Susan M. Plonkey was named new acting president, mailing and shipping services, for the U.S. Postal Service on June 3. Plonkey succeeds Robert F. Bernstock, who left the USPS to pursue interests in the private sector.
Plonkey, who most recently served as vice president of sales for the USPS, is now responsible for all product management, product development, retail and commercial products and services, as well as commercial sales.
MULTICHANNEL MERCHANT senior writer Jim Tierney talked with Plonkey about her new position and plans to fix what’s ailing the USPS.
Q: What do you view as your biggest and immediate challenges, given the massive decline in mail volume?
A: The plain fact of the matter is our business model is broken, and the laws, regulations, and contracts must be changed to reflect reality in the marketplace. The most immediate challenge facing the Postal Service is avoiding potential insolvency. Despite aggressive cost reductions of over $1 billion every year since 2001, including $6.1 billion savings in 2009 alone, these efforts have not been sufficient to counter marketplace forces in the business of mail. A loss of $1.9 billion was reported for the six-month period ending March 31, and without fundamental structural changes to our business model, cumulative losses could reach more than $238 billion by 2020.To ensure a viable Postal Service, we are continuing to work with all stakeholders to implement an ambitious, but achievable action plan. While there is no one single solution or quick fix that will resolve the current set of challenges which confront the USPS, the action plan contains steps available under current law that would reduce the projected gap by $123 billion by 2020.To close the remaining projected gap of $115 billion over the next 10 years without cost to U.S. taxpayers, the Postal Service will require legislative and regulatory changes that will provide greater speed and flexibility to respond to marketplace dynamics.
See full Q&A at: USPS’s Susan Plonkey on Fixing the Postal Service.
