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Flats Symposium 2008

®. NPF. Where knowledge and innovation connect. National Postal Forum. ®. Flats Symposium 2008. Panel 3: Logistics, Planning & Transportation. National Postal Forum 2008. Panel Members. Anita Pursley Vice President, Postal Affairs Quebecor World Logistics Jeff Williamson

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Flats Symposium 2008

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  1. ® NPF Where knowledge and innovation connect. National Postal Forum ® Flats Symposium 2008 Panel 3: Logistics, Planning & Transportation National Postal Forum 2008

  2. Panel Members • Anita Pursley • Vice President, Postal Affairs • Quebecor World Logistics • Jeff Williamson • Manager, Network Development and Support • USPS • Tony Dobush • Partner • PLS-Midwest

  3. Integration of FSS into Network Drop Shipment Changes Network Strategy Industry Challenges / Opportunities Agenda

  4. Deploy to Multiple Types of Facilities Co-located with Bundle Distribution Co-located with P&DC Operations Stand Alone FSS Deployment Integration of FSS into USPS Network

  5. Transportation Flow To FSS End-to-End Product Through Existing Network Transportation Drop Ship Down Flow From Upstream Entry (BMC, ADC, SCF) Directly to FSS Site Transportation From FSS to DDU – Based on Density to Optimize Trip Utilization Direct to DDU Transfer Through P&DC Integration of FSS into USPS Network

  6. Objective is to Minimize the Number Of Entry Points Preparation Changes to Align With FSS Schemes Service Standards CET Drop Shipment Impacts

  7. Objective: Create a Network That Produces the Lowest Combined Cost for USPS & Customers, and Improves Consistency of Service USPS Network Strategy

  8. Focus on: Air Transportation Reliable Low Cost Air Network Reduce Air Mail Center (AMC) Operating Cost Processing & Distribution Center (P&DC) Plant Consolidations Eliminate Excess Processing Capacity Bulk Mail Centers (BMC) Optimize Utilization of Key Assets USPS Network Strategy

  9. Industry Challenges / Opportunities • FSS in Multiple Facility Types • Increase in Number of Entry Points • Multiple Requirements for Drop Ship Entries • CET Management for In-Home Planning • New Pallet Preparation Requirements • Additional, Smaller Pallets • Increased Number of Sacks • Less Finer Level Sorted Pallets • Additional Handling Costs

  10. Industry Challenges / Opportunities • Co-Mail and Co-Palletization • Value of Co-Mail Increases? • Added Complexity • Additional Space / Staging Requirements • Transportation • Increased Costs – Fuel, Stop-off Charges • Load Factor • Load Stability

  11. Despite Challenges, the Industry Supports the FSS Initiative and the USPS Objective of Creating a Network that Produces the Lowest Combined Cost for USPS & Customers and Improves Consistency of Service Summary

  12. Customer Perspective and Challenges Questions?

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