MTE Forecasting and Tracking Workgroup #108 Goal: To have enough of the right type of MTE equipment in the right place at the right time to meet every customer’s need every time.

RECAP RECAP The Mail Transport Equipment (MTE) workgroup held its first formal meeting on August 6, The group was challenged to develop recommended processes to address the following potential outcomes:

RECAP RECAP  Ability to forecast and identify purchases at least six months in advance  Ability to anticipate needs and re-deploy inventory with two - three weeks notification  Ability to identify mailing “trends” (flats versus over-sized letters, etc.)  Establishment of an “awareness campaign” for both industry and postal  Create an understanding of each others needs and limitations (industry and postal)

RECAP Challenges  Lack of awareness of customers future needs – near and long term (rely on history).  Lack of knowledge regarding inventory in customers plants/facilities as well as USPS’.  Lack of understanding/lack of standardization regarding forecasting needs and inventory management.  Misuse of Equipment  Theft (sale) of Equipment

RECAP Forecasting Challenges  For new buys -- USPS needs to forecast out at least 6 months  To move equipment to other sites around the country, USPS needs days notification from mailers.  Industry can accurately forecast 8 – 14 days out.

Assessment It is the conclusion of the workgroup that in order to adequately track or forecast, there first needs to be consistent, standardized and (near) universal collection of data RE: use and inventory within both USPS sites, as well as customer facilities. Once a baseline of information is established, and usage tracked, forecasting patterns could emerge. It is the conclusion of the workgroup that in order to adequately track or forecast, there first needs to be consistent, standardized and (near) universal collection of data RE: use and inventory within both USPS sites, as well as customer facilities. Once a baseline of information is established, and usage tracked, forecasting patterns could emerge.

Subgroups  Forecasting Pilot Subgroup  Beta “Forecasting tool” developed  Initial test conducted of small group of mailers  Pilot will not be continued due to lack of BSN resources and limited value  Best Practices / Standardization Subgroup  Completed Industry survey of ordering practices  Determination made that there are NO best practices relative to ordering and forecasting of MTE (Includes output from standardization subgroup)

Subgroups  Communications Subgroup  Worked with Inspection service to develop “It’s a Crime Campaign”  Worked with MTE group on ‘MTE Awareness’ campaign and end of summer MTE roundup  Contingency Subgroup  Developed List of approved equipment alternatives

Accomplishments  Creation of broad awareness of MTE issues  Development of MTE Customer Brochure and Order Form  Creation of MTE Alternative list – May 17, 2007  “It’s a Crime” Campaign – September 15, 2007  Creation of MTE Presentation – HQMTE website  Concept development for on-line MTE Forecast template

Accomplishments  MTE pallet retrieval through: Over 17,0000 pallets at a value of over $340,000!!!

Recommendations  Investment in the development of a MTE website to include: Equipment Ordering Forms, Inventory reporting, MTE calculator, forecasting tools/tips, newsletters, best practices, order status, customer needs/usage tracking, USPS contacts, etc. Challenge is the cost of developing and maintaining the website.  Re-establish weekly field reporting of on-hand MTE volumes at postal facilities and mailers.

Recommendations  Recommend a single POC (Point of Contact) be established to ensure consistency and standardization for external customer contact (“one stop shopping”).  Recommend each area office re-establish position of AMTES (Area Mail Transport Equipment Specialist) for a single point of contact for mailers and postal customers for MTE requirements, annual validation, transportation, etc.

Recommendations  Recommend customer information be verified and updated annually or if a customer change request is received by the designated Postal representative.  In an effort to create awareness and customer satisfaction, it is recommended that the semi- annual sales generated customer survey, as well as the ongoing BSN pro-active customer contact process include questions/language regarding MTE plans and experience.

Future Future MTE ad hoc workgroup meets 1-2 times per year to monitor and continue progress on USPS/Industry collaboration to ensure no mailer runs out of MTE

Thank You! Many thanks to the industry and USPS members who contributed so many hours to the efforts of the work group. Jo Ann Miller, USPS Jim Hardie USPS Kevin McPhillips, Direct Group