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Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010

Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010. Alternative Channel. As an Alternate sales channel for USPS, SFS provides stamps to a variety of customers Single site, centrally located in Kansas City

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Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010

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  1. Stamp Fulfillment ServicesA Division of USPSGovernment Relations & Public PolicyMay 19, 2010

  2. Alternative Channel • As an Alternate sales channel for USPS, SFS provides stamps to a variety of customers • Single site, centrally located in Kansas City • Originating as a philatelic center, now supplies USPS stamps & philatelic products globally • Annual revenue growth of 15% (average) in last 8 years • Distinction between SFS & Distribution Centers Stamp Fulfillment Services, Khalid Hussain

  3. Core Beliefs of SFS • Continuously evolving with customers • Recognizing the customer and their needs • Learning organization; listening to customers and providing solutions • Adoption and successful implementation of best industry practices • Provide added value by innovation and diversification Stamp Fulfillment Services, Khalid Hussain

  4. SFS Revenue, 2002 – 2010 (Projected) $297.6 Source: SFS Blue Book for FY 1998 - 2010 Stamp Fulfillment Services, Khalid Hussain

  5. TFP Annual Change by Revenue / Workhour (FY 2002 – 2009) Average YearlyChange of TFP = 14.6% Stamp Fulfillment Services, Khalid Hussain

  6. Diversification 2010 2002 For the purposes of simplification each program has been presented as having equal weight. In reality each program contributes differently to SFS profitability. The various programs may require more or less labor hours, contribute more or less revenue, and affect customer satisfaction to varying degrees. Stamp Fulfillment Services, Khalid Hussain

  7. Automation • State-of-the-Art Automation • Continuing practices of Lean Six Sigma • Involvement of all stakeholders in exploring optimal solutions Stamp Fulfillment Services, Khalid Hussain

  8. SFS Business Model – S I P O C Stamp Fulfillment Services, Khalid Hussain

  9. SFS Customer Database Overview Customer Types STAMPS Now™ Businesses Serious Collectors Casual Collectors Stamps for Use Domestic Dealers International Dealers Federal Agencies Local Postmasters Express Mail Corporate Accounts Personalized Stamped Envelopes International Customers Payment Types Checks Wire Transfers Credit CardsSubscription ACHLines of Credit Trust AccountsAutocharges EDI NCMS Database = 5.5 million Customers Stamp Fulfillment Services, Khalid Hussain

  10. Turnaround Times Time to Ship Orders Following Induction of Orders into System1 4.7 million Shipments in FY 2009 92.5% of tracked orders are received within the standard delivery time of 1 – 3 days (Priority Mail) from the time they leave SFS2 1SFS Postal Store Order Report, reports both Postal Store & Non-Postal Store Orders 2Reported by Expedited Shipping, 2/2010 Stamp Fulfillment Services, Khalid Hussain

  11. Value-Added Contributions • One-to-one relationships with Preferred Customers • Various payment methodologies • Scheduled shipments • Electronic Data Interchange & Reconciliation • Provide electronic reports • Excellent Customer Service Stamp Fulfillment Services, Khalid Hussain

  12. Questions & Answers Stamp Fulfillment Services, Khalid Hussain

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