What is the USPS turnaround strategy?
We learned a tremendous amount at the 16th Annual BG Strategic Advisors Supply Chain CEO Conference. I am grateful to the 300+ CEOs and supply chain leaders who joined us to share their insights at this invitation-only event.
One highlight was the opportunity to learn from United States Postal Service Postmaster General Louis DeJoy. Louis shared candid feedback about the magnitude of the challenge facing the USPS, as well as the opportunity to apply what he learned building New Breed (now XPO Logistics, Inc.) in order to turn around the Post Office.
A few takeaways that stood out to me:
- The USPS employs 630,000 men and women. It is an enormous organization.
- Barring any changes, the USPS stands to lose $160 billion over the next decade. This is a crisis, for the postal service, the government, and the American taxpayer.
- The USPS has developed a strategic plan designed to maintain service while transforming the organization and ultimately achieving break-even status. If and when that goal is achieved, it could be among the greatest turnarounds in American history
- The USPS has recommitted to 6-day per week service. They do not intend to cut service. At the same time, they need to find ways to apply best practices to make the organization more lean and efficient.
- One key way to achieve that goal is to leverage relationships with private enterprise to drive more volume through the existing USPS infrastructure.
- The USPS is open to ideas and partnerships that advance this important mission.
Putting politics aside, it is in our national interest to achieve these goals. Outstanding supply chain CEOs, including the leaders at the BGSA conference, can be a part of the solution!