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.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.