I'll use the location that I worked at as an example. In Wilmington, NC, once your carrier returns to the station, they drop your letter into a collection bin. This collection bin is driven to Fayetteville, NC, where it is then processed via OCR. After being OCR'd it has a machine-readable bar-code, and will be sorted for delivery to a local station. The machinery involved in the OCR and sorting process is larger than any of the local stations I worked at. Additionally, almost all of the mail pieces that I delivered were intercity, not intracity. Your use case is the exception, not the rule.
There are many exceptions and corner cases to what I described, but that's what the process looks like for most mail pieces. Locating the scanning and sorting machinery at a hub rather than each individual spoke makes sense. UPS, where I currently work, has some minor differences, but the hub and spoke model is largely the same.