Post on 26-Dec-2015
®
Product Visibility
•Power of Business Intelligence
Package Visibility
Mail Visibility
Full Service Moving Forward
AGENDA
®
3
Product visibility is essential to transform our business
Visibility enhances DMAIC approach to systemic improvement
Enhances business knowledge
Drives world class service
Creates customer value – generates revenue
Creates business value – efficiency
Product Visibility Creates Business Intelligence
®
Mail Processing and Other Equipment – Successfully read barcodes
Infrastructure – Successfully moves data
Systems – Deploy actionable reporting & analytics to
achieve benefits of increased visibility
Intelligent Mail and Package Barcodes – Unique barcodes on all pieces, trays and
containers
Real-time data availability – All systems provide real-time data
Building Blocks to Achieve Visibility
®
EventFull Service Letters/Flats
Packages
Acceptance
Depart Post Office/BMEU
Arrive USPS Sort Facility (Origin)
Processed through USPS sort facility (enroute)
Depart USPS Sort Facility
Enroute Tray and Sack Events
Arrive USPS Sort Facility (Destination)
Processed through USPS Sort Facility (enroute)
Depart USPS Sort Facility
Arrival at Post Office
Processing Complete
Out for Delivery
Delivered
Complete
Tracking Capability End of FY 2011
Real Time Scanning - 2013
®Tracking Capability End of FY 2012
(Work in Progress)
EventFull Service Letters/Flats
Packages
Acceptance
Depart Post Office/BMEU
Arrive USPS Sort Facility (Origin)
Processed through USPS sort facility (enroute)
Depart USPS Sort Facility
Enroute Tray and Sack Events Available Now!
Arrive USPS Sort Facility (Destination)
Processed through USPS Sort Facility (enroute)
Depart USPS Sort Facility
Arrival at Post Office
Processing Complete
Out for Delivery
Delivered
Work in ProgressComplete
Real Time Scanning - 2013
®
How Mail Performed
Right mail, to the right customer, at the right time – every time!
Support Customer Inquiries
Using mail data to improve ROI
Value of reliable service performance
Root Cause, MP WIP, Elapsed Time
USPS Vital Few Delayed Status
What plant, what shape, what failed?
Analytics capture the benefits of 100% Product Visibility
®
What is World Class Service?
Time-in-transit service performance
• All products are day certain
• Service performance must be consistently reliable
• Measure all products in-transit to all destinations
®
Package Nesting Solution Deployed to 62 APPS sites - June 2011
Package Barcode Reader Program 4,000 ring scanners to over 200 plants - June ~ December 2011
Automated Package Bundle Sorter Deployed 194 retro-fits - December 2011
Product Tracking System Reengineer On schedule for Spring 2012
Investment in Technology
®
0.00
0.50
1.00
1.50
2.00
2.50
Billions
FY 2009 FY 2010 FY 2011 FY 2012
3.9 BILLION new package
tracking events in 5 Months!
Growth in Package Tracking Events
FY 09
FY 12
FY 10
FY 11
Nu
mb
er
of
Ev
en
ts i
n B
illi
on
s
®
Next Generation - Intelligent Mail Device
Next generation – move to real-time scanners
Wireless communication
Requires software modification and new hardware
Targeting Commercial Off-the-Shelf (COTS) scanners
Phased roll-out
Investment in Technology
®
A barcode on every piece End-to-end visibility 10 to 12 tracking events per piece Scan performance is 99%+ and real time Barcode provides – business value
• Operational service analytics• Cost ascertainment • Volume planning for workload• Transportation efficiency• Customer level data for pricing• Payment initiation• Revenue assurance
World Class Package Visibility
Information is Essential
®
16,232,020Electronic Info for
Containers and Trays Received
560,950Entered at USPSSV Unload Scan
2,305,810Enroute Depart Scan for Containers and
Trays
1,827,900Enroute Arrive Container
and Tray Scans
11,116,070Enroute Tray
Scans
12.5 BillionPiece level
automation scans
Full Service Customers Only
All IMb™ Users
Full Service - Free VisibilityJanuary 7 - February 29, 2012
New Visibility for Mailers
®
What is World Class Service?
Time-in-transit service performance
• All products are day certain
• Service performance must be consistently reliable
• Measure all products in-transit to all destinations
®Inverse Correlation between
WIP & Service Level
PQ 1 FY 12 - NDC Letters
0
20
40
60
80
100
120
140
WASHIN
GTO
N DC
CHICAGO
IL
PHILA P
A
GREENSBO
RO N
C
PITTSBURG
H PA
SAN FRAN C
A
MEM
PHIS T
N
SPFLD MA
CINCIN
N OH
DETROIT
MI
MPLS
/STP M
N
ATLANTA GA
NEW J
ERSEY NJ
JAXVIL
LE F
L
DALLAS T
X
DES MOIN
ES IA
LOS A
NGELS
CA
ST LOUIS
MO
SEATTLE WA
KANS CIT
Y KS
DENVER CO
WIP
(M
ed
ian
Ho
urs
)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
On
Tim
e%
Median Time to First Automation Scan On Time %
® Container at Risk Alerts
From: sasp@usps.gov Sent: Wednesday, March 14, 2012 8:54 AMTo: PLANT MANAGERSubject: MAIL AT RISK FOR SERVICE FAILURE (TOMORROW)
Plant Manager - USPS L&DC FacilityThe following Standard mailers have entered mail at your facility in which we have yet to see an automation
scan that indicates the mail will meet service performance expectations.
