FlatsSymposium-USPS.pptVIP

National Postal Forum ? ? Flats Symposium 2008 Bill Galligan Senior Vice President, Operations USPS National Postal Forum ? National Postal Forum 2008 USPS Salary Benefits: $54 Billion Delivery 43% Mail Processing 22% Support 0.9% Other Functions 9% Customer Service 16% Maintenance 6% Vehicle Services 2.4% Source: 2007 Annual Report Incremental Cost Improvements Over the Last 10 Years Delivery Will Continue to be Largest Cost Center Continued Delivery Point Growth Address Infrastructure Burden Managing Delivery Costs What is Delivery Point Sequencing? Technology Places Mail Pieces into Exact Order of Delivery Letter Mail Technology (City) – DPS Trend 87% Cased Letters DPS Letters USPS Has Sequenced Letters Since 1993 Resulting in Over $5 Billion Annual Savings Replicate Letter Mail Success for Flats Flat Volume Trend Annual Flat Volume Periodicals 17% First-Class Mail 8% Standard Mail 75% 52 Billion Flats FY 2007 (RPW) Streamline and Simplify Mail Make-up Reduce Number of Entry Points Induct the Mail Where Processed Bypass Sack / Bundle Distribution Automate Mail Preparation Automate Sequencing of Flats for Delivery Leverage the Use of Data Flats End-to-End Strategy “The Address” Mail Entry Entry Points Critical Entry Times Mail Prep in FSS Environment Mailer Changes FSS Benefits Substitute Technology for Manual Labor Manage Delivery Growth Reduction in Future Delivery Vehicles Reduction in Facility (Delivery Unit) Space Needs Improve Processing Performance and Service End-to-End Visibility Create Lowest-Combined-Cost System * * * * * * Let me set the stage for flats sequencing We process over 52 billion pieces of flat mail annually. This is about one-quarter of the overall 212 billion pieces of mail we receive each year. Keep in mind that there are 3 times more letters than flats. It’s important to understand how flat mail classes differ from letters, as a result of the difference we are able to implement a somewhat different operating strategy for flats tha