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Network Distribution Center (NDC) Update

Network Distribution Center (NDC) Update. Jordan M Small Vice President, Network Operations. Agenda. Update on Activation Results Impacts Next Steps. Update on Activation. Decision to Accelerate Implementation. Peak Season Approaching. Accelerated Implementation. Phase 1. Phase 2.

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Network Distribution Center (NDC) Update

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  1. Network Distribution Center (NDC) Update Jordan M Small Vice President, Network Operations

  2. Agenda • Update on Activation • Results • Impacts • Next Steps

  3. Update on Activation Decision to Accelerate Implementation Peak Season Approaching Accelerated Implementation Phase 1 Phase 2 Phase 3 Phase 4 • 5/18 – 7/17 • 3 NDCs • Complete • 8/10 – 9/11 • 6 NDCs • Complete • 9/14 – 10/9 • 5 NDCs • Complete 10/19 – 11/20 7 NDCs 4 X • Mar 1-12 • 3 NDCs • Complete activation

  4. Results – Package Service Scores Start of NDC Activation 15-20% service increase SPLY Jan 30

  5. Network 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

  6. Mail Preparation Impacts • Separation requirements • Standard: • Local NDC service area • Network NDC split(s) • Two splits required for directional dispatch sites • Periodicals: • L201 (First Class Surface destinations) • Rest of Network • Integration of Origin mail preparation • USPS Retail, BMEU and Plant separation enabled through the use of Retail Distribution Codes

  7. 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

  8. Next Steps • Complete activation: March 1-12 • Consolidate Mixed States distribution into 18 sites beginning April 5 • Combine STC and NDC operations in the NDC facility • DMM Modification

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