Webinar 2013   delivery sequencing webinar
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Webinar 2013 delivery sequencing webinar

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Advanced postal organizations have implemented delivery sequencing to reduce labour costs and improve the efficiency of their delivery workforce. The availability of sequencing hardware and the ...

Advanced postal organizations have implemented delivery sequencing to reduce labour costs and improve the efficiency of their delivery workforce. The availability of sequencing hardware and the quality of multi-line address recognition has made delivery sequencing a lot more affordable than it was 20 years ago. This webinar will discuss how postal organisations in emerging economies can evaluate the cost and benefits of delivery sequencing, and how they can determine which sequencing strategy to use.

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Webinar 2013   delivery sequencing webinar Webinar 2013 delivery sequencing webinar Presentation Transcript

  • Evaluating and ImplementingDelivery Point SequencingApril 18, 2013
  • Webinar outlineWhat is automated delivery point sequencing?How is it achieved?Evaluating automated delivery point sequencing –Does it make sense for my operation?Implementing delivery point sequencingSteps towards implementationEquipment selectionInfrastructure implicationsDistributionTrainingPerformanceNext Steps2
  • Automated Delivery PointSequencingTechnological advance that willReduce operating costsImprove service / induce ad mail / simplify carrier tasks / reduce errorsOther benefits: address management, new by-productsSignificant operational and network impactsChoice of hardware strategyNetwork and operations implicationsImplementation challengesSerious evaluation is necessaryInitial assessmentBusiness caseDetailed evaluation3
  • What is “Automated DeliveryPoint Sequencing”?
  • What is automated delivery pointsequencing?Delivery point sequencing (DPS) isan automated process to sort mail inthe walk sequence of a letter carrieron his/her route.Using multiple passes, mail is sortedto bins (stackers) in carrier routedelivery sequence.Mail is lifted from the bins in a waythat preserves sequencingCarriers receive the mail in trays thatare ready to ‘hit the street’5
  • Benefits of delivery sequencing6Sort centerSecondary sortby routeCasingAdditionaldelivery sortBEFOREAFTERCasingIn OfficeStreetDeliveryStreetDeliveryCasingInOffice$avingsPost OfficeAdditional processing step
  • BIN 1 BIN 2 BIN 3 BIN 4Example: The sequencing processin 2 sorting passes7Carrier 3 Carrier 2 Carrier 2 Carrier 2Carrier 2 Carrier 3 Carrier 1 Carrier 3Carrier 2Carrier 1Carrier 1 Carrier 1Stop 4Carrier 1Stop 4Carrier 2Stop 4Carrier 3Stop 3Carrier 1Stop 3Carrier 2Stop 3Carrier 3Stop 2Carrier 1Stop 2Carrier 2Stop 2Carrier 3Stop 1Carrier 1Stop 1Carrier 2Stop 1Carrier 3Carrier Stop 1 Carrier Stop 2 Carrier Stop 3 Carrier Stop 4BIN 1 BIN 2 BIN 3 BIN 4
  • Day DItempostedCoordinating pass 1 and pass 28Day dOriginPostOfficeDay DItempostedDay DItempostedItempostedon day dDay DOutgoingsortTransport todestination centerday dDay DTransport todestination centerDay D+1Delivery pointsequencingDay D+1DeliverDay D/D+1Await allincoming mailOriginPostOffice Origin Sort CenterOrigin Sort CenterDestinationSort CenterDestinationPost Office
  • Delivery point sequencing: criticaltimes influence the quantity ofsequencing machines9Run DPSPass 2Run DPS Pass 1Hold mail forDPS Pass 1Hold mailfor DPSPass 1
  • Bin capacity influences the numberof sequencing machines1010 20 30 40 100 200 3001,3 1,3 1,313 26 39 52 130 260 390130 520 1 170 2 080 13 000 52 000 117 0001,3 1,3 1,3 1,3Numberof BinsDensity N bins N PassesN bins
  • Determining the number of mailsequencing machines11
  • Machine deployment strategies12
  • Evaluating DeliveryPoint Sequencing
  • Automated delivery point sequencingcomponentsAddress database and updatesRoute walk sequence database and updatesUpdated routesDistributionHardware (Machines, trays) and software (Sort plans)Implementation – strategy and project managementDPS performance measurement: machines & peopleTraining (sequencing & delivery)14
  • Issues affecting the success of adelivery point sequencing programMachinable versus Non Machinable MailHow much of the mail cannot be processed on automated equipmentAddressing System and Address DatabaseAddress database; address hygieneLevel of AutomationNumber of sorting equipment required; % utilizationMail mixLevels of presort; needs to merge flowsLabor Costs and Labor FlexibilityCost of casing - Ability to adjust routes15
