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
Finding Agility in your Workforce: Are you prepared to meet the next market shift?
Logistics companies need every advantage available to them to be a vendor of choice and remain competitive
Download Today!
From the April 2017 Issue
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management market, and in marked contrast to 2016, paints a rosier outlook for career placement and advancement.
Is Your Tractor Trailer Yard a Black Hole?
Information Management: Wearables come in for a refit
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...