Webinar 2013 delivery operations

Responding to Changing and Declining Volumes in Delivery

OperationsJuly 18, 2013

Webinar outline

� Identifying Opportunities for Savings in Delivery

� Back to Basics

� Recommendations to Capture Savings

� Short and Long term Approach

� The Bottom Line

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The Current Situation

Most major postal operations are experiencing shifts in mail streams, declines in first class mail and residual mail and non-automated, throughout the world. At the same time, the other half of the delivery equation, street delivery points are increasing along with gains in parcel post and advertising mail.

The increase use of automation to finalize letters and flat mail in delivery sequence creates tremendous opportunities for work hour reduction in office operations.

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2011 2012

Total mail volume delivered168,297,000,00

0159,859,000,000

Drop in mail volume with respect to prior year (2,562,000,000) (8,438,000,000)

Decline with respect to prior year (1.0%) (5.0%)

Average mail volume delivered daily 557,275,000 529,334,000

Delivery points to residential and business addresses 151,492,000 152,146,550

Increase in delivery addresses w respect to prior year

+636,530 +654,560

Average mail volume delivered per address per day 3.7 3.5

Longer Term Trends(USPS illustration)

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Several processes and procedures –Short Term: Slide 6

Validate your data!

� Operational data is collected from

the bottom up

� This includes work hours,

regular/overtime/absences/unsch

eduled absences

� Volumes and categories of mail –

automated/handled (cased)

� Fuel usage

� Graph trends in each category

� Reviews of many postal

operations have identified

significant errors when the data

collection process relies on

human input rather than

automated time keeping systems,

where applicable, and automated

machine counts.

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Several processes and procedures Short Term: Slide 7

From your Data Review, identify your “Vital Few” opportunities to reduce cost

� Excessive work hours to budgeted/SPLY work hours

� Excessive overtime

� Excessive unscheduled absences

� Increased Labor tension

� Excessive fuel and vehicle maintenance costs

� Increased customer service complaints

� Declines in automated volumes

� Declines in automation quality

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Develop corporate strategy to reduce delivery costs

� Commitment of resources

� SME’s

� Time = Money

� Hands on approach

Set expectations for the Vital Few

� Management commitment

� Productivity increases

� Service increases

� Work hour reductions

� Overall reductions in operating costs

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Cont.

� Team approach to improvement

� Coaching/Mentoring

� Goal oriented Training development and presentation

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Develop Review and Assist Team(s)

Subject Matter Experts from:

� Delivery / Plant

� HR/Labor Relations

� Transportations/Vehicles

� Operations Support

Outside postal operations SME’s

� Unbiased

� Results motivated

� Best practices from all areas of postal operation

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Baseline Vital Few Delivery Operations

� Actual work hours vs. evaluated/estimated

� Actual miles driven vs. base

� By driver/route

� Volumes by mail type

� Handled vs. automated volume

� Parcel post

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Performance Management Questions - Slide 12

Do you measure and track delivery productivity? Office & Street

� By route/carrier

� By unit

� Is there a daily/weekly work hour plan for each delivery unit?

� Is feedback given to unit management on their performance?

� % to work hour plan

� % of Overtime used

� % Sick Leave

Are residual/cased volumes projected for each day of the week?

� Are local managers involved in daily planning of workhours based

upon projected volumes?

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Performance Analysis Questions -Slide 13

� It is important for postal operations react to changes in mail volume by

determining workload requirements using budget work hour and

productivity goals.

� The question each delivery operation should be asking – “How many

workhours should we be using based upon today’s workload.”

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Performance Analysis - Evaluated Route Systems - Slide 14

For those delivery operations using an evaluated route system, there are few

options available to quickly respond to declining volumes.

� An immediate review of all overtime usage

� Staffing reviews

� The use of Sick leave reviews

� Street/Vehicle Management

An in-depth analysis/review of your existing route measurement process

� Changes in casing equipment

� Increases in automated mail

� Time & Motion/Engineering studies - Office and Street

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Long Term Delivery Improvement-Slide 15

Long Term

Do you have analysis of cost per delivery point by unit?

� Are high cost delivery points reviewed to ensure maximum

efficiency?

� Malls, etc.

� Centralized delivery requirement

� Identifying Park & Loop costs

� Vehicles and maintenance

� Accidents

� Slip,Trips,Falls

� Conversions of high cost delivery

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Are all routes using the most effective casing equipment and methods?

� Reduced cased volumes into new casing equipment

� Is there a corporate goal for operation standardization?

� Standardized Delivery Operation

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Proactive Supervisor training and evaluation- Difficult times require skilled managers

� Do you measure the skill level of your delivery managers

� Do you Test to ensure comprehension

� Have you done so recently

� Are your delivery manager training programs updated and

current

� Does your training program for delivery managers support

addressing poor/unacceptable performance

� Do you involve Human Resources/Labor Relations in the training

� The three “R’s” – Does your training program encourage the

managers to do the right thing at the right time the right way

� “Inspect what you Expect”

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AMS/Street Management

� Validated AMS data to support Plant automation

� Are each of your delivery route certified at +99% accurate

� Is every delivery point is in the AMS data base

� The letter carrier line of travel matches the AMS data base and

casing equipment labeling

� Does the letter carrier follow the official line of travel as defined

in the AMS data base

� Are your supervisors visiting each letter carrier during their street

activities to ensure good growth management, customer service and

good safety practices

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Growth management

� Are you proactive in dealing with new construction

� Do you promote/require centralized delivery

� Have vacant/abandon homes/businesses been identified in the

AMS data base

� Are you involved in assigning/approving new addresses

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Vehicle Management

For your motorized routes:

� Does each delivery route have known Base miles/kilometer?

� Does each delivery unit have a daily/weekly/monthly budgeted

mileage target and is it tracked?

� Are your vehicles maintained to ensure the best fuel usage possible?

� Are you using the right vehicle on each route?

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Increase the use of automation

� Ensure the accuracy of your AMS Data Base

� Survey the levels of cased volumes arriving at each route

� Complete Quality Control checks on residual volumes

Review each delivery operation to ensure national guidelines and policies are

in place AND being followed

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The Bottom Line - Slide 22

The Bottom Line

� Ensure your data is correct

� Identify opportunities for improvement based upon “Biggest bang for

your buck”

� Assemble qualified teams to identify performance opportunities

� Review operations to validate data assumption

� Measure management skill levels and commitment

� Develop and provide specific training

� Leadership

� Addressing performance

� Delivery skills requirements

� Ensure accountability

� Consider outside contract sources for support

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Webinar 2013 delivery operations

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