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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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NETWORK FACILITES

NDC

NETWORK RE-EGGINEERING

HOW YOUR MAIL MOVES

IMPROVING THE PARNTERSHIP


Network facilities 2 stcs l.jpg

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


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STC SURFACE NETWORK

P&DC

P&DC

P&DC

P&DC

STC

NY STC

P&DC

P&DC

P&DC

P&DC


Network facilities 2 l dcs l.jpg

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


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L&DC SURFACE NETWORK

P&DC

P&DC

P&DC

P&DC

L&DC

NY L&DC

P&DC

P&DC

P&DC

NDC


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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


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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


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MOVING THE MAIL

NETWORK FACILITIES – AIR TRANSPORTATION

  • COMMERCIAL AIR CARRIERS

    • JET BLUE

    • AMERICAN

    • UNITED

    • US AIR

    • CONTINENTIAL

    • DELTA

  • SHARED NETWORK CARRIERS

    • FEDEX

    • UPS


Network facilities l.jpg

MOVING THE MAIL

NETWORK FACILITIES

NJ NDC – JERSEY CITY, NJ

CURRENT MAIL -

  • STANDARD

  • PACKAGES

  • PERIODICALS

  • INTERNATIONAL SURFACE

  • SURFACE MILITARY


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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


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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


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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


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MOVING THE MAIL

Plan for Change – Overview

BMCs of the future… Network Distribution Centers (NDCs)


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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


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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%


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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


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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


Standard packages bundles l.jpg

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


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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


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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


First class standard w stc in nj ndc l.jpg

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


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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


Periodical mail l201 mirrors first class l.jpg

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


Periodical mail l 009 l.jpg

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


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®

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


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®

NJI & BMC


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®

NJI & BMC


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MOVING THE MAIL

SURFACE vs. AIR NETWORK

All products, except PRI

Std, Per, Pkgs

All products


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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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