The Last Mile of the USPS

It’s sadly ironic that the biggest news over the Labor Day weekend was the US Postal Service financial crisis. I say sadly ironic, because a potential cause of the crisis is poorly negotiated labor contracts.

I’m not a labor or a logistical expert. About a year ago I was at a barbecue talking with a VP  from UPS. He was saying that the last mile was the most expensive and hardest part for them. He mentioned that UPS loses a large amount of money on home delivery. Coincidentally, that seems to be what the Post Office is really good at and federally mandated to provide.

I’m going to assume that someone at the Post Office has already considered this, but if not here’s my free idea . . .

Negotiate a deal with the major couriers to manage the “last mile” delivery for them. Get out of the logistics business and let UPS, Fed Ex, DHL handle the marketing, pick-up and logistics of commercial mail and packages. Then the Postal service can negotiate and contract to deliver the last mile to the home for all major logistics services.

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