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Transcript of ® Flats Track for Periodicals, Catalogs & Printers David Mastervich Manager, Periodicals, Catalogs...
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Flats Track for Periodicals, Catalogs & Printers
David MastervichManager, Periodicals, Catalogs & Saturation
Rosa FultonExecutive Director, FSS
National Postal Forum
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National Postal Forum
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SpeakersSpeakers
Rosa FultonExecutive Director, FSSUnited States Postal Service
David MastervichManager, Periodicals, Catalogs & SaturationUnited States Postal Service
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National Postal Forum
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Rosa FultonExecutive Director, FSS
United States Postal Service
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National Postal Forum
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Facts About Flats
Flats Strategy
Aligning USPS and Industry Processes & Systems
Agenda
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First ClassPeriodicalsSTD / Catalogs
Annual Flat VolumeAnnual Flat Volume
Periodicals20%
First-Class7%
39.6 Billion FlatsFY 2009 (RPW)
39.6 Billion FlatsFY 2009 (RPW)
Standard 73%Standard 73%
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PERIODICALS19%
FIRST-CLASS7%
STANDARD43%
SATURATION26%
HIGH DENSITY5%
FY 2009 Flat Mail by Class / Sort Level
Flat Volume by Class & Sort LevelFlat Volume by Class & Sort Level
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FIRST-CLASS7%
PERIODICALS20%
STANDARD73%
FIRST-CLASS8%
PERIODICALS17%
STANDARD75%
2005 – Total Flat Volume53.4 billion
2009 – Total Flat Volume39.6 billion
2005 & 2009 Flat Volume Comparison2005 & 2009 Flat Volume Comparison
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PERIODICALS19%
FIRST-CLASS7%
STANDARD43%
SATURATION26%
HIGH DENSITY5%
2005 – Total Flat Volume53.4 billion
2009 – Total Flat Volume39.6 billion
PERIODICALS16%
FIRST-CLASS8%
STANDARD52%
SATURATION20%
HIGH DENSITY4%
2005 & 2009 Flat Volume Comparison2005 & 2009 Flat Volume Comparison
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20
25
30
35
40
45
50
55
60
2001 2002 2003 2004 2005 2006 2007 2008 2009Vol (Bil) 58.2 57.8 51.7 52.4 53.9 53.8 52.4 45.9 39.6
Flat Volume TrendFlat Volume TrendRPW
Flat volume decline FY 2009 -13.8%Flat volume decline FY 2009 -13.8%
FY 2005 – FY 2009Flat volume decline 26%
14.3 billion fewer flats annually
FY 2005 – FY 2009Flat volume decline 26%
14.3 billion fewer flats annually
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First Class Periodicals Standard Total Flats
2009 787,424 2,096,118 9,129,878 12,013,420
2010 663,624 1,863,566 7,697,093 10,224,284
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
Pie
ces
(000
)
Class
FY 2010 YTD Flat Volume Compared SPLYQuarter 1 (Oct - December)
-15.7%
-15.7%
-11.1%
-14.9%
Flat Volume TrendFlat Volume TrendRPW
QTR 1, 2010Flat volume decline -14.9%
QTR 1, 2010Flat volume decline -14.9%
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First-Class Periodicals Standard
2009 239,260 641,260 2,152,944
2010 205,999 553,270 1,973,238
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Flat Volume Comparison - January 2010 vs. SPLY
2009
2010
Flat Volume TrendFlat Volume TrendRPW
-13.9%
-13.7%
-8.3%
January 2010Flat volume decline -9.9%
January 2010Flat volume decline -9.9%
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Fully Automate Flats Processing
● Flats Sequencing
● Automate Mail Preparation
● Process improvements
Create Value
Customer Involvement
Flat StrategyFlat Strategy
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Flat Mail Entry
Collection Mail•Mailboxes•Post Offices
Origin Entry•Bulk Mail Entry Units
Drop Shipment•DNDC Entry•DADC•DSCF Entry•DDU Entry
P&DC / Post Office
Mailers
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Flats Process Today
Mailers
