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Product Visibility Baltimore PCC Jeff Freeman Manager, Network Visibility Systems March 16, 2012

Product Visibility Baltimore PCC Jeff Freeman Manager, Network Visibility Systems March 16, 2012. Product Visibility Power of Business Intelligence Package Visibility Mail Visibility Full Service Moving Forward. AGENDA. Product visibility is essential to transform our business

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Product Visibility Baltimore PCC Jeff Freeman Manager, Network Visibility Systems March 16, 2012

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  1. Product Visibility Baltimore PCC Jeff Freeman Manager, Network Visibility Systems March 16, 2012

  2. Product Visibility Power of Business Intelligence Package Visibility Mail Visibility Full Service Moving Forward • AGENDA

  3. Product visibility is essential to transform our business Visibility enhances DMAIC approach to systemic improvement Enhances business knowledge Drives world class service Creates customer value – generates revenue Creates business value – efficiency Product Visibility Creates Business Intelligence 3

  4. Intelligent Mail and Package Barcodes – Unique barcodes on all pieces, trays and containers Mail Processing and Other Equipment – Successfully read barcodes Infrastructure – Successfully moves data Systems – Deploy actionable reporting & analytics to achieve benefits of increased visibility Real-time data availability – All systems provide real-time data Building Blocks to Achieve Visibility

  5. Complete Real Time Scanning - 2013 TrackingCapability End of FY 2011

  6. Tracking Capability End of FY 2012 (Work in Progress) • Work in Progress • Complete Real Time Scanning - 2013

  7. Analytics capture the benefits of 100% Product Visibility Right mail, to the right customer, at the right time – every time! Using mail data to improve ROI Value of reliable service performance Root Cause, MP WIP, Elapsed Time USPS Vital Few Delayed Status What plant, what shape, what failed? Support Customer Inquiries How Mail Performed

  8. Package Visibility

  9. What is World Class Service? • Time-in-transit service performance • All products are day certain • Service performance must be consistently reliable • Measure all products in-transit to all destinations

  10. USPS Tracking # Visibility Drives Customer Satisfaction and Performance Scanning is Fundamental

  11. Operational Performance Jan FY11 Network Enroute Scan Performance – 58%

  12. Investment in Technology • Package Nesting Solution • Deployed to 62 APPS sites - June 2011 Package Barcode Reader Program • 4,000 ring scanners to over 200 plants - June ~ December 2011 Automated Package Bundle Sorter • Deployed 194 retro-fits - December 2011 Product Tracking System Reengineer • On schedule for Spring 2012

  13. Growth in Package Tracking Events 3.9 BILLION new package tracking events in 5 Months! FY 12 FY 11 Number of Events in Billions FY 10 FY 09

  14. Transformational Scan events turn data into customer business value - helps grow the business 11 Events 5 Events

  15. Network Enroute Scan Performance – 92% Operational Performance Jan FY12

  16. Investment in Technology Next Generation - Intelligent Mail Device • Next generation – move to real-time scanners • Wireless communication • Requires software modification and new hardware • Targeting Commercial Off-the-Shelf (COTS) scanners • Phased roll-out

  17. World Class Package Visibility • A barcode on every piece • End-to-end visibility • 10 to 12 tracking events per piece • Scan performance is 99%+ and real time • Barcode provides – business value • Operational service analytics • Cost ascertainment • Volume planning for workload • Transportation efficiency • Customer level data for pricing • Payment initiation • Revenue assurance Information is Essential

  18. Mail Visibility

  19. Full Service Provides Visibility

  20. Full Service - Free VisibilityJanuary 7 - February 29, 2012 Full Service Customers Only 16,232,020 Electronic Info for Containers and Trays Received 560,950 Entered at USPS SV Unload Scan 2,305,810 Enroute Depart Scan for Containers and Trays 12.5 Billion Piece level automation scans 1,827,900 Enroute Arrive Container and Tray Scans 11,116,070 Enroute Tray Scans New Visibility for Mailers All IMb™ Users

  21. What is World Class Service? • Time-in-transit service performance • All products are day certain • Service performance must be consistently reliable • Measure all products in-transit to all destinations

