The U.S. Postal Service, which saw its operating losses more than double between 2009 and 2010, has been cited by Wall Street telecom analyst Nick Del Deo as a role model for how to cope with online displacement of traditional Business, the Philadelphia Inquirer reports.

Thanks in large part to the growth of online mail traffic, the “world’s largest distribution system” has seen its volume of letters and shipments fall by more than one-sixth since 2004, according to Del Deo, but because U.S. law requires the Postal Service to provide mail service to new homes and businesses, its service has actually grown by six percent during the same time period.

The good news, at least from an operations standpoint, is that during that period the Postal Service laid off one-sixth of its employees (mostly managers), shut down a host of back office facilities and implemented a variety of additional measures aimed at cutting operating costs.

According to Del Deo, telecom companies may want to take a cue from that. As more and more phone customers give up their landlines in favor of wireless service, companies like Verizon and AT&T are likewise feeling economic pressures. Like the Postal Service, some telecoms have begun to cut management ranks, sell-off noncore business units and made a strong push to attract new wireless customers. But remaining costs, like maintenance, electricity and network operations “will be much more difficult to purge from the system,” Del Deo notes.

All the more reason to look for help from an experienced ally who knows the playing field. At Source One, we have spent nearly 20 years working with a wide array of organizations, including telecom companies, manufacturers, pharmaceuticals, hospitals and others to help them review their spending processes, optimize their processes and cut their non-payroll operating costs. Learn more at our Source One website.
Share To:

Thomas Derr

Post A Comment:

0 comments so far,add yours