Connect with us

Business

How the USPS came to overestimate its pandemic fallout

 


The U.S. Postal Service used its professional judgment to predict massive financial losses from the pandemic which, in reality, never unfolded as dramatically as the courier agency expected, a watchdog discovered .

The processes used by USPS to perform its calculations were inherently ad hoc and based on historically unprecedented assumptions, the agency’s inspector general found in a report Wednesday. This has led the post office to forecast sharp drops in mail and parcel volume and corresponding calamitous drops in revenue. To date, however, USPS has earned more revenue than the same period before the start of the COVID-19 pandemic.

The better-than-expected results were driven in large part by the boom in parcel business, as e-commerce sales increased as Americans stayed at home, although regular mail volume did not rise. decreased as much as management expected. Mail volume was down 27% in April 2020 compared to April 2019, but the declines were less severe in the months that followed. At the start of the pandemic, the Postal Service predicted its revenue for fiscal 2020 could drop to $ 67 billion. In fact, it brought in over $ 73 billion.

While no organization can accurately estimate the total impact of the pandemic, these trends suggest that mail and parcel volume and revenue could not be permanently affected as the Postal Service has it. projected in its scenarios, said the inspector general. The watchdog added that because the pandemic is ongoing, it is still too early to draw any firm conclusions.

The IG criticized USPS for not documenting its processes to formulate its assumptions. The Postal Directorate spoke to its biggest customers who said they expected to use mail less due to the pandemic, for example, which affected the agency’s projections. He never recorded his takeaways from those conversations or indicated how they affected his forecast. Management was unable to provide a documented methodology that included specific steps and assumptions it applied to determine volume projections, the IG said.

In April, the Postal Service asked Congress for $ 75 billion in aid, citing the effects of the pandemic. Postal officials said at the time that the agency was facing liquidity issues that would soon impact its ability to operate, although they later revised those estimates. Some members of Congress have cited the agencies’ turnaround as suggesting that its handling was overly dramatic with its demands. To date, lawmakers have provided $ 10 billion, although Postmaster General Louis DeJoy has indicated he will look to invest more in the near future.

Postal management stressed that they don’t expect their luck on parcel volume to continue as Americans begin to feel more secure when they return to stores. Growing parcel volume also comes with its own set of issues as it is more labor-intensive and therefore more expensive compared to regular mail. Despite the positive news, USPS remains in dire financial straits. And while its finances have not suffered as much as expected, postal operations have suffered greatly due to employee downtime and other factors have created unprecedented mail delays.

The auditors said that in the future, USPS should create a process outlining the specific steps it will take to formulate assumptions in the event of a catastrophic or unforeseen event. Management said it had already established a process for using econometric models and qualitative information during such events, but agreed to make a more formal checklist for its forecasts. He also endorsed the IG’s recommendation to issue an after-action report after the pandemic concludes to assess its own actions.



What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos



picture credit

ExBUlletin

to request, modification Contact us at Here or [email protected]