corporate flats strategy mtac november 7, 2002. slide 2 presentation overview background near term...
TRANSCRIPT
![Page 1: Corporate Flats Strategy MTAC November 7, 2002. Slide 2 Presentation Overview Background Near Term Actions (FY 2003 and 2004) Longer Term Planning (FY](https://reader035.vdocument.in/reader035/viewer/2022062423/56649ec55503460f94bcf80d/html5/thumbnails/1.jpg)
Corporate Flats Strategy
MTAC November 7, 2002
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Slide 2
Presentation Overview Background
Near Term Actions (FY 2003 and 2004)
Longer Term Planning (FY 2005 and beyond)
– Delivery Vision
Summary
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Slide 3
Importance of Flats
FY 01 Revenue From Flats: $16.1 Billion
Periodicals: Mailbox Anchor ThatGenerates Other Revenue Streams
Standard Mail Revenue isSecond Only to First-Class Mail
Flats Rates Rising Faster Than Inflation
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Slide 4
USPS Committed to Flats
Grow Customer’s BusinessIncrease Capital InvestmentMaintain Affordability
Improve Processes
Corporate Flats Strategy
Introduced at the September 2000 Postal Forum
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Slide 5
Corporate Flats Strategy
Distributed in July 2001
Introduced the DeliveryVision
Focused on Improvements in the Near Term
Overviewed the Longer Term Plans
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Slide 6
Drive Down Costs Through
Automation
Improve Processing Performance
and Service
Create a Win-Win for Customers and the Postal Service
Corporate Flats Strategy
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Slide 7
Completed AFSM 100 Deployment
Started FSM 1000 Modifications
Explored Mail Preparation Alternatives
– Logs
– Flats Feeder Assist Device
– Fiberboard Trays
– Pallet Movers
Last Year’s Progress
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Slide 8
Manage the Base
Substitute Capital for Labor
Increase Customer Involvement
Near Term Actions
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Slide 9
Improve Operational Performance
– Up-the-Distribution-Ladder
– Increase Productivity
Reduce Mail Preparation Costs
– Standardize Opening Units
Standardize Flats Distribution
Capture Savings
Manage the Base
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Slide 10
Summary
QTR 1 FY 2001
QTR 4 FY 2002
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Slide 11FY 2001 FY 2002end of year FY 2000
piece handlings per workhour
Qtrs. 1 to 4 Qtrs. 1 to 4
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Slide 12
Take Advantage of Latest Technology– Automatic Tray Handling System
– Flats Feeder Assist Device
– The AFSM 100 Feeder Modification
– Pallet Movers
– UFSM 1000
– ID Code Sort Move More Mail to Our Processing
Centers to Achieve Greater Depth of Sort (i.e., from the 5-digit level to carrier route)
Substitute Capital for Labor
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Slide 13
Structure Rate Incentives to Support Operations Objectives
Match Make-up to Processing Requirements
Increase Barcoded Flat Volumes Improve Address & Barcode
Readability
Increase Customer Involvement
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Slide 14
Where We Were
4 Mail Streams:– Automated– Mechanized– FSM 1000– Manual
Significant Piece Handling Costs
Increasing Mail Prep Costs
Increased Rates
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Slide 15
From 4 Mail Streams to 2– Automated– Manual
Maximize 11 Digit Barcoded Volume
Minimize (eliminate) Small Bundles
Standardize– Physical Characteristics– Address Placement– Make-up and Presentation
Where We Want To Go
Then to 1: DPP
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Slide 16
MTAC & USPS Working TogetherMTAC & USPS Working TogetherOptimizing Readability
Conducting Mail Characteristics Study
Developing Alternative Flats Packaging
Developing Mail Preparation Alternatives
Reducing Bundle Breakage
Developing Irregularity Reporting
How Do We Get There?
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Slide 17
Address Block Location
Destination Address Format
Barcode Placement
Adhesive Labels
Extraneous Information
MTAC Workgroups
Optimizing ReadabilityOptimizing Readability
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Slide 18
Optimizing Readability
Developed Voluntary Guidelines for Flat Mail
MTAC Workgroups
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Slide 19
Mail Characteristics StudyMail Characteristics Study
Determining the Spectrum of Mail the AFSM Can Successfully Process
Basic size dimensions remain the same
Increase the maximum weight to 20 oz
MTAC Workgroups
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Slide 20
Identify Cost Effective Bundle Packaging for Mailers and USPS
Balance Cost of Material With Package Integrity
Alternative Flats PackagingAlternative Flats Packaging
MTAC Workgroups
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Slide 21
Working with Mailers through MTAC Mutually Acceptable Preparation and Handling Methods
Drive Down Combined Cost
Mail Preparation AlternativesMail Preparation Alternatives
MTAC Workgroups
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Slide 22
Flats Feeder Assist Device allows operator to handle heavy loads
MTAC Workgroups
Mail Preparation AlternativesMail Preparation Alternatives
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Slide 23
Controlled Testing of Various Packaging Materials
Reducing Bundle BreakageReducing Bundle Breakage
Solution– Shrink wrap– Double band– Palletize– Weight – 20 pound max– Height – 6 inch max
MTAC Workgroups
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Slide 24
Long Term Plan: NO SACKS
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Slide 25
Develop a Mechanism to Report Preparation Irregularities to Mailers and Mail Owners In a Timely Manner to Prevent Recurrence
Irregularity ReportingIrregularity Reporting
MTAC Workgroups
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Slide 26
Evaluate Delivery Point Packaging
Prioritize Key Decision Points
Identify Potential Customer Impacts
Longer Term Plans
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Slide 27
Implement the Delivery Vision
Minimize In-Office Costs
Maximize Street Efficiency
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Slide 28
OPTION 1: Delivery Point PackagingDevelop a machine that will use a one-pass system to sequence both letters and flats in delivery order.
