# Presentation: 436484

## 
Flats Sequencing System
& 
Delivery Point Packaging
Status Update

February 2005

**Flats Sequencing System**
**& **
**Delivery Point Packaging**
**Status Update**
**February 2005**

## A merged letter and flat mail stream

**LONG TERM STRATEGY**

***DELIVERY VISION***

**Notes:**
Way back in 2000, a simple what if question was asked, If you could re-invent the Delivery process what would it look like.

The answer that evolved was...

....a seamless operation that results in one bundle or package of mixed letters and flats for each delivery point.”

A simple statement, but a very tall order to fill.

## OPTION 1: Delivery Point Packaging

**	****Develop a machine that will sequence **_**both letters and flats**_** in delivery order.**

**OPTION 2: *****Flats Sequencing System***
**	****Develop a machine that will sequence **_**only flats**_** in delivery order. **

**LONG TERM STRATEGY**

**Notes:**
Two paths to the delivery vision:
Delivery Point Packaging (DPP) & Flats Sequencing System (FSS)

Option 1: DPP   ...a machine to sequence both letters and flats in delivery order.
Option 2:  FSS ... a machine that would sequence flats only in delivery order.

## SAVINGS POTENTIAL FOR SEQUENCING FLATS

**Notes:**
Lets take a quick look at the flats universe.

## How many flats?

**SAVINGS POTENTIAL FOR SEQUENCING FLATS**

***How many flats?***

***51.9 + billion ******(FY 2004)***

***First Class Mail***

***Periodicals class***

***Standard class***

***4.6 billion (8.8%)***

***8.9 billion (17.3%)***

***38.4 billion (73.9%)***

***Carrier Routed Volume:***

***None***

***4.4 billion***

***24.5 billion***

***First Class Mail***

***Periodicals class***

***Standard class***

***28.9 billion*** ***(FY 2004)***

**FSS PRESENTATION**

***Saturation Mail******	******	***

***10.0 billion***

**Notes:**
51 billion total flats
10% First Class
18% Periodicals
72% Standard

Over half of the total flat volume is prepared as  carrier route presort.  
15% is Periodicals
85% is Standard

CR Saturation mail accounts for about 33% of CR volume and 18% of total flat volume.

## Office Time

***Office Time***

***Street Time***

**Averages 2-3 hours per day.**

**Averages 5-6 hours per day.**

**TYPICAL CARRIER DAY**

**SAVINGS POTENTIAL FOR SEQUENCING FLATS**

**Notes:**
Today, a typical letter carrier's day can be separated into two parts: "office time" which is about 2-3 hours a day and the remaining hours which are called "street time".

Carrier productivity:
Office productivity is almost 1100 for letters or close to 500 flats, cased per hour. 18/8 for city or 18/10 for rural routes. 
Street productivity is close to 95 deliveries per hour.
With the exception of DPS letters, the entire process relies on manual labor, an expensive process, and improvements in productivity are limited.

## FSS:

** ****DPS Letter Sorting Continues**
** ****Flats Sequencing to Delivery Points**
** ****Non-Automated Residue Mail Cased**
** ****Carrier In-Office Time Reduced**
** ****Carrier Street Efficiency Unchanged**

**LONG TERM STRATEGY**

***FSS:***

**Notes:**
With FSS:
Letters and Flats sorted separately
Non-automated Residue mail would be cased
Substantial in-office savings
Street efficiency unchanged

## FSS – TEST SYSTEM OVERVIEW

**  ****Phase 2 Award  - September 24, 2004**
**  ****Northrop Grumman**

**FSS – TEST SYSTEM OVERVIEW**

## FSS TEST SITE - INDIANAPOLIS IN

**Delivery Unit – Carmel, IN  46032, 46033**

**FSS TEST SITE - INDIANAPOLIS IN**

## FLATS SEQUENCING SYSTEM - SCHEDULE

**Award Prototype Contract****	****Sep 04**
**Build Prototype****	****Sep 04 – Oct 05**
**In-Plant Test****	****Oct 05**
**Field Test ****(9 Week) ****	****Apr – Jun 06**
**Production Contract****	****Oct 06**
**Deployment****	****Jan 08**

## GOAL OF DPP

**...****to reduce carrier time to case and deliver.**

**GOAL OF DPP**

## DPP AWARDS

**Bowe, Bell and Howell**
**Elsag SPA**
**FKI Logistex**
**Siemens Dematic**

**DPP AWARDS**

## DELIVERY POINT PACKAGING - SCHEDULE

**Award Test Bed Contracts****	****	****Feb 05**
**Evaluate Test Beds****	****	****Jan – Mar 06**
**Award System Build Contracts****	****Jun 06**
**Award Field Test Contracts****	****	****Nov 07**
**Field Test **** ****	****	****Jun – Sept 08**
**Production Contract****	****	****Dec 08**

## POSTAL IMPACTS

**More flat mail...**
**2 to 3 times the volume now sorted in plants is currently dropped directly at DU, cross-docked at plant, or only bundle-sorted in plant.**
**...means a greater staging space requirement...**
**Mail waiting to be sequenced.**
**Sequenced mail waiting to be transported.**
**...****and more complex mail flow management.**

## MAILER IMPACTS

**11-digit bar codes**
**  ****Sequence Greater Volume**
**Improved Address Quality**
**  ****Readability & Location**
**Mail Makeup & Preparation**
**Realignment of Drop Ship Locations**
**  ****Mail Entry to Coincide With Machine Location**