Transcript Shrinking The Infrastructure

Moving the Mail
•NETWORK FACILITES
•NDC
•NETWORK RE-EGGINEERING
•HOW YOUR MAIL MOVES
•IMPROVING THE PARNTERSHIP
MOVING THE MAIL
NETWORK FACILITIES - 2 STCs
NY SURFACE TRANSFER CENTER (STC) – BRONX, NY
– EXPRESS MAIL
– FIRST CLASS
– PERIODICAL
– STANDARD
NJ SURFACE TRANSFER CENTER (STC) – CARTERETT, NJ
– EXPRESS MAIL
– FIRST CLASS
– PERIODICAL
– STANDARD
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STC SURFACE NETWORK
P&DC
P&DC
P&DC
P&DC
NY STC
STC
P&DC
P&DC
P&DC
P&DC
MOVING THE MAIL
NETWORK FACILITIES - 2 L&DCs
NJ LOGISTICS & DISTRIBUTION CENTER (NJ L&DC) –
KEARNY, NJ
– PRIORITY
– OUTBOUND MILITARY PRIORITY
– OUTBOUND INTERNATIONAL PRIORITY
NY LOGISTICS & DISTRIBUTION CENTER (NY L&DC) –
BETHPAGE, NY
– PRIORITY
– FIRST CLASS
– INBOUND MILITARY PRIORITY
– INBOUND INTERNATIONAL PRIORITY
5
L&DC SURFACE NETWORK
P&DC
P&DC
P&DC
P&DC
NY L&DC
L&DC
P&DC
P&DC
P&DC
NDC
L&DC AIR NETWORK
P&DC
P&DC
P&DC
P&DC
NY
L&DC
JFK
??
L&DC
P&DC
P&DC
P&DC
NDC
MOVING THE MAIL
NETWORK FACILITIES - 2 AIRPORTS / 1 ISC
JFK / ISC – INTERNATIONAL SERVICE CENTER
–
–
–
–
–
FIRST CLASS – AIR TRANSPORTION
INTERNATIONAL EXPRESS
DOMESTIC EXPRESS
MILITARY MAIL
INTERNATIONAL GATEWAY TO WORLD
Newark Liberty Airport
– FIRST CLASS – AIR TRANSPORTION
– INTERNATIONAL PRIORITY \
– MILITARY MAIL
8
MOVING THE MAIL
NETWORK FACILITIES – AIR TRANSPORTATION
•
COMMERCIAL AIR CARRIERS
– JET BLUE
– AMERICAN
– UNITED
– US AIR
– CONTINENTIAL
– DELTA
•
SHARED NETWORK CARRIERS
– FEDEX
– UPS
9
MOVING THE MAIL
NETWORK FACILITIES
NJ NDC – JERSEY CITY, NJ
CURRENT MAIL – STANDARD
– PACKAGES
– PERIODICALS
– INTERNATIONAL SURFACE
– SURFACE MILITARY
10
MOVING THE MAIL
Network Re-engineering
Why change ?????
• Adjust to declining volume –
213 Billion pieces 2006 / 168 Billion pieces 2010
• Adapt to how our customers use mail
Internet, reduced spending
• Control operating cost
MOVING THE MAIL
NETWORK DISTRIBTUION CENTER
• Transformation of 21 Bulk Mail Centers (BMC) to
Network Distribution Centers (NDC)
– Consolidate package distribution
– Improve utilization of BMC & Surface Transfer Center
(STC) containerization and transportation
– Improve utilization of facilities
– Leverage multiple trailer loading and dispatching
techniques
Transformation
BMC
NDC
12
MOVING THE MAIL
NDC Responsibilities - 21 Facilities
• 11 - Tier 1 NDC
– Distribution of local (turnaround) and destination Standard
Mail, Periodicals, and Package Services
• 6 - Tier 2 NDC
– Tier 1 responsibilities
– Distribution of outgoing Standard Mail, Periodicals, and
Package Services to the network
• Including, MXD States Outgoing single piece sort
– STC containerization and dispatch operations – outgoing /
incoming all classes
• 4 - Tier 3 NDC
– Tier 1 and Tier 2 responsibilities
– Consolidation points for less than truck load volumes from
Tier 2 sites
13
MOVING THE MAIL
Plan for Change – Overview
BMCs of the future… Network Distribution Centers (NDCs)
Today
Tomorrow
Process
• Standard Mail
• Package Services
• Some Periodicals
Process
