NEWS & REPORTS

Cost-savings from new technologies and other programs have proven elusive.

Nov 5, 2019 | Uncategorized

Below find an article by the United States Postal Service Office of the Inspector General. Technology does not solve problems. People solve problems using the right technology in the right manner.

Case in point: Dynamic Route Optimization (DRO), a technology-based initiative to reduce miles and costs for surface transportation. The U.S. Postal Service did not save the $22.4 million it projected for fiscal years (FYs) 2017 and 2018, our recent audit report found.

DRO allows Highway Contract Routes (HCRs) to change from a fixed-price contract with set, or static, routes to a rate-per-mile contract with varying departure times, travel plans, and mail types transported based on mail volume. This “dynamic” approach allows the Postal Service to optimize routes to reduce mileage and transportation costs – critical for containing costs in the overall HCR program, which moves mail between post offices and other designated stops. In FY 2018, the Postal Service spent $4.3 billion on HCR transportation.

The Postal Service awards DRO contracts for sites selected for conversion from static to dynamic contracts and uses an approved commercial off-the-shelf software and a web application to generate weekly dynamic manifests at the DRO sites.

But USPS didn’t identify and resolve program issues before national rollout of DRO and thus fell short of planned savings. Despite spending $32.7 million in total investments on DRO in FYs 2017 and 2018, most of the sites were still running static routes. Only five of the 34 sites were fully optimized and only one was operating dynamically.

Our audit found that the commercial software and web-based application the Postal Service used for its national rollout required continual re-configuration. We also found management and oversight of the program needed better controls. We noted that USPS has initiated improvements to the program this fiscal year, including appointing an acting national program manager for DRO.

About the Author

NEWS & REPORTS

‘White label’ ELD cheater network uncovered in NMFTA research

Alex Lockie Article Summary The National Motor Freight Traffic Association discovered a network of "chameleon ELDs" registered with FMCSA that may enable hours-of-service cheating. Over 1,000 ELDs are self-certified with FMCSA, raising concerns about regulatory...

The GHOSTRUCK Act Raises New Questions About ELD Compliance

Read the GHOSTRUCK Act here:  GHOST TRUCK ACT AIST Consulting What Is the GHOSTRUCK Act? According to the bill’s official description, the legislation would amend federal transportation law to restrict who may edit or annotate ELD records. While the full legislative...

Registration Is Open for Annual Conference and Exhibition

Register for the CVSA Annual Conference and Exhibition, which will be held Sept. 20-24, in Orlando, Florida, at the Hyatt Regency Orlando. This premier meeting offers the opportunity for government officials, enforcement and industry to collaborate and affect...

NTTC: GHOSTRUCK Act safeguards against overseas ELD tampering The tank truck industry’s trade association endorses bipartisan legislation requiring logbook changes happen within North America, preventing international personnel from manipulating driver records.

ason McDaniel   Key Highlights The GHOSTRUCK Act mandates that only North American-based personnel can edit electronic logging device records. The legislation preserves driver approval over any changes to their duty status logs, ensuring final oversight remains...

CATEGORIES