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4. Rationalize Facility Networks
Throughout its history the Postal Service has continually adjusted its mail processing networks as customer needs changed and new technologies became available. Efforts to create a flexible network to increase productivity and effectiveness — formerly called Network Integration and Alignment — will continue as an evolutionary process. Now more accurately called Evolutionary Network Development, this effort encompasses opportunities to improve both distribution and transportation.
The mail distribution system has evolved over time as a series of overlapping, single-product networks. Generally plants process all classes of mail. However, some plants also have specialized network responsibilities, linking transportation and distribution for specific classes or types of mail. Examples include facilities that serve as distribution centers for Periodicals, bulk mail centers for Standard Mail and parcels, and automated distribution centers for automated letters. These networks often have separate transportation.
The Postal Service is transitioning from these single-product networks to a more efficient network designed to handle multiple products. Regional Distribution Centers (RDCs) will be created from existing facilities and will support local processing centers. In addition to other responsibilities, RDCs will consolidate parcel and bundle distribution to take advantage of shape-based efficiencies. Currently, packages are often processed on separate networks based on their class (i.e., Standard Mail parcels in one location and Priority Mail packages in another). In the future, RDCs will serve as mailer entry points and consolidation centers to enable shared product transportation. Shape-based processing has already produced substantial efficiency gains for letters. The transition to RDCs will extend shape-based efficiencies to other types of mail as well.
Redesigning network responsibilities in conjunction with reviews of distribution and transportation capacities has permitted the closing of 50 annexes over the past few years and consolidation of their operations. In the past year the Marina mail processing plant in southern California was closed and its operations consolidated into Los Angeles and Long Beach. Since 2002 ongoing capacity reviews, process improvements, and technological changes have permitted ten remote encoding centers (RECs) and five district offices to be closed and their operations consolidated. The Postal Service will continue to close RECs in line with improvements in recognition technology.