GLA FOCUS GROUP August 20, 2015
MAILING INDUSTRY ECOSYSTEM 2 Mail Owners E-Commerce Logistics Printers & Mailers Software Vendors Equipment Manufacturers Letter Shops & Mail Service Providers
HINDSIGHTACTIONABLE INSIGHTSFORESIGHT UPSTREAMDOWNSTREAM MAKING DECISIONS EARLIER IN THE PROCESS 3
4 FULL SERVICE MAIL TREND
Overnight increased by 0.44%; 2-Day increased by 2.43%; 3-to-5-Day increased by 2.08% Q4 TD Total Pieces Measured Processing On-Time Last Mile Impact Overall Score Target Score SPLY Pieces Measured Volume Change SPLY Overall QTD Score SPLY Change Overnight 27,195, %-1.72%96.72%96.80%26,551, %97.53%-0.81% 2-Day 80,669, %-1.40%94.72%96.50%87,147, %96.98%-2.26% 3-to-5-Day 337,944, %-1.74%91.65%95.25%294,455, %94.84%-3.19% Total 445,809, %96.00%408,155, %95.74%-2.81% Presort First-Class Mail® (Letters) Great Lakes Area Score Trend 5
All QTD FCM Letters scores would be above 98.27% (prior to last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 6% ODIS Volume: 15% Actual Volume: 18% ODIS Volume: 23% Actual Volume: 76% ODIS Volume: 63% Presort First-Class Mail® (Letters) Great Lakes Area Service Variance 6
All QTD FCM Letters scores would be above 97.75% (including last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 6% ODIS Volume: 15% Actual Volume: 18% ODIS Volume: 23% Actual Volume: 76% ODIS Volume: 63% Presort First-Class Mail® (Letters) Great Lakes Area Service Variance 7
Overnight decreased by 4.37%; 2-Day decreased by 2.25%; 3-to-5-Day decreased by 1.38% Q4 TD Total Pieces Measured Processing On-Time Last Mile Impact Overall Score Target Score Overnight 164, %-4.42%86.23%96.80% 2-Day 418, %-4.64%82.62%96.50% 3-to-5-Day 3,097, %-5.29%77.59%95.25% Total 3,680, %96.00% Presort First-Class Mail® (Flats) Great Lakes Area Score Trend 8
All QTD FCM Flats scores would be above 92.90% (prior to last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 4% ODIS Volume: 11% Actual Volume: 11% ODIS Volume: 22% Actual Volume: 84% ODIS Volume: 66% Presort First-Class Mail® (Flats) Great Lakes Area Service Variance 9
All QTD FCM Flats scores would be above 90.53% (including last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 4% ODIS Volume: 11% Actual Volume: 11% ODIS Volume: 22% Actual Volume: 84% ODIS Volume: 66% Presort First-Class Mail® (Flats) Great Lakes Area Service Variance 10
DSCF decreased by 0.12%; DNDC increased by 1.18%; End-to-End increased by 1.84% Q4 TD Total Pieces Measured Processing On-Time Last Mile Impact Overall Score Target Score SPLY Pieces Measured Volume Change SPLY Overall QTD Score SPLY Change SCF Letters 263,854, %-1.29%94.68%91.00%191,092, %95.51%-0.83% NDC Letters 41,783, %-1.06%94.32%91.00%35,305, %94.74%-0.42% E2E Letters 44,515, %-1.00%59.60%91.00%40,338, %71.66%-12.06% Total 350,153, %91.00%266,737, %91.81%-2.48% Standard Mail® (Letters) Great Lakes Area Score Trend 11
QTD DSCF and DNDC Standard Letters scores would be above 98.53% (prior to last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 75% ODIS Volume: 71% Actual Volume: 12% ODIS Volume: 13% Actual Volume: 13% ODIS Volume: 16% Standard Mail® (Letters) Great Lakes Area Service Variance 12
QTD DSCF and DNDC Standard Letters scores would be above 98.15% (including last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 75% ODIS Volume: 71% Actual Volume: 12% ODIS Volume: 13% Actual Volume: 13% ODIS Volume: 16% Standard Mail® (Letters) Great Lakes Area Service Variance 13
DSCF increased by 0.50%; DNDC increased by 0.98%; End-to-End decreased by 1.75% Q4 TD Total Pieces Measured Processing On-Time Last Mile Impact Overall Score Target Score SPLY Pieces Measured Volume Change SPLY Overall QTD Score SPLY Change SCF Flats 59,542, %-7.05%88.15%91.00%46,170, %90.96%-2.81% NDC Flats 8,734, %-3.13%88.93%91.00%5,404, %89.55%-0.62% E2E Flats 7,287, %-3.73%51.43%91.00%6,167, %63.29%-11.86% Total 75,565, %91.00%57,742, %90.82%-5.23% Standard Mail® (Flats) Great Lakes Area Score Trend 14
