Endicia Praises USPS for its E-Commerce Initiative

USPS has been keen on phasing out Saturday delivery for some time. Meanwhile, it has made significant strides on the package delivery side.

By ·

Shippers concerned that they will have fewer express transport options once the United States Postal Service (USPS) ceases Saturday deliveries have nothing to fear, said Amine Khechfe, Endicia co-founder and general manager.

“Given the increased projections of ecommerce overall, we expect the parcel shipping segment to continue to grow,” he said. “To support this growth, USPS plans to continue delivering packages on Saturdays, without the surcharges typically tagged on by the private carriers.”

In an interview with Supply Chain Management Review—a sister publication—Khechfe said he recently met with Patrick R. Donahoe, Postmaster General and CEO, who told him that USPS was moving its concentration from letters to parcels as part of an ongoing strategy to recover its loses and be placed on a positive revenue position.

“Clearly, with this announcement, USPS is putting money where its mouth is,” said Khechfe.

As reported here, the USPS has been keen on phasing out Saturday delivery for some time. Meanwhile, it has made significant strides on the package delivery side, which has seen a 14 percent volume increase going back to 2010. USPS officials noted that its projections of continued strong package growth over the next decade drove this revised approach to maintain package delivery six times per week. 

Fiscal year 2012 shipping and package services business revenues for the USPS were up $926 million—or 8.7 percent—at $11.6 billion, and volumes were up 201 million pieces at a 6.6 percent annual growth clip. 
These services include Priority Mail, Express Mail, Parcel Select and Parcel Return services and account for 2.2 percent of total USPS volume and 17.8 percent of total revenue. USPS officials pointed to e-commerce fulfillment and last-mile services as drivers for its strong performance.

Given the vast USPS national network, Khechefe maintained that the bealegured government agency can “leverage its infrastructure” for maximum advantage.

“We see this as a top line move that shows real initiative in addressing problems that can’t be solved by Congress,” he said.

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Latest Whitepaper
Case Study: LEAN Yields Big Results
Every day, companies across a wide range of industries use LEAN in their supply chains, warehouses and distribution centers, finance departments, and customer service centers, among other areas. LEAN practices improve safety, quality, and productivity by extracting cost and waste from all facets of an operation – from the procurement of raw materials to the shipment of finished goods.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...