Bundle Distribution Bundle Prep Piece Distribution Delivery
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Eliminate Non-Value Added Work/Processes
Mailers
Bundle Distribution Bundle Prep Piece Distribution Delivery
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Flats Process Future
Mailers
Flats Sequencing
Delivery
Automated BundlePreparation
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USPS & IndustryFocus of process improvements
Overview of Flat Process
CreateMailing
Bind
PersonalizeStitch/Staple
Strap / Wrap
Strap/wrapbundles
Palletize
Load bundles & wrap pallets
DesignMailing
Mailer
Deliver
Integrate flats / letters & deliver
Sort & Sequence
Piece distributionManual /
AFSM & FSS
Flat Prep
Unwrap / un-strap bundles
Dump & Sort
BundleDistribution
APPS / SPBS
Unload & Transfer
Flow to bundle distribution or dock transfer
Mail Owner Mail Preparer
USPS
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Background1. MTAC 58, 2000 – 2002● Preparing Flats Using Alternate Packaging
2. MTAC 71, 2002 – 2003● Flats Container Development
3. MTAC 81, 2003 – 2005● Flat Mail Preparation Optimization
4. MTAC 96, 2005 – 2007 Develop Interface to AFSM 100 Auto-Induction Process
5. MTAC 101, 2006 - 2007● Address Location for Flats Sequencing System
6. MTAC 115, 2007 – 2009● Requirements for preparation and entry of flat mail in the Flats
Sequencing System (FSS) environment.
7. MTAC 134, 2010 - TBD● Implementing FSS Presort Parameters
Joint USPS / Industry Workgroups
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David MastervichManager, Periodicals, Catalogs & Saturation
United States Postal Service
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Mixed Class Comailing
Optional FSS Pallet Preparation
Agenda
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Overview
Benefits
Volumes
Open Items
Recommendations
Next Steps
Additional Information
Mixed Class Comailing
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Mixed Class Comailing Overview
Pilot started January 2008
Current Participation
● Approved: 3 sites
● Pending: 6 sites
Est. FY2009 Volumes
● 130 M+ pieces
No Comailing postage rate
● Rates based on corresponding class and sort level
Service level is Standard service, not Periodicals Periodicals publishers must be notified and provide written consent
Standard mailers do not need to be notified
Manual verifications; Mixed Class mail.dats not integrated into PostalOne!
Optional service offered to customers
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Postal Service Creates Cost Savings Opportunities
● More mail on pallets that would ordinarily be in sacks.● More mail entered at finer sort levels● Moves Periodicals from MADC to 3/5 digit bundles
Gets closer to USPS processing strategy of “a flat is a flat.”
Mailers Reduces postage cost (USPS revenue)
● Increased presort level● Drop shipped closer to destination
Less transit damage from reduced number of sacks
Mixed Class Comailing Benefits
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Pro-rated bundle and pallet charges for Periodicals mail
No ADC entry; allow NDC entry at ADC rates
Service Level is Standard
● Use eDoc to remove Periodicals from PER measurement
Mandatory use of OEL with human-readable “MIX COMAIL” language
Each piece is required to use Full Service ImB
● Issue: Mixed Class not integrated into PostalOne!, so these pieces won’t be able to benefit from all Full Service features.
Mixed Class Comailing Requirements
Critical
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Comail vs. Copal
P / S
PER STD
P / S P / S
PER STD
PER
CoMail•Pallets created onsite where bundles are Mixed
•Sometimes pure PER or STD bundles will exist
CoPal•Consolidator site
•Pallets created from bundles created offsite
•Always pure PER or STD bundles
Comail Pallet CoPal Pallet
Mixed Class Comailing
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Completed Steps1. DMM language and Federal Register notice vetted through 186 internal
