An integrated approach to analysing the cost efficiency of postal networks

An integrated approach to measure the cost efficiency of the postal network of Universal Service Provider is proposed. An integrated approach enables the measurement of cost efficiency for delivery and non-delivery postal network units. The proposed approach is verified and tested on the postal network of the selected provider and the results were derived by using Data Envelopment Analysis (DEA). The results show that the main sources of inefficiency are inadequate allocation of resources relative to the network units. In addition, the study indicates that economies of scale have a positive impact on the efficiency of postal network units.