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PRESORT OPTIMIZATION Issue #11 WORK GROUP LEADERS Joe Lubenow Marc McCrery

PRESORT OPTIMIZATION Issue #11 WORK GROUP LEADERS Joe Lubenow Marc McCrery. Industry USPS. RECENT SIGNIFICANT ACCOMPLISHMENTS. Initiatives to increase pallet and decreased sack utilization Co-packaging of automation and presorted flats within the same STD or PER package

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PRESORT OPTIMIZATION Issue #11 WORK GROUP LEADERS Joe Lubenow Marc McCrery

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  1. PRESORT OPTIMIZATION Issue #11 WORK GROUP LEADERS Joe Lubenow Marc McCrery Industry USPS

  2. RECENT SIGNIFICANT ACCOMPLISHMENTS • Initiatives to increase pallet and decreased sack utilization • Co-packaging of automation and presorted flats within the same STD or PER package • Options to reduce letter trays • Allow certain Mixed mail on BMC pallets in order to reduce residual mail • Improved prep requirements for “fletters” • Enhanced prep for BPM flats • Formalized prep requirements for flat-sized pieces in letter trays

  3. CURRENT STATUS/INITIATIVES 5-Digit Package Scheme for Flats Developed list of ZIPs that can be combined by mailers in “5-digit scheme” packages based on AFSM 100 Incoming Secondary distribution • Had extensive discussions with the industry through MTAC • Postal Bulletin notice published Dec. 26th, effective Jan. 9th. • Will reduce package handlings and costs for the Postal Service

  4. CURRENT STATUS/INITIATIVES 5-Digit Package Scheme for Flats Before After 5D 54656 AFSM 100 INC SEC SORT PLAN 5D 54657 5D SCH 54656 5D 54664

  5. CURRENT STATUS/INITIATIVES 5-Digit Package Scheme for Flats • Includes approximately 6000 ZIPs in 1756 combinations • Approximately 30% of packages are 5D • Only for AFSM 100 compatible Periodicals, Standard, and BPM flats • Restricted to Auto and co-packaged Auto and Presorted • Optional use, but required with 5% merging option beginning April 30, 2003 • OEL → *******************SCH 5-DIGIT 12345 • Presented through an electronic labeling list • Example benefit: 2M plus piece mailing, 7% decrease in total packages, which equates to over 12K packages

  6. CURRENT STATUS/INITIATIVES 3-Digit Containers of Value Restrict the preparation of the 3-digit containers to 3-digit ZIPs for which the contents are actually distributed in 3-digit opposed to SCF operations • Worked to develop consensus within postal HQ and field operations and through MTAC • Postal Bulletin notice published Dec. 26th, effective Jan. 9th. • Will reduce containers and associated costs for the Postal Service

  7. 3D 3D 3D SCF CURRENT STATUS/INITIATIVES 3-Digit Containers of Value Never Prepare SCF Wichita KS 670 670 Never Prepare 671 670, 671 672

  8. CURRENT STATUS/INITIATIVES 3-Digit Containers of Value • Approximately 160 3D ZIPs w/o value • Required for Periodicals, Standard and BPM pallets beginning April 30, 2003 • Optional for Periodicals and BPM sacks • Presented in L002 using an indicator • Example benefit: 2M plus piece Periodical mailing → 2% decrease in pallets, which equates to 40 pallets

  9. FUTURE GOALS • Full merging (CR/5D) of non-AFSM 100 compatible flats for dispatch to delivery units • Explore modifying the standards for “OELs” and presort stickers in preparation of advanced package sorting equipment • Increase the combining of letter mail trays from multiple mailings on pallets • Optional 5-digit prep for STD irregular parcels, but with basic rates for former 5-digit pieces • Explore palletization for First-Class Mail • Jointly pursue flats prep enhancements with Product Redesign and Engineering • Cost-based rates • Alternate flats container

  10. WRAP-UP QUESTIONS??????

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