The Postal Service achieved most of its peak season goals in 2023, so why did performance slide?

The U.S. Postal Service successfully implemented most of its initiatives in response to increased demand during fiscal 2024’s peak season; however, service performance scores for most of its products decreased during the same period. 

In a report published on Aug. 26, the postal inspector general found that USPS — with respect to the period last year between Thanksgiving through New Year’s Eve — met some processing and distribution goals, all logistics ones and most related to retail and delivery. 

For example: 

• It accurately forecasted the demand on its air network for 99.4% of peak season. 
• For surface transportation, USPS increased efficiency by reducing the number of trips by 14.9%, an approximate 6% reduction compared to peak season fiscal 2023. 
• USPS management said staffing was not a major issue, as they hired about 12,000 employees, 81% more than the planned number of nearly 6,800. (The OIG reported this was not a sign of poor planning partly because additional hiring was necessary at some facilities to perform work that had been done by contractors.) 

But service performance declined for most USPS products compared to the previous peak season and none met performance targets. 

First-class mail, for instance, was delivered on time 83% of the time, which is a 5.4% reduction from fiscal 2023 and 9.5% less than the 92.5% target. Competitive products, like priority mail, experienced relative declines, but the OIG didn’t provide specific numbers. 

While USPS processed packages more efficiently in fiscal 2024 by reducing the number of parcels handled manually, the OIG reported a 23.3% increase in delayed inventory compared to fiscal 2023. (Such delays mean a processing plant failure and not necessarily a delay in arrival time.) 

The inspector general, however, acknowledged that severe weather and unanticipated processing facility closures affected delivery as well as operational changes under USPS’ 10-year plan. 

The Postal Regulatory Commission has called on Postmaster General Louis DeJoy to pause reform efforts under his 10-year plan due to difficulties that occurred after some changes were rolled out. Members of Congress from both parties have also criticized the reforms. 

The OIG recommended that USPS evaluate the plan to effectively manage operational precision performance, a daily measure of how close each processing facility ran according to plan, during peak season. The postal agency concurred with the recommendation and set an implementation date of Nov. 30. 

Looking ahead to peak season fiscal 2025, USPS’ primary air network supplier is changing for the first time since 2001. The OIG warned that planning ahead will be critical to ensure peak season deliveries are made on time.