The Changing Logistics Landscape
Posted on September 20th, 2016

In an era of declining and changing mail volumes, logistics may be one of the best options for posts and their partners to diversify their offerings and a key element of their long-term survival, according to a white paper issued by the U.S. Postal Service’s Office of Inspector General. The USPS is not a logistics company, but by taking steps to expand its logistics offerings to the extent allowed under current law, it could better retain or even grow its current package delivery business.
 
The report takes note of the following trends:
  • A continuing surge of ecommerce packages is stretching the capacity of the logistics and transportation systems.
  • U.S. and Canadian consumers returned $290 billion worth of goods in 2015, a 66 percent increase since 2010. This highlights a profound opportunity for improved reverse logistics services.
  • New entrants are flocking to last-mile delivery in urban areas.Amazon is making industry-transforming moves into the supply chain, logistics, and delivery sectors.
  • Logistics is emerging as a core means for posts and their partners to diversify — an essential strategy in the face of declining mail volumes.
The full text of the report, The Evolving Logistics Landscape and the U.S. Postal Service, can be found here.



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