USPS OIG Report: Transportation Network Operations and Cost Optimization Practices

Objective Postal Service transportation costs have increased $1.7 billion (or about 25 percent) since fiscal year (FY) 2014 despite an overall decline in mail volume of 8.8 billion pieces (or about 6 percent), as well as several initiatives to reduce transportation costs. Our objective was to analyze practices and cost trends and identify risk areas…

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USPS OIG Report: Dynamic Route Optimization and Cost Savings Initiative 

Objective Our objective was to evaluate the cost savings for implementing the Postal Service’s Dynamic Route Optimization (DRO) initiative. The Postal Service began implementing the initiative in fiscal year (FY) 2016. The initiative allows for morning Highway Contract Routes (HCR) to change from a fixed-price contract with set routes (static) to a rate per mile…

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