But This Latest Cut Isn’t The Scariest News
The USPS confirmed that it will no longer be delivering first class mail on Saturdays. It will continue to deliver other packages and express delivery shipments, though specific details weren’t given. This most recent move has been made in an attempt to stop the financial bleeding that the governmental organization has been experiencing for some time. These struggles have been in large part to a changing economy, bureaucratic issues, shifts in the use of Internet related communication versus traditional mail, and a ballooning retirement obligation.
But this latest cut is only the beginning of the bad news. Even after all of the changes that the USPS has made recently to cut costs, the shipping giant isn’t even close to cutting enough costs to remain a legitimate going concern. In order for the organization to continue in the foreseeable future, it will have to make broader and more sweeping changes. Last years’ operating loss was in the billions, so there’s a long road ahead to ensure that the USPS continues and thrives.
What This Means For Small Business Shippers
The USPS has long been a vital partner for many small business shippers, largely due to its low cost shipping methods (in particular for small weight products and international shipments). If the organization continues down this path without significantly altering its cost structure, small businesses may be left with finding an alternative method for their small parcel shipping needs. As with any major changes within an industry, it’s important to keep informed of the changes that are taking place so that risks can be mitigated through appropriate planning. And while it’s not a foregone conclusion that other USPS services will be altered or even that the entity will at some point in time fold, it might be wise to start looking at alternative plans so that last minute shuffling can be avoided.