USPS Expects $92 Million in Annual Savings From New Technology

Share this content:
The U.S. Postal Service is planning to upgrade its letter-recognition technology, which the agency says will save more than $92.5 million a year.

The improvements will allow optical readers to read 93 percent of handwritten and poorly machine-printed letters, the USPS said yesterday. The technology currently is able to read about 75 percent of those letters.

Just five years ago, the equipment, called Optical Character Readers and Remote Computer Readers, could read only 5 percent to 10 percent of those letters, according to the agency.

This program is the latest in a series of recognition improvement efforts that began in 1996. Savings from this program are expected to exceed $92.5 million annually when fully implemented by 2004.

Mail that cannot be sorted by high-speed automation has traditionally been sorted through expensive manual sorting at a cost of more than $55 to sort 1,000 letters. It costs about $5 to sort the same number of letters through automation.

Thomas G. Day, vice president of engineering at the USPS, said the improvements will enhance handwritten and machine-print address recognition technology used in Optical Character Reader and Remote Computer Reader equipment. The program is expected to improve the system's read rate by 8 percentage points and to reduce the error rate by up to 50 percent.

The USPS Board of Governors has approved funding for the new technology. However, the exact amount of funding is not being released because the USPS is in negotiations with vendors.


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above