• Standard Mail
• Package Services
• Some Periodicals
• Some facilities will only distribute destinating mail
(tier 1 NDCs) and Priority Mail
Inter-BMC Transportation
• Rail Vans
• 53-foot trailers
• Containerized
Inter-NDC Transportation
• Shared product transportation to maximize trailer
utilization
– All classes except Express Mail
• Existing dispatches to all current STC and NDC sites
• New dispatches to ADC, AADC and SCFs due to
expanded reach and volume
• Using:
– 53-foot trailers
– More efficient containers and possibly floor
loading
14
MOVING THE MAIL
NJ NDC – Overview
• Implemented in July 2009
– Involved consolidation of Springfield BMC, Philadelphia BMC ,
and New Jersey BMC originating processing into the NJ NDC
• Operational Impacts
– NDCs operate like P&DCs
– Operating plan changes required to coincide with STC
containerization & dispatch plan
– NDC sort to ADCs, AADCs and NDCs
• Transportation Impacts
– Streamline / improve network
– Increase utilization of assets
– Improve transit time
15
MOVING THE MAIL
NJ NDC – Overview
• Future
- Move NY and NJ STC into NJ NDC fall 2010
- Move STD MXD processing into NJ NDC fall 2010
- Flat Sequencing System ( FSS) currently being installed
•
-
Highlights
LOCAL PACKAGE SERVICE UP 24%
STANDARD SERVICE UP 3%
PERIODICAL SERVICE – MAINTAINED
TRANSPORTION UTLIZATION – 84% PER TRIP AVERAGE
REDUCE COST $45 MILLION
WORKHOURS – DOWN 5%
WORKLOAD – UP 79%
16
MOVING THE MAIL
Current NJ/ NY STC Pt-Pt Surface
Non-Pref
Pref & Non Pref
MSP
MCI
DFW
STL
MEM
ATL
JAX
Based on Day 2
1200 CET for 3-day
mail
12
17
MOVING THE MAIL
Operating Plan Changes – Impact of CET Change
Std, Per,
Pkgs
All products,
except PRI
All products
BIL
SLC
DEN
ABQ
PHX
Based on
CET for PRI
Based on
Day 2 1800
CET for 3
Day FCM
Based on
Day 2 1200
CET for 3
Day FCM
18
12
MOVING THE MAIL
STANDARD, PACKAGES, BUNDLES
ORIGINATING
P&DC
NJ NDC
TIER 1
DESTINATIGN
P&DC
POST
OFFICE
NJ NDC
TIER 2
DESTINATING
NDC
POST
OFFICE
BMEU
DESTINATIGN
P&DC
POST
OFFICE
MAILER
19
MOVING THE MAIL
FIRST CLASS W/ STC IN NJ NDC
ORIGINATING
P&DC
NJ NDC
TIER 1
DESTINATIGN
P&DC
POST
OFFICE
NJ NDC
TIER 2
POST
OFFICE
BMEU
DESTINATING
NDC
ORIG
STC
DESTINATIGN
P&DC
DEST
STC
POST
OFFICE
POST
OFFICE
MAILER
ORIG
AIR STOP
DEST
AIR STOP
DESTINATIGN
P&DC
POST
OFFICE
20
MOVING THE MAIL
FIRST CLASS W/ STC IN NJ NDC
ORIGINATING
P&DC
NJ NDC
TIER 1
DESTINATIGN
P&DC
POST
OFFICE
NJ NDC
TIER 2
POST
OFFICE
BMEU
DESTINATING
NDC
ORIG
STC
POST
OFFICE
DEST STC
DESTINATIGN
P&DC
DEST
STC
POST
OFFICE
MAILER
ORIG
AIR STOP
DEST
AIR STOP
DESTINATIGN
P&DC
POST
OFFICE
21
MOVING THE MAIL
FIRST CLASS / STANDARD W/ STC IN NJ NDC
ORIGINATING
P&DC
NJ NDC
TIER 1
NJ NDC
TIER 2
POST
OFFICE
BMEU
ORIG
STC
DEST
STC
DESTINATIGN
P&DC
DESTINATING
NDC
DESTINATIGN
P&DC
DESTINATIGN
P&DC
POST
OFFICE
POST
OFFICE
POST
OFFICE
MAILER
ORIG
AIR STOP
DEST
AIR STOP
DESTINATIGN
P&DC
POST
OFFICE
22
MOVING THE MAIL
PERIODICAL MAIL – L201
ORIGINATING
P&DC
NJ NDC
TIER 1
NJ NDC
TIER 2
POST
OFFICE
BMEU
ORIG
STC
DEST
STC
DESTINATIGN
P&DC
DESTINATING
NDC
DESTINATIGN
P&DC
