Cost of Postal Delivery Modeling

Diversified Specifics can offer expert assistance in developing cost functions for the post-sorting outdoor delivery of mail.

Understanding the scale economies present in delivery can assist postal authorities in identifying any opportunities to leverage off existing infrastructures to achieve operational efficiencies.

The models developed identify any possibilities along the cost curve to carry increased volumes of certain mail-types without an associated increase in delivery time or resources.

Diversified Specifics ‘cost of delivery’ investigations involve:

• Designing postal office surveys to elicit information about the potential factors that impact upon postal delivery times;
• Implementing the survey in an efficient manner;
• Utilising the data from the survey to model the cost associated with postal delivery by seeking an appropriate specification of functional form and delivering the best possible fit to the actual data;
• Analysing the survey data to assess the existence of scale economies in postal delivery;
• Determining the main non-article based factors that influence postal delivery times and devising policy aimed at influencing the factors that are causing delivery service costs to rise;
• Estimating the elasticities associated with differing classifications of articles and determining delivery capacity cut-off points. This information can then be utilised by postal authorities for effective policy formulation, such as highlighting opportunities for increasing unaddressed mail; &
• Illustrating how the models may be used to simulate postal delivery and hence estimate costs of delivery under a range of differing circumstances.

Should you require any further information please e-mail us at Cost_of_Delivery@diversifiedspecifics.com.au