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GREAT LAKES AREA MAILING INDUSTRY AREA
FOCUS GROUP
OPERATIONS UPDATE
AUGUST 20, 2015
KELLY SIGMONVP, RETAIL & CUSTOMER SERVICE
OPERATIONS
August 20, 2015August 20, 2015
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AGENDA
SERVICE PERFORMANCE
MAIL TRANSPORT EQUIPMENT
FALL MAILING SEASON READINESS
Q/A
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TECHNOLOGY & INNOVATION
RETAIL AND CUSTOMER SERVICE UPDATE
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GLA Area Focus Group – 8/20/15GLA Area Focus Group – 8/20/15
SERVICE PERFORMANCE DIAGNOSTICSFROM REACTIVE TO PROACTIVE
SERVICE MEASUREMENTMEETING SERVICE EXPECTATION
PREDICTABILITY
VISIBILITY
DRIVING EFFICIENCY THROUGH MEASUREMENT & DIAGNOSTICS
YEAR TO DATE SERVICE PERFORMANCE
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FY 2015 Service ChallengeFY 2015 Service Challenge
21 Named Winter Storms
RecordSnowfalls
FlightsGrounded / Delayed 23.1M
Missed Deliveries
FY15 Q1/Q2 — Weather Impacts
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FY 2015 Service ChallengeFY 2015 Service Challenge
Operating Window Change (OWC) implementation began in all processing facilities320
Significant changes to:
TransportationSchedules
Machine Schedules
EmployeeSchedules
Customer Supplier Agreements
CSA
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First-Class CompositeFirst-Class Composite
Q4TD/YTD: SPFC thru July 31,2015, Presort July 24,2015
96.00
FCM Composite UCL/LCL Target
YTD
89.06
Q4TD
91.24Actual
77.00
87.00
97.00
85.00
90.00
95.00
100.00
10/3/2014
10/10/2014
10/17/2014
10/24/2014
10/31/2014
11/7/2014
11/14/2014
11/21/2014
11/28/2014
12/5/2014
12/12/2014
12/19/2014
12/26/2014
1/2/2015
1/9/2015
1/16/2015
1/23/2015
1/30/2015
2/6/2015
2/13/2015
2/20/2015
2/27/2015
3/6/2015
3/13/2015
3/20/2015
3/27/2015
4/3/2015
4/10/2015
4/17/2015
4/24/2015
5/1/2015
5/8/2015
5/15/2015
5/22/2015
5/29/2015
6/5/2015
6/12/2015
6/19/2015
6/26/2015
7/3/2015
7/10/2015
7/17/2015
7/24/2015
. . H . . . H . H . . . H H . . H . . . H . . . . . . . . . . . . . H . . . . H . . .
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Standard Mail CompositeStandard Mail Composite
Q4TD/YTD thru July 24, 2015
91.00
Standard Composite UCL/LCL Target
YTD
89.15
Q4TD
92.36Actual
77.00
87.00
97.00
85.00
90.00
95.00
100.00
10/3/2014
10/10/2014
10/17/2014
10/24/2014
10/31/2014
11/7/2014
11/14/2014
11/21/2014
11/28/2014
12/5/2014
12/12/2014
12/19/2014
12/26/2014
1/2/2015
1/9/2015
1/16/2015
1/23/2015
1/30/2015
2/6/2015
2/13/2015
2/20/2015
2/27/2015
3/6/2015
3/13/2015
3/20/2015
3/27/2015
4/3/2015
4/10/2015
4/17/2015
4/24/2015
5/1/2015
5/8/2015
5/15/2015
5/22/2015
5/29/2015
6/5/2015
6/12/2015
6/19/2015
6/26/2015
7/3/2015
7/10/2015
7/17/2015
7/24/2015
. . H . . . H . H . . . H H . . H . . . H . . . . . . . . . . . . . H . . . . H . . .
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PeriodicalsPeriodicals
91.00
Periodicals UCL/LCL Target
YTD
82.91
Q4TD
84.78Actual
Q4TD/YTD thru July 24, 2015
73.00
83.00
93.00
85.00
90.00
95.00
100.00
10/3/2014
10/10/2014
10/17/2014
10/24/2014
10/31/2014
11/7/2014
11/14/2014
11/21/2014
11/28/2014
12/5/2014
12/12/2014
12/19/2014
12/26/2014
1/2/2015
1/9/2015
1/16/2015
1/23/2015
1/30/2015
2/6/2015
2/13/2015
2/20/2015
2/27/2015
3/6/2015
3/13/2015
3/20/2015
3/27/2015
4/3/2015
4/10/2015
4/17/2015
4/24/2015
5/1/2015
5/8/2015
5/15/2015
5/22/2015
5/29/2015
6/5/2015
6/12/2015
6/19/2015
6/26/2015
7/3/2015
7/10/2015
7/17/2015
7/24/2015
. . H . . . H . H . . . H H . . H . . . H . . . . . . . . . . . . . H . . . . H . . .
