Carrier Optimal Routing CARRIER OPTIMAL ROUTING COR FOR TODAY AND TOMORROW NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR Trained Employees: NOTES: These are the national statistics that show how many employees have been trained in COR. Nationwide 91 employees have been trained in Database Preparation and 97 Employees have been trained in Route Adjustment from FY05 to FY07. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR Database Preparation Total 10 or More Routes Zones Nationwide – 6,109 COR Database Prep Completed in Zones – 1,109 (18%) Total FSS Phase 1 Zones – 1,431 COR Database Prep Phase 1 Zones – 175 (12%) FSS Pre-Production Zones - 12 COR Database Prep Pre-Production – 8 (67%) NOTES: After surveying all Areas, we have determined that only 175 of the 1,431 FSS Phase 1 databases have been completed. There are 1,256 Zones left to complete. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR/FSS Database Preparation Options: Option 1: FSS Phase 1 Sites Complete Zones Using Trained Local Database Prep Employees Option 2: National Database Prep/Validation Teams Formed to Complete Phase 1 Zones at Expense of District Option 3: Database Preparation Outsourced at Expense of District NOTES: These are some of the options that can be utilized to ensure that COR Database Prep is completed in the FSS Phase 1 Zones. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR Minor Route Adjustment (MRA) Process: MRA has Technology that Avoids the Need for Physical Sector/Segment Volume Counts Utilizes DOIS Route Summary Historical Data & DPS EOR Report Creates “Data Driven” Route Adjustments NOTES: We implemented COR for Minor Route Adjustments in the latest software release. The MRA option in COR follows 141.19 of the M-39. It also provides the user the option of utilizing current route data if a local agreement has been negotiated. The MRA option in COR allows for “data driven” route adjustments by utilizing DOIS historical data and technology to prorate volume counts for satchel weights and relays. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing MRA Prorating of Volumes Using DPS EOR Report and DOIS Route Summary Report Notes: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Exist Route C031 NOTES: This slide shows how an individual route changed utilizing COR. This first slide displays what the route looked like before COR was utilized to adjust the routes in this zone. You can clearly see that it was fractured with delivery in three separate locations. It had 369 possible deliveries. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing New Route C031 NOTES: This is the actual current route after the COR adjustment. It now has 506 possible deliveries which was possible by eliminating the extra “travel within” and making the routes contiguous in this zone. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Projecting FSS/DPS Impact NOTES: This is the COR FSS/DPS Impact screen. By simply entering the 5-Digit Zip Code, the current data for that zone is automatically calculated and displayed using actual data from the last count and inspection. It also calculates and displays the current percent of DPS and FSS from the count and inspection data. When the user moves to the next section of the screen and inserts the percentage of DPS and FSS that they want to project for the zone in the appropriate boxes, the system will calculate the number of new routes and the number of average possible deliveries for those projected routes. It will then display what those routes will actually look like using the graphic database for that zone. The next screens show how this FSS/DPS Impact screen is utilized. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Existing Percentages for DPS and FSS NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Projected Impact at 80% FSS NOTES: By simply inserting 80% in the Projected percentage of FSS, you can see that the zone has been recalculated to 22 routes with the average number of PDS per route now at 543. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR Generated Route Structure at 80% FSS Route Reduction from 32 Routes to 22 Routes NOTES: Utilizing the data from the FSS/DPS Impact, COR automatically predicts what the 22 routes will look like. In this scenario, if DPS remains at the current level of 77% and we implement FSS at 80%, the routes will be substantially reduced from 32 routes to 22 routes. The FSS/DPS Impact feature works by predicting the office savings and subtracting that time from the Office while adding the equivalent time to the Street and while also optimizing the delivery patterns. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Projected Impact at 90% FSS and 95% DPS NOTES: If we go to the next level, and project DPS to improve to 95% from the current level of 77% and we project FSS at 90%, the average number of PDS per route is now 629 and the projected number of routes is 19. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing COR Generated Route Structure at 90% FSS and 95% DPS Letters Route Reduction from 32 Routes to 19 Routes NOTES: The 19 routes would now appear as shown. One additional and important feature, when COR actually begins the generation process, additional routes could be eliminated as Travel to and from and Travel Within are re-projected and optimized. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Exist Route C031 NOTES: This is again the original route that was shown earlier before any adjustment. Remember, it had 369 possible deliveries. The existing route had street time of 4:28 which included large amounts of Travel Within. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing New Route C031 NOTES: After the COR adjustment, it now has 506 possible deliveries which was possible by eliminating the extra Travel Within and making the routes contiguous in this zone. Even though the PDS had increased by +137, the street time only increased to 5:04. Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing New Route C031 at 80% FSS NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing New Route C031 at 90% FSS and 95% DPS Letters NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Current Projects for FY07: COR Migrated to a Web Based Application FSS/DPS Impact Feature GPS for Database Updates in Growth Areas (Pilot) NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006

Carrier Optimal Routing Next Steps: FY08 Area Route Evaluation Plans to Include Completing Databases for All FSS Phase 1 Sites Area COR “Champion” to Assist New Sites and Assist with Training (In Addition to Coordinator) Quarterly Progress Report on COR Databases “CORrespondence” – A Quarterly COR Update will be Disseminated to Area Managers/MOPS/ COR Users to Update/Ensure Interest NOTES: Area Managers Delivery Programs SupportArea Managers Delivery Programs Support October 25-26, 2006