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VP Deck RIBBS USPS

VIEWS: 2 PAGES: 47

									      ®




Product Visibility and
Service Performance


           Jim Cochrane
Vice President, Product Information

          February 22, 2012
                              AGENDA
         ®




 Product Visibility
  • Power of Business Intelligence
 Package Visibility

 Mail Visibility

 Full Service Moving Forward
               ®




  Product Visibility Creates Business Intelligence
 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


                                                              3
                                 Building Blocks to
  ®
                                 Achieve Visibility

  Intelligent Mail and Package Barcodes
– Unique barcodes on all pieces, trays and
                 containers


  Mail Processing and Other Equipment
       – Successfully read barcodes


                Infrastructure
          – Successfully moves data


                  Systems
– Deploy actionable reporting & analytics to
   achieve benefits of increased visibility

            Real-time data availability
      – All systems provide real-time data
                            ®
                                Tracking Capability End of FY 2011

                                                 Full Service
Event                                                            Packages
                                                 Letters/Flats
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
                         Real Time
       Complete
                         Scanning - 2013
                                 Tracking Capability End of FY 2012
                                               (Work in Progress)
                          ®




                                                 Full Service
Event                                                              Packages
                                                 Letters/Flats
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 Progress       Real Time
       Complete               Scanning - 2013
    Analytics capture the benefits of
             100% Product Visibility
®




               Right mail, to the right customer,
               at the right time – every time!

               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?

               Support Customer Inquiries

               How Mail Performed
  ®




Package 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 Diagnostics

 Measuring Rolled Throughput Yield

 Pareto analysis of system failures

 Critical pair analysis

 Better understanding of missorts

 Transportation network effectiveness

 Adherence to operating plan and transportation
             ®                   Package Visibility

To Align with the Shipping Marketplace we must:   :




 Increase tracking events
      Processing and transportation networks

 Barcode all packages
 Deliver real-time visibility




                                                      11
                      Visibility Drives Customer
                  Satisfaction and Performance
      ®




Scanning is
Fundamental

      USPS Tracking #
         ®     Operational Performance Jan FY11

Network Enroute Scan Performance – 58%
                  ®          Investment in Technology


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
                                                          ®          Growth in Package Tracking Events

                               2.50
Number of Events in Billions




                               2.00
                                                                      FY 12                            4.1 BILLION
                                                                                                       new package
                                                                                                    tracking events in
                               1.50                                                                     9 Months!



                               1.00                                                                                                              FY 11


                                                                                                                                       FY 10
                               0.50
                                                                                                                                  FY 09


                               0.00
                                                    r




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                                                                                                Month

                                                            FY 2009                FY 2010              FY 2011          FY 2012
         ®
                        Transformational
  Scan events turn data into customer
business value - helps grow the business
        ®
                Operational Performance
                                Jan FY12
Network Enroute Scan Performance – 92%
         ®




Customer Satisfaction with USPS Tracking
                               ®           Customer Value Assessment

    On par with competition
    Worse than competition
    USPS user perceptions 10%+ better than businesses that do not use USPS
    USPS user perceptions 5%-10% better than businesses that do not use USPS
    USPS user perceptions worse than businesses that do not use USPS


                                   2011 CVA Order Of Sub-Attribute     2/3 Day Air Shipper Perceptions            Percent
                                                                       Of Priority Mail Performance              Difference
                                 Importance - 2/3 Day Air Shippers    (Ratio Of USPS Versus Competitor Scores)   Between
                                   Priority Mail      Do Not Use        Priority Mail         Do Not Use User/Non-User
Sub-Attribute                      Users              Priority Mail     Users                 Priority Mail Perceptions
On-Time Delivery                         1                 1                 0.928               0.810        14.6%
Ease Of Use                              2                 3                 1.010               0.780        29.5%
Accountable Customer Service             3                 6                 0.954               0.887        7.6%
Total Price Paid                         4                 9                 1.077               0.922        16.9%
Tracking                                 5                 2                 0.890               0.770        15.5%
Speed Of Service                         6                 4                 0.930               0.793        17.2%
Knowledgeable Representatives            7                 7                 1.043               0.952        9.6%
Loss & Damage                            8                 5                 1.051               0.854        23.1%
Geographic Coverage                      9                10                 0.980               0.905        8.3%
Retail Hours                            10                16                 1.052               0.866        21.6%
Access To Retail Locations              11                15                 1.126               0.888        26.8%
Multiple Depositing Methods             12                14                 1.041               0.901        15.5%
Pick-Up                                 13                 8                 0.928               0.849        9.3%
Carrier-Supplied Packaging              14                11                 1.084               0.929        16.6%
Location Of Drop Boxes                  15                13                 1.085               0.779        39.2%
Integrated Computer Shipping Systems    16                12                 0.952               0.849        12.1%
                            ®            Customer Value Assessment

