Postmaster General Brennan's View for the Future of the Post Office

The Real Mail Notification pilot program, which was discussed in detail at an earlier session in the day by the USPS's Vice President of New Products and Innovation Gary Reblin, has seen close to an 18 percent participation rate among customers in Northern Virginia. The program is being rolled out to the New York City market this summer.

Keeping Mail Affordable
In order to keep mail affordable, the USPS has implemented a number of cost-cutting measures. It's consolidated postal facilities and delivery routes; overhauled its vehicle fleet, opting for more economical vehicles that offer expanded cargo capacity and operate on hybrid fuel types; and sold postal facilities that were no longer in operation.

Brennan and her team are looking at both sides of the financial ledger, however. Not only is it necessary for the USPS to control costs and improve operational efficiencies — without sacrificing service levels — but it must invest in its infrastructure as well. For example, the organization is introducing a new small package sortation system to help the flow of packages through the mail, and has invested $2 billion in capital investments in 2015, up from $700 million the year prior.

With all that said, Brennan conceded that the USPS needs fundamental reform. The facts are that for every 30 cents it has in assets, it has $1 in liabilities. Burdened with the responsibility to prefund retiree benefits, the Postal Service needs flexibility to grow its business. Increasing catalog volume is one such opportunity.

Brennan cited that possible pricing incentives for catalogers — e.g., a discounted postal rate for mailing books to prospects, making negotiated service agreements easier for catalogers of all sizes to get — are currently up for discussion, and she hopes to have them tested and rolled out the mailing community as soon as possible.