Homework answers / question archive / "Why the postal service does not need to change to 7-day delivery?" Name Institution To: From: Date: Re: "Why The Postal Service Does Not Need To Change To 7 Day Delivery?" The United States Postal Service (USPS) is an independent agency of the executive branch tasked with providing postal services in the United States

"Why the postal service does not need to change to 7-day delivery?" Name Institution To: From: Date: Re: "Why The Postal Service Does Not Need To Change To 7 Day Delivery?" The United States Postal Service (USPS) is an independent agency of the executive branch tasked with providing postal services in the United States

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"Why the postal service does not need to change to 7-day delivery?"

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The United States Postal Service (USPS) is an independent agency of the executive branch tasked with providing postal services in the United States. The USPS is one the most beloved institutions in the United States has been around for more than two centuries, and it is a historic institution that has survived over time in the provision of its services. Over the years, various changes in the industry have forced one of the most rigid institutions to implement strategic changes to survive. However, being a federal government institution, the USPS enjoys various privileges that have slowed its growth. One of the concepts that are changing the industry and thus impacting the operations of the USPS is the concept of 7-day delivery services.

The concept of 7-day delivery services means that the parcel carrier allows the parcel network to ship and deliver parcels seven days a week. This concept has, over the past years, gained prominence with the emergence of e-commerce. The emergence of e-commerce has led to an increase in the number of parcels being shipped across the globe. The USPS is one of the primary industry payers that has previously instituted the concept, especially during holiday seasons. However, various hurdles make it difficult for the institution to change permanently to 7-day delivery. The concept also has various complexities that the USPS may not anticipate, including the heavy investment required. The USPS is not ready to change to 7-day delivery services due to the vast financial backing required. The institution has been experiencing huge losses, including a $billion quarterly loss in 2021 (Shepardson, 2021).

Case Studies Over 7 Day Delivery

The concept of 7-day delivery allows for the constant movement of the parcel network. The USPS has in the past used the 7-day delivery concept, especially during the holiday season. In 2014, the institution had announced that it would be delivering parcels all the days of the week, including Christmas day (USPS, 2014). This was done in support of the number of packages that increased during this period and the growth of the e-commerce industry. The institution had announced that the number of packages had more than doubled as it estimated 450-470 million packages (USPS, 2014). During the same period, the competition increased with the competitors increasing their prices. However, the company did not leverage the business opportunity and lowered its prices during the same period.

The competition in the industry has increased over the decades with more companies applying the –day delivery strategy. Companies like FedEx, UPS, and Walmart have announced applying the strategy to reduce the congestion in the industry in the past months. This is likely to be good news for the consumers who would benefit from the constant movement in the parcel network. These companies are also likely to benefit from the constant movement of packages, especially after the problems experienced during the COVID-19 pandemic in the industry.

Who Proposed This Concept?

Parcel delivery has a rich history dating to the Persian Empire in the 6th century when the emperor formalized postal services. The Roman Empire used “cursus publicus" to transport goods, taxes, and messages. In 1913, package delivery was invented in the U.S. when the postmaster of New York Edward Morgan and postmaster General Hitchcock dropped packages addressed to each other. Since then, various companies have developed strategies to improve the efficiency of package delivery. Some of these strategies have been effective in improving postal services like the same-day service or express services. The 7-day delivery of services is an example of these strategies implemented by courier companies to create a competitive advantage over the competitors and improve service delivery.

The 7-day delivery strategy is a complex but compelling concept by courier companies in improving their services. The concept allows for the constant movement of packages in an industry that is currently growing at a fast rate. The growth is being fastened by emerging technologies like e-commerce and others. The USPS has previously implemented the strategy, and however, the institution has not permanently adopted the 7-day delivery strategy.

Why Was This Concept Proposed?

USPS is already using the concept of 7-day delivery in one of its packages, the priority mail express (USPS, n.d.). However, most of the competitors have already initiated the concept, permanently increasing the level of competition in the industry. The concept was proposed as the industry was growing at a fast rate and therefore needed more services to meet the demands of the consumers. The growth of e-commerce meant that more people needed fast courier services. The number of packages moving across the globe increased with the growth of e-commerce. As the number of packages increased, there was a need for the constant movement of packages.

In 2014 USPS entered n agreement with Amazon for the 7-day delivery of packages as the volume of packages at Amazon grew due to the spiraling e-commerce business. USPS used this venture to deliver packages seven days a week even though it was experiencing heavy losses. The members of the 112th Congress had introduced bills that were to reduce the number of delivery days for USPS to help reduce costs. However, the venture with Amazon meant improving its income, and this would also have helped the institution take advantage and grow its package business.

Who's Leading The Charge For And Against It? 

Congress has always been against increasing the number of delivery days for USPS. This is due to the finical losses suffered by the institution that enjoys federal assistance. The institution suffered substantial financial losses between 2007 and 2011. The losses were approximately $25.4 billion from 2007 to 2011. Congress had come up with methods that would be used to reduce expenses for the institution. One of the bills by the members of the 112th Congress was to reduce the number of delivery days by USPS. This would reduce the six-day delivery that the institution was then using to five-day or less. Congress is likely to be against 7-day delivery, reducing delivery costs, and improving the institution economically.

