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Moving the Mail

Moving the Mail . NETWORK FACILITES NDC NETWORK RE-EGGINEERING HOW YOUR MAIL MOVES IMPROVING THE PARNTERSHIP . MOVING THE MAIL. NETWORK FACILITIES - 2 STCs. NY SURFACE TRANSFER CENTER (STC) – BRONX, NY EXPRESS MAIL FIRST CLASS PERIODICAL STANDARD

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Moving the Mail

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  1. Moving the Mail

  2. NETWORK FACILITES NDC NETWORK RE-EGGINEERING HOW YOUR MAIL MOVES IMPROVING THE PARNTERSHIP

  3. MOVING THE MAIL NETWORK FACILITIES - 2 STCs NY SURFACE TRANSFER CENTER (STC) – BRONX, NY • EXPRESS MAIL • FIRST CLASS • PERIODICAL • STANDARD NJ SURFACE TRANSFER CENTER (STC) – CARTERETT, NJ • EXPRESS MAIL • FIRST CLASS • PERIODICAL • STANDARD

  4. STC SURFACE NETWORK P&DC P&DC P&DC P&DC STC NY STC P&DC P&DC P&DC P&DC

  5. MOVING THE MAIL NETWORK FACILITIES - 2 L&DCs NJ LOGISTICS & DISTRIBUTION CENTER (NJ L&DC) – KEARNY, NJ • PRIORITY • OUTBOUND MILITARY PRIORITY • OUTBOUND INTERNATIONAL PRIORITY NY LOGISTICS & DISTRIBUTION CENTER (NY L&DC) – BETHPAGE, NY • PRIORITY • FIRST CLASS • INBOUND MILITARY PRIORITY • INBOUND INTERNATIONAL PRIORITY

  6. L&DC SURFACE NETWORK P&DC P&DC P&DC P&DC L&DC NY L&DC P&DC P&DC P&DC NDC

  7. L&DC AIR NETWORK P&DC P&DC P&DC P&DC NY L&DC L&DC JFK ?? P&DC P&DC P&DC NDC

  8. MOVING THE MAIL NETWORK FACILITIES - 2 AIRPORTS / 1 ISC JFK / ISC – INTERNATIONAL SERVICE CENTER • FIRST CLASS – AIR TRANSPORTION • INTERNATIONAL EXPRESS • DOMESTIC EXPRESS • MILITARY MAIL • INTERNATIONAL GATEWAY TO WORLD Newark Liberty Airport • FIRST CLASS – AIR TRANSPORTION • INTERNATIONAL PRIORITY \ • MILITARY MAIL

  9. MOVING THE MAIL NETWORK FACILITIES – AIR TRANSPORTATION • COMMERCIAL AIR CARRIERS • JET BLUE • AMERICAN • UNITED • US AIR • CONTINENTIAL • DELTA • SHARED NETWORK CARRIERS • FEDEX • UPS

  10. MOVING THE MAIL NETWORK FACILITIES NJ NDC – JERSEY CITY, NJ CURRENT MAIL - • STANDARD • PACKAGES • PERIODICALS • INTERNATIONAL SURFACE • SURFACE MILITARY

  11. MOVING THE MAIL Network Re-engineering Why change ????? • Adjust to declining volume – 213 Billion pieces 2006 / 168 Billion pieces 2010 • Adapt to how our customers use mail Internet, reduced spending • Control operating cost

  12. MOVING THE MAIL NETWORK DISTRIBTUION CENTER • Transformation of 21 Bulk Mail Centers (BMC) to Network Distribution Centers (NDC) • Consolidate package distribution • Improve utilization of BMC & Surface Transfer Center (STC) containerization and transportation • Improve utilization of facilities • Leverage multiple trailer loading and dispatching techniques Transformation BMC NDC

  13. MOVING THE MAIL NDC Responsibilities - 21 Facilities • 11 - Tier 1 NDC • Distribution of local (turnaround) and destination Standard Mail, Periodicals, and Package Services • 6 - Tier 2 NDC • Tier 1 responsibilities • Distribution of outgoing Standard Mail, Periodicals, and Package Services to the network • Including, MXD States Outgoing single piece sort • STC containerization and dispatch operations – outgoing / incoming all classes • 4 - Tier 3 NDC • Tier 1 and Tier 2 responsibilities • Consolidation points for less than truck load volumes from Tier 2 sites

  14. MOVING THE MAIL Plan for Change – Overview BMCs of the future… Network Distribution Centers (NDCs)

  15. MOVING THE MAIL NJ NDC – Overview • Implemented in July 2009 • Involved consolidation of Springfield BMC, Philadelphia BMC , and New Jersey BMC originating processing into the NJ NDC • Operational Impacts • NDCs operate like P&DCs • Operating plan changes required to coincide with STC containerization & dispatch plan • NDC sort to ADCs, AADCs and NDCs • Transportation Impacts • Streamline / improve network • Increase utilization of assets • Improve transit time

