS) has actually increased the Postal Service’s operating costs.

According to Dead Tree Edition, the USPS released data that shows two of the three major types of mail processed on FSS machines—Standard (non-carrier route) Flats and Periodicals—experienced larger increases in processing costs than they had gained in delivery savings the past two years. While responding to a Postal Regulatory Commission question, the USPS maintained that its $1.3 billion investment in the 100 FSS machines was still worthwhile.

“FSS is a long-term initiative and FY 2012 is only the first fiscal year of full FSS operation,” the USPS wrote in response. “Long-term initiatives often mean additional costs (capital and additional operating costs) have been incurred while the associated savings take longer to realize.

“Second, the large decline in flats volume has impacted FSS operations, as the lower FSS volume per 5-digit ZIP code has caused lower FSS productivities than anticipated. Work is underway with Engineering to accommodate the lower volumes, to thereby boost FSS productivity.”

More information is available by clicking on Dead Tree Edition.

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