Moving the Mail

•NETWORK FACILITES •NDC •NETWORK RE-EGGINEERING•HOW YOUR MAIL MOVES•IMPROVING THE PARNTERSHIP

3

NETWORK FACILITIES - 2 STCs

NY SURFACE TRANSFER CENTER (STC) – BRONX, NY

– EXPRESS MAIL

– FIRST CLASS

– PERIODICAL

– STANDARD

NJ SURFACE TRANSFER CENTER (STC) – CARTERETT, NJ

– EXPRESS MAIL

– FIRST CLASS

– PERIODICAL

– STANDARD

MOVING THE MAIL

P&DC

NY STC STC P&DC

P&DC

P&DC P&DC

P&DC

P&DC

P&DC

STC SURFACE NETWORK

5

NETWORK FACILITIES - 2 L&DCs

NJ LOGISTICS & DISTRIBUTION CENTER (NJ L&DC) – KEARNY, NJ

– PRIORITY

– OUTBOUND MILITARY PRIORITY

– OUTBOUND INTERNATIONAL PRIORITY

NY LOGISTICS & DISTRIBUTION CENTER (NY L&DC) – BETHPAGE, NY

– PRIORITY

– FIRST CLASS

– INBOUND MILITARY PRIORITY

– INBOUND INTERNATIONAL PRIORITY

MOVING THE MAIL

P&DC

NY L&DC L&DC P&DC

P&DC

P&DC NDC

P&DC

P&DC

P&DC

L&DC SURFACE NETWORK

P&DC

NY L&DC

L&DC

P&DC

P&DC

P&DC NDC

P&DC

P&DC

P&DC

L&DC AIR NETWORK

JFK ??

8

NETWORK FACILITIES - 2 AIRPORTS / 1 ISC

JFK / ISC – INTERNATIONAL SERVICE CENTER – FIRST CLASS – AIR TRANSPORTION

– INTERNATIONAL EXPRESS

– DOMESTIC EXPRESS

– MILITARY MAIL

– INTERNATIONAL GATEWAY TO WORLD

Newark Liberty Airport– FIRST CLASS – AIR TRANSPORTION

– INTERNATIONAL PRIORITY \

– MILITARY MAIL

MOVING THE MAIL

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NETWORK FACILITIES – AIR TRANSPORTATION

• COMMERCIAL AIR CARRIERS – JET BLUE– AMERICAN – UNITED– US AIR – CONTINENTIAL – DELTA

• SHARED NETWORK CARRIERS

– FEDEX– UPS

MOVING THE MAIL

10

NETWORK FACILITIES

NJ NDC – JERSEY CITY, NJ

CURRENT MAIL - – STANDARD– PACKAGES – PERIODICALS – INTERNATIONAL SURFACE– SURFACE MILITARY

MOVING THE MAIL

Network Re-engineering

Why change ?????• Adjust to declining volume – 213 Billion pieces 2006 / 168 Billion pieces 2010 • Adapt to how our customers use mail Internet, reduced spending

• Control operating cost

MOVING THE MAIL

12

NETWORK DISTRIBTUION CENTER

• Transformation of 21 Bulk Mail Centers (BMC) to Network Distribution Centers (NDC)– Consolidate package distribution

– Improve utilization of BMC & Surface Transfer Center (STC) containerization and transportation

– Improve utilization of facilities

– Leverage multiple trailer loading and dispatching techniques

Transformation

BMC NDC

MOVING THE MAIL

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NDC Responsibilities - 21 Facilities

• 11 - Tier 1 NDC – Distribution of local (turnaround) and destination Standard Mail,

Periodicals, and Package Services• 6 - Tier 2 NDC

– Tier 1 responsibilities– Distribution of outgoing Standard Mail, Periodicals, and

Package Services to the network• Including, MXD States Outgoing single piece sort

– STC containerization and dispatch operations – outgoing / incoming all classes

• 4 - Tier 3 NDC– Tier 1 and Tier 2 responsibilities– Consolidation points for less than truck load volumes from Tier

2 sites

MOVING THE MAIL

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Plan for Change – OverviewBMCs of the future… Network Distribution Centers (NDCs)

