Things are really starting to heat up in the United States and it's not being caused by the warming weather! Rather, heat in the form of heavy competition and cut throat advertising is increasingly being generated by the United States Postal Service (USPS) and it's primary competition, Fed-Ex and the United Parcel Service (UPS). They're all aggressively fighting for a bigger market share and more revenue from the ever growing package and parcel distribution business in the US.

While competition has always been an issue (as with any business), recently the actions displayed on this playing field have become much more brutal. Those of us deeply embedded in the mailing, shipping and distribution industry have clearly seen the signs of Mr. Marvin Runyon, Postmaster General of the USPS carrying out his promises to make the USPS run more like a private business and less like a government agency.

His hard work and goals are now starting to be displayed in the USPS' advertising campaigns and strategies. During several recent speeches as well as seminars and presentations by the USPS at trade shows and PCC (Postal Customer Council) events, the boldest of statements have been made by Mr. Runyon as well as numerous other USPS representatives.

Without doubt, Domestic "Priority Mail" (the USPS non-guaranteed, 2-3 day delivery category) as well as International Priority Mail are on top of the hit list for desired processing-category volume increases. In addition, the USPS is looking to increase it's "Standard Mail B" (formerly called Fourth Class) volumes which is the USPS' delivery service for parcels weighing from 1 to 70 pounds. The USPS has started to implement the early stages of future Priority Mail Tracking via on-line delivery confirmation to 10 test markets. Their goal is to have the complete system up and running by some time in 1999, after providing all USPS trucks and scanners with portable scanning and reporting/system uploading equipment.

The USPS is making statements such as "In order to help keep down the cost of stamps and postage rates across the board, we need to bring in additional revenues. We see the ever growing package and parcel business as being a good resource of capturing additional revenues which will help to minimize future postage rate increases."

Even bolder then, they get right to the point with statements like, "Where do we see the additional volume to capture? We are going after the customers who currently use UPS. The USPS wants your package and parcel business".

Additionally, the USPS is commonly sending hints that they are also going after package and parcel distribution business which is currently going to Fed-Ex and other carriers, although not frequently and directly mentioning their names as they are doing with UPS.

Almost as if saying "you owe us one", the USPS has been reminding people in a friendly way through their recent speeches and campaigns that they have been delivering mail every single day to even the most remote areas of the US.

Of course, it costs the USPS more money per piece to deliver a letter or package to the highly remote and secluded areas of the country than it does to deliver similar pieces to the highly populated cities, with much more volume to deliver each time to help reduce the per piece costs and to justify the trips and the delivery processes overall.

The current overall advertising theme of the USPS as indicated and voiced by Mr. Runyon at the National Postal Forum held on May 18-21 in New Orleans, USA is an all American approach. The messages are becoming more patriotic and the USPS is adding emotional, sentimental touches to their campaigns often boasting such phrases as "America's Postal Service", "Your Postal Service", "Our Postal Service", as if the competition was not American or that giving them the business was not patriotic.

The thrust of Mr. Runyon's speech was based on the fact that the USPS is pushing for the ability to make their own decisions and rate changes without having to go through all of the third parties currently involved. It has been stated several times that the USPS that if they are expected or desired to "run more like a business" that they should be given the flexibility, authority and support to do so.

The outcome of the current issues regarding Legislative Reform will drastically help to determine the path and set the coarse for the future services, rates and flexibility given to the USPS. Mr. Runyon is truly fighting to get more control (of the "business" he is to "run") and so far his ideas and actions do seem to be working well to improve the USPS overall. Most of the Mailers that I work with seem to feel that he has truly earned the right to be granted control and implement his ideas for future growth, cost cutting, competitiveness and the long term success of the USPS.

Any seasoned manager knows that responsibility without authority simply doesn't work. With this in mind, and all things considered, I think that the USPS is providing a beneficial service to the American population at very reasonable rates. To be able to send a 1 ounce, First Class Letter across the US for $.32 is not at all a bad deal.

One of the more down to earth remarks made by the USPS over the last few years regarding their desire for more authority has been that it currently takes less time for a woman to get pregnant and have a baby than it takes for the USPS to change their rates, even if they wished to lower them or unveil new discount options such as corporate volume discounts as are offered by their competitors. It currently takes 10 months or more to get rates to be changed by the time all of various meetings, opinions and approvals have been voiced and agreed on before implementation.

