Page 7 - Postal Magazine Final
P. 7

WHAT IS                                                                              WHAT IS THE PRC’S LEGACY?




 THE PRC’S LEGACY??   Address the   USPS Flat Sorting Machine Productivities


       Real Issues
                                             25% Decline
                                         3,096
           n the past
           decade, USPS’                             2,326
       I productivity
        has significantly                                                                    52% Decline
        declined for                                                 24% Decline            548
        periodicals.                                               265                               265
        While the USPS                                                        202
        continually refers               2007        2017         2007       2017          2007     2017
        to periodicals being                 AFSM 100                SPBS/APBS                 APPS
        “underwater”
        in their cost                                        TYPE OF POSTAL MACHINE
        coverage, this is
        completely due to
        USPS’ decrease in
        efficiency.                 The Postal Service Shifted Magazines From Low-Cost to High-Cost Processing

        If efficiency had                                                                40 cents
        simply remained
        at previous levels,                       20 cents
        even without any
        improvement,
        periodicals would
        be at 97-percent
        cost coverage.
                                                                                       Flats Sequencing
        When you factor in                  Carrier Route Preparation                 System Preparation
        the additional mail
        that publishers’
        send in other
        classes to support          Adjusting for Previous Efficiency, Periodicals Cover Costs
        their business—
        invoices, renewals,
        etc.—periodical                                                                   COST COVERAGE
        mailers get to               As Reported                                              69%
        121-percent                  At Previous Efficiency Levels                            97%
        cost coverage.
                                     Including Mail in Other Classes                          121%


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