# Presentation: 207851

## Postal Operations

**John Rapp**
**Senior Vice President, Operations**

## Fall Mailing Season

## Fall Mailing Season

- Excellent

## Area Mail Processing (AMP)

**Studies Ongoing**
**No Decisions Made**
**Included in Network Redesign**

## Network Integration and Alignment

- February 2002

## Network Integration and Alignment (NIA)

* ****Objectives:**** *
- Reduce combined (USPS & customers’) costs
- Eliminate service failures and inefficiencies
- Maximize surface transportation cube utilization
*** ******Three Tiers:***

-  Node Optimization

**(NIA)**

**Event**
**Management **

-  Route Plans & Schedules
-  Routing Decision Rules

-  Dispatch & Routing Execution (SAMS)
-  Track & Trace Visibility (SASS)

** ****Strategic**

**Tactical**

**Operational**

**In **
**Conjunction**
**with NIA**

** ****Tier 1**

** ****Tier 2**

** ****Tier 3**

**Network Integration and Alignment (NIA)**

## Network Integration and Alignment (NIA)

- _Node Optimization_

**(NIA)**

**Event**
**Management **

-  Route Plans & Schedules
-  Routing Decision Rules

-  Dispatch & Routing Execution (SAMS)
-  Track & Trace Visibility (SASS)

** ****Strategic**

**Tactical**

**Operational**

**In **
**Conjunction**
**with NIA**

** ****Tier 1**

** ****Tier 2**

** ****Tier 3**

**Network Integration and Alignment (NIA)**

## NIA Addresses Several Challenges

- Fixed infrastructure inhibits Our Ability to Adapt to Changing Business Requirements
- Disproportionate Increase in Transportation Costs  over  Last Decade
- Evolution of the Distribution Network Resulted in Non-Standard  Operating Procedures
- Differing & Inconsistent Preparation and Entry Exist Between Classes & Subclasses of Mail
- Differing & Inconsistent Service Standards Exist
- Lack of an Integrated IT Solution

## Assumptions

- Network Designed to Lower Total System Cost                         (USPS and Customers)
- Cost Savings Are Trackable, Measurable, and Capturable
- Labor Impacts  Addressed Proactively
-  An Integrated IT Solution is Critical to Our Success
- Logistics Network Capable of Rapid Response to Changes in Customers’ Requirements

**Assumptions**

## Overall Approach for NIA

**Overall Approach for NIA**

**     ****1. Establish Baseline**

-              **2. Define/Analyze**
**                 ****Alternatives**

-                **3. Develop **
**            ****Implementation Plan**

**Change Management: Develop new long-term processes,**
**establish skills and requirements.**

** ****Select Modeling Tool/Model**
**Baseline **
**Logistics**
**Network**

** ****Develop and Select Scenarios/ Alternatives**

**Identify Resource Requirements for Projects**

**STEP 1**

**STEP 7**

**STEP 6**

** ****Analyze**
**Network & Deployment Alternatives / Scenarios**

**STEP 9**

**Gain Mgmt Approval for NIA Opportunity Assessment**

**STEP 0**

** ****Data Collection & Document As-Is**

**STEP 5**

** ****Mobilize Team and Project**
**Start-Up**

**STEP 2**

** ****Design Conceptual  Model**

**STEP 4**

** ****Confirm**
**Business**
**Strategy**

**STEP 3**

** ****Develop Model**

**STEP 8**

- 

- 

- 

## Examples of Scenarios to Be Analyzed

**Outsourcing (Considered after the model produces results)**

***Outsourcing***

***No Outsourcing***

- Everything is
- outsourced

- No
- outsourcing

- Shared
- Transportation

- Outsource labor
- in a USPS plant

- Outsource functions
- to customer’s plants

**Business Requirements**

***Change***

***Don’t Change***

- Completely redefine
- mail classes and other services

- No changes

- Alter service standards
- to improve service performance

- Additional
- Dropship

- Sell processing or
- transportation services

**Differentiation**

***Differentiate***
***by Shape***

*** ******Don’t Differentiate***
***by Shape***

- Separate Facility
- for each shape

- All shapes in
- same facility

- Letters and Flats in one type of plant
- Parcels & Outsides in another

***Differentiate***
***by Mail Class***

*** ******Don’t Differentiate***
***by Mail Class***

- Separate Facility
- for each mail class

- All mail classes in
-  the same facility

- Separate facilities for Preferred
- and Standard mail

- Separate facilities for
- Expedited, FCM, and Standard

**Examples of Scenarios to Be Analyzed**

## Examples of Scenarios to Be Analyzed

**Outsourcing (Considered after the model produces results)**

***Outsourcing***

***No Outsourcing***

- Everything is
- outsourced

- No
- outsourcing

- Shared
- Transportation

- Outsource labor
- in a USPS plant

- Outsource functions
- to customer’s plants

**Business Requirements**

***Change***

***Don’t Change***

- Completely redefine
- mail classes and other services

- No changes

- Alter service standards
- to improve service performance

- Additional
- Dropship

- Sell processing or
- transportation services

**Differentiation**

***Differentiate***
***by Shape***

*** ******Don’t Differentiate***
***by Shape***

- Separate Facility
- for each shape

- All shapes in
- same facility

- Letters and Flats in one type of plant
- Parcels & Outsides in another

***Differentiate***
***by Mail Class***

*** ******Don’t Differentiate***
***by Mail Class***

- Separate Facility
- for each mail class

- All mail classes in
-  the same facility

- Separate facilities for Preferred
- and Standard mail

- Separate facilities for
- Expedited, FCM, and Standard

**Examples of Scenarios to Be Analyzed**

## Examples of Scenarios to Be Analyzed

**Outsourcing (Considered after the model produces results)**

***Outsourcing***

***No Outsourcing***

- Everything is
- outsourced

- No
- outsourcing

- Shared
- Transportation

- Outsource labor
- in a USPS plant

- Outsource functions
- to customer’s plants

**Business Requirements**

***Change***

***Don’t Change***

- Completely redefine
- mail classes and other services

- No changes

- Alter service standards
- to improve service performance

- Additional
- Dropship

- Sell processing or
- transportation services

**Differentiation**

***Differentiate***
***by Shape***

*** ******Don’t Differentiate***
***by Shape***

- Separate Facility
- for each shape

- All shapes in
- same facility

- Letters and Flats in one type of plant
- Parcels & Outsides in another

***Differentiate***
***by Mail Class***

*** ******Don’t Differentiate***
***by Mail Class***

- Separate Facility
- for each mail class

- All mail classes in
-  the same facility

- Separate facilities for Preferred
- and Standard mail

- Separate facilities for
- Expedited, FCM, and Standard

**Examples of Scenarios to Be Analyzed**

**Notes:**
...

## Integration

**Information Platform**
**Industry Task Force Recommendations**
**Product Redesign**
**Equipment Deployment**
**Facility Consolidation (AMP)**

## What Does NIA Mean to You?

**Lower Costs System-Wide (USPS & Private Sector) **
**Additional Opportunities to Partner With Customers and Consolidators**
**Will integrate Various IT Solutions with NIA’s Logistics Optimization and Simulation Tools  **
**  ****Postal One! & SASS**
**Increased Network Flexibility to Manage in an Uncertain Future**

**What Does NIA Mean to You?**