® NPPC Meeting December 5, 2013 USPS Technology Initiatives

2 World Class Service: Consistent, reliable service Revenue Generation: Leverage information to compete Operational Efficiency: Drive the Lean Process Customer Experience: Become a customer centric organization Robust Reliable Systems: Consistent high-level performance What is the Plan?

3 Actions World Class Service  Day certain service expectations  Move to Time definite delivery  Predictive Analytics- stop defects before they happen  Enhance Package Diagnostics  Rich customer and business information  Enhanced Scheduled Delivery Service  Service customized to customer demand Consistent, Reliable, Service

4 Actions Revenue Generation  End to End Visibility for mail and packages  Enhance the value of mail with information  Confirm date and time of delivery  Next generation mobile device - not a scanner  Use technology to create mail experiences for a new generation of customers  Confirm delivery on all mail  Incorporate social media into product strategies to build customer loyalty  Digital solutions

5 Actions Operational Efficiency  Business intelligence expansion (WIP, Cycle Time)  Predictive analytics  Technology to reduce labor  Leverage IMb data to drive out cost  Next generation parcel sorters  Light package sorters  Continued focus on efficient flat processing  Technology for the last mile  Leverage value of GIS information

6 Actions Improve the Customer Experience  Real time information  Customer Care Center enhancements  Mobile retail system (mPOS)  Upgrade IT service desk customer support capabilities  Customer costing and analytics  Enhance value of mail with GIS  E-Induction expansion  Seamless acceptance

7 Full-Service Adoption – By Volume As of mid Nov 2013, 67% of Commercial mail volume is Full-Service

8 Actions Robust Reliable Systems  Reduce SLA time frames “REAL TIME”  Improving ingest of data from customers  Provisioning data back to customers  Move to 99.95% availability for key, critical systems  Integrate cloud services with internal infrastructure  Improve predictive system monitoring  Corporate data retention policy

9 Recap  Use Technology to Improve Processes  Continue the Progress Underway  Focus on the Customer  Grow “OUR” Business