           Better than competition
           On par with competition
           Worse than competition
           10% or greater improvement in shipper perceptions of performance versus competitors
           5%-10% improvement in shipper perceptions of performance versus competitors
           Shipper perceptions of performance versus competitors worsened
                                      Order Of Sub-Attribute         Ground Shipper Perceptions
                                      Importance For Ground          Of Parcel Select Performance
                                            Shippers               (Ratio Of USPS Versus Competitor Scores) Percent
                                                                                                         Difference
                                                                                                          Between
                                       2011       2008               2011                 2008            2011 And
Sub-Attribute                        CVA Survey CVA Survey         CVA Survey           CVA Survey       2008 Score
On-Time Delivery                         1          1                1.012                0.936             8.2%
Speed Of Service                         2          2                1.060                0.950            11.6%
Accountable Customer Service             3          4                1.034                0.913            13.2%
Ease Of Use                              4          3                1.015                0.941             7.8%
Tracking                                 5          6                1.029                0.903            13.9%
Loss & Damage                            6          5                0.994                0.947             5.0%
Knowledgeable Representatives            7          8                1.036                0.938            10.5%
Total Price Paid                         8         10                1.096                0.910            20.5%
Geographic Coverage                      9          9                0.971                0.968             0.3%
Pick-Up                                  10         7                1.001                0.886            13.0%
Multiple Depositing Methods              13        12                1.108                0.892            24.2%
Integrated Computer Shipping Systems     14        11                1.073                0.889            20.7%
             ®       Investment in Technology

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
                  ®




             World Class Package Visibility
   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

              Information is Essential
®




Mail Visibility
     ®




Full Service
 Provides
 Visibility
                                         Full Service - Free Visibility
                                      January 7 - February 13, 2012
                       ®




         Full Service Customers Only
 11,463,600                 398,215                1,772,138
 Electronic Info for       Entered at USPS       Enroute Depart Scan
Containers and Trays       SV Unload Scan         for Containers and
     Received                                           Trays




          1,379,479                     7,600,934                      6.6 Billion
      Enroute Arrive Container                                            Piece level
                                             Enroute Tray              automation scans
          and Tray Scans
                                                Scans




             New Visibility for Mailers                                All IMb™ Users
          ®




       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
   ®




Service Performance
     Diagnostics
®
®
    Manage Work in Process (WIP)
                            ®                          Container at Risk Alerts
From: sasp@usps.gov
Sent: Wednesday, January 25, 2012 8:54 AM
To: PLANT MANAGER
Subject: MAIL AT RISK FOR SERVICE FAILURE (TOMORROW)

Plant Manager - USPS L&DC Facility
The 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 01/23/2012 and a last day
     to meet service standard of 01/26/2012

    HARTE-HANKS WILKES BARRE <HANOVER TOWNSHIP, PA>(2566573) JOANN FABRIC & CRAFT
     STORES <HUDSON, OH>(5338199) Standard Letter IM Container Barcode(s):
    ● 99M001126000002875401 (Unload: 01/23/2012 12:28:43)
      IMtb:297075421001126029053511(High Speed Tray Sorter : 01/24/2012 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: 01/23/2012 07:26:43)
      IMtb:281525421000520899519691(High Speed Tray Sorter : 01/24/2012 01:04:27 USPS L&DC)
      99M000520917820010086 (Unload: 01/23/2012 07:21:29)
      IMtb:282705421000520899520351(High Speed Tray Sorter : 01/24/2012 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: 01/23/2012 14:46:29)
      IMtb:281155427107949069477561(High Speed Tray Sorter : 01/24/2012 00:01:02 USPS L&DC)
             ®       Operational Performance

  Visibility creates operational inventory to help
managers anticipate volume & schedule proactively
   ®




Service Performance
    Measurement
                                                  ®                                Commercial First-Class Mail

                                        Commercial First-Class Mail FY11 & FY12 Performance
                                                             By Month
          100

                                                                                                                                                             96.3
           95
                                                                                                                                                             94.0
                                                                                                                                                             93.3
           90
On Time




           85
                                                                                                                       All Mailers in Measurement
           80

           75
                                                                          Service Performance Diagnostic Tool Launched
           70
                                                                          1

                                                                                  '11




                                                                                                      1
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                                                                                    Month

                                                                  Overnight       Two-Day         Three-To-Five-Day
 10                                  10                                                   10
   /7                                  /7                                                    /7
     /1




            80
            85
                  90
                  95
                              100
                                         /1




                                               80
                                                    85
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                                                                                   100
       1                                   1                                                   /1




                                                                                                                                                  100




                                                                                                      80
                                                                                                           85
                                                                                                                     90
                                                                                                                                        95
10                                  10                                                   10 1
  /1                                  /1
    4/                                  4/                                                 /1
      11                                  11                                                  4/
10                                                                                               1
                                    10                                                   10 1
  /2                                  /2                                                   /2
    1/                                  1/
      11                                  11                                                  1/
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10                                  10                                                   10 1
  /2                                  /2                                                   /2
    8/                                  8/
      11                                  11                                                  8/
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 11                                  11                                                   11
   /4                                  /4
     /1                                  /1                                                  /4
       1                                   1                                                   /1
11                                  11                                                   11 1
  /1                                  /1
    1/                                  1/                                                 /1
      11                                  11                                                  1/
                                                                                                 1
                                                                                                                                                             ®