THIS MAIL IS AT RISK FOR SERVICE FAILURES with a Start the Clock Date of 02/12/2012 and a last day to meet service standard of 02/15/2012
HARTE-HANKS WILKES BARRE <HANOVER TOWNSHIP, PA>(2566573) JOANN FABRIC & CRAFT STORES <HUDSON, OH>(5338199) Standard Letter IM Container Barcode(s):
● 99M001126000002875401 (Unload: 02/12/2012 12:28:43)IMtb:297075421001126029053511(High Speed Tray Sorter : 02/13/2012 03:13:56 USPS L&DC)
DATA-MAIL, INC. -NEWINGTON <NEWINGTON, CT>(5104091) Bank Of America <CHARLOTTE, NC>(2299236) Standard Letter IM Container Barcode(s):
● 99M000520917820010085 (Unload: 02/12/2012 07:26:43) IMtb:281525421000520899519691(High Speed Tray Sorter : 02/13/2012 01:04:27 USPS L&DC) 99M000520917820010086 (Unload: 02/12/2012 07:21:29) IMtb:282705421000520899520351(High Speed Tray Sorter : 02/13/2012 04:35:11 USPS L&DC)
QUAD/GRAPHICS-THE ROCK <THE ROCK, GA>(3153614) QUAD/GRAPHICS-SUSSEX (FAST) <SUSSEX, WI>(3591300) Standard Letter IM Container Barcode(s):
● 99M10000000PT01465820 (Unload: 02/12/2012 14:46:29) IMtb:281155427107949069477561(High Speed Tray Sorter : 02/13/2012 00:01:02 USPS L&DC)
® Operational Performance
Visibility creates operational inventory to help managers anticipate volume & schedule proactively
®
Commercial Mail Volume in Measurement
0
500
1000
1500
2000
2500
3000
3500
4000
FY10Q4 FY11Q1 FY11Q2 FY11Q3 FY11Q4 FY12Q1
Mil
lio
ns
FCM
STD
PER
Measurement Volume by Quarter
®
97.396.395.6
70
75
80
85
90
95
100
Month
On T
ime
Overnight Two-Day Three-To-Five-Day
Commercial First-Class Mail FY11 & FY12 PerformanceBy Month
All Mailers in Measurement
Commercial First-Class Mail
Service Performance Diagnostic Tool Launched
®
90
95
100SPFC-Overnight
COMM-Overnight
80859095
100
SPFC-Two-Day
COMM-Two-Day
80859095
100 SPFC-Three-To-Five-Day
COMM-Three-To-Five-Day
FY12 First-Class Service
®
84.3
89.1
0
20
40
60
80
100
Week Ending
On
Tim
e
DSCF DNDC
FY12 Standard Mail Performance
Source: iMAPS
By Week through Mar 2, 2012
Introduced new SPD Tools, MP WIP
®
89.4
78.9
0
10
20
30
4050
60
70
80
90
100
Week Ending
On
Tim
e
Letters FlatsSource: iMAPS
By Week through Mar 2, 2012
Introduced new SPD Tools, MP WIP
FY12 Standard Mail Performance
®
63.9
73.8
0
10
20
30
40
50
60
70
80
90
Week Ending
On
Tim
e
DSCF DADCSource: iMAPS
By Week through Mar 2, 2012
Introduced new SPD Tools, MP WIP
FY12 IMb™ Periodical Performance
®
Growth in Full Service is not sufficient to achieve business benefits
Full Service Adoption in FY 2011 - 2012
26.30%
32.40%
37.60%39.80%
42.10%39.86%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
FY10 FY11Q1
FY11Q2
FY11Q3
FY11Q4
FY12(Jan 2012)
First Class Periodicals Standard Mail Total
YTD
FY 12 – Oct - Jan
® Full Service Value Proposition
Value to Industry Service Visibility & tracking across the mail supply chain Customers receive consistent & reliable service Utilization of information to drive service improvement
Customer Applications Advance remittance intelligence Test mail piece creative results Integrate multi-channel marketing strategy Measure success of each mail campaign Efficient staffing of customer call centers
® Full Service Value Proposition
Value to Industry
Financial Incentives Elimination of permit fees Access to promotions & incentives Discounted or free addressing products & services Maximize automation discounts moving forward Reduce USPS costs, protect price for mailers
Ease of Use Eligibility for eInduction and Seamless Acceptance Postal Wizard Enhancement Customized data provisioning options Opportunity for automatic move update qualification
® Steps to Attain Adoption
January 2013
IMb required for automation rates
Sunset POSTNET eligibility for automation rates
Restructure Full Service discounts to increase incentives for participation
January 2014
Sunset IMb Basic eligibility for automation rates
Require Full Service for automation discounts
® POSTNET Barcode Discontinuation
Received immediate feedback on Federal Register proposal, published on March 2, to the clear zone requirement for letters and flats
Final rule will exclude the clear zone requirement
Focus must be on the important aspects of the Intelligent Mail Barcode (IMb) implementation
Encourage the mailing community to continue commenting on retiring POSTNET for automation pricing eligibility
®
Full Service Communication Plan
PMG Industry Meeting January 31PostCom February 7MTAC February 15National Postal Forum April 1-4 National PCC Day September 19
Presentations
Customer Outreach and Support Stakeholder Meetings (MTAC)
Through Sales, BSN, and BMEU employees Develop and deliver PCC workshop in box
Customer webinars Post Info on USPS.com and RIBBS
NCSC help desk
Industry Trade Shows Industry Webinars
Industry Trade Publications
Offer Small Business Tool
Work Closely with Industry Mail Service Providers
Software Vendors
®
44
Essential to compete
Creates customer value
Creates business value
Drives world class service
Provides information to improve our processing system
Foundation for improved costing system
Provides information to eliminate non-value added
processes
Product Visibility will Transform our Business
Recap