U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products Page: 27 of 37
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Appendix II: USPS's Approved Market Tests
for Experimental Postal Products, as of
November 30, 2012
timeframe for market annual revenue
No. test, at approval Description at approvala Status
5 Collaborative Logistics Collaborative Logistics-the first experimental <10 million Terminated in September 2011. USPS
(May 7, 2009 to Sept. market test offered under PAEA-was views this market test as successful, but
30, 2011, as extended) initiated to reduce excess capacity in USPS's did not seek to make it a permanent postal
highway transportation network. According to product despite its original intention to do
USPS, its utilization of vehicles across this so. Instead, USPS terminated the test in
network varied by day of week, time of month, September 2011, indicating that it had
and season. As a result, USPS sought to reevaluated its plans. USPS explained that
optimize its network of purchased highway its ongoing facility consolidations had
transportation by reselling available space on resulted in significant opportunities to
its contractors' trucks. During the course of reduce overcapacity and costs within its
the test, USPS resold, on a space-available transportation network. Depending on its
basis, truck space to six customers for future financial and operational conditions,
shipments that were required to be loaded on USPS said it may seek to introduce this
pallets. The loads were delivered to large product on a permanent basis sometime in
postal processing facilities and picked up at the future.
large downstream postal facilities. USPS Revenue: According to USPS, this product
negotiated the price with each customer generated about $2.1 million over the
based on a variety of factors, including the testing time frame.
customers' required service standards
6 Samples Co-op Box Samples Co-Op Box was a 1-week test 0O Completed, now a permanent postal
(May 2010) mailing of parcel boxes containing an product.
assortment of samples, such as beauty, This test was completed in May 2010
health, and snack products, from various following a 1-week mailing of several
packaged goods companies. USPS partnered hundred thousand boxes of samples to
with a company to prepare and mail the boxes consumers in Charlotte, N.C. and
and to conduct market research, and USPS Pittsburgh, Pa. According to USPS, the
delivered the boxes to consumers in targeted test was well received by both the sample
demographic areas without charge. According recipients and the participating packaged
to USPS, while product samples provide an goods companies. USPS secured the
effective way for companies to build brand PRC's approval to add this product as a
awareness for their products, the volume of new competitive postal product (Parcel
samples sent through the mail has declined in Select Contract 1) in March 2011 and
recent years. Consequently, this test was executed an agreement with Start
intended to, among other things, explore ways Sampling, a Mail Service Provider that
to increase sample mailings that, according to offers sample fulfillment services, to
USPS, offered "the potential for millions of distribute the sample boxes. USPS
dollars" of additional postal revenue. Another receives postage revenue for each of the
purpose of the test was to obtain information "Sample Showcase" boxes plus a share of
about the cost-effectiveness of the program the revenue generated in product sales.
and its value to product manufacturers and
GAO-13-216 U.S. Postal Service
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United States. Government Accountability Office. U.S. Postal Service: Overview of Initiatives to Increase Revenue and Introduce Nonpostal Services and Experimental Postal Products, report, January 15, 2013; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc298921/m1/27/: accessed December 16, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.