review process
2. Mail Classification Schedule changes/comment period
3. IT Requirements ~85% complete
Next Steps1. Pricing Steering Committee review
2. Board of Governors review
3. File Federal Register Proposed Rule – 30 day comment period
4. File PRC notice – 10 day comment period??
5. Make any changes to DMM language if necessary
6. Finalize IT requirements (work with 3rd party vendors as well)
7. Communicate and Train field
8. Implement
Mixed Class Comailing
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Background – FSS Optional Flat Mail Prep
Used industry data to develop and model concepts for different components of flats mail preparation:
● Bundle preparation
● Containerization
● Presort parameters
● Destination entry
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MTAC 115 Industry Collaboration
MTAC 115 and IDEAlliance initiatives, teams further explored:
● Flat Mail Prep and Entry in an FSS Environment
Tested concepts on bundle preparation
Tested various container preparations
Modeled FSS schemes
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FSS schemes:
● FSS sort plans mirror 5-digit and 5-digit scheme sort plans
● During test, Dulles had 49 FSS sort plans
19 sort plans with 1, 5-digit ZIP Code
20 sort plans with 2, 5-digit ZIP Codes
8 sort plans with 3, 5-digit ZIP Codes
2 sort plans with 4, 5-digit ZIP Codes
Test results:
● Periodicals had few FSS sort plan pallets
● Pallet counts remained same, or less for PER and STD mailings
● FSS scheme pallet (all sort plans at a site) has potential
Presort Test Plan Results
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Test Concepts and Model Results
Pure FSS sort plan pallet can flow directly to the bundle prep operation and bypass APPS processing
Determined potential pallet levels:
● Pure FSS (single sort plan scheme)
● Pure FSS (multiple sort plan schemes)
● Combined FSS and non-FSS
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Defining
Business Rules
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FSS Bundle & Pallet Parameters
Defined and developed parameters:● Bundle
Optimal bundle height of 3”, 4”, 6” Replaces CR piece minimum for packaging purposes
● Container Content determined by FSS scheme & destination FSS ZIP Codes
● Presort Driven by FSS Label List and sort plan contents
● Entry Destination entry, at minimum, should not change
from today and may contract with optimized network
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Optional FSS Bundle Preparation
Combine all 5-digit flat mailpieces for a sort scheme into the bundle● Carrier route and 5-digit● Create bundles of uniform height:
e.g. 3”, 4”, or 6”● Place on appropriate pallet level
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Optional FSS Pallet Preparation
FSS Single Sort Plan Scheme Pallet● Containing one or more ZIP Codes sorted
on FSS at the same time● Equivalent to 5-digit/5-digit scheme pallet
Pallet sent directly to FSS preparation area for loading Automation Compatible Trays
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Optional FSS Pallet Preparation
FSS Multiple Sort Plan Schemes Pallet● Contains mail for all FSS sort plans processed
at the facility● Equivalent to an SCF pallet● May require separate FSS and non-FSS
pallets at the facility
Pallet sent to an APPS for bundle distribution
Pallets can “go to the head of the line” for APPS processing
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Optional FSS Pallet Preparation
Combined FSS bundles and non-FSS bundles on the same pallet● No separation of mail by automation machine type (FSS, AFSM
100, etc)● Equivalent to a 3-digit or SCF pallet
Pallet sent to an APPS for bundle distribution
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What’s Next
Activities in progress:
● Develop presort software parameters
● Publish presort business rules for software vendors to code
● Implement Optional FSS prep
● Communicate FSS label list schemes
● Leverage alternatives to increase bundle and pallet scheme density (e.g. comail, copal)
● Continue development efforts to automate bundle preparation
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What’s required to earn a certificate? Attend five workshops of the Flats Track for
Periodicals, Catalogs and Printers How do I get my certificate?
Register for your certificate on the National Postal Forum Website before July 31, 2010
www.npf.org Answer the three true/false questions for
each of the five sessions you attended Certificates will be mailed upon certification
Flats Track Certificate ProgramFlats Track Certificate Program
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True or False:
1. The FSS rollout schedule has been unaffected by the recent economy?
2. The IMB holds promise for catalog customer service advancements?
3. The IMB is mainly for package fulfillment applications?
Flats Track Certificate Program - QuestionsFlats Track Certificate Program - Questions
FALSEFALSE
TRUETRUE
FALSEFALSE
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