DESTINATIGN
P&DC
POST
OFFICE
POST
OFFICE
POST
OFFICE
MAILER
ORIG
AIR STOP
DEST
AIR STOP
23
MOVING THE MAIL
PERIODICAL MAIL – L201 – MIRRORS FIRST CLASS
ORIGINATING
P&DC
NJ NDC
TIER 1
NJ NDC
TIER 2
POST
OFFICE
BMEU
ORIG
STC
DEST
STC
DESTINATIGN
P&DC
DESTINATING
NDC
DESTINATIGN
P&DC
DESTINATIGN
P&DC
POST
OFFICE
POST
OFFICE
POST
OFFICE
MAILER
ORIG
AIR STOP
DEST
AIR STOP
24
MOVING THE MAIL
PERIODICAL MAIL – L-009
DVD NJ
P&DC – MXD
ORIGINATING
P&DC
NJ NDC
TIER 1
NJ NDC
TIER 2
POST
OFFICE
BMEU
ORIG
STC
DESTINATING
NDC
DESTINATIGN
P&DC
POST
OFFICE
MAILER
25
®
6
8
7
9
1
0
1
1
Current Scheduling w/ FSS
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
2
3
2
2
2
4
1
2
3
4
5
APPS – OPN 247
5D, CR
SAMP
RUN 1
SAMP
RUN 2
FSS
RUN 1
5D
MI SPBS 2 – OPN 137
SAMP
RUN 3
FSS
RUN 2
SAMP
RUN 4
FSS
RUN 3
SAMP
RUN 5
FSS
RUN 4
SAMP
RUN 6
FSS
RUN 5
SAMP
RUN 7
FSS
RUN 6
SAMP
RUN 8
FSS
RUN 7
FSS
RUN 8
DPS
3D, REJ
DU
WN SPBS – OPN 137
MI AFSM – OPN 144STD
MI AFSM –
OPN 144STD
REJ, Committed
Mail
WN AFSM –
OPN 144
MI AFSM – OPN 146
Cased
Mail
®
NJI & BMC
FSS Number 1
Run
Number
Projected
Start Date
1
Scheduled
Run Start
Time
Zone 1
Zone 2
11:49 AM
07628
DUMONT PO
07646
NEW MILFORD PO
12:35 PM
07621
BERGENFIELD
PO
07436
07670
TENAFLY PO
6/5/2010
2
6/19/2010
3
1:41 PM
6/26/2010
4
2:57 PM
5/15/2010
5
4:28 PM
6:02 PM
5/29/2010
7
7:20 PM
4/10/2010
8
9:44 PM
4/17/2010
9
11:48 PM
4/24/2010
10
5/8/2010
07456
07463
07644
OAKLAND PO
RINGWOOD PO
WALDWICK PO
LODI PO
07417
FRANKLIN
LAKES PO
07803
07801
07869
DOVER PO
RANDOLPH
07840
HACKETTSTOWN
PO
07649
07866
ROCKAWAY
PO
07424
LITTLE FALLS
PO
07470
WAYNE PO
07401
ALLENDALE
07405
BUTLER PO
1:54 AM
07430
MAHWAH PO
3:32 AM
07666
TEANECK PO
5/1/2010
11
Zone 4
MINE HILL
5/22/2010
6
Zone 3
ORADELL PO
07458
07652
SADDLE RIVER PO PARAMUS PO
07631
07632
ENGLEWOOD
ENGLEWOOD PO
CLIFFS
07446
07495
RAMSEY PO
MAHWAH
Zone 5
®
NJI & BMC
FSS Number 2
Run
Number
Projected
Start Date
1
Scheduled
Run Start
Time
12:56 PM
08831
MONROE
TOWNSHIP PO
2:14 PM
08846
MIDDLESEX PO
3:40 PM
08807
BRIDGEWATER
PO
4:45 PM
08844
HILLSBOROUG
H PO
SOMERVILLE PO
6:51 PM
08820
EDISON
08822
FLEMINGTON PO
8:55 PM
08817
EDISON POST
OFFICE
08837
EDI-RARITAN
CENTER STA
10:32 PM
08902
NORTH
BRUNSWICK
08904
12:04 AM
08901
6/12/2010
3
6/17/2010
4
6/26/2010
5
7/10/2010
6
5/8/2010
7
5/8/2010
8
5/15/2010
9
NEW
BRUNSWICK PO
5/15/2010
10
1:02 AM
3:02 AM
5/29/2010
08816
EAST
BRUNSWICK PO
5/22/2010
11
Zone 2
08857
OLD BRIDGE
PO
6/5/2010
2
Zone 1
11:53 AM
08873
SOMERSET PO
08854
PISCATAWAY PO
08876
HIGHLAND PARK
Zone 3
Zone 4
Zone 5
MOVING THE MAIL
SURFACE vs. AIR NETWORK
Std, Per, Pkgs
All products,
except PRI
•All products
29
MOVING THE MAIL
IMPROVING THE PARTNERSHIP
Separation requirements
1. Local NDC service area – local plant
2. Network NDC split(s)
•
Two splits required Tier 1 and Tier 2
•
Periodicals compliance with L201 & L009 split
•
Label quality – print head
USPS Network Re-Engineering
•
Focus on service improvement
•
Reduce operating cost / improve utilization
USPS Commitment to our customers
•
NY Districts / PCC
30