Logistics Management - October 2011

has closed 186 facilities,removed more than 1,500pieces of mail processingequipment, decreasedemployee complementby more than 110,000through attrition, andreduced costs by $12 billionsince 2006.Through these proposedchanges, which the USPSwill file with the PostalRegulatory Commissionlater this year, the USPS iseyeing $20 billion in costreductions by 2015, comingfrom $6.5 billion innetwork changes for sortingand transport, $5 billionin compensation and benefits, and$8.5 billion in legislative changes.Among the chief legislative changesare going from a six-day to five-day deliveryschedule, receiving $6.9 billion inoverpayments to the Federal EmployeeRetirement System in the form of arefund, and resolving the mandate topre-fund retiree health benefits by $5.5billion annually and manage the legacycost going forward and allow the USPSto restructure its healthcare system tomake it independent of federal programs,among others.“By changing the servicestandard, which istoday far faster than mostpeople need, it’s easy tocut the number of processingfacilities in thenetwork dramatically,”said Jerry Hempstead,president of HempsteadConsulting, a parcelexpress consultancy.“There is significantinvestment already instate of the art automationwhich allows the USPSto process mail extremelyefficiently and accurately,”added Hempstead.“The fact is that with thedecline in mail there is far more capacityin the ability of the automation, inthe facilities themselves, and on thetransportation network to be able torationalize the system and close half theplants. This change is long overdue.” M—Jeff Berman, Group News EditorWe’ll show you the way.Managing a supply chain is complex. And your business is unique.Let UniGroup Worldwide Logistics design a solution tailored to your needs.We’ll show you the way to a more efficient logistics solution.UniGroup Worldwide Logistics is a new name, but the foundationof the company is well-established. It is built on the heritage of UnitedVan Lines and Mayflower Transit, trusted providers of reliable specializedtransportation and logistics services for more than 50 years. Based ona network of 1,300 service centers in 146 countries, we are a single sourcefor customized supply-chain solutions.Whether your supply chain is domestic or international, UniGroup WorldwideLogistics manages a global network of resources to show you the way toseamless, dependable and efficient solutions.For more information, call (877) 545-8080 or visit us at ugwwlogistics.com.UniGroup Worldwide Logistics, LLCOctober 2011 | WWW.LOGISTICSMGMT.COM Logistics Management 17