CONGRESSIONAL BRIEFING:

August 31, 2020

Transportation & Service Performance Updates

2

Transportation Performance

Data Through 8/29/20

3

Transportation Analysis OverviewService Impacts: USPS transportation and logistics professionals manage an average flow of over 390 million mail pieces daily throughout the Postal Service network, which includes 285 processing facilities and about 35,000 retail locations.

Postal Service facilities are linked by a complex transportation network that depends on the nation’s highway, air, rail, andmaritime infrastructures. The success of each system affects the success of others. If surface transportation departs late orunscheduled trips are added, the connection between processing facilities, post offices, airlines, and others become misaligned, impacting downstream operations and hindering efforts to meet service performance.

Financial Impacts: In FY 2019, the Postal Service spent over $550 million extra in transportation to mitigate delays that occurred in the network:

• $266 million in extra trips;• $130 million in overtime; • $14 million in late trips; and • $140 million in air freight mitigation

Effectively aligning operational plans and a timely, consistent transportation network will improve service and reduce cost.

For more information, please reference the Office of Inspector General Audit Report Number 20-144-R20

Transportation Summary

4Trips on time references left axis. Late and extra trips references right axis

Source: SV - Surface Visibility

0

5000

10000

15000

20000

25000

30000

35000

0

50000

100000

150000

200000

250000

300000

7-Jun 14-Jun 21-Jun 28-Jun 5-Jul 12-Jul 19-Jul 26-Jul 2-Aug 9-Aug 16-Aug 23-Aug

Trips on Time vs. Late and Extra Trips (Weekly)

Number of Trips On Time Number of Late Trips Number of Extra Trips

Num

ber o

f Trip

s on

Tim

eN

umber of Late and Extra Trips

Late Trips Analysis

5Source: SV - Surface Visibility

Extra Trips Analysis

6Source: SV - Surface Visibility

7

Service Performance

Data Through 8/26/20

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

8/17

/201

9

8/24

/201

9

8/31

/201

9

9/7/

2019

9/14

/201

9

9/21

/201

9

9/28

/201

9

10/1

/201

9

10/5

/201

9

10/1

2/20

19

10/1

9/20

19

10/2

6/20

19

11/2

/201

9

11/9

/201

9

11/1

6/20

19

11/2

3/20

19

11/3

0/20

19

12/7

/201

9

12/1

4/20

19

12/2

1/20

19

12/2

8/20

19

1/1/

2020

1/4/

2020

1/11

/202

0

1/18

/202

0

1/25

/202

0

2/1/

2020

2/8/

2020

2/15

/202

0

2/22

/202

0

2/29

/202

0

3/7/

2020

3/14

/202

0

3/21

/202

0

3/28

/202

0

4/1/

2020

4/4/

2020

4/11

/202

0

4/18

/202

0

4/25

/202

0

5/2/

2020

5/9/

2020

5/16

/202

0

5/23

/202

0

5/30

/202

0

6/6/

2020

6/13

/202

0

6/20

/202

0

6/27

/202

0

7/1/

2020

7/4/

2020

7/11

/202

0

7/18

/202

0

7/25

/202

0

8/1/

2020

8/8/

2020

8/15

/202

0

8/22

/202

0

On-

Tim

e Sc

ore

First-Class Mail USPS Marketing Mail Periodicals

COVI

D-19

Hurr

ican

e Do

rian

Official Scores52 Week Trend

8All scores for current week-to-date (week of 8/22) are through 8/26. USPS Marketing Mail score for current week-to-date does not include Saturation Mail as that data is available after the end of the week i.e. on 9/1

Calif

orni

a W

ildfir

es

Pitn

ey B

owes

Cyb

er A

ttac

k

Hous

ton

Roof

Col

laps

e

Roch

este

r Mer

cury

Spi

ll

Trop

ical

Sto

rm Im

edla

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

75%

80%

85%

90%

95%

100%

Last

Mile

Impa

ct

On-

Tim

e Sc

ore

Overall Score Processing Score 1 Extra Day Last Mile Impact

Presort First-Class MailScore Breakdown – Processing vs Last Mile

Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and may NOT match the official scores in slide 1 which are weighted.

9

OVERALL PROCESSING LAST MILE5.58%LOWER THAN

BASELINE

5.30%LOWER THAN

BASELINE

0.28%LOWER THAN

BASELINE

• Baseline Period: 3/14 - 7/3• Current week-to-date: 8/22 - 8/26

OVERALL

2.21%HIGHER

THAN 8/1 – 8/7

-4.00%

-3.50%

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

75%

80%

85%

90%

95%

100%

Last

Mile

Impa

ct

On-

Tim

e Sc

ore

Overall Score Processing Score 1 Extra Day First Mile Impact Last Mile Impact

First Mile Impact represents the score decrease caused by time spent in collection; Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan measured against the service expectation; Overall score represents service performance from USPS possession to delivery measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and may NOT match the scores on slide 1 which are weighted.

10

OVERALL PROCESSING4.26%LOWER THAN

BASELINE

3.28%LOWER THAN

BASELINE

FIRST MILELAST MILE0.56%LOWER THAN

BASELINE

OVERALL

4.37%HIGHER

THAN 8/1 – 8/7

• Baseline Period: 3/14 - 7/3• Current week-to-date: 8/22 - 8/26 0.42%

LOWER THAN

BASELINE

Single Piece First-Class MailScore Breakdown – Processing vs First & Last Mile

-3.00%

-2.50%

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

75%

80%

85%

90%

95%

100%

Last

Mile

Impa

ct

On-

Tim

e Sc

ore

Overall Score Processing Score 1 Extra Day Last Mile Impact

USPS Marketing MailScore Breakdown – Processing vs Last Mile

11Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan at the destination plant measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. it includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and may NOT match the official scores in slide 1 which are weighted.

0.49%LOWER THAN

BASELINE

0.10%LOWER THAN

BASELINE

8.26%HIGHER

THAN 8/1 – 8/7

OVERALL• Baseline Period: 3/14 - 7/3• Current week-to-date: 8/22 - 8/26

OVERALL PROCESSING LAST MILE0.40%LOWER THAN

BASELINE

-10.00%

-9.00%

-8.00%

-7.00%

-6.00%

-5.00%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

65%

70%

75%

80%

85%

90%

95%

100%

Last

Mile

Impa

ct

On-

Tim

e Sc

ore

Overall Score Processing Score 1 Extra Day Last Mile Impact

PeriodicalsScore Breakdown – Processing vs Last Mile

12Last Mile Impact represents the score decrease caused by time spent in the last mile (from last processing scan to delivery); Processing score represents service performance from USPS possession to last processing scan at the destination plant measured against the service expectation; Overall score represents service performance from USPS possession to delivery (i.e. it includes the last mile) measured against the service expectation; 1 Extra Day represents the overall score if the mailpiece had 1 extra day to meet service expectations; Scores are NOT weighted and may NOT match the official scores in slide 1 which are weighted.

OVERALL PROCESSING LAST MILE2.88%LOWER THAN

BASELINE

0.60%LOWER THAN

BASELINE

2.29%LOWER THAN

BASELINE

OVERALL

7.83%HIGHER

THAN 8/1 – 8/7

• Baseline Period: 3/14 - 7/3• Current week-to-date: 8/22 - 8/26