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Operations Update February 2001

Operations Update February 2001. Topics. Fall Mailing Season Christmas Holiday Rate Implementation. Standard A Volume Trends. 2000. 1998. 1999. 1997. Fall 2000 Standard A Volume Much Higher than Last Year. +1.5 Billion more pieces. Fall 2000 - Monitoring. DSAS Appointments

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Operations Update February 2001

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  1. Operations Update February 2001

  2. Topics • Fall Mailing Season • Christmas Holiday • Rate Implementation

  3. Standard A Volume Trends 2000 1998 1999 1997

  4. Fall 2000 Standard A Volume Much Higher than Last Year +1.5 Billion more pieces

  5. Fall 2000 - Monitoring • DSAS Appointments • Operating Conditions • Communications • BSN’s, Account Managers, & Operations • HQ & Area Managers Operations

  6. Observations of Mail Conditions By Inspection Service • Requested by the COO • Weekly Findings to AVP and MOS, • September through January 2001 • Corrective Actions to the COO • Focus on sites of Customer Concern

  7. Fall 2000 Standard A Delays in Plants Similar to Last Year Fall Mailing

  8. Flats Processing - AFSM 100 • Faster and Higher Throughput • OCR / BCR / Keying / Added Bins • Real Time Keying of Rejects • Focus on Incoming Secondary • Deploying Now • 165 operating as of January 2001 • additional 362 deployment begun

  9. Fall 2000 • Election Mailings • AFSM 100 • Focused on Weekend Processing and Inventory levels • Communications • Operations, BSNs & Customer Support Teams

  10. Christmas Holidays Priority Mail Processing Centers • Emery operated through Christmas • Area Operations used contingency plans to offload heavy destinating volumes • 10 PMPCs converted to postal facilities on January 7th

  11. Christmas Holiday Logistics Issues • Most severe weather in a decade • High commercial airlines flight cancellations • Significant daily mail backlogs at major air hubs • Highway transportation suffered delays and cancellations • +200 dedicated network aircraft flights were canceled due to weather in 13 days

  12. Christmas Holiday • Christmas Eve and Christmas Day delivery of Express Mail and obvious gifts • Dedicated networks moved +92 million pounds in 13 days • Cancellation volumes reached all time high • 314 Million on Dec 18th • Two Peak Plant & Delivery Day • 4 Billion cards & letters during holiday season

  13. Rate Implementation • New Rates implemented January 7th • Plant Verified Drop Shipments entered until January 20 • Significant increase in Standard A volumes at plants from Jan 5 - 20th

  14. Standard A Delays in PlantsVery High following New Rate New Rates Implemented

  15. Rate Implementation Actions to Correct • COO directly involved • HQ and Area Operations telecons • COO and Area VP telecons • Area Action Plans implemented • Delays dropped dramatically last week

  16. Results: Standard A Delays have been significantly reduced

  17. Summary Fall - Volume Christmas - Weather Rates - Recovered

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