  • Addressing System and addressdatabaseThe national addressing systemis deficient or simply lackingThe address database doesnot reconcile the addressdue to address inaccuracy orimproper formatThe address is incomplete orincorrect (undeliverable asaddressed)16
  • Level of automationTotal cost of equipment andrelated operational requirementsMachine deployment strategyCentralizedDistributedHybridService standards/operating windowsMail density/bin capacity17
  • Non-machinable mailMail not sequencedbecause its physicaland dimensional characteristicscause it to get rejected from thesorting equipmentMail rejected by mailsorting equipmentbecause of unreadableaddresses18
  • Mail mixIn-office workis necessary to case mail,including:Residual letters that couldnot be sequenced by mailsorting equipmentFlat mail (oversized envelopes)Saturation mail (unaddressedmail)In-office labor hours affect totaltime on the street and, thus, thejustification of the sequencingprogram19
  • Several machines versusone machineMachineOne for each sorting step• Standard: IRV, FSM,CSS• Flat: FSS• overlapping timewindows• flexibility• space for machines• long Idle times• many pilesOne for all sorting steps• Standard: 2LS• Flat: FSS• machine utilization• space for machines• short Idle times• many pilesOne for all sorting stepsand formats• Flatsorter• machine utilization• one pile• throughput rate• transport of differentformats inside onetray
  • Machine deployment strategies:pros and cons21Fewer sequencingequipmentrequiredNarrow processingwindow forovernight mailHigher utilization ofsequencingequipmentLarge demands forreal estate (240bins or more)Equipment can beused for othertypes of sortReject mailhandled twice, atplant and at postofficeMaintenance iscentralizedLess expensivemachineMore machinesrequiredVersatility means itcan be used forother types of sortSlower operation –usually 3-pass sortLonger operatingwindowMaintenance mustbe provided atlocal level
  • Sequencing: pros and cons22Office time savings: time in the office manuallysequencing a route is ultimately eliminated, but not necessarily entirelyMail processing costs: Newcosts are incurred byacquiring mail sequencingequipment:• The second pass of asequencing plan is a cost• There is a cost associatedwith underutilized machinesif, for instance, operatingwindows are too tight thusrequiring more equipmentImproved efficiency: In principle, sequencingstandardizes the process of street delivery which shouldlead to improved carrier’s efficiency.• For instance, sequencing introduces a program of standardization of trays andof the elimination of sacksand other inefficient forms of containerizationImproved accuracy: the automated sequencing isgenerally more accurate than the manual casingReduced equipment: by reducing the number of routes, vehicles,carrier cases, and other equipment neededfor each eliminated route are also eliminatedAddress database: This is both an asset and a liability. The address database can help improvesequencing effectiveness and introduce new services (such as the redirection of mail), but there isalso a cost to maintain a complex database.
  • Implementing delivery pointsequencing23
  • Steps towards implementation24Assessment & EvaluationStrategy selectionEquipment selectionSystem architecture and databasesImplementation planInfrastructure and distribution implicationsTraining development and deliveryPerformance managementNext Steps
  • Next Steps25AssessmentBusiness CaseDetailed Study
  • Initial Assessment26How much of an impact would a reduction in deliverylabor costs make?What does the addressing system look like?What is your current level of automation?What do mail volume and mail mix look like, today andtomorrow?How much of the mail is machinable?
  • Business Case27A rough, conservative comparison of costs and benefits over time.Rough estimates ofNet labor savingsOther benefitsHardware and system costsTraining costsImplementation & management costsEvaluation of risksEstimate of the return on investment
  • Detailed Study28Sequencing strategyDistribution impacts and changesHardware technical requirements and capacityInfrastructure and system changesAddress managementTrainingDetailed program planVarious subsystems requiredVideo encodingVehicle impactsMaterial handling & containerization
  • 29> insight > action > transformationdecision/analysis partners LLCwww.decisionanalysis.netTel: 703 691 038010400 Eaton Place, Fairfax VA USAEmail:Pierre Kacha: pkacha@decisionanalysis.netBernard Markowicz: bmarkowicz@decisionanalysis.net