Megan Brennan, Chief Operating Officer for the U.S. Postal Service came to speak at the American Cataloger Mailer Association’s National Catalog Forum in Washington D.C. on May 8. Her presentation provided an extensive amount of information about the future of standard flats and the FSS.
I picked up some points during her hour-long presenation about the future of standard flats and its impact on the USPS. According to her presentation, from fiscal year 2007 through fiscal year 2012 a 35.3% decline in flat volume.
The USPS’ continuous efficiency improvement saw career employees reduced by 24% during the last six fiscal years without layoffs. There were $15 billion of annualized savings with work hours reduced by 23%.
Network rationalization includes implementing an efficient and affordable network along with supporting infrastructure that corresponds with reduced volume of mail by adjusting workforce, disposing facilities, vehicles and equipment to support reduction in network infrastructure.
The USPS’ four pillars of retail success strategy includes improving experience in high-traffic outlets, significantly expanding retail partnerships, match costs to volume in low traffic outlets, and growing the digital access, according to Brennan’s presentation.
Post Office plans has modified window hours, maintaining zip codes, lobby and P.O box access and retaining community identity.
Delivery optimization in 2013 involves the transformation the infrastructure with delivery unity consolidations, city routes reduced, efficient mode of delivery. The USPS plans to generate revenue and reduce expenses by selling owned buildings, terminate leases, eliminate operating costs, according to her presentation.
They plan to reduce facility inventory in square footage to reduce operating costs, 3.3 million square-feet of a facility. Space was reduced in fiscal year 2012 resulted in $228 in additional revenue.
The advantages of a transformed infrastructure includes fewere facilities, maximized transportation, right-sized work force. The operating costs of the USPS, according to the presentation is 32% in delivery – the largest cost center. Mail processing is 18%.
The implementation of technology is transforming the future of USPS with the use of Auto Package Process System(APPS) and Flat Sequence System (FSS).
According to Brennan’s presentation, the use of APPS enhances recognition and visability capabilities, it reduces bundle breakage and moving mail from non-automated facilities.
The FSS is an element of the automation platform responsible for driving success in reducing delivery infrastructure and costs. The implementation of the FSS would result in cost reductions in delivery routes and delivery unit consolidation and career office time.
It would also have significant reductions, according to Brennan’s presentation in required facility space. According to Brennan’s presentation, there would be significant savings with the FSS implementation.
Savings in 2,400 zones running on FSS daily, 38K city carriers receiving sequenced flats, 4,359 city routes eliminated, an annual reduction of 10 million in-office sequenced flats and annual reduction of over 1 million in-office hours.