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FY 16 FALL MAILING SEASON READINESS
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New for Fall 2015New for Fall 2015
124 automated package and bundle sorters expanded since last Fall mailing season 5,488 additional separations added to the fleet
An average of 44 per machine
21 Small Package/Bundle Sorter Systems Expanded access to the network
FAST Appointments extended
Activated 187 Hubs
New data analysis tools and reports (SPD) Mobile Delivery Device deployment complete Sept. 2015 Lean Mail Processing implemented in every plant Lean Mail Delivery – phase 1 implemented in every unit Leverage Local Operations Centers
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EquipmentEquipment
MAIL TRANSPORT EQUIPMENT
USPS spent $96M in New Buys for FY 2015
Plastic Pallets, Plastic Trays, Plastic Flat Tubs and Sleeves
Quarter 4 purchases still being received through September
MTE Inventory is available to meet Fall Mailing Season demand 4.1 Million EMM Trays & Sleeves
2.5 Million MM Trays & Sleeves
1.7 Million Half-Trays & Sleeves
2.0 Million Pallets
2.9 Million Flat Tubs
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LEVERAGING TECHNOLOGY & INNOVATION TO GROW
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Consumer Expectations are Changing
Consumers are connected, informed and expect:
One-stop-shop experiences
Personalized service
Identity Protection
When expectations are not met, consumers share their experience.
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Physical to DigitalMail Promotions
Faster Shipping.More Visibility.
Simpler Returns.
MyUSPSmy.usps.com
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WHAT WE ARE DOING…
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Mail Remains RelevantMail Remains Relevant
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We created our own catalog…We created our own catalog…
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Mail + Mobilean Optimum Connection
Use mail as jumping-off point for mobile commerce• QR codes used by 1 in 5 smartphone users:
– USPS drove initial adoption of QR Codes with first Mobile Barcode promotion• 400% increase in QR Code scans by consumers from 2011-12
• Mobile device key to linking channels
Best practices• Link to mobile optimized and/or
personalized site
Optimizing Direct MailOptimizing Direct Mail
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2015 Promotional Calendar2015 Promotional Calendar
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We’re Also Adapting to Changing Delivery Expectations….
Sunday Delivery- New Sunday locations
• Denver, Minneapolis, Detroit Aug-Nov 2015
- 3,300 additional ZIP Codes mapped for expansion
- Averaging 1.2M parcels on Sunday
Ship From Store (Next Day)- 16 customers with over 7,400 stores served
- Onboarding 2 new customers with over 3,000 stores
Same-Day (Metro Post)- More than 132,000 deliveries year to date
Opening New Customized Delivery Markets- Grocery Delivery
• 6,000 deliveries with over 27,000 totes per week
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• My USPS. Com is platform USPS will use to give the consumer more control over package
• Site allows consumer to:
- Notified of delivery status
- Control delivery such as package intercept
- Direct the carrier where to leave a package (with a neighbor in back etc.)
Providing Consumers Control of Delivery
My USPS: Package Notification
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RETAIL AND CUSTOMER SERVICE UPDATE
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Retail Update
Increase revenue
Achieve Operational Effectiveness
Improve the customer experience
• Leveraging retail network across physical and digital channels
• Delivering a brand experience through a transformative customer-centric retail environment
Focus Goals
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Investments in retail employees, processes, and infrastructure at high-traffic Post Offices improves the overall retail customer experience
Increased Employee Trainingo Conducting brand image, customer perception,
and communications training to improve customer service
Investments in Infrastructureo Performing deferred maintenance work to strengthen
retail infrastructure and address customer-facing issues
Standardized Customer Experienceo Establishing tiered certifications to create a
consistent, customer-centric experience
Lean Retailo Applying lean principles to counter line, inner and
outer lobby, and back office
Customer Experience Investment Areas
Premier OfficesPremier Offices
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Additional Self-Service Kiosks Self-Service Expansion (SEP) emphasized using lobby
assistants and self service to improve customer experience During expansion, customer adoption increased
Mobile TechnologyMobile point of sale (mPOS) devices rolled out at 2,869 sites to decrease customer wait-time and enable clerks to: Greet customers in front of the retail counter line Direct customers to the technology that best serves their needs Quickly complete simple transactions away from the window
Integrated Retail Software Retail Systems Software (RSS), deployed to 10,000 Post Offices, links technology platforms to: Empower flexibility with evolving consumer needs Create an integrated retail technology experience Deploy an intuitive interface to improve ease of training and service
Key Investment Areas
Retail TechnologyRetail technology investments
Investments in self-service & mobile technologieshelp improve the retail customer experience
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Self-Service Retail Kiosk (e.g., Brown Bag Restaurant)
Going forward, we can make greater use of emerging technologies to enhance the customer experience
In-person verification (e.g., airport check-in) using mobile device
Smart device connectivity (e.g., NFC and Bluetooth printer stations)
Mobile payments (e.g., Apply Pay, iWatch)
Retail technology investments
Retail Technology
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Lean Delivery – F4 Operations
o Applying lean principles to distribution operations
Optimizing the use of Delivery Unit Distribution Ops Technologyo Modifying equipment to allow more operational
flexibility
o Standardizing use of the equipment
Optimization of F4 operations to promote office efficiencies
o Focus on Distribution up-times
o Taking advantage of OWC to improve operational efficiency
Deliver Unit Distribution OperationsPremier Offices
Post Office Investment Areas
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CLOSING COMMENTS
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Committed to Service Excellence
SUMMARY
Our Commitment
Industry Engagement
Effective Use of Data and Diagnostic Tools
Going ForwardGoing Forward
Prepared for a Successful Fall Mailing Season
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We are Committed to Service Excellence
Commitment
Engage Industry
Stabilize OWC
COMMITMENT TO
SERVICE EXCELLENCE
Use Data and Diagnostic Tools
Educate and Empower Employees
Drive Efficiency
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GLA Area Focus Group – 8/20/15GLA Area Focus Group – 8/20/15