Transcript ® Flats Sequencing System (FSS) Insert Name Here Insert Title Here Insert Date Here PCC Workshop-in-a-Box.

®
Flats Sequencing System (FSS)
Insert Name Here
Insert Title Here
Insert Date Here
PCC Workshop-in-a-Box
Agenda

Flats Sequencing System (FSS) at a Glance

FSS Video

Background & Flats Strategy

Deployment Timeline

FSS Equipment & Processing Strategy

FSS Program Status & Results

Mailing Industry Impacts

Conclusion & Questions
Flat Sequencing System Overview
Tray
Staging
Flats Sorting
Machine
Dolly
Induct
Feeders /
AutoInduction
Integrated
Tray
Converter
StandAlone Mail
Prep
The Strategic Transformation Plan
“Reduce the cost of
meeting universal service
obligations by focusing on
major cost drivers,
especially delivery
operations. Fully capture
improvements from
existing equipment and
technology and target new
investments to further drive
productivity gains.”
USPS Salary & Benefits: $54 Billion
Mail Processing 22%
Support 0.9%
Other Functions 9%
Delivery 43%
Customer Service 16%
Maintenance 6%
Vehicle Services 2.4%
Source: 2007 Annual Report
What is Flat Mail?
Magazines
Large Envelopes
Catalogs
What is Delivery Point Sequencing?
Technology Places Mail Pieces
into Exact Order of Delivery
Let’s Take a Step Back?
Manual Sequencing for Delivery
DPS Letters
Letter Mail Technology (City) – DPS Trend
DPS Letter and Cased Volume History (City Delivery)
89%
100.0
90.0
80.0
DPS Letters
Cased Letters
70.0
Percent
60.0
• USPS Has Sequenced Letters
Since 1993
50.0
40.0
• Resulting in Over $5 Billion
Annual Savings
30.0
20.0
10.0
0.0
1993
1994
1995
1996
1997
1998
1999
2000
2001
Fiscal Year
2002
2003
2004
2005
2006
Cased Letter %
DPS Letter %
2007
2008
YTD
Annual Flat Volume
52 Billion Flats
FY 2007 (RPW)
Periodicals
17%
Standard Mail
75%
First-Class
7%
Other 1%
Replicate Letter Mail Success for Flats
13
FSS Benefits

Substitute Technology for Manual Labor

Manage Delivery Growth

Reduction in Future Delivery Vehicles

Reduction in Facility (Delivery Unit)
Space Needs

Improve Processing Performance and
Service

End-to-End Visibility

Create Lowest-Combined-Cost System
FSS Deployment Timeline
Prototype – Indianapolis IN
Apr 2006
BOG Approval 100 Production FSS Machines
Dec 2006
Pre-production Install – Dulles P & DC
Sept 2007
First Production FSS – Install & Test
July - Oct
2008
Phase 1 Deployment Begin
Oct 2008
Phase 1 Deployment End – 100 FSS
Oct 2010
Phase 1 Deployment – 100 Systems

28 Districts

32 Processing Facilities (FSS Locations)

27 Existing Processing Centers

5 New Facilities

2 - 5 Systems per Facility

1,800+ Zones
Phase 1 FSS Deployment Sites
Area
#
FSS
Plants / Facility – FSS Location
Northern NJ
4
New Jersey BMC
Long Island NY
3
Mid Island NY P & DC
Central NJ
3
Trenton NJ P & DC
Boston
3
Northwest Boston P & DC
Massachusetts
4
Middlesex Essex P & DC
Connecticut
5
Springfield MA BMC
SE New England
3
Providence RI P & DC
EA
Columbus
3
Former Columbus OH P & DC
SE
South Florida
Atlanta
Central Florida
5
4
4
New South Florida L & DC (Miami)
Atlanta BMC
Orlando P & DC
Colorado / Wyoming
5
Denver P & DC
Arizona
5
New West Valley (Phoenix)
Mid America
2
Kansas City P & DC
NYM
NE
WE
17
Districts
Phase 1 FSS Deployment Sites
Area
PA
Districts
Los Angeles
Sacramento
Bay-Valley/San Francisco
Sierra Coastal
Santa Ana
San Diego
Greensboro
CM
Northern VA
Richmond
Capital
Greater Indiana
Northern IL
GL
18
Central IL
Southeast MI
#
FSS
Plants / Facility
2
3
4
4
3
2
2
Herb Peck Annex (Los Angeles)
Sacramento P & DC
San Jose P & DC
Van Nuys Main Office
Aliso Viejo CA DPC
Anaheim CA P & DF
Moreno Valley DDC (Perris CA)
2
2
4
4
2
Raleigh NC P & DC
Greensboro NC P & DC
Dulles VA P & DC
New Richmond VA Facility Project
Curseen-Morris P & DC (Washington DC)
2
3
2
2
2
2
Indianapolis MPA
Palatine P & DC
Carol Stream P & DC
Fox Valley P & DC
South Suburban P & DC
Michigan Metroplex (Royal Oak)