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Product Redesign MTAC Update February 6, 2003

Product Redesign MTAC Update February 6, 2003. PRODUCT REDESIGN. Steering Committee - Industry. Bob O’Brien – Industry Co-Chair John DePiazza Joe Lubenow Clarence Banks Robert Lindsay Pierce Myers Anita Pursley Dennis MacHarg Val Scansaroli. PRODUCT REDESIGN.

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Product Redesign MTAC Update February 6, 2003

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  1. Product Redesign MTAC Update February 6, 2003

  2. PRODUCT REDESIGN Steering Committee - Industry • Bob O’Brien – Industry Co-Chair • John DePiazza • Joe Lubenow • Clarence Banks • Robert Lindsay • Pierce Myers • Anita Pursley • Dennis MacHarg • Val Scansaroli

  3. PRODUCT REDESIGN Workgroup Co-Chairs – Industry / USPS • First-Class - John DePiazza / Susan Campbell • Periodicals - Val Scansaroli / Rick Arvonio • Standard - Anita Pursley / Cheryl Beller • BPM - Charley Howard / Sharon Daniel • Parcels - Steve Zwieg / Jim Cochrane • Addressing - Joe Lubenow / Wayne Orbke

  4. Workgroups PRODUCT REDESIGN • Steering Committee Met Tuesday 02/04 • Redesign in the Context of: • CSRS Legislation • Omnibus Rate-Case: Timing & Phasing • NIA: Combined Cost; Mailer Response • Joint Meeting of Workgroups • Wait For Clarification on Above Items • Send Out Summary of Where Workgroup Proposals Stand

  5. PRODUCT REDESIGN Optional 10-17 5-D Bundle Minimum in Standard • Analyzed Data on Make-up “Before & After” • Results From Real Mailings Very Close to Results From Simulated Mailings • Still Need Additional Data on Real Mailings • Collected Information on Extent of Use • Wide Variation • Some Use 17-piece Minimum for Most Mailings • Some Continue to Use 10-piece Minimum

  6. Factors Affecting Optimal 5-D Minimum PRODUCT REDESIGN • Low Piece Weights • More 5-D bundles convert into one 3-D bundle • Low-to-Moderate Mailing Density • 25% or more of 5-D bundles <= 17 pieces • Ability to Build 3-D Bundles Up to 20-pound Limits • If 3-D bundles limited to 3” high, get fewer 5-D bundles converting to one 3-D bundle

  7. Need Your Help to Learn About Effects PRODUCT REDESIGN • Make-up at 10-pieces & alternative minimum • Would Like Before & After Data For • Number of 5-Digit & 3-Digit Bundles • Number of 5-Digit & 3-Digit Pieces • Piece Weight • Total Pieces and Bundles • Constraints on Make-up other than 20 lbs. • Maximum Heights for Bundles in Sacks • Maximum Heights for Production Reasons

  8. PRODUCT REDESIGN DDU Entry for Standard Parcels • Mailer Suggestion: Allow DDU entry of Standard Parcels at DBMC or DSCF rates • Improve Service Consistency for Customers • Postal Service Cost Savings • Implement With Customer Support Ruling • Allow DBMC Rate With No Minimum • Allow DSCF Rate With 10 pounds for a 5-Digit • Customer Support Ruling Issued December 10th

  9. PRODUCT REDESIGN Co-palletization of Periodicals Flats Bundles • For small volume mailings now origin-entered in sacks • Additional incentives for bundles that are newly: • Co-palletized on ADC and SCF pallets and • Drop shipped to DADC or DSCF • Settlement Accepted by PRC and Governors • Applications Accepted February 10th • Implementation on April 20th

  10. PRODUCT REDESIGN Parcel Select™ Return Service • Low cost, no frills merchandise returns service • Capitalize on USPS operational savings • Mailer or Consolidator Picks up Bulk Returns at DDU, DBMC, or “Origin” BMC • Allows providers to offer value added services • Credit returns • Redirect merchandise • Assumptions Underlying Financial Analysis Being Validated • Probable Spring Filing

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