11                                  11                                                   11 1
  /1                                  /1
    8/                                  8/                                                 /1
      11                                  11                                                  8/
11                                                                                               1
                                    11                                                   11 1
  /2                                  /2                                                   /2
    5/                                  5/
      11                                  11                                                  5/
                                                                                                 11
 12                                  12                                                   12
   /2                                  /2
     /1                                  /1                                                  /2
       1                                   1                                                   /1
 12                                                                                               1
                                     12                                                   12
   /9                                  /9
     /1                                  /1                                                  /9
       1                                   1                                                   /1
12                                  12                                                   12 1
  /1                                  /1                                                   /1
    6/                                  6/
      11                                  11                                                  6/
12
                                                                                                 1
  /2                                12                                                   12 1
    3/                                /2                                                   /2
      11                                3/                                                    3/
                                          11                                                     1
12                                  12                                                   12 1
  /3                                  /3                                                   /3
    0/                                  0/
      11                                  11                                                  0/
                                                                                                 11
  1/                                  1/                                                   1/
    6/                                  6/
      12                                  12                                                  6/
                                                                                                12
 1/                                  1/                                                   1/
   13                                  13                                                   13
     /1                                  /1
       2                                   2                                                   /1
 1/                                                                                               2
   20                                1/                                                   1/
     /1                                20                                                   20
       2                                 /1
                                           2                                                   /1
 1/                                                                                               2
   27                                1/                                                   1/
     /1                                27                                                   27
       2                                 /1
                                           2                                                   /1
                                                                                                  2
  2/                                  2/                                                   2/
    3/                                  3/
      12                                  12                                                  3/
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 2/                                  2/
   10                                  10                                                 2/
     /1                                                                                     10
       2                                 /1
                                           2                                                   /1
                                                                                                  2
                                                                                                                                 SPFC-Overnight
                                                                                                                                                        FY12 First-Class Service




  To-Five-Day
                To-Five-Day
                                                                                                                COMM-Overnight




                                                                    SPFC-Two-Day




                SPFC-Three-


  COMM-Three-
                                                     COMM-Two-Day
                        ®          FY 12 Standard Mail Performance


          100
                                                                                       85.8
           80                                                                          85.3
On Time




           60

           40

           20
                                               Introduced new SPD Tools, MP WIP

            0
                   8




                              8




                                                        0
            /7




                                          /9




                                                                    20




                                                                                  10
                   /2




                              /1




                                                       /3
          10




                                        12




                                                                   1/




                                                                                  2/
                 10




                            11




                                                     12
                                      Week Ending


                                     DSCF        DNDC
                        ®          FY 12 Standard Mail Performance


          100
           90                                                                           87.9
           80
                                                                                        82.5
           70
On Time




           60
           50
           40
           30
                                                Introduced new SPD Tools, MP WIP
           20
           10
            0
                   8




                              8




                                                          0
            /7




                                           /9




                                                                       20




                                                                                   10
                   /2




                              /1




                                                          /3
          10




                                         12




                                                                      1/




                                                                                   2/
                 10




                            11




                                      Week Ending       12


                                      Letters   Flats
                        ®    FY12 IMb™ Periodical Performance

           80
                                                                                    71.4
           70
                                                                                    68.2
           60

           50
On Time




           40
           30
           20
                                            Introduced new SPD Tools, MP WIP
           10
            0
                   8




                              8




                                                       0
            /7




                                       /9




                                                                    20




                                                                               10
                   /2




                              /1




                                                       /3
          10




                                     12




                                                                   1/




                                                                               2/
                 10




                            11




                                                     12
                                   Week Ending

                                   DSCF      DADC
      ®




Full Service is Essential!
                  ®




Growth in Full Service is not sufficient to achieve business benefits

                           Full Service Adoption in FY 2011
  60%

  55%

  50%

  45%                                                              42.10%    42.20%
                                                    39.80%
                                    37.60%
  40%

  35%             32.40%

  30%   26.30%

  25%
  20%

  15%
         FY10      FY11              FY11            FY11            FY11      FY12
                    Q1                Q2              Q3              Q4         2011)
                                                                            (NovQ1

                      First Class   Periodicals   Standard Mail   Total
                           ®              Measurement Volume by Quarter


                               Commercial Mail Volume in Measurement

           4000


           3500


           3000


           2500
Millions




                                                                                FCM
           2000                                                                 STD
                                                                                PER
           1500


           1000


           500


             0
                  FY10Q4        FY11Q1    FY11Q2    FY11Q3    FY11Q4   FY12Q1
®



    Intelligent Mail vs. Full Service Volume Growth




7,954
                ®        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
                                          Full Service
                                    Communication Plan
        ®



                        Presentations
PMG Industry Meeting                        January 31
PostCom                                     February 7
MTAC                                        February 15
National Postal Forum                        April 1-4
National PCC Day                           September 19
            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
                  Offer Small Business Tool
              Work Closely with Industry
                   Mail Service Providers
                      Software Vendors
                    Industry Trade Shows
                      Industry Webinars
                 Industry Trade Publications
              ®                                  Recap

  Product Visibility will Transform our Business

 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
                                                          46
®




    Thank You

								
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