corporate automation plan phase 2 february 4, 2004washington d.c
TRANSCRIPT
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Corporate Automation Plan PHASE 2
February 4, 2004 Washington D.C.
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Slide 2
OVERVIEW History of CAP CAP Accomplishments to Date Comparison to the Original CAP CAP Phase 2
■ Letters ■ Trays
■ Flats ■ Containers
■ Parcels ■ Scanning/Tracking
■ Bundles ■ Information Flow
Automation Program Support Longer Term Plans Partnership With Industry Next Steps
CORPORATE AUTOMATION PLAN
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Slide 3
HISTORY OF THE CORPORATE AUTOMATION PLANCORPORATE AUTOMATION PLAN
Letters
Flats
Parcels
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Slide 4
ACCOMPLISHMENTS TO DATE
Letter Automation
CORPORATE AUTOMATION PLAN
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Slide 5
ACCOMPLISHMENTS TO DATE (Letters)CORPORATE AUTOMATION PLAN
0
20
40
60
80
100
120
140
160
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
Total Letters
Barcoded Letters
volu
me
in b
illio
ns
(est
imat
ed)
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Slide 6
ACCOMPLISHMENTS TO DATE (Letters)CORPORATE AUTOMATION PLAN
0%
10%
20%
30%
40%
50%
60%
70%
80%
FY1995
FY1996
FY1997
FY1998
FY1999
FY2000
FY2001
FY2002
FY2003
DP
S %
of
To
tal
Inco
min
g S
eco
nd
ary
Vo
lum
e 74.9%
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Slide 7
Flats Automation
50+%non-Carrier Route Flats Sorted by
Automation
ACCOMPLISHMENTS TO DATECORPORATE AUTOMATION PLAN
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Slide 8FY 2001 FY 2002end of year
FY 2000
fla
ts d
istr
ibu
ted
per
wo
rkh
ou
r
Flats distribution productivity in the plants
has doubled since the end of FY 2000
FY 2003
1170
557
ACCOMPLISHMENTS TO DATE (Flats)CORPORATE AUTOMATION PLAN
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Slide 9
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
AF
SM
100
FS
M 8
81
FS
M 1
000
Man
ual
AF
SM
100
FS
M 8
81
FS
M 1
000
Man
ual
AF
SM
100
FS
M 8
81
FS
M 1
000
Man
ual
AF
SM
100
FS
M 8
81
FS
M 1
000
Man
ual
Processing Centers
Up-the-Distribution-Ladder
FY2000 FY2001 FY2002 FY2003
79%
% o
f to
tal
fla
ts d
istr
ibu
ted
by
typ
e o
f o
per
atio
n
CORPORATE AUTOMATION PLANACCOMPLISHMENTS TO DATE (Flats)
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Slide 10
0
5
10
15
20
25
FY2000 FY2001 FY2002 FY2003
volu
me
in b
illio
ns
A Decline in Manual Flats Distribution in Post Offices of 11.5 Billion
FY 2001FY 2000 FY 2002 FY 2003
CORPORATE AUTOMATION PLANACCOMPLISHMENTS TO DATE (Flats)
23.5
12
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Slide 11
WORK HOURSFlats Distribution in Plants
0
10
20
30
40
50
60
FY 2000 FY 2001 FY 2002 FY 2003
$50.51
$40.51
$30.21
$26.56
Cost per Thousand Flats Distributed Has Decreased
47.4%
wo
rkh
ou
rs in
mill
ion
s
CORPORATE AUTOMATION PLANACCOMPLISHMENTS TO DATE (Flats)
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Slide 12
Parcel/Bundle Automation
ACCOMPLISHMENTS TO DATECORPORATE AUTOMATION PLAN
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Slide 13
Corporate Automation Plan Phase 2
Prepared by Strategic Operations Planning March 2004
CAP PHASE 2CAP PHASE 2 CONTENTS COMPARED TO ORIGINAL CAP
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Slide 14
CAP PHASE 2 CONTENTS COMPARED TO ORIGINAL CAPCAP PHASE 2
Automate Letter Distribution Automate Flat Distribution Automate Parcel Sorting Automate Bundle Processing Automate Tray & Container
Processing Longer Term Plans
Delivery Automation Transportation Scanning and Tracking
Original
CAP
CAP
Phase 2
YES YES
YES YES
YES YES
YES
YES
YES
YES
YES
YES
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Slide 15
Continue Deploying Technological Advances
Increase Remote Encoding Center Efficiency
Expand Letter Mail Processing Technology’s Reach
Reduce Manual Distribution and Casing
LETTER AUTOMATIONCAP PHASE 2
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Slide 16
FLATS AUTOMATIONCAP PHASE 2
Increase Flats Processing Performance
Enhance Flats Image Processing
Use Technology to Increase Flats Automation
Reduce Manual Distribution and Casing
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Slide 17
PARCEL AUTOMATIONCAP PHASE 2
Deploy the APPS Machines
Standardize Barcode Formats
Increase Automated Parcel Volume
Enhance BMC Operations
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Slide 18
BUNDLE AUTOMATIONCAP PHASE 2
Deploy the Automated Package Processing System
Automate Bundle Processing
Optional Endorsement Lines
Pressure Sensitive Barcoded Labels
Reduce Sack Usage
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Slide 19
AUTOMATING TRAY TRACKING AND PROCESSINGCAP PHASE 2
Automate Tray Receipt & Dispatch
Automate Tray Processing
Automate Tray Tracking
MEM
MEM
MEM
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Slide 20
Automate Container Processing
Automate Container
Tracking
CAP PHASE 2AUTOMATING CONTAINER TRACKING AND PROCESSING
UniqueLicense
Plate
Placard withRoute andDestination
USPSUSPS
2717
Transportation Visibility Plan
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Slide 21
AUTOMATING SCANNING/TRACKING PROCESSESCAP PHASE 2
Enhance Delivery Confirmation and CONFIRM
Develop Innovative Tracking Systems
Non-Special Service
Flat or Parcel
PVI Label PVI PIC Label
Non-Special Service
Flat or Parcel
PVI Label PVI PIC Label
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Slide 22
Incorporate Operational
Data Into the Enterprise
Data Warehouse (EDW)
Increase Data Availability
CAP PHASE 2AUTOMATING INTERNAL DATA INFORMATION FLOW
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Slide 23
CAP PHASE 2
The data warehouse is structured to support reporting across the organization.
