# Presentation: 702290

## 
Mailers Technical
Advisory Committee

August 1, 2001

**Mailers Technical**
**Advisory Committee**
**August 1, 2001**

## Four Mail Streams:
Automated
Mechanized
FSM 1000
Manual
Significant Material Handling Costs 
Increasing Mail Prep Costs
Increased Rates

**Four Mail Streams:**
**Automated**
**Mechanized**
**FSM 1000**
**Manual**
**Significant Material Handling Costs **
**Increasing Mail Prep Costs**
**Increased Rates**

## 287 AFSM 100s Deployed
Over One Billion Flats on AFSM 100 in AP 10
48% of all F1 (Plant) Flats
AFSM  Site Productivity up 27%
All Plants Productivity up 18%

**Over One Billion Flats on AFSM 100 in AP 10**
**48% of all F1 (Plant) Flats**
**AFSM  Site Productivity up 27%**
**All Plants Productivity up 18%**

**Current Situation**

## Bundle Integrity
LOT Quality
Barcode
Utilize DMM Optional Preparation Methods and Guidelines
SCF Pallet Protection
Merge/Don’t Merge 5D With CRRT                  (for non-auto zones)
Less Than Full Sacks
Address Location

**Bundle Integrity**
**LOT Quality**
**Barcode**
**Utilize DMM Optional Preparation Methods and Guidelines**
**SCF Pallet Protection**
**Merge/Don’t Merge 5D With CRRT                  ****(for non-auto zones)**
**Less Than Full Sacks**
**Address Location**

**Current Industry Opportunities**

## Alternative Flats Preparation
Presort Optimization
Flats Strategy Work Group
Readability Optimization
Mail Characteristics Study

**Alternative Flats Preparation**
**Presort Optimization**
**Flats Strategy Work Group**
**Readability Optimization**
**Mail Characteristics Study**

## From 4 Mail Streams to 2:
Automated - DPS
Manual
Maximize Barcoding (11 Digits)
Standardize :
Physical Characteristics
Address Placement
Presentation (Containers)
Minimize (Eliminate) Small Packages

**From 4 Mail Streams to 2:**
**Automated - DPS**
**Manual**
**Maximize Barcoding (11 Digits)**
**Standardize :**
**Physical Characteristics**
**Address Placement**
**Presentation (Containers)**
**Minimize (Eliminate) Small Packages**

**Where We Must Go**

## DPS Mailer Impacts Identified
Lead Times:
11 Digit Barcoding		6 Months
Standardized Label Location	2 Years
Mail Piece Redesign		TBD
Alternative Mail Preparation	TBD

**DPS Mailer Impacts Identified**
**Lead Times:**
**11 Digit Barcoding****	****	****6 Months**
**Standardized Label Location****	****2 Years**
**Mail Piece Redesign****	****	****TBD**
**Alternative Mail Preparation****	****TBD**

##    Additional Copies of the Flats Strategy Document Can be Obtained by Contacting:

Jaime Fuentes at
jfuentes@email.usps.gov

**   ****Additional Copies of the Flats Strategy Document Can be Obtained by Contacting:**
**Jaime Fuentes at**
**jfuentes@email.usps.gov**

## Build On Current Customer/USPS Efforts To Identify Opportunities for Improvement
Follow Classification Reform Model:
Reduce Combined Mailer/USPS Costs
Incentivize With New Rate Categories and Preparation Requirements  

**Build On Current Customer/USPS Efforts To Identify Opportunities for Improvement**
**Follow Classification Reform Model:**
**Reduce Combined Mailer/USPS Costs**
**Incentivize With New Rate Categories and Preparation Requirements  **

**Notes:**
SLIDE 7 (Pat)

We are also focused on reducing the number of supervisors at the same time that we reduce craft employees.  As I stated before, a large part of our cost reduction programs are focused on the processing and distribution activity. As a result  we are focusing on facilities where mail processing is performed and where the number of supervisors is more than the recommended 20 to 1 ratio of craft to supervisors (includes supervisors and managers of distribution).
As a result, we have identified 23 Processing and Distribution centers, 3 Bulk Mail centers and 3 Airport Mail centers where we will be  eliminating supervisory positions.

## Slide 10