  22. Service Performance Diagnostics

  23. Manage Work in Process (WIP)

  24. Manage Work in Process (WIP)

  25. Inverse Correlation between WIP & Service Level PQ 1 FY 12 - NDC Letters

  26. Container at Risk Alerts From: sasp@usps.gov Sent: Wednesday, March 14, 2012 8:54 AM To: PLANT MANAGER Subject: MAIL AT RISK FOR SERVICE FAILURE (TOMORROW) Plant Manager - USPS L&DC Facility The following Standard mailers have entered mail at your facility in which we have yet to see an automation scan that indicates the mail will meet service performance expectations. THIS MAIL IS AT RISK FOR SERVICE FAILURES with a Start the Clock Date of 02/12/2012 and a last day to meet service standard of 02/15/2012 HARTE-HANKS WILKES BARRE <HANOVER TOWNSHIP, PA>(2566573) JOANN FABRIC & CRAFT STORES <HUDSON, OH>(5338199) Standard Letter IM Container Barcode(s): 99M001126000002875401 (Unload: 02/12/2012 12:28:43) IMtb:297075421001126029053511(High Speed Tray Sorter : 02/13/2012 03:13:56 USPS L&DC) DATA-MAIL, INC. -NEWINGTON <NEWINGTON, CT>(5104091) Bank Of America <CHARLOTTE, NC>(2299236) Standard Letter IM Container Barcode(s): 99M000520917820010085 (Unload: 02/12/2012 07:26:43) IMtb:281525421000520899519691(High Speed Tray Sorter : 02/13/2012 01:04:27 USPS L&DC) 99M000520917820010086 (Unload: 02/12/2012 07:21:29) IMtb:282705421000520899520351(High Speed Tray Sorter : 02/13/2012 04:35:11 USPS L&DC) QUAD/GRAPHICS-THE ROCK <THE ROCK, GA>(3153614) QUAD/GRAPHICS-SUSSEX (FAST) <SUSSEX, WI>(3591300) Standard Letter IM Container Barcode(s): 99M10000000PT01465820 (Unload: 02/12/2012 14:46:29) IMtb:281155427107949069477561(High Speed Tray Sorter : 02/13/2012 00:01:02 USPS L&DC)

  27. Operational Performance Visibility creates operational inventory to help managers anticipate volume & schedule proactively

  28. Service Performance Measurement

  29. Measurement Volume by Quarter

  30. Commercial First-Class Mail Commercial First-Class Mail FY11 & FY12 Performance By Month All Mailers in Measurement Service Performance Diagnostic Tool Launched

  31. FY12 First-Class Service

  32. Introduced new SPD Tools, MP WIP FY12 Standard Mail Performance By Week through Mar 2, 2012 Source: iMAPS

  33. Introduced new SPD Tools, MP WIP FY12 Standard Mail Performance By Week through Mar 2, 2012 Source: iMAPS

  34. Introduced new SPD Tools, MP WIP FY12 IMb™ Periodical Performance By Week through Mar 2, 2012 Source: iMAPS

  35. Full Service is Essential!

  36. Growth in Full Service is not sufficient to achieve business benefits YTD FY 12 – Oct - Jan

  37. Intelligent Mail vs. Full Service Volume Growth 7,954

  38. Full Service Value Proposition Value to Industry Service Visibility & tracking across the mail supply chain Customers receive consistent & reliable service Utilization of information to drive service improvement Customer Applications Advance remittance intelligence Test mail piece creative results Integrate multi-channel marketing strategy Measure success of each mail campaign Efficient staffing of customer call centers

  39. Full Service Value Proposition Value to Industry Financial Incentives Elimination of permit fees Access to promotions & incentives Discounted or free addressing products & services Maximize automation discounts moving forward Reduce USPS costs, protect price for mailers Ease of Use Eligibility for eInduction and Seamless Acceptance Postal Wizard Enhancement Customized data provisioning options Opportunity for automatic move update qualification

  40. Steps to Attain Adoption January 2013 IMb required for automation rates Sunset POSTNET eligibility for automation rates Restructure Full Service discounts to increase incentives for participation January 2014 Sunset IMb Basic eligibility for automation rates Require Full Service for automation discounts

  41. POSTNET Barcode Discontinuation • Received immediate feedback on Federal Register proposal, published on March 2, to the clear zone requirement for letters and flats • Final rule will exclude the clear zone requirement • Focus must be on the important aspects of the Intelligent Mail Barcode (IMb) implementation • Encourage the mailing community to continue commenting on retiring POSTNET for automation pricing eligibility

  42. Full Service Communication Plan

  43. Essential to compete Creates customer value Creates business value Drives world class service Provides information to improve our processing system Foundation for improved costing system Provides information to eliminate non-value added processes Recap Product Visibility will Transform our Business 44

  44. Thank You

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