There is a division among the public members and some of the Congress about making the institution more competitive. A reduction in delivery days does not make the institution competitive as the competition increases in the industry. It reduces the number of packages the institution transports and further reduces the institution's revenue. Most of the competition has implemented the seven-day strategy due to the increase in the volume of packages. Thus, reducing the number of days will only reduce delivery costs but make the institution less competitive.

The institution is for the increase in the number of delivery days to make it more competitive. The seven-day strategy allows for the constant movement of packages in the industry, allowing the institution to tap into the ever-growing market. Over the last two decades, the organization has experienced problems like increased competition, technological advancements, and the low demand for stamps. The competition includes new entrants like Walmart and Amazon, who have leveraged the growth of the e-commerce industry. Technological advancements like mobile technologies have led to fewer people using postal services. These challenges are the ones pushing for the increase in the number of delivery days to ensure the institution remains competitive.

What's The Impact To The Public? 

The USPS is regarded as the oldest and most dependable postal service in history, and USPS has lagged in the delivery of packages compared to other postal services globally (Smith, 2012). The application of the seven-day delivery strategy is likely to impact service delivery, and this is likely to increase or reduce the number of packages being delivered. The application of the strategy will be beneficial to the consumers who would enjoy the constant movement of packages by their dependable postal service. They are more likely to support USPS if the company implements the strategy. The number of packages being moved by the institution is likely to increase.

The increase in revenue from the increase in the number of packages being moved will also benefit the staff at the institution. USPS is likely to return to profit-making as it will become competitive. These charges are likely to be lower in comparison with competition like DHL and FedEx. The lower prices will further attract the members of the public into using their services. SWOT analysis of the institution shows that competition is the main threat of the institution. Thus, eliminating the competition and improving customer satisfaction will improve the finances of the institution. According to Haag & Hu (2019), over 1.5 million packages are delivered a day in New York City alone.

The application of the seven-day delivery strategy is more likely to improve small businesses that depend on e-commerce. The number of business that depends on e-commerce giant Amazon has been increasing exponentially, and such a strategy means that the public will constantly receive their packages faster. The number of online shoppers increases daily hence the need for faster packages to fuel the growth.

Con's From Having 7 Day Delivery?

The concept of seven-day delivery may look pleasing to the consumer but has various complexities that may make it unfavorable. The most significant advantage of the concept is that the package is not likely to arrive on the same day or the next day. This strategy differs from same-day delivery, where the courier ensures the package arrives on the same day. The only guarantee is that the package delivery is done within seven days of the week, including weekends. The lack of guarantee that the package will arrive within the same day of the following day may have unfavorable consequences for the business.

Implementing the seven-day strategy is relatively high, and the cost includes the increase in the delivery expenses as the workers have to work seven days a week. Labor costs and transport costs are the main costs for postal companies, and an increase in these costs cuts down on the organization's profits. This would explain why Congress recommended a reduction in the number of delivery days to reduce costs at USPS. It may become difficult for the organization to maintain such costs and, in the long run, revert to fewer delivery days.

The rate of failed rate of deliveries is higher than that o same-day delivery. Days like the weekend may be problematic as some of the consumers are not at their businesses. This might beat the logic o seven-day deliveries if Sundays become a problem. The level of technology required is higher than having fewer delivery days. The implementation of logistic technology is relatively high and may be difficult for organizations. It requires the expertise to run and manage the technology which is used to track shipments and confirm customer receipt. These complexities make the seven-day delivery strategy more problematic than the same-day delivery.

Operational Problems

The biggest operational problem with the seven-day strategy is the expertise required to implement and maintain the strategy. This would explain why fewer companies have been able to implement and manage the strategy. The team will comprise IT experts who will oversee the technology used to maintain the strategy. The technology is used to track the shipment seven days a week. Since the parcels are shipped and delivered seven days a week, they have to be carefully monitored to reduce the rate of failed deliveries. The team will also ensure that the staff available is efficient in dealing with the various customer queries considering shipping and deliveries are done throughout the week. Poor customer service is a problem that has to be managed before it escalates.

The organization has to ensure the staff will manage multiple customers. The organization has to be prepared to deal with multiple customers as e-commerce customers keep increasing. Their demands are enormous, and the organization has to implement policies on managing customer orders. There is a need for adequate staff to work throughout the week and resolve some of the challenges of having the strategy. This means high costs as the organization will depend on human capital for growth. The high costs may become a massive burden to the organization. Dealing with the competition may become a problem for the organization. The completion may institute price strategies that would lead to the organization losing its clients.

Recommendations

The postal service faces a multitude of challenges that are impacting service delivery. These challenges have an impact on implementing the seven-day delivery of services. Some of these challenges include; increased competition from companies like DHL, UPS, and FedEx, technological advancements, and low demand for stamps. Apart from these challenges, the seven-day strategy has more complications for the postal service that would impact n service delivery. The enormous costs of implementing the strategy, including the delivery costs, make the strategy less viable. The institution is already experiencing huge losses, and it is not economically viable to implement the strategy. Therefore, the postal service does not need to change to seven-day delivery.