1. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 1 FSS Prep and Entry Workgroup #115 August 1, 2007 Joe Schick – Quad Graphics Rod Barbee – USPS Engineering Marc McCrery – USPS Operations

2. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 2 Objective Identify areas of impact to the USPS and customers associated with preparation and entry of flats in an FSS environment. Recommend approaches to optimize FSS preparation and entry to minimize end-to- end costs and fully leverage the FSS program.

3. Flat mail preparation for and entry into FSS environment Dolly holding ACTs CASTR holding street trays

4. Empty Dolly General Staging Full CASTR NOTE: Drawing not to scale. Relative locations of work areas and pathways not intended to represent actual layouts. Empty Empty Dolly Raw Mail Empty Dolly Raw Mail Full Dolly Empty CASTR Full CASTR Raw Mail Empty CASTR

5. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 5 Auto-Ready Containerization n The group is focusing on a preparation option that would enable a more efficient direct induction of flats, with mechanized conversion of bundles into ACTs, bypassing bundle distribution. n The bundles would be more uniformly thick, non-compensated, and strapped. n Also exploring the ability of combining multiple FSS schemes on a single pallet.

6. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 6 Mail Characteristics n We have investigated national mail characteristics using prospective FSS zones. n This analysis has revealed that 63% of the non-saturation flat pieces (STD and PER) could be placed into FSS scheme bundles and approximately 2/3 of these bundles could be placed on auto-ready pallets (6 sort plans). n The group has decided to focus on Dulles and Phoenix as two FSS locations to model baseline and future environments.

7. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 7 Industry Analysis n Quad has performed some analysis on actual mailings, small and large, for both Dulles and PHX to validate (or contradict) the national mail characteristics results…..

8. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 8 Industry Analysis Standard Mail - Small – Dulles, VA n Quantity = 364,067 pieces n Piece weight =.30 lbs n With a 250 lb pallet minimum, up to 8 FSS sort plans would need to be combined to achieve the necessary weight. n With a 500 lb pallet minimum, essentially all FSS sort plans would need to be combined on a pallet.

9. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 9 Industry Analysis Periodical - Large – Phoenix, AZ n Quantity = 1,086,539 pieces n Piece weight = 1.17 lbs n With a 250 lb pallet minimum, only one FSS sort plan would achieve the required pallet minimum. n With a 500 lb pallet minimum, one, or in some cases two, FSS sort plans would be necessary to achieve the required pallet minimum.

10. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 10 Mail Preparation Subgroup n We will would like to form a small subgroup to develop a mail preparation proposal that would specify bundle and potential auto-ready palletization requirements. n The subgroup would look to build upon the current preparation structure (e.g. mixed carrier-route bundles). n In addition, consideration will be given to and requirements developed for the non-FSS mail base.

11. FSS PREP AND ENTRY (WG #115) MTAC, August 2007 11 Questions???