® Western Area Mailing Industry Focus Group July

  Operational Window Changes (OWC) and FCM Volume Decline   Service Performance   Commitment to Customers and Employees   Customer Communications   Innovation to Grow Business  Agenda 2

FY 2015 Service Challenge 3

Operating Window Change (OWC) implementation began in all processing facilities 320 Significant changes to: Transportation Schedules Machine Schedules Employee Schedules Customer Supplier Agreements  CSA 4

FCM Volume Decline 5

 First Class Volume Decline Source: RPW, FY2007 – FY2014 6

National Service Performance 7

8 Performance IndicatorPostal Quarter 3 April 1 – June 30, 2015 FCM Composite89.99 Priority Mail Composite91.49 STD Combined (DSCF & DNDC Ltrs & Flts) Periodicals86.74

Customer Communications 9

We will continue:  Industry Alerts  Industry & PCC webinars and presentations PCC and Managed Account messaging from:  PCC program office  HQ Business Customer Support & Service  From Area and District BSNs BME messaging to affected customers Weekly posting of planned operational moves on RIBBS Structured release cycle for labeling list / mail directional file changes  Customer Communications 10

Growing the Business 11

0303  Investments – Next Gen Equipment Delivery Sortation System PASS Real-Time Scanners Mobile Delivery Device (Replacement Scanners) Ring Scanners New Parcel Sorters Future Vehicles 12,7014,162208, ,486 Coming Soon: Surface Visibility Scanners 31 ~22,000 12

We are Committed to Service Excellence  Commitment Engage Industry Stability with OWC  C OMMITMENT TO S ERVICE E XCELLENCE Use Data and Diagnostic Tools Educate and Empower Employees Drive Efficiency 13