Recent postal reforms will go a long way toward putting the U.S. Postal Service back on a sound financial footing, says Kevin Yoder, head of the postal advocacy group Keep US Posted. But there’s more to be done to keep the Postal Service healthy.
David Maloney has been a journalist for more than 35 years and is currently the group editorial director for DC Velocity and Supply Chain Quarterly magazines. In this role, he is responsible for the editorial content of both brands of Agile Business Media. Dave joined DC Velocity in April of 2004. Prior to that, he was a senior editor for Modern Materials Handling magazine. Dave also has extensive experience as a broadcast journalist. Before writing for supply chain publications, he was a journalist, television producer and director in Pittsburgh. Dave combines a background of reporting on logistics with his video production experience to bring new opportunities to DC Velocity readers, including web videos highlighting top distribution and logistics facilities, webcasts and other cross-media projects. He continues to live and work in the Pittsburgh area.
Kevin Yoder is a former congressman who now serves as executive director of Keep US Posted, a broad-based advocacy group that believes that a reliable, affordable U.S. Postal Service (USPS) is essential to our way of life and should be protected.
From 2011 to 2019, Yoder served his Kansas district in the House of Representatives and was the youngest Republican appointed to the House Appropriations Committee. He also chaired the Homeland Security and Legislative Branch subcommittees and served on various other committees, including the House Steering Committee. He was deputy whip for the House GOP and vice chairman of the National Republican Congressional Committee.
Yoder has an undergraduate degree in political science and English as well as a J.D. from the University of Kansas. He recently was a guest on DC Velocity's Logistics Matters podcast, where he spoke with Group Editorial Director David Maloney about postal reform.
KEVIN YODER
Q: What is the role of your organization, Keep US Posted?
A: Keep US Posted is a new organization that we created last year out of concern among Americans—both folks in business and industry and ordinary citizens—that Congress wasn’t paying enough attention to Postal Service issues.
For a long time, Congress has been putting off dealing with the issue of postal reform, which has led to problems with the budget and operations of the Postal Service. We know the Postal Service is one of America’s most trusted institutions. It has been around since the country’s beginnings—the Constitution even states that Congress has a responsibility to manage and maintain the Postal Service. So, it is a critical service that delivers to 161 million addresses daily, and it is the only carrier that is required to deliver to every address no matter how remote and how rural.
We saw a disconnect between what we think Americans value and expect, which is a well-funded, efficient Postal Service that delivers on time and keeps cost down, and what Congress was actually doing. So, we started Keep US Posted to give those Americans who care so deeply about the Postal Service a way to have their voices heard in the halls of Congress.
Q: Congress recently passed the long-awaited Postal Service Reform Act with very high bipartisan support: The vote was 79–19 in the Senate and 342–92 in the House. As a former congressman, does that surprise you given the current political climate in Washington?
A: Well, it does, but it probably shouldn’t—and that is because this is an issue that affects every district in the country. The issue of postal reform has been simmering below the surface in Congress for a long time. When it finally did hit the floor, you saw majorities from both political parties voting for the bill. The last time a Postal Service reform bill passed Congress was in 2006, so it took 16 years to get this done.
I think part of the success was due to the intensified focus on the Postal Service in the last few years. The other part of this was that it just came at the right time. Congress, as you recall, had been working on the Build Back Better bill and a number of different measures without much success. I think that Congress was looking for something that it could herald as a bipartisan achievement. So, up pops the Postal Service Reform bill at the right time, and the House passed it really easily. We didn’t know how long the Senate might sit on it, but I think majority leader [Chuck] Schumer was looking for something to show that Congress was still working while members were stuck on other issues. So, it all came together at the right moment.
Q: I know the legislation repeals the mandate requiring the prefunding of retirees’ health benefits. Can you explain how the bill changes the financing equation and talk a bit about other significant parts of the legislation?
A: First of all, the prefunding issues are very significant issues. The 2006 postal bill required the Postal Service to prefund its retirees’ health benefits 75 years in advance. No other federal agency or entity in this country has that sort of heavy burden, and the USPS simply wasn’t able to make those budget numbers work. So, getting that off the books was a huge win.
The second thing the new reform bill will accomplish is to move the retirees into Medicare as opposed to a separate health-care system. Those retirees have paid into Medicare all of their lives anyway, so taking that off the Postal Service’s books lifted another huge burden.
Then there are some other significant issues related to service responsibilities such as six-day delivery. There have been efforts in recent years to cut deliveries to five days a week, but the new measure maintains current service levels.
