OIG: Optimization Effort Hurt Service Performance

A recent review of the Postal Service’s Local Transportation Optimization (LTO) initiative found that its implementation negatively affected service. 

The Dec. 18 report from the USPS Office of Inspector General (OIG) observed that “the service performance scores for First-Class Mail declined for all LTO regions while Single Piece First-Class Mail service performance to the rural population had an even greater decline.” 

LTO is designed to reduce the number of trips between offices by ending evening collection while also trying to increase the number of pieces transported on each trip. 

Overall transportation spending rose $7.13 million from the previous year for the 15 reviewed LTO regions. 

OIG made two recommendations within the document: more outreach to affected customers about the changes and service impacts, and the development of a document outlining cost savings from the LTO implementation in each region. USPS management agreed with both recommendations. 

At its conclusion, the report mentions that USPS filed a request for an advisory opinion with the Postal Regulatory Commission on expanding the LTO pilot to the rest of the nation, calling it Regional Transportation Optimization. That filing was made after completion of the fieldwork for this report, and thus, was not reviewed as part of it, according to the text.