Audits: U.S. Postal Service spent too much on FedEx

Discussion in 'The Latest USPS, Amazon, and DHL Headlines' started by cheryl, Nov 29, 2010.

  1. cheryl

    cheryl I started this. Staff Member

    Audits: U.S. Postal Service spent too much on FedEx - Commercial Appeal

    The United States Postal Service is routinely castigated for losing money, but in a series of internal audits it has identified $94 million in unnecessary expenses linked to its lack of diligence under its FedEx mail-hauling contract.

    The Inspector General of the U.S. Postal Service audited all eight Postal Service regions across the country beginning in 2007 and ending earlier this year. It found the same problems in each region:

    Mail that should have been shipped by surface transportation found its way onto expensive FedEx jets.

    First-class mail that could have been sent on cheaper commercial airlines instead went on FedEx jets.

    By failing to sort mail to specific locations into cargo crates, called bypass containers, it incurred FedEx sorting charges.

    Nothing in the audits reflects badly on the Memphis logistics giant, but the implications of the findings, once the cost-savings opportunities identified are achieved, could affect the amount of money flowing to FedEx.