It also requires that mail and packages continue to be integrated. There have been some efforts from outside carriers to push the Postal Service to change that integration.
So, what you see here is a series of reforms that take some very significant burdens off the books and create some internal efficiencies by moving mail and packages together.
Q: How long will it be before we begin to see some of these reforms enacted?
A: Well, we should immediately be able to take some of these burdens off the books, and the Board of Governors of the Postal Service ought to have much more clarity on their budget. I will tell you, some of the concerns we have going forward are how Americans will view the Postal Service once it starts to turn a profit and move into the black.
Postmaster [Louis] DeJoy last year rolled out a 10-year plan in which the USPS is projected to raise postal rates significantly—putting through higher percentage increases than we’ve ever seen before. It has also begun to ratchet down the delivery times for mail, so a first-class piece of mail used to be “on time” if it was delivered in one to three days. Now, that is five days, so we are seeing services reduced and we are seeing costs go up.
Our big concern and our hope is that the benefits and savings resulting from these reforms will be passed on to the American people by keeping rates down and improving service. If we don’t see that, then I think a lot of members of Congress and others will be frustrated that we pushed through all those reforms but they didn’t lead to benefits that were tangible to the American people.
Q: Those rates are still low compared with a lot of other countries and, of course, the Postal Service was set up to deliver letters and business correspondence, much of which has now shifted to email. So, you have a model that is basically built on a service that people aren’t using anymore. That has forced the Postal Service to move more toward a parcel and package delivery model. How has that shift affected what we are seeing with the reforms?
A: Well, certainly the Postal Service has to continue to move with the times, but I think one of the things we saw, particularly during Covid, is how much the American people still rely on the Postal Service for their daily needs—whether it’s correspondence like cards and letters, financial documents, or medicine. We saw a lot of discussion about election ballots being moved via the mail, and more recently, the Covid-19 tests were all sent through the mail.
We know that this is something that Americans still view as a critical service, and revenue was actually up during Covid. We see more mail moving and people making more use of the Postal Service. We think that the Postal Service ought to build on that success, and that, rather than be defeatist and say that people just don’t send mail anymore, we should continue to try to make the Postal Service relevant to the American people’s lives.
However, what we are seeing are projections showing mail declining by 42% over the next 10 years. We think that is partly because of rates going up to historic levels. We’re concerned that rising rates together with reduced service levels will mean that the American people see less value in using the mail and may turn to other methods.
Getting postal reform passed is certainly important, and it helps us reshuffle the deck here, but to keep the Postal Service strong and relevant in the minds of the American people, additional reforms will have to be enacted. So, we have a lot of work to do.
Q: What will your organization, Keep US Posted, do to work toward that?
A: We think that maintaining a solid customer base for the Postal Service is key to keeping it on a strong financial footing. The Postal Service receives no taxpayer funds. It truly relies on stamp revenue and postal revenue for each parcel that’s put in the mail. We want to make sure that the system continues to be effective and efficient, and that the Postal Service doesn’t make changes that could alienate its customer base.
So, we are working toward making sure that the USPS continues to be a strong, well-run entity and that it delivers under budget and on time for the American people each and every day.
The New York-based industrial artificial intelligence (AI) provider Augury has raised $75 million for its process optimization tools for manufacturers, in a deal that values the company at more than $1 billion, the firm said today.
According to Augury, its goal is deliver a new generation of AI solutions that provide the accuracy and reliability manufacturers need to make AI a trusted partner in every phase of the manufacturing process.
The “series F” venture capital round was led by Lightrock, with participation from several of Augury’s existing investors; Insight Partners, Eclipse, and Qumra Capital as well as Schneider Electric Ventures and Qualcomm Ventures. In addition to securing the new funding, Augury also said it has added Elan Greenberg as Chief Operating Officer.
“Augury is at the forefront of digitalizing equipment maintenance with AI-driven solutions that enhance cost efficiency, sustainability performance, and energy savings,” Ashish (Ash) Puri, Partner at Lightrock, said in a release. “Their predictive maintenance technology, boasting 99.9% failure detection accuracy and a 5-20x ROI when deployed at scale, significantly reduces downtime and energy consumption for its blue-chip clients globally, offering a compelling value proposition.”
The money supports the firm’s approach of "Hybrid Autonomous Mobile Robotics (Hybrid AMRs)," which integrate the intelligence of "Autonomous Mobile Robots (AMRs)" with the precision and structure of "Automated Guided Vehicles (AGVs)."
