# Presentation: 514545

## Improving the Drop Shipment ProcessMTAC Workgroup 87Update

*** ****Washington, D.C.*
*August 2, 2007*

## Agenda

**Mailer Rating Pilot**
**National Deployment**
**Next Steps**

## Mailer Rating Pilot Status

**Executing the Mailer Rating Pilot (June 22 – August 17) at the following facilities:**
- CEDAR RAPIDS Plant in Cedar Rapids, IA
- DES MOINES BMC in Des Moines, IA
- INDUSTRY Plant in Industry, CA
- QUEENS Plant in Flushing, NY
- NEW YORK Plant in New York, NY
**Weekly teleconferences are being held with the mailers, FAST coordinators, and Surface Visibility coordinators at pilot facilities**

## No Show Appointments in FAST
At the pilot facilities from 6/16 to 7/13, 12.6% of all appointments resulted in a no show
The mailer with the highest number of No Show appointments at a given pilot facility had 11 out of the 89 total No Show appointments for that facility.
Nationally from 6/16 to 7/13, 22.1% of all appointments resulted in a no show
Unscheduled Arrivals with valid Scheduler IDs in FAST
At the pilot facilities from 6/16 to 7/13, 6.1% of all arrivals were unscheduled
The mailer with the highest number of Unscheduled Arrivals at a given pilot facility had 12 out of the 112 total Unscheduled Arrivals for that facility.
Nationally from 6/16 to 7/13, 2.9% of all arrivals were unscheduled
Cancelled Appointments in FAST
At the pilot facilities from 6/16 to 7/13, 4.7% of all appointments were cancelled
The mailer with the highest number of Canceled appointments at a given pilot facility had 16 out of the 61 total Canceled appointments for that facility.
Nationally from 6/16 to 7/13, 4.6% of all appointments were cancelled
Recurring Appointments in FAST
At the pilot facilities from 6/16 to 7/13, 6.2% of all recurring appointments were No Shows
The mailer with the highest number of late arrivals for recurring appointments at a given pilot facility had 23 out of the 48 total late arrivals for recurring appointments for that facility.
Nationally from 6/16 to 7/13 recurring appointments represented 22.1% of all No Shows

**No Show Appointments in FAST**
- At the pilot facilities from 6/16 to 7/13, **12.6%** of all appointments resulted in a no show
- The mailer with the highest number of No Show appointments at a given pilot facility had 11 out of the 89 total No Show appointments for that facility.
- Nationally from 6/16 to 7/13,** 22.1% **of all appointments resulted in a no show
**Unscheduled Arrivals with valid Scheduler IDs in FAST**
- At the pilot facilities from 6/16 to 7/13, **6.1%** of all arrivals were unscheduled
- The mailer with the highest number of Unscheduled Arrivals at a given pilot facility had 12 out of the 112 total Unscheduled Arrivals for that facility.
- Nationally from 6/16 to 7/13,** 2.9% **of all arrivals were unscheduled
**Cancelled Appointments in FAST**
- At the pilot facilities from 6/16 to 7/13, **4.7%** of all appointments were cancelled
- The mailer with the highest number of Canceled appointments at a given pilot facility had 16 out of the 61 total Canceled appointments for that facility.
- Nationally from 6/16 to 7/13,** 4.6% **of all appointments were cancelled
**Recurring Appointments in FAST**
- At the pilot facilities from 6/16 to 7/13, **6.2%** of all recurring appointments were No Shows
- The mailer with the highest number of late arrivals for recurring appointments at a given pilot facility had 23 out of the 48 total late arrivals for recurring appointments for that facility.
- Nationally from 6/16 to 7/13 recurring appointments represented** 22.1% **of all No Shows

## Mailer Rating Pilot - Mailer Questions/Issues

**Questions/Issues raised by mailers have included:**
- Early arrivals and impact on rating
- Multi-stop appointments and impact on rating when USPS delays occur
- USPS requirement for appointment IDs on PS Form 8125.  Drivers will need to contact dispatch/scheduler to obtain an Appointment ID.  If an Appointment ID is unobtainable, then the Scheduler ID must be provided
- Manual entry of appointment number on PS Form 8125 is not considered as altering the PS Form 8125
- Acquiring return receipt of signed PS Form 8125.  If mailers provide 2 copies of PS Form 8125, USPS will return a signed copy to the driver
- Discrepancy between FAST Closeout Data vs. the signed PS Form 8125
- Please contact facility to address the issue within 120 hours of appointment date/time.  If no response is returned from the facility within 1 business day, please contact Prat Shah from Operations

## Surface Visibility Scan Utilization

**Average Pilot Facility SV Drop Shipment Utilization **

## Current Functionality
Four or less slots will be allocated to tiers automatically
1 slot per hour (Tier 4)		
2 slots per hour (Tiers 4, 3)
3 slots per hour (Tiers 4, 3, 2)		
4 slots per hour (Tier 4, 3, 2, 1)
Five or more slots will be distributed based on tier percentage
Partial Slots are not allocated.  Tier 4 receives all slots that are not allocated to a specific tier

- Four or less slots will be allocated to tiers automatically
- 1 slot per hour (Tier 4)
- 2 slots per hour (Tiers 4, 3)
- 3 slots per hour (Tiers 4, 3, 2)
- 4 slots per hour (Tier 4, 3, 2, 1)
- Five or more slots will be distributed based on tier percentage
- Partial Slots are not allocated.  Tier 4 receives all slots that are not allocated to a specific tier