• Predefined/Canned Reports• Enterprise-wide reporting
• Single repository for enterprise wide data
• “Data Marts” or “Views” provide a customized method for navigating by functional area within the EDW
Human ResourcesHuman ResourcesFinanceFinanceMarketingMarketingOperationsOperations
Corporate Level ReportsCorporate Level ReportsDa
taA
cc
es
sD
ata
S
tora
ge
Da
taA
cc
es
sAUTOMATING INTERNAL DATA INFORMATION FLOW
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Slide 24
Intelligent Mail and Address Quality
Vision: An information-rich code for each mail type, which enables end-to-end visibility
AUTOMATION PROGRAM SUPPORTCAP PHASE 2
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Slide 25
Develop
and Deploy Enabling
Infrastructure
Uniquely
Identify Mail
Enhance Address Quality
Code
Overview of Intelligent Mail
Strategies
AUTOMATION PROGRAM SUPPORTCAP PHASE 2
Intelligent Mail
Intelligent Mail
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Slide 26
MERLIN
AUTOMATION PROGRAM SUPPORTCAP PHASE 2
Presort/Mail Makeup Walk Sequence AccuracyWeight and Piece CountMailpiece DimensionsBarcode ReadabilityEndorsements and Rate MarkingsTray Label AccuracyCombined MailingsAddress and Barcode AccuracyMeter Identification and Date
Quality
Accuracy
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Slide 27
AUTOMATION PROGRAM SUPPORTCAP PHASE 2
Automates BMEU Acceptance ProcessMakes BMEU Information Available Quicker
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Slide 28
Delivery Automation
LONGER TERM PLANSCAP PHASE 2
The Delivery Vision
Today’s Operations
DPP
FSS
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Slide 29
TIMELINECAP PHASE 2
Today 2006 2007 200820052004
FULLY AUTOMATED OPERATIONS
Mailer Input
Mailer Input
Mailer Input
Mailer Input
Mailer Input
Improve Letter and Flat Image Processing
2009 2010
Deploy APPS
Extend PARS to Flats
Increase REC Efficiency
Research the Potential for Either DPP or FSS
Mailer Input
Mailer Input
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Slide 30
PARTNERSHIP WITH INDUSTRYCAP PHASE 2
Mail Presort Requirements Will Change As
Technology Evolves
Working Together is Important
Industry Participation Adds Value Helps to Keep Each Other Informed
Facilitates Sharing of Ideas and Suggestions
Keeps Rates Stable
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Slide 31
WORK WITH THE MAILING INDUSTRY TO:
Ensure Lowest Combined Processing Costs
Pass Through Savings
Explore Innovative Processing Options
Match Products to Automated Equipment
Establish Lead Times For Changes
CAP PHASE 2PARTNERSHIP WITH INDUSTRY
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Slide 32
CAP PHASE 2
Drive Down Costs Through
Automation
Maintain Stable Rates
Improve Performance and Service
PARTNERSHIP WITH INDUSTRY
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Slide 33
MTAC & USPS Working TogetherMTAC & USPS Working Together
Publication Watch
Presort Optimization
Planet Code Value
Delivery Standards & Business Mail Measurement
DDU Drop Shipment Service
CAP PHASE 2PARTNERSHIP WITH INDUSTRY
Flats Container Development Parcel Processing Field Study Mail.dat & PostalOne! Flat-Size Mail Design
Guidelines In-Home Delivery Instructions Periodical Co-Palletization
Guidelines
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Slide 34
MTAC & USPS Working TogetherMTAC & USPS Working Together Mail Irregularity Feedback Process
Enhancing CONFIRM
Flat Mail Preparation Optimization
Parcel Delivery Performance Measurement Effectiveness
PostalOne! Postage Payment and Statements
CAP PHASE 2PARTNERSHIP WITH INDUSTRY
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Slide 35
CAP PHASE 2NEXT STEPS
Work With Our Customers to Increase Production, Processing and Delivery Efficiency
Use Technology to Reduce Costs
Leverage Technology to Keep Rates Stable
Enhance the Flow of Mail Related Information
Use Information to Manage the Business Better
Increase the Market Value of Mail By Not Restricting Its Size or Shape
Explore Ways to Realize Our Delivery Vision
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Slide 36
IDENTIFY POTENTIAL IMPACTS
CAP PHASE 2
11 Digit Barcode Standardized Address Location ID Tag Presort (For Automated Zones)
Carrier Route Sorting Make-up and Presentation Entry Point
PARTNERSHIP WITH INDUSTRY
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Slide 37
Thank you.Thank you.