The Nine-Digit ZIP Code: Is the Postal Service Doing a Number on Us?

This article, which appeared in the GAO Review, Vol. 19, Issue 4, Fall 1984, discussed the Postal Service's use of a new nine-digit ZIP code. New computer-driven mail sorting equipment has been introduced which optically locates and reads ZIP codes, then sorts the mail. This new equipment will cost approximately $700 million through 1988. The Postal Service expects that the combined use of this automation and the nine-digit ZIP code will reduce personnel costs through greater productivity, and GAO has projected that the program can save as much as $6.8 billion over the first 16 years. The program is expected to help stabilize postage rates and reduce mail sorting errors. The Service expects the program to have the most effect on cutting the costs of large-volume business mailers of first-class mail; however, the household mailer should not be concerned about memorizing four more digits because mail with handwritten addresses will still be hand sorted.