QTD DSCF and DNDC Standard Flats scores would be above 96.75% (prior to last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Note: DDU Mail Pieces were not included in the RPW Volume calculation. Actual Volume: 79% ODIS Volume: 80% Actual Volume: 12% ODIS Volume: 9% Actual Volume: 10% ODIS Volume: 11% Standard Mail® (Flats) Great Lakes Area Service Variance 15
QTD DSCF and DNDC Standard Flats scores would be above 95.38% (including last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Note: DDU Mail Pieces were not included in the RPW Volume calculation. Actual Volume: 79% ODIS Volume: 80% Actual Volume: 12% ODIS Volume: 9% Actual Volume: 10% ODIS Volume: 11% Standard Mail® (Flats) Great Lakes Area Service Variance 16
EDDM-Retail decreased by 1.82%; Saturation increased by 0.12% Q4 TD Total Pieces Measured Compliance Overall Score Target Score SPLY Pieces Measured Volume Change SPLY Overall QTD Score SPLY Change EDDM-Retail 1,461, %86.88%91.00% N/A Saturation 1,833, %89.16%91.00% 95,44418,211.49% Total DDU 3,295, %88.88%91.00%N/A EDDM-Retail and Saturation Mail Great Lakes Area Score Trend 17
All DDU scores would be above 95.10%, if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Actual Volume: 44% ODIS Volume: 16% Actual Volume: 56% ODIS Volume: 84% EDDM-Retail and Saturation Mail Great Lakes Area Service Variance 18
DSCF decreased by 0.20%; DADC decreased by 3.10%; End-to-End increased by 3.69% Q4 TD Total Pieces Measured Processing On-Time Last Mile Impact Overall Score Target Score SPLY Pieces Measured Volume Change SPLY Overall QTD Score SPLY Change SCF Flats 25,541, %-9.09%83.05%91.00%17,665, %87.15%-4.10% ADC Flats 618, %-5.88%82.20%91.00%2,724, %91.78%-9.58% E2E Flats 12,448, %-2.85%63.74%91.00%11,221, %61.31%2.43% Total 38,609, %91.00%31,610, %80.79%-2.33% Periodicals Great Lakes Area Score Trend 19
QTD DSCF and DADC Periodicals scores would be above 95.46% (prior to last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Note: DDU Mail Pieces were not included in the RPW Volume calculation. Actual Volume: 66% ODIS Volume: 68% Actual Volume: 2% ODIS Volume: 7% Actual Volume: 32% ODIS Volume: 24% Periodicals Great Lakes Area Service Variance 20
QTD DSCF and DADC Periodicals scores would be above 93.51% (including last mile), if pieces that failed by 1 day passed Note: Volumes may not sum to 100% due to rounding. Note: DDU Mail Pieces were not included in the RPW Volume calculation. Actual Volume: 66% ODIS Volume: 68% Actual Volume: 2% ODIS Volume: 7% Actual Volume: 32% ODIS Volume: 24% Periodicals Great Lakes Area Service Variance 21
© 2014 USPS FULL SERVICE VISIBILITY Electronic Info for Containers and Trays Received Piece level automation scans Full Service Customers Only All IMb™ Users 170,461, Billion (as of August 1, 2015) Container Scans Tray Scans Entered at USPS: 5,036,000 Enroute Arrive: 827,000 Enroute Depart: 625,000 6,487, ,441,000 Enroute: 118,760,000 Enroute Arrive: 10,858,000 Enroute Depart: 10,823,000 Visibility for Mailers Data from to
23% August Mail Currently in Measurement 51%47%36%29% June Mail Currently in Measurement 56%62%45% 5%5%15%6%6%9%9% GROWTH IN MEASUREMENT 23
MAIL IN MEASUREMENT Actions undertaken to get more mail into measurement Surface Transfer Centers added to FAST file Deployed Bundle Visibility nationwide Enhanced Start-the-Clock Business rules for facilities within the same 3-Digit Bundle Breakage identification of eDoc Nesting issues Area specific webinars 24
BUNDLE VISIBILITY Entry Mail Moment Post Office Processing Plant 25
SURFACE VISIBILITY EXPANSION New software/hardware infrastructure 26 Current Sites
SURFACE VISIBILITY EXPANSION 90 Additional Sites: November February Current Sites New Sites
January – May New SV Site Deploymen t Peak Mailing Season 10/23 50% DELIVERED August – November Current SV Site Deployment 2/1 New Site Deployment SV DEPLOYMENT PLAN (22,330 Scanners) 2015 Peak Season 28
INFORMATION GAPS Bundle Visibility Surface Visibility Mail in Measurement Predictive Delivery Informed Visibility 29