According to Anscer, it supports the acceleration to Industry 4.0 by ensuring that its autonomous solutions seamlessly integrate with customers’ existing infrastructures to help transform material handling and warehouse automation.
Leading the new U.S. office will be Mark Messina, who was named this week as Anscer’s Managing Director & CEO, Americas. He has been tasked with leading the firm’s expansion by bringing its automation solutions to industries such as manufacturing, logistics, retail, food & beverage, and third-party logistics (3PL).
Supply chains continue to deal with a growing volume of returns following the holiday peak season, and 2024 was no exception. Recent survey data from product information management technology company Akeneo showed that 65% of shoppers made holiday returns this year, with most reporting that their experience played a large role in their reason for doing so.
The survey—which included information from more than 1,000 U.S. consumers gathered in January—provides insight into the main reasons consumers return products, generational differences in return and online shopping behaviors, and the steadily growing influence that sustainability has on consumers.
Among the results, 62% of consumers said that having more accurate product information upfront would reduce their likelihood of making a return, and 59% said they had made a return specifically because the online product description was misleading or inaccurate.
And when it comes to making those returns, 65% of respondents said they would prefer to return in-store, if possible, followed by 22% who said they prefer to ship products back.
“This indicates that consumers are gravitating toward the most sustainable option by reducing additional shipping,” the survey authors said in a statement announcing the findings, adding that 68% of respondents said they are aware of the environmental impact of returns, and 39% said the environmental impact factors into their decision to make a return or exchange.
The authors also said that investing in the product experience and providing reliable product data can help brands reduce returns, increase loyalty, and provide the best customer experience possible alongside profitability.
When asked what products they return the most, 60% of respondents said clothing items. Sizing issues were the number one reason for those returns (58%) followed by conflicting or lack of customer reviews (35%). In addition, 34% cited misleading product images and 29% pointed to inaccurate product information online as reasons for returning items.
More than 60% of respondents said that having more reliable information would reduce the likelihood of making a return.
“Whether customers are shopping directly from a brand website or on the hundreds of e-commerce marketplaces available today [such as Amazon, Walmart, etc.] the product experience must remain consistent, complete and accurate to instill brand trust and loyalty,” the authors said.
When you get the chance to automate your distribution center, take it.
That's exactly what leaders at interior design house
Thibaut Design did when they relocated operations from two New Jersey distribution centers (DCs) into a single facility in Charlotte, North Carolina, in 2019. Moving to an "empty shell of a building," as Thibaut's Michael Fechter describes it, was the perfect time to switch from a manual picking system to an automated one—in this case, one that would be driven by voice-directed technology.
"We were 100% paper-based picking in New Jersey," Fechter, the company's vice president of distribution and technology, explained in a
case study published by Voxware last year. "We knew there was a need for automation, and when we moved to Charlotte, we wanted to implement that technology."
Fechter cites Voxware's promise of simple and easy integration, configuration, use, and training as some of the key reasons Thibaut's leaders chose the system. Since implementing the voice technology, the company has streamlined its fulfillment process and can onboard and cross-train warehouse employees in a fraction of the time it used to take back in New Jersey.
And the results speak for themselves.
"We've seen incredible gains [from a] productivity standpoint," Fechter reports. "A 50% increase from pre-implementation to today."
THE NEED FOR SPEED
Thibaut was founded in 1886 and is the oldest operating wallpaper company in the United States, according to Fechter. The company works with a global network of designers, shipping samples of wallpaper and fabrics around the world.
For the design house's warehouse associates, picking, packing, and shipping thousands of samples every day was a cumbersome, labor-intensive process—and one that was prone to inaccuracy. With its paper-based picking system, mispicks were common—Fechter cites a 2% to 5% mispick rate—which necessitated stationing an extra associate at each pack station to check that orders were accurate before they left the facility.
All that has changed since implementing Voxware's Voice Management Suite (VMS) at the Charlotte DC. The system automates the workflow and guides associates through the picking process via a headset, using voice commands. The hands-free, eyes-free solution allows workers to focus on locating and selecting the right item, with no paper-based lists to check or written instructions to follow.
Thibaut also uses the tech provider's analytics tool, VoxPilot, to monitor work progress, check orders, and keep track of incoming work—managers can see what orders are open, what's in process, and what's completed for the day, for example. And it uses VoxTempo, the system's natural language voice recognition (NLVR) solution, to streamline training. The intuitive app whittles training time down to minutes and gets associates up and working fast—and Thibaut hitting minimum productivity targets within hours, according to Fechter.
