® Flats Symposium 2008 Bill Galligan Senior Vice President, Operations USPS National Postal Forum ® National Postal Forum 2008
National Postal Forum ®
® USPS Salary & Benefits: $54 Billion Delivery 43% Mail Processing 22% Support 0.9% Other Functions 9% Customer Service 16% Maintenance 6% Vehicle Services 2.4% Source: 2007 Annual Report
National Postal Forum ® Incremental Cost Improvements Over the Last 10 Years Delivery Will Continue to be Largest Cost Center Continued Delivery Point Growth Address Infrastructure Burden Managing Delivery Costs
National Postal Forum ® What is Delivery Point Sequencing? Technology Places Mail Pieces into Exact Order of Delivery
National Postal Forum ® Letter Mail Technology (City) – DPS Trend 87% Cased Letters DPS Letters USPS Has Sequenced Letters Since 1993 Resulting in Over $5 Billion Annual Savings
National Postal Forum ® Replicate Letter Mail Success for Flats
National Postal Forum ® Flat Volume Trend
National Postal Forum ® Annual Flat Volume Periodicals 17% First-Class Mail 8% Standard Mail 75% Standard Mail 75% 52 Billion Flats FY 2007 (RPW) 52 Billion Flats FY 2007 (RPW)
National Postal Forum ® Streamline and Simplify Mail Make-up Reduce Number of Entry Points Induct the Mail Where Processed Bypass Sack / Bundle Distribution Automate Mail Preparation Automate Sequencing of Flats for Delivery Leverage the Use of Data Flats End-to-End Strategy
National Postal Forum ® 1. “The Address” 2. Mail Entry Entry Points Critical Entry Times 3. Mail Prep in FSS Environment Mailer Changes
National Postal Forum ® FSS Benefits Substitute Technology for Manual Labor Manage Delivery Growth Reduction in Future Delivery Vehicles Reduction in Facility (Delivery Unit) Space Needs Improve Processing Performance and Service End-to-End Visibility Create Lowest-Combined-Cost System