How many businesses could survive today if their hands were tied by a minimum 10 month waiting time before they could react to market desires and unveil adequate solutions, services or rate adjustments ? When the private companies such as Fed-Ex or UPS wish to raise their rates, they simply do it.

"Private Express Statutes" have been in place in the United States for many years, which has locked in the USPS as the "Official Carriers of Mail" for the US and has locked the competition out of the daily mail distribution market, similar to an across the board corporate contract. Although the competition has always know about the statutes and understand that the rules must be abided by, they are increasingly becoming more and more upset that the statutes exist as they look to increase their distribution volumes and earn the associated revenues.

It almost seems like the Private Express Statutes were just implemented to some of these competitors to the point that it would be interesting to ask them, "where have you been" or "were the statutes not in place BEFORE you decided to initially go into, or invest more money to expand your package and parcel distribution business over the recent years"?

The feelings and frustration experienced by Fed-Ex and UPS is clearly being displayed in their ads and propaganda which has become highly visible on a daily basis in the US.

UPS has actually let the frustration get to them to the point where they actually published and distribute a brochure entitled "read between the lines", "How the US Postal Service Threatens UPS Jobs". In the brochure you will find statements like "The US Postal Service undermines fair competition by keeping rates in comparative classes artificially low. It does so by subsidizing these rates with revenue from its First Class Letter Mail monopoly", as though that was a strange thing. Don't many businesses routinely allow the more lucrative divisions of their company to apply revenue to help, strengthen or build-up the areas of their businesses which are not as lucrative ? Does UPS feel that corporate subsidizing supposed to be perceived as something strange or new ?

As you read on, you find accusations indicating that the USPS is not a very good business (failing to mention that their hands are often tied by bureaucracy out of their control), since it has lost money 17 out of the last 25 years (also failing to mention that over the last few years, the implementation of massive automation has been rapidly turning things around into the positive).

I ask, would UPS be more comfortable if the USPS had raised their rates more frequently and dramatically over the past years instead of running at a loss so that we could all say that they made tons of money by now ? Who would have benefited by the USPS having fatter pockets ? Would the UPS employees be in a better position today if such was the case ?

Fed-Ex on the other hand is pushing more of the logistical and technical facts which differ them from the USPS as they attempt to target and ruin the credibility of the USPS. Their recent Fed-Ex Service Comparison portrays topics such as how the USPS doesn't commit to a delivery date with their Priority Mail. The USPS never said they did. Is this some new surprise ? Again, where have you been ?

Also contained in the Fed-Ex message is how the USPS uses over 15,000 planes, but they are not owned by the USPS. Again, they never said they did own them. No surprise here. That would explain why almost every time I have ever sat on a commercial airline plane while it was being loaded, I have often watched the trays, tubs and sacks marked "US Mail" & "Property of the US Postal Service" being brought to the planes on carts and quickly loaded underneath.

As a professional, Certified, Shipping & Mailing Operations Consultant I truly do maintain an impartial approach and realize that each of the services mentioned has their place in Global as well as Domestic Distribution. Each has their strong and weak points and every situation is different. It is also understood that the American population, as well as any other individuals wishing to utilize the USPS must be protected from undue abuse or unrealistic rates or service proposals. Control and fairness must be equally considered and protective devices must be put into place as the USPS restructures and gains more authority.

However, it would be very good to see each of the competitors to cut down the current smear campaigns and stick only to the beneficial facts that make them each feel that their options and services are the best. after all, the people are the ones who will really loose by all of this confusing and misleading media.

One key point to remember, as well as food for thought to all of the private carriers, the USPS does in fact already deliver to addresses all over the country and even offers some weekend services unmatched by others. It would seem that since they are regularly going to all of those addresses and places ANYWAY, that with the right management, budgeting, equipment and authority to make changes and lower rates that the USPS could in fact stand a very good chance of winning the majority of the United States' Package and Parcel Business in the years to come.

In closing, and to summarize the thought process and the direction in which the USPS is heading, I leave you with the final remark made by Mr. Runyon while addressing the crowd at the previously mentioned National Postal Forum.

He said, "It's time to make historic change happen. It is time to deliver the future -- for you, for the U.S. Postal service and for the United States of America.

Scott DeMayo, CMDSM, MPQCS is President of DeMayo Mail Management Consultants, specializing in Internal Distribution, Data-Management, Printing & Mailing Operations Consulting services and the Successful Integration of Hardcopy & Electronic Communication Efforts. You may reach him at (201) 361-0278 or E-mail scott@demayo.com, http://www.demayo.com