EXPECTED RESULTS REALIZED
Key benefits of the project include a reduction in mispicks—which have dropped to zero—and the elimination of those extra quality-control measures Thibaut needed in the New Jersey DCs.
"We've gotten to the point where we don't even measure mispicks today—because there are none," Fechter said in the case study. "Having an extra person at a pack station to [check] every order before we pack [it]—that's been eliminated. Not only is the pick right the first time, but [the order] also gets packed and shipped faster than ever before."
The system has increased inventory accuracy as well. According to Fechter, it's now "well over 99.9%."
IT projects can be daunting, especially when the project involves upgrading a warehouse management system (WMS) to support an expansive network of warehousing and logistics facilities. Global third-party logistics service provider (3PL) CJ Logistics experienced this first-hand recently, embarking on a WMS selection process that would both upgrade performance and enhance security for its U.S. business network.
The company was operating on three different platforms across more than 35 warehouse facilities and wanted to pare that down to help standardize operations, optimize costs, and make it easier to scale the business, according to CIO Sean Moore.
Moore and his team started the WMS selection process in late 2023, working with supply chain consulting firm Alpine Supply Chain Solutions to identify challenges, needs, and goals, and then to select and implement the new WMS. Roughly a year later, the 3PL was up and running on a system from Körber Supply Chain—and planning for growth.
SECURING A NEW SOLUTION
Leaders from both companies explain that a robust WMS is crucial for a 3PL's success, as it acts as a centralized platform that allows seamless coordination of activities such as inventory management, order fulfillment, and transportation planning. The right solution allows the company to optimize warehouse operations by automating tasks, managing inventory levels, and ensuring efficient space utilization while helping to boost order processing volumes, reduce errors, and cut operational costs.
CJ Logistics had another key criterion: ensuring data security for its wide and varied array of clients, many of whom rely on the 3PL to fill e-commerce orders for consumers. Those clients wanted assurance that consumers' personally identifying information—including names, addresses, and phone numbers—was protected against cybersecurity breeches when flowing through the 3PL's system. For CJ Logistics, that meant finding a WMS provider whose software was certified to the appropriate security standards.
"That's becoming [an assurance] that our customers want to see," Moore explains, adding that many customers wanted to know that CJ Logistics' systems were SOC 2 compliant, meaning they had met a standard developed by the American Institute of CPAs for protecting sensitive customer data from unauthorized access, security incidents, and other vulnerabilities. "Everybody wants that level of security. So you want to make sure the system is secure … and not susceptible to ransomware.
"It was a critical requirement for us."
That security requirement was a key consideration during all phases of the WMS selection process, according to Michael Wohlwend, managing principal at Alpine Supply Chain Solutions.
"It was in the RFP [request for proposal], then in demo, [and] then once we got to the vendor of choice, we had a deep-dive discovery call to understand what [security] they have in place and their plan moving forward," he explains.
Ultimately, CJ Logistics implemented Körber's Warehouse Advantage, a cloud-based system designed for multiclient operations that supports all of the 3PL's needs, including its security requirements.
GOING LIVE
When it came time to implement the software, Moore and his team chose to start with a brand-new cold chain facility that the 3PL was building in Gainesville, Georgia. The 270,000-square-foot facility opened this past November and immediately went live running on the Körber WMS.
Moore and Wohlwend explain that both the nature of the cold chain business and the greenfield construction made the facility the perfect place to launch the new software: CJ Logistics would be adding customers at a staggered rate, expanding its cold storage presence in the Southeast and capitalizing on the location's proximity to major highways and railways. The facility is also adjacent to the future Northeast Georgia Inland Port, which will provide a direct link to the Port of Savannah.
"We signed a 15-year lease for the building," Moore says. "When you sign a long-term lease … you want your future-state software in place. That was one of the key [reasons] we started there.
"Also, this facility was going to bring on one customer after another at a metered rate. So [there was] some risk reduction as well."
Wohlwend adds: "The facility plus risk reduction plus the new business [element]—all made it a good starting point."
The early benefits of the WMS include ease of use and easy onboarding of clients, according to Moore, who says the plan is to convert additional CJ Logistics facilities to the new system in 2025.
"The software is very easy to use … our employees are saying they really like the user interface and that you can find information very easily," Moore says, touting the partnership with Alpine and Körber as key to making the project a success. "We are on deck to add at least four facilities at a minimum [this year]."