Powerful Enterprise Analytics Inventory & Workload Service Measurement & Diagnostics Single Source of Mail Visibility Data INFORMED VISIBILITY is real-time, end-to-end mail tracking The future is near... 30
INFORMED VISIBILITY IV is an enterprise system that will be a real-time single source of all mail and mail aggregate information. IV will leverage data to provide business intelligence for USPS functional groups and the mailing industry, providing: ● Event-Driven Internal Measurement of all Mail ● Real-Time Service Performance Diagnostics ● Mail Inventory Management of Mail and Packages ● Predictive Workloads on Mail and Packages ● End-to-End Tracking of Mail ● Ease of Use 31
Event-driven, real-time SERVICE PERFORMANCE MEASUREMENT for all mail Event-driven, real-time MAIL INVENTORY AND PREDICTIVE WORKLOADS Event-driven, real-time MAIL TRACKING AND REPORTING 123 INFORMED VISIBILITY... will be a phased approach 32
INFORMED VISIBILITY Phase Service Performance Measurement Mail Inventory & Predictive Workload Mail Tracking & Reporting Release 1 11/3/14 – 7/27/15 (Commercial Mail) Release 2 1/15/15 – 7/27/15 (Single-Piece) Release 3 3/26/15 – 10/11/15 (Operational Pilot & National Deployment) Release 4 6/25/15 – 1/10/16 (Release 4 enhancements) Release 5 9/24/15 – 4/10/16 (Release 5 enhancements) Release
Enhanced Mail Tracking Current IMb Tracing Visibility for letters, flats & bundles Bundle visibility limited to piece automation scans Raw data download, or push subscription (1-24 hour) PostalOne! & Mail.xml Visibility for trays & containers Push, pull, or download data Latency issues Future Comprehensive end-to-end Real-time reporting Flexible data provisioning Customer specific mail performance Additional scan events Delivery unit related bundle visibility “Out for delivery” & “delivered” events INFORMED VISIBILITY 34
● Lack of system to provide “real-time” actionable information ● Inadequate real-time data and tools to accurately forecast resource needs ● Latency issues Current Challenges ● Multiple, disparate systems ● Gaps in end-to-end tracking and reporting ● Cannot fulfill all customers needs “Cast of Characters” MAIL VISIBILITY 35
● Leverages ‘Big Data’ Technology ● Streamlined Data Processing ● Real-Time Data ● Single Source for Letters, Trays, Containers, and Packages 36 Challenges Solved ● Provides End-to-End Visibility ● Flexible Data Provisioning ● What you want ● When you want ● How you want ● With easy sharing capability MAIL VISIBILITY
MAILER MONITORING – CURRENT STATE Informed Visibility Good to Be Healthy Corp. Site Support USPS Privacy Policy Mailer Monitoring Seattle Mailer Lookup Go Containers Trays Letters Flats Packages Location Search TueWedThu Containers15 Container Scans Container Scan %74%82%96% Portland TueWedThu Containers12 Container Scans Container Scan %69%74%85% Spokane TueWedThu Containers999 Container Scans Container Scan %77%83%93% 37
MAILER EARLY WARNING – PREDICTIVE STATE Informed Visibility Good to Be Healthy Corp. Site Support USPS Privacy Policy Mailer Early Warning – Expected Drop Dates Version 2.0 c 2015 US Postal Service Seattle Mailer Lookup Go Containers Trays Letters Flats Packages Location Search Trips MPE Visibility Portland Spokane Sun 8/16 Mon 8/17 Tue 8/18 Wed 8/19 Thu 8/20 Fri 8/21 Sat 8/22 14 Sun 8/16 Mon 8/17 Tue 8/18 Wed 8/19 Thu 8/20 Fri 8/21 Sat 8/ Sun 8/16 Mon 8/17 Tue 8/18 Wed 8/19 Thu 8/20 Fri 8/21 Sat 8/22 19 Mail Class First Class Standard Periodicals Packages Flats Letters Message Center Good to Be Healthy Corp. begins dropping 8/20 at 3:00 PM in Seattle. FAST appointment Good to Be Healthy Corp. begins dropping in Portland at 6:00PM. FAST appointment
The Mailbox is the Hub If the Mail Piece is the Hook… 39
Mail Delivered Real-Time Data Received SentMail Moment Customer Conversion Mailer Notified HOW TO CREATE VALUE 40 From Different Data Sources
August 10, 2015 PACKAGE VISIBILITY IS INCREASING: Thresholds as of January 25, 2015 IMpb Metrics July 2015
QUESTIONS? 42