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Network Distribution Center (NDC) Update

Network Distribution Center (NDC) Update. Frank Neri Manager, Processing Operations. Agenda. Update on Activation Service Performance L009/L011 consolidation STC Integration. Update on Activation. Decision to Accelerate Implementation. Retirement Incentive & Peak Season Approaching.

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Network Distribution Center (NDC) Update

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  1. Network Distribution Center (NDC) Update Frank Neri Manager, Processing Operations

  2. Agenda • Update on Activation • Service Performance • L009/L011 consolidation • STC Integration

  3. Update on Activation Decision to Accelerate Implementation Retirement Incentive & Peak Season Approaching Areas Own NetworkActivation 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 26 • 3 NDCs • Activation completed

  4. NDC Update End-to-End Package Services Performance now at goal - 15-20% improvement compared to pre-NDC activation Periodicals and Standard Mail Focus network wide on L201 flow (First Class surface reach) Operating windows modified to move L009/L010/L011 volumes though NDC facilities in less than 24 hours IMB will provide additional visibility DMM changes will enhance mail flow and reduce cycle time

  5. NDC Update Consolidation of MXD States distribution 75% complete MXD States consolidation began 4/5/10 Mailers transition through 6/17/10 Eliminated 34 L011 sites and 15 L009 sites OTSIS monitoring compliance Des Moines L011 on 6/7/10 (75 days for compliance) Los Angeles and New Jersey TBD 18 Letter and Flat sites when consolidation is completed

  6. NDC Update Combine STC and NDC operations in the NDC facility Washington NDC complete Chicago will be complete 6/5/10 Others to be completed in FY2010 Atlanta HSTS installation under way Memphis HSTS complete Springfield campus optimization Los Angeles equipment moves under way New Jersey equipment moves under way

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