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2

Announcements

PHASED NETWORKCONSOLIDATION

MODIFIED SERVICESTANDARD CHANGE


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Mail Volume Shifting to a Less Profitable Mix

3

Volume in Billions of Pieces


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4

NETWORK CAPACITY


5/14

DECREASE IN PROCESSING

LOCATIONS THROUGH 2014

Plant Consolidation


6/14

PROCEEDING WITH CONSOLIDATIONS

OVER A LONGER TIME SPAN

6

Path Forward

Summer

2012:Phase 1Begins

Consolidatingactivity at 48locations within

scheduleconstraints

Spring

2013:Phase 1Concludes

Consolidatingactivity at 140locations; $1.2B

in annualsavings

Spring

2014:Phase 2

Consolidatingactivity at 89locations;$2.1B

combinedsavings


7/147

Announced September 15, 2011 New Plan May 17, 2012

Change in Implementation Timing

CONSOLIDATING ACTIVITIES

AT MAIL PROCESSING LOCATIONS


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8

Consolidation activity at 48 locations

Equipment and employee moves tolarger gaining sites

Realigned transportation model

eliminates multiple overnight trips

5,000 employees to receivenotifications next week

Consolidation Activity This Year

LIMITED ACTIVITYTHIS SUMMER


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PREVIOUS TIMELINE

9

2012 20142013

New Timeline

Feb. 2012 Feb. 2013264 locations

Phase 1: Aug. 201248 locations

REVISED TIMELINE: MAY 17, 2012

Phase 1: 201392 locations

Phase 2: 201489 locations


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10

ExtendedTimeline

Responsible CostReduction

ScheduleConstraints

Meeting cost reduction goals whilemaintaining excellent service performance

Providing customers and employeesadequate time to plan and adapt tonew footprint

Modest implementation summer 2012due to compressed window

NEW APPROACH BASED ON:

Conclusion


11/14

11

Changes to Service Standard

Final Rule Submitted to Federal Register tomorrow

Maintains overnight service for areas served by local

mail processing facility

Preserves 80% of overnight delivery volume

Enables consolidating activity at 140 facilities

Post-2014: Revised entry times for overnight

INTERIM SERVICE STANDARD CHANGE


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12

Methodical, measured transition

Options available for staying with the

Postal Service

Intention to provide rolling incentives

Reducing 28,000 positions, 158,000employees retirement eligible

Proven track record of avoidinglay-offs; success through attrition

Employees

OUR COMMITMENT TO EMPLOYEES


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13

Extended, multi-phase approach Compressed activity in Summer 2012 Adequate planning time

MeasuredImplementation

Customers support network changes Helps preserve affordability of mail Customers will continue to utilize mail

MeetingCustomer

Needs

Saves $2.1 billion dollars annually Consistent with five-year plan Helps return Postal Service to

financial stability

AchievesSavings

Conclusion


14/14FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

TITLE OF PRESENTATION(24PT. ARIAL, BOLD, ALL UPPERCASE)

Subtitle(20pt. Arial, Bold, Title Case)

For inquiries after the webinar, please contact:

David [email protected] call the media line at (202) 268-2155

usps network webinar presentation 5-17-2012

Documents