Transcript Shrinking The Infrastructure

Network Distribution
Center (NDC) Activations
July 2009
Agenda
•
Overview of Network Reengineering
•
Status of Phase 1 Activation
•
Accelerated Phase 2-4 Schedule
•
Customer Impacts
•
Summary
2
Overview Network Reengineering
• Transformation of Bulk Mail Centers (BMC) to Network
Distribution Centers (NDC)
– Enhanced mail preparation
– Consolidate package distribution
– Combine BMC & Surface Transfer Center (STC) containerization and dispatch
plans
– Leverage multiple trailer loading and dispatching techniques
Transformation
BMC
NDC
3
NDC Responsibilities
• 11 - Tier 1 NDC (Springfield, Philadelphia, Washington, Atlanta, Detroit,
Cincinnati, Chicago, St. Louis, St. Paul, Kansas City, San Francisco)
– Distribution of local (turnaround) and destination Standard Mail,
Periodicals, and Package Services
• 6 - Tier 2 NDC (New Jersey, Greensboro, Jacksonville, Dallas, Seattle, Los
Angeles)
– Tier 1 responsibilities
– Distribution of outgoing Standard Mail, Periodicals, and Package
Services to the network
• Including, MXD States Outgoing single piece sort
– STC containerization & dispatch operations – outgoing / incoming
Priority, First Class, Periodicals, Standard Mail
• 4 - Tier 3 NDC (Pittsburgh, Memphis, Des Moines, Denver)
– Tier 1 and Tier 2 responsibilities
– Consolidation points for less than truck load volumes from Tier 2 sites
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Tiers 1, 2, and 3
• Directional dispatch for 4 NDCs
(noted by *)
– Reduces backtracking
– Improves service
• Highlighted indicates Phase I
sites
• ASFs will be Tier 1 NDC for
package processing
Tier 1
New Jersey
Philadelphia
Springfield
Detroit
Pittsburgh
Chicago *
Cincinnati*
St. Louis*
Washington DC
Greensboro
Dallas
Jacksonville
Atlanta
Memphis
Des Moines
Kansas City
Minneapolis/St.Paul
Chicago *
Cincinnati*
St. Louis*
Denver
Los Angeles
San Francisco*
San Francisco*
Seattle
Tier 2
New Jersey
New Jersey
New Jersey
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Greensboro
Greensboro
Dallas
Jacksonville
Memphis
Memphis
Des Moines
Des Moines
Des Moines
Des Moines
Des Moines
Des Moines
Denver
Los Angeles
Los Angeles
Seattle
Seattle
Tier 3
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Pittsburgh
Memphis
Memphis
Memphis
Memphis
Memphis
Memphis
Des Moines
Des Moines
Des Moines
Des Moines
Des Moines
Des Moines
Denver
Denver
Denver
Denver
Denver
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Impacts
• Operational Impacts
– NDCs operate like P&DCs
– Live loads and unloads at all NDCs
– Operating plan changes required to coincide with STC
containerization & dispatch plan
– NDC sort to ADCs, AADCs and NDCs
• Transportation Impacts
– Streamline network
– Increase utilization of assets
– Improve transit time
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Status of NDC Phase I Activation
• Activation began on May 18 in New Jersey,
Philadelphia, and Springfield NDCs
– Phase I was originally scheduled to be completed – 8/07
– Accelerated completion date – 7/17
• Redesign is yielding anticipated benefits
– Package Service Performance is up 20.0%
– Successful integration of STC & NDC transportation
– Beginning to eliminate transportation and reduce
workhours
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2
1/
Origin Package Service Improvement from NJ NDC
100.00%
Begin Phase I
Implementation
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
Composite
Inter
Intra
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Accelerated Phase 2 – 4 Schedule
• Network fully activated by 11/14
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Customer Impacts
• Improved Service
• No expansion to the number of entry points
• No required changes to FAST or Critical Entry
Times (CETs)
• Minimal changes to origin induction preparation
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Mail Preparation
• Separation requirements
– Local NDC service area
– Network NDC split(s)
• Multiple splits required for directional dispatch
sites
• Integration of Origin mail preparation
– USPS Retail and BMEU separation enabled through
the use of Retail Distribution Codes
– Establish customer supplier agreements (CSA) to
mirror required make-up during implementation
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Summary
• Objective – Create a flexible distribution and logistics network to
reduce cost and improve the consistency of service
• Manage cost – consolidation of outgoing operations (match
workhours to workload)
• Improve service – reduce cycle time by eliminating some destinating
BMC handlings and shared product transportation
• Need your help – origin separations to move mail on right network as
quickly as possible
• Change is needed to keep the network viable for years to come
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