Today TomorrowProcess • Standard Mail• Package Services• Some Periodicals

Process • Standard Mail• Package Services• Some Periodicals• Some facilities will only distribute destinating mail

(tier 1 NDCs) and Priority Mail

Inter-BMC Transportation• Rail Vans • 53-foot trailers• Containerized

Inter-NDC Transportation• Shared product transportation to maximize trailer

utilization– All classes except Express Mail

• Existing dispatches to all current STC and NDC sites • New dispatches to ADC, AADC and SCFs due to

expanded reach and volume• Using:

– 53-foot trailers– More efficient containers and possibly floor

loading

MOVING THE MAIL

15

NJ NDC – Overview

• Implemented in July 2009 – Involved consolidation of Springfield BMC, Philadelphia BMC ,

and New Jersey BMC originating processing into the NJ NDC • Operational Impacts

– NDCs operate like P&DCs

– Operating plan changes required to coincide with STC

containerization & dispatch plan

– NDC sort to ADCs, AADCs and NDCs• Transportation Impacts

– Streamline / improve network

– Increase utilization of assets

– Improve transit time

MOVING THE MAIL

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NJ NDC – Overview

• Future

- Move NY and NJ STC into NJ NDC fall 2010

- Move STD MXD processing into NJ NDC fall 2010

- Flat Sequencing System ( FSS) currently being installed

• Highlights - LOCAL PACKAGE SERVICE UP 24%- STANDARD SERVICE UP 3% - PERIODICAL SERVICE – MAINTAINED - TRANSPORTION UTLIZATION – 84% PER TRIP AVERAGE