  16. MOVING THE MAIL NJ NDC – Overview • Future - Move NY and NJ STC into NJ NDC fall 2010 - Move STD MXD processing into NJ NDC fall 2010 - Flat Sequencing System ( FSS) currently being installed • Highlights • LOCAL PACKAGE SERVICE UP 24% • STANDARD SERVICE UP 3% • PERIODICAL SERVICE – MAINTAINED • TRANSPORTION UTLIZATION – 84% PER TRIP AVERAGE REDUCE COST $45 MILLION • WORKHOURS – DOWN 5% • WORKLOAD – UP 79%

  17. MOVING THE MAIL Current NJ/ NY STC Pt-Pt Surface Non-Pref Pref & Non Pref MSP MCI STL DFW MEM ATL JAX Based on Day 2 1200 CET for 3-day mail 12

  18. MOVING THE MAIL Operating Plan Changes – Impact of CET Change Std, Per, Pkgs All products, except PRI All products BIL SLC DEN ABQ PHX Based on CET for PRI Based on Day 2 1800 CET for 3 Day FCM Based on Day 2 1200 CET for 3 Day FCM 12

  19. MOVING THE MAIL STANDARD, PACKAGES, BUNDLES ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC POST OFFICE BMEU DESTINATIGN P&DC POST OFFICE MAILER

  20. MOVING THE MAIL FIRST CLASS W/ STC IN NJ NDC ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC POST OFFICE ORIG STC POST OFFICE BMEU DESTINATIGN P&DC POST OFFICE DEST STC MAILER ORIG AIR STOP DEST AIR STOP DESTINATIGN P&DC POST OFFICE

  21. MOVING THE MAIL FIRST CLASS W/ STC IN NJ NDC ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC POST OFFICE ORIG STC POST OFFICE BMEU DEST STC DESTINATIGN P&DC POST OFFICE DEST STC MAILER ORIG AIR STOP DEST AIR STOP DESTINATIGN P&DC POST OFFICE

  22. MOVING THE MAIL FIRST CLASS / STANDARD W/ STC IN NJ NDC ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC DESTINATIGN P&DC POST OFFICE ORIG STC POST OFFICE BMEU DESTINATIGN P&DC POST OFFICE DEST STC MAILER DESTINATIGN P&DC ORIG AIR STOP DEST AIR STOP POST OFFICE

  23. MOVING THE MAIL PERIODICAL MAIL – L201 ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC DESTINATIGN P&DC POST OFFICE ORIG STC POST OFFICE BMEU DESTINATIGN P&DC POST OFFICE DEST STC MAILER DEST AIR STOP ORIG AIR STOP

  24. MOVING THE MAIL PERIODICAL MAIL – L201 – MIRRORS FIRST CLASS ORIGINATING P&DC NJ NDC TIER 1 POST OFFICE DESTINATIGN P&DC NJ NDC TIER 2 DESTINATING NDC DESTINATIGN P&DC POST OFFICE ORIG STC POST OFFICE BMEU DESTINATIGN P&DC POST OFFICE DEST STC MAILER ORIG AIR STOP DEST AIR STOP

  25. MOVING THE MAIL PERIODICAL MAIL – L-009 DVD NJ P&DC – MXD ORIGINATING P&DC NJ NDC TIER 1 NJ NDC TIER 2 DESTINATING NDC DESTINATIGN P&DC POST OFFICE ORIG STC POST OFFICE BMEU MAILER

  26. ® 8 9 10 11 12 13 14 15 16 17 18 19 20 21 23 24 1 6 7 22 2 3 4 5 APPS – OPN 247 SAMP RUN 1 SAMP RUN 2 SAMP RUN 3 SAMP RUN 4 SAMP RUN 5 SAMP RUN 6 SAMP RUN 7 SAMP RUN 8 5D, CR FSS RUN 1 FSS RUN 2 FSS RUN 3 FSS RUN 4 FSS RUN 5 FSS RUN 6 FSS RUN 7 FSS RUN 8 5D DPS MI SPBS 2 – OPN 137 3D, REJ DU WN SPBS – OPN 137 MI AFSM – OPN 144STD MI AFSM – OPN 144STD REJ, Committed Mail WN AFSM – OPN 144 MI AFSM – OPN 146 Cased Mail Current Scheduling w/ FSS

  27. ® NJI & BMC

  28. ® NJI & BMC

  29. MOVING THE MAIL SURFACE vs. AIR NETWORK All products, except PRI Std, Per, Pkgs All products

  30. MOVING THE MAIL IMPROVING THE PARTNERSHIP Separation requirements • Local NDC service area – local plant • Network NDC split(s) • Two splits required Tier 1 and Tier 2 • Periodicals compliance with L201 & L009 split • Label quality – print head USPS Network Re-Engineering • Focus on service improvement • Reduce operating cost / improve utilization USPS Commitment to our customers • NY Districts / PCC

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