OPTION 2: Flats Sequencing SystemDevelop a machine that will use a two-pass system to sequence flats in delivery order.
Evaluate Delivery Sequencing Options
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Slide 29
OPTION 1: Delivery Point PackagingDevelop a machine that will use a one-pass system to sequence both letters and flats in delivery order.
Evaluate Delivery Sequencing Options
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NEAR TERMFY 2003 & FY 2004
MID TERMFY 2005
to
FY 2006
Sector/Segment Firms
Direct to Street
DPS LettersDirect to Street
Walk Sequence/ Marriage MailingsDirect to Street
Residue Letters & All FlatsCased
Current Operations
This time period will be used for
planning purposes.
The Postal Service’s Delivery Vision
Option 1: Delivery Point Packaging
Start Research & Development for
DPP
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LONG TERMFY 2007
Letters(DPS Not Required)
Flats(5 Digit Presort,
No Carrier Route)
Walk Sequence/ Marriage Mailings(Entered at DPP
Location)
One Bundle100% Letters &
FlatsDirect to Street
Sector/Segment Firms
Direct to Street
DPS LettersDirect to Street
Walk Sequence/ Marriage MailingsDirect to Street
Residue Letters & All FlatsCased
Current Operations
NEAR TERMFY 2003 & FY 2004
MID TERMFY 2005
to
FY 2006
Operational Planning
Start Research & Development for
DPP
The Postal Service’s Delivery Vision
Option 1: Delivery Point Packaging
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Slide 32
OPTION 1: Delivery Point PackagingDevelop a machine that will use a one-pass system to sequence both letters and flats in delivery order.
OPTION 2: Flats Sequencing SystemDevelop a machine that will use a two-pass system to sequence flats in delivery order.
Evaluate Delivery Sequencing Options
![Page 33: Corporate Flats Strategy MTAC November 7, 2002. Slide 2 Presentation Overview Background Near Term Actions (FY 2003 and 2004) Longer Term Planning (FY](https://reader035.vdocument.in/reader035/viewer/2022062423/56649ec55503460f94bcf80d/html5/thumbnails/33.jpg)
Sector/Segment Firms
Direct to Street
DPS LettersDirect to Street
Walk Sequence/ Marriage MailingsDirect to Street
Residue Letters & All FlatsCased
Current Operations
NEAR TERMFY 2003 & FY 2004
MID TERMFY 2005
This time period will be used for
planning purposes.
Start Research & Development for
FSS
The Postal Service’s Delivery Vision
Option 2: Flats Sequencing System
![Page 34: Corporate Flats Strategy MTAC November 7, 2002. Slide 2 Presentation Overview Background Near Term Actions (FY 2003 and 2004) Longer Term Planning (FY](https://reader035.vdocument.in/reader035/viewer/2022062423/56649ec55503460f94bcf80d/html5/thumbnails/34.jpg)
Sector/Segment Firms
Direct to Street
DPS LettersDirect to Street
Walk Sequence/ Marriage MailingsDirect to Street
Residue Letters & All FlatsCased
Current Operations
FSS FlatsDirect to Street
Residue Letters & Flats
Walk Sequence/ Marriage Mailings
Cased
DPS LettersDirect to Street
NEAR TERMFY 2003 & FY 2004
LONG TERMFY 2006
Operational Planning
Start Research & Development for
FSS
The Postal Service’s Delivery Vision
Option 2: Flats Sequencing System
MID TERMFY 2005
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Slide 35
Fund Research and Development
Examine Competitive Prototypes
Evaluate Impact on Plant & Delivery Operations
Prioritize Key Decision Points
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Slide 36
11 Digit Barcode Standardized Piece Design ID Tag Presort (For Automated Zones)
– Carrier Route Sorting Make-up and Presentation Entry Point
Identify Potential Customer Impacts
DPP FSS
REQ REQ
? REQ
YES YES
? ?
CHG CHG
CHG CHG
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Slide 37
Implement the Delivery Vision
Minimize In-Office Costs
– Sequencing Letters and Flats
Maximize Street Efficiency
– Sequence Letters and Flats Together
– One Delivery Point Package (DPP)
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Slide 38
Summary
Near Term (FYs 2003 & 2004):
Increase Equipment Utilization
Reduce Mail Preparation Costs
Manage the Base
Involve Customers
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Slide 39
Summary
Longer Term (FY 2005 & beyond):
Refine the Delivery Vision
Evaluate DPP & FSS Options
Develop DPP & FSS Technologies
Involve Customers
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Corporate Flats Strategy