2007 Comprehensive Statement on Postal Operations TRADEMARKS YEAR REFERENCES The following are among the trademarks owned by the United States Postal Service: APC®, All references to a specifi c year or “the year” refer to the Postal Service fi scal year ending Automated Postal Center®, Carrier Pickup™, CASS™, Certifi ed Mail™, Click-N-Ship®, CMM®, September 30. However, specifi c month and year references pertain to the calendar date. CONFIRM®, Customized MarketMail®, Delivery Confi rmation™, DMM®, EPM™, Express Mail®, FASTforward®, First-Class Mail®, Intelligent Mail®, LACS™, MASS™, MERLIN™, Mover’s Guide®, NCOALink™, Netpost®, Netpost Mailing Online™, OneCode Vision™, Parcel Post®, Parcel Select®, PC Postage®, PLANET®, PLANET Code®, Post Offi ce™, PostalOne!®, Postal Service™, Priority Mail®, Quick, Easy, Convenient™, RDI™, ReadyPost®, REDRESS®, Registered Mail™, Signature Confi rmation™, Simple Formulas®, Stamps by Mail®, Standard Mail®, The Postal Store®, United States Postal Service®, U.S. Mail™, U.S. Postal Service®, USPS®, USPS Electronic Postmark®, www.usps.com®, ZIP+4®, and ZIP Code™. This is not a comprehensive list of all Postal Service trademarks. TABLE OF CONTENTS Chapter 1: Our Mission ...................................................................................5 Who We Are...................................................................................................... 5 Governance .......................................................................................................6 Chapter 2: Our Customers ............................................................................ 11 Who They Are ................................................................................................. 11 Customer Outreach .........................................................................................11 Products and Services .....................................................................................14 Chapter 3: Our Workforce .............................................................................23 Compensation and Benefits.............................................................................. 23 Labor Relations ...............................................................................................24 Complement Management ............................................................................... 25 Recruitment and Development ..........................................................................25 Diversity .........................................................................................................27 PostalPEOPLE .................................................................................................29 Workplace Environment ...................................................................................29 Employee Communications and Outreach ......................................................... 31 Community Involvement ...................................................................................32 Chapter 4: Our Operations ............................................................................33 Total Mail Visibility ...........................................................................................33 Preparation .....................................................................................................34 Acceptance .....................................................................................................36 Processing ......................................................................................................38 Transportation .................................................................................................41 Facilities .........................................................................................................42 Delivery and Pickup .........................................................................................43 Resources and Support....................................................................................44 Sustainability ...................................................................................................47 Chapter 5: Our 2007 Performance and 2008 Plan ....................................... 51 Improve Service ..............................................................................................51 Generate Revenue ...........................................................................................52 Increase Efficiency ...........................................................................................52 Customer-Focused Culture ...............................................................................53 2007 Comprehensive Statement on Postal Operations | 3 4 | 2007 Comprehensive Statement on Postal Operations Chapter 1 Our Mission The Postal Service’s mission is to provide the nation with reliable, independently by affordable, universal mail service. The basic functions of the Postal IBM Global Business Service were established in 39 U.S.C. 101(a): “. to bind the Nation Services. With this together through the personal, educational, literary, and business record service came correspondence of the people. It shall provide prompt, reliable, and strong gains in efficient services to patrons in all areas and shall render postal efficiency, driven by services to all communities.” To fulfill this mandate, the Postal workhour reductions Service delivers to nearly 148 million delivery points six days a week worth $1.25 billion and provides mailing and shipping services through almost 37,000 and a 1.7 percent postal retail outlets and the usps.com Web site. increase in Total Factor Productivity. Who We Are Improved data on mail flows and expanded best-practice standard- ization also increased productivity for an unprecedented eighth DOCUMENT PURPOSE consecutive year. For stakeholders and members of the general public interested in The Government Accountability Office (GAO) noted these and other the Postal Service, the annual Comprehensive Statement on Postal achievements when it removed the Postal Service from its high-risk Operations and the Annual Report describe Postal Service activities list. The organization was placed on the list in April 2001 to focus and results. The Comprehensive Statement is a broad summary of attention on what the GAO described as an “unsustainable business programs and activities from the past fiscal year. The Annual Report model.” In its decision, the GAO cited the successful implementation focuses on Postal Service finances and financial results. A third of our Strategic Transformation strategies as well as passage of the document, the Strategic Transformation Plan, is forward looking Postal Act of 2006. and describes strategic goals and plans. All three documents are available at usps.com. All of the Postal Service’s major labor contracts expired this year. New agreements with three major unions were successfully negoti- The Comprehensive Statement has been redesigned this year to ated, while one contract was resolved through interest arbitration. improve readability and minimize redundancy, particularly with the The Postal Service also engaged in pay consultations with the Annual Report. Financial information is now contained in the Annual management associations and established a new pay package for Report. Chapter 1 of the Comprehensive Statement addresses the management employees. Through the collective bargaining process postal mission and legislative developments. Chapter 2 focuses on with the unions and the consultation process with the management our customers and services. Chapter 3 discusses the postal work- associations, the Postal Service achieved workforce structure force and employee-related programs. Chapter 4 describes postal changes, increases in employee contributions to health benefit operations. Chapter 5 contains our Annual Performance Report for premiums and other results that help restrain costs and provide 2007 and our Annual Performance Plan for 2008, as required by the additional operational flexibility as it faces the business challenges of Government Performance and Results Act. the future. Since 1976, the Postal Service has filed the annual Comprehensive In May, extensive price and product changes were introduced, Statement in accordance with law, 39 U.S.C. 2401(e), which outlines including the new Forever Stamp, shape-based pricing for First-Class its required contents. Mail, and dimensional-weight pricing for Priority Mail. The Postal Service simplified its International products to reduce redundancy THE YEAR IN REVIEW and customer confusion. Customers can now use the same Priority Mail and Express Mail packaging for domestic and overseas For the Postal Service and the entire mailing industry, 2007 was a shipping. Premium Forwarding Service, a favorite among customers year marked by accomplishment and transition. Foremost among who frequently travel and need mail forwarded weekly to temporary many developments was the enactment on December 20, 2006 addresses, achieved permanent classification. Customized Postage of the Postal Accountability and Enhancement Act, PL 109-145 continues to trigger new interest in the mail. Mailers who purchase (referred to as The Postal Act of 2006). The law is the most insurance online through Click-N-Ship and eBay can now conve- extensive legislation affecting postal services since 1970. niently access claims forms online. And the Priority Mail Flat Rate Box, available in two sizes, makes it easier than