***Tier Percentage and Slot Allocation – Current ******Functionality***

## Tier Percentage and Slot Allocation - Proposed Functionality

**Proposed Functionality**
- Slot allocation will always award the first slot to tier 4
- Remaining slots distributed based on tier percentage and the “trickle down” effect starting with Tier 1
- Additionally, if the distribution equals 0.6 of a full slot or greater, a full slot will be allocated to tiers 1, 2 and 3
- The remaining slots will be assigned to tier 4 if not utilized in other tiers
- Partial Slots will carry over to the next available tier:
- If distribution < 0.6
- If a fractional slots remain after allocation (e.g.  0.2 slots will be carried to tier 2 if 1.2 slots are allocated to a tier 1 based on tier percentage)

## 
ANY FACILITY (ABC)

**ANY FACILITY (ABC)**

***Example - Slot Allocation Conversion***

|  | Percentage of Total Appointments Scheduled for Each Tier | Number of Pallet Slots per Hour |  |
| --- | --- | --- | --- |
|  |  | Current Functionality - 4 Slots At 8 PM (See Below) | Proposed Functionality – 4 Slots At 8 PM (See Below) |
| TIER 1 | 30% | 1 slot | 1 slot |
| TIER 2 | 15% | 1 slot | 0 slot |
| TIER 3 | 15% | 1 slot | 1 slot |
| TIER 4 | 40% | 1 slot | 2 slots |

- Current functionality with 4 Pallet Appointments at 8 PM
- Four or less tiers are distributed without regard to tier percentages
- Tier 1: 1 slot allocated
- Tier 2: 1 slot allocated
- Tier 3: 1 slot allocated
- Tier 4: 1 slot allocated

- Proposed functionality with 4 Pallet Appointments at 8 PM
- First Slot awarded to Tier 4 with 3 Slots Calculated by Tier Percentage
- Tier 1: 3 X .30 = .90 (1 slot rounded up)
- Tier 2: 3 X .15 = .45 (0 slot rounded down)
- Tier 3: (3 X .15)+.45 = .90 (1 slot rounded up)
- Tier 4: (3 X .40) = 1.20 (1 slot awarded + 1 slot remaining = 2 slots)

## 
ANY FACILITY (ABC)

**ANY FACILITY (ABC)**

***Example - Slot Allocation Conversion***

|  | Percentage of Total Appointments Scheduled for Each Tier | Number of Pallet Slots per Hour |  |
| --- | --- | --- | --- |
|  |  | Current Functionality - 6 Slots At 8 PM (See Below) | Proposed Functionality – 6 Slots At 8 PM (See Below) |
| TIER 1 | 30% | 1 slot | 1 slot |
| TIER 2 | 15% | 0 slot | 1 slot |
| TIER 3 | 15% | 0 slot | 1 slot |
| TIER 4 | 40% | 5 slots | 3 slots |

- Current functionality with 6 Pallet Appointments at 8 PM
- Tier 1: 6 X .30 = 1.8 (1 slot rounded down)
- Tier 2: 6 X .15 = 0.9 (0 slot rounded down)
- Tier 3: 6 X .15 = 0.9 (0 slot rounded down)
- Tier 4: 6 X .40 = 2.4 (5 slots remaining)

- Proposed functionality with 6 Pallet Appointments at 8 PM
- First Slot awarded to Tier 4 with 5 Slots Calculated by Tier Percentage
- Tier 1: 5 X .30 = 1.5 (1 slot rounded down)
- Tier 2: (5 X .15)+.50 = 1.25 (1 slot rounded down)
- Tier 3: (5 X .15)+.25 = 1.00 (1 slot rounded down)
- Tier 4: (5 X .40) = 2.00 (1 slot awarded + 2 slots remaining = 3 slots)

## National Deployment

**Mailer Rating National Deployment will be based on a phased approach by area**
- Deployment will include FAST SV enabled sites with 80% SV drop ship compliance or better
- Deployment Approach based on mailer/facility performance by area
- Deployment will span 3 months beginning August 18 (immediately following pilot)
**Mailer Rating National Deployment will continue communicating to mailers and facilities**
**Deployment team will continue teleconferences with mailers and facilities to help familiarize rating rules and review weekly metrics**
**Mailers should look at FAST rating reports to determine if operational changes need to be made to improve their rating score for each drop shipment facility**
**Mailer Rating National Deployment Plan**
- Phase I: 1 Area; Western
- Phase II: 3 Areas; Great Lakes, Southwest, Eastern
- Phase III: 5 Areas; NY Metro, Capital Metro, Pacific, Northeast, Southeast

## National Deployment- Fall Mailing Season

**Mailers expressed concern about national deployment during fall mailing season**
**Mailers agreed based on:**
-    Review of pilot data for accuracy
-    SV sites at 80% compliance or higher only
-    Willingness to closely monitor facilities
-    Ability to "turn-off" a facility if problematic
-    Agreement to "take action" if impacting the fall mailing season

## Mailer Rating Timeline

***Mailer Rating Timeline***

**Mailer Rating Pilot**

**July**

**Oct**

**Aug**

**Sept**

**June**

**May**

**Nov**

- Communication

- Preparation

- Execution

**National Deployment***

- Phase I - *Western*

- Phase II -* Great Lakes, Southwest, Eastern*

- Phase III - *NY Metro, Capital Metro, Pacific, Northeast, Southeast*

**Dec**

## Next Steps  

**Complete Mailer Rating Pilot**
**Continue communicating National Deployment schedule to mailers and facilities **
**Begin National Deployment Phase I**
**Review National Deployment status at next MTAC 87 meeting**