USPS Cost Savings

Creating Cost Savings Across the Supply Chain

Noblis study helped the U.S. Postal Service defer $20M in budgetary spending

All government agencies are faced with large budget cuts, but few are hit as hard as the U.S. Postal Service (USPS). Faced with billions of dollars in losses, USPS is seeking drastic ways to cut their expenses.

USPS scrutinized their operations to find potential cost savings across the enterprise and asked Noblis to conduct a supply chain analysis investigation on a piece of machinery. The results of this study showed that the USPS could defer $20M in budgetary spending.

According to the USPS, on an average day 554 million pieces of mail are processed. The machines that sort the mail into delivery sequence for the carriers are known as delivery bar code sorters. These sophisticated machines use multiline optical character readers to read addresses, add barcodes, and sort the mail at a rate of 9 pieces per second.

As these machines age, it is harder to get replacement parts including circuit boards. The USPS asked Noblis to complete an end of life study on a delivery bar code sorter circuit board. We assisted the USPS by running the statistics on the failure rates of these boards, surveying available stock on hand to repair the boards, and determined that the circuit boards could be maintained rather than replaced. The results of the study deferred a $20M investment for USPS to buy new circuit boards.

From procurement support, to budget tracking, and business process flow analysis, Noblis is helping the USPS create new efficiencies that will reduce their operating costs.

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