REDUCE COST $45 MILLION - WORKHOURS – DOWN 5%- WORKLOAD – UP 79%

MOVING THE MAIL

17

Pref & Non PrefNon-Pref

12

Based on Day 2 1200 CET for 3-day mail

Current NJ/ NY STC Pt-Pt Surface

DFW

JAX

ATLMEM

MCI STL

MSP

MOVING THE MAIL

18

All productsStd, Per, Pkgs

12

DEN

ABQPHX

BIL

SLC

Based on Day 2 1200 CET for 3 Day FCM

Based on Day 2 1800 CET for 3 Day FCM

All products, except PRI

Based on CET for PRI

Operating Plan Changes – Impact of CET Change

MOVING THE MAIL

19

STANDARD, PACKAGES, BUNDLES

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

MOVING THE MAIL

20

FIRST CLASS W/ STC IN NJ NDC

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

ORIG STC

DEST STC

ORIGAIR STOP

DEST AIR STOP

MOVING THE MAIL

DESTINATIGN P&DC

POST OFFICE

POST OFFICE

21

FIRST CLASS W/ STC IN NJ NDC

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

ORIG STC

DEST STC

ORIGAIR STOP

DEST AIR STOP

MOVING THE MAIL

DESTINATIGN P&DC

POST OFFICE

POST OFFICE

DEST STC

22

FIRST CLASS / STANDARD W/ STC IN NJ NDC

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

ORIG STC

DEST STC

ORIGAIR STOP

DEST AIR STOP

DESTINATIGN P&DC

POST OFFICE

MOVING THE MAIL

DESTINATIGN P&DC POST

OFFICE

23

PERIODICAL MAIL – L201

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

ORIG STC

DEST STC

ORIGAIR STOP

DEST AIR STOP

DESTINATIGN P&DC

POST OFFICE

MOVING THE MAIL

24

PERIODICAL MAIL – L201 – MIRRORS FIRST CLASS

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2

DESTINATIGN P&DC

POST OFFICE

DESTINATING NDC

DESTINATIGN P&DC

POST OFFICE

ORIG STC

DEST STC

ORIGAIR STOP

DEST AIR STOP

DESTINATIGN P&DC

POST OFFICE

MOVING THE MAIL

25

PERIODICAL MAIL – L-009

POST OFFICE

ORIGINATING P&DC

BMEU

MAILER

NJ NDC TIER 1

NJ NDC TIER 2 DESTINATING

NDC ORIG STC

DESTINATIGN P&DC

POST OFFICE

DVD NJ P&DC – MXD

MOVING THE MAIL

®

7 8 9 10

11

12

13

14

15

16

17

18

19

20

21

22

24

23

1 2 3 4 5

APPS – OPN 247

MI AFSM – OPN 144STD

WN SPBS – OPN 137

WN AFSM – OPN 144

DU

MI AFSM – OPN 144STD

MI AFSM – OPN 146

6

3D, REJ

5D, CR

FSS RUN 1

FSS RUN 2

FSS RUN 3

FSS RUN 4

FSS RUN 5

FSS RUN 6

FSS RUN 7

FSS RUN 8

SAMP RUN 2

SAMP RUN 1

SAMP RUN 3

SAMP RUN 4

SAMP RUN 5

SAMP RUN 6

SAMP RUN 7

SAMP RUN 8

MI SPBS 2 – OPN 137

DPS5D

REJ, Committed Mail

Cased Mail

Current Scheduling w/ FSSCurrent Scheduling w/ FSS

® NJI & BMCNJI & BMC

Run Number

Projected Start Date

Scheduled Run Start

Time Zone 1 Zone 2 Zone 3 Zone 4 Zone 51 11:49 AM 07628 07646

6/5/2010 DUMONT PO NEW MILFORD PO

2 12:35 PM 07621 07670

6/19/2010BERGENFIELD

POTENAFLY PO

3 1:41 PM 07436 07456 07463 07644

6/26/2010 OAKLAND PO RINGWOOD PO WALDWICK PO LODI PO

4 2:57 PM 07417 07801 07869

5/15/2010FRANKLIN LAKES PO

DOVER PO RANDOLPH

5 4:28 PM 07803 07840 07866

5/22/2010 MINE HILLHACKETTSTOWN

POROCKAWAY

PO6 6:02 PM 07424 07649

5/29/2010LITTLE FALLS

POORADELL PO

7 7:20 PM 07470

4/10/2010 WAYNE PO

8 9:44 PM 07401 07458 07652

4/17/2010 ALLENDALE SADDLE RIVER PO PARAMUS PO

9 11:48 PM 07405 07631 07632

4/24/2010 BUTLER PO ENGLEWOOD POENGLEWOOD

CLIFFS10 1:54 AM 07430 07446 07495

5/1/2010 MAHWAH PO RAMSEY PO MAHWAH

11 3:32 AM 07666

5/8/2010 TEANECK PO

FSS Number 1

®

Run Number

Projected Start Date

Scheduled Run Start

Time Zone 1 Zone 2 Zone 3 Zone 4 Zone 51 11:53 AM 08857

6/5/2010

OLD BRIDGE PO

2 12:56 PM 08831

6/12/2010

MONROE TOWNSHIP PO

3 2:14 PM 08846 088546/17/2010 MIDDLESEX PO PISCATAWAY PO

4 3:40 PM 08807

6/26/2010

BRIDGEWATER PO

5 4:45 PM 08844 08876

7/10/2010

HILLSBOROUGH PO SOMERVILLE PO

6 6:51 PM 08820 088225/8/2010 EDISON FLEMINGTON PO

7 8:55 PM 08817 08837

5/8/2010

EDISON POST OFFICE

EDI-RARITAN CENTER STA

8 10:32 PM 08902 08904

5/15/2010

NORTH BRUNSWICK HIGHLAND PARK

9 12:04 AM 08901

5/15/2010

NEW BRUNSWICK PO

10 1:02 AM 08816

5/22/2010

EAST BRUNSWICK PO

11 3:02 AM 088735/29/2010 SOMERSET PO

FSS Number 2

NJI & BMCNJI & BMC

29

MOVING THE MAIL

SURFACE vs. AIR NETWORK

•All products

All products, except PRIStd, Per, Pkgs

30

Separation requirements

1. Local NDC service area – local plant

2. Network NDC split(s)

• Two splits required Tier 1 and Tier 2

• Periodicals compliance with L201 & L009 split

• Label quality – print head

USPS Network Re-Engineering • Focus on service improvement

• Reduce operating cost / improve utilization

USPS Commitment to our customers• NY Districts / PCC

IMPROVING THE PARTNERSHIP

MOVING THE MAIL