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Mail Crawl

How the U.S. Postal Service's decision to cut next-day delivery will affect working capital.

February 1, 2012

The U.S. Postal Service's December decision to decrease the expected standard delivery time of first-class mail to two-to-three days could have a negative impact on companies' working capital.

Indeed, the move could cost a U.S. company with $10 billion in revenues up to $100 million in working capital, according to Veronica Heald, a practice leader at REL Consulting, a division of The Hackett Group that focuses on working capital. She estimates that 60% of payments received in the United States are via mailed checks; therefore a slowing of first-class service could create a lag both in the distribution of invoices and the receipt of payments. Read more...

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