Audit Finds Package Delivery Ops Sound, But Could Be More Effective
July 11, 2012 - In a recent audit, the Office of Inspector General (OIG) found the U.S. Postal Service has done much to strengthen its position in the package delivery market. While reviewing the agency’s package delivery operations, auditors found the Postal Service had increased its visibility, implemented more market-based pricing, and cultivated strategic partnerships, all of which helped it keep pace with competitors in the domestic and international package markets.
Although strategies were sound, OIG auditors found the Postal Service could be more effective if the agency establish a strategic decision-making process for evaluating new sales opportunities and enhance its CustomerFirst System, a database used to track sales opportunities. For example, auditors identified more than $100 million in lost sales opportunities nationwide in fiscal year (FY) 2011 due to issues ranging from an inability to arrange for transportation to inadequate customer service. Auditors also found CustomerFirst! did not provide clear sales options, which resulted in sales staff not always choosing the most accurate reason why they did not complete a sale.
Further, auditors recommended the Postal Service fill vacant sales staff positions and pursue legislative change that would allow it to offer new products. Adjusting its strategies to incorporate these recommendations could help the Postal Service increase revenue by $314 million in FY 2013, OIG auditors estimate. Management agreed in part with the recommendations and took corrective actions to resolve issues identified in the OIG report. Management disagreed with the monetary impact the OIG proposed, commenting that even with a reduced sales staff, they increased sales by focusing on higher value sales and sales execution. To read this report in its entirety, click below