1. Responding to Changing and
Declining Volumes in Delivery
Operations
July 18, 2013

2. Webinar outline
Identifying Opportunities for Savings in Delivery
Back to Basics
Recommendations to Capture Savings
Short and Long term Approach
The Bottom Line
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3. The Current Situation
Most major postal operations are experiencing shifts in mail
streams, declines in first class mail and residual mail and non-
automated, throughout the world. At the same time, the other half
of the delivery equation, street delivery points are increasing
along with gains in parcel post and advertising mail.
The increase use of automation to finalize letters and flat mail in
delivery sequence creates tremendous opportunities for work
hour reduction in office operations.
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4. 2011 2012
Total mail volume delivered
168,297,000,00
0
159,859,000,000
Drop in mail volume with respect to prior year (2,562,000,000) (8,438,000,000)
Decline with respect to prior year (1.0%) (5.0%)
Average mail volume delivered daily 557,275,000 529,334,000
Delivery points to residential and business addresses 151,492,000 152,146,550
Increase in delivery addresses w respect to prior
year
+636,530 +654,560
Average mail volume delivered per address per day 3.7 3.5
Longer Term Trends
(USPS illustration)
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5. Several processes and procedures –
Short Term: Slide 6
Validate your data!
Operational data is collected from
the bottom up
This includes work hours,
regular/overtime/absences/unsch
eduled absences
Volumes and categories of mail –
automated/handled (cased)
Fuel usage
Graph trends in each category
Reviews of many postal
operations have identified
significant errors when the data
collection process relies on
human input rather than
automated time keeping systems,
where applicable, and automated
machine counts.
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6. Several processes and procedures
Short Term: Slide 7
From your Data Review, identify your “Vital Few” opportunities to
reduce cost
Excessive work hours to budgeted/SPLY work hours
Excessive overtime
Excessive unscheduled absences
Increased Labor tension
Excessive fuel and vehicle maintenance costs
Increased customer service complaints
Declines in automated volumes
Declines in automation quality
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7. Several processes and procedures –
Short Term: Slide 8
Develop corporate strategy to reduce delivery costs
Commitment of resources
SME’s
Time = Money
Hands on approach
Set expectations for the Vital Few
Management commitment
Productivity increases
Service increases
Work hour reductions
Overall reductions in operating costs
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8. Several processes and procedures –
Short Term: Slide 9
Cont.
Team approach to improvement
Coaching/Mentoring
Goal oriented Training development and presentation
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9. Several processes and procedures –
Short Term: Slide 10
Develop Review and Assist Team(s)
Subject Matter Experts from:
Delivery / Plant
HR/Labor Relations
Transportations/Vehicles
Operations Support
Outside postal operations SME’s
Unbiased
Results motivated
Best practices from all areas of postal operation
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10. Several processes and procedures –
Short Term: Slide 11
Baseline Vital Few Delivery Operations
Actual work hours vs. evaluated/estimated
Actual miles driven vs. base
By driver/route
Volumes by mail type
Handled vs. automated volume
Parcel post
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11. Performance Management Questions
- Slide 12
Do you measure and track delivery productivity? Office & Street
By route/carrier
By unit
Is there a daily/weekly work hour plan for each delivery unit?
Is feedback given to unit management on their performance?
% to work hour plan
% of Overtime used
% Sick Leave
Are residual/cased volumes projected for each day of the week?
Are local managers involved in daily planning of workhours based
upon projected volumes?
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12. Performance Analysis Questions -
Slide 13
It is important for postal operations react to changes in mail volume by
determining workload requirements using budget work hour and
productivity goals.
The question each delivery operation should be asking – “How many
workhours should we be using based upon today’s workload.”
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13. Performance Analysis - Evaluated
Route Systems - Slide 14
For those delivery operations using an evaluated route system, there are few
options available to quickly respond to declining volumes.
An immediate review of all overtime usage
Staffing reviews
The use of Sick leave reviews
Street/Vehicle Management
An in-depth analysis/review of your existing route measurement process
Changes in casing equipment
Increases in automated mail
Time & Motion/Engineering studies - Office and Street
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14. Long Term Delivery Improvement-
Slide 15
Long Term
Do you have analysis of cost per delivery point by unit?
Are high cost delivery points reviewed to ensure maximum
efficiency?
Malls, etc.
Centralized delivery requirement
Identifying Park & Loop costs
Vehicles and maintenance
Accidents
Slip,Trips,Falls
Conversions of high cost delivery
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15. Long Term Delivery Improvement-
Slide 16
Are all routes using the most effective casing equipment and methods?
Reduced cased volumes into new casing equipment
Is there a corporate goal for operation standardization?
Standardized Delivery Operation
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16. Long Term Delivery Improvement-
Slide 17
Proactive Supervisor training and evaluation- Difficult times require
skilled managers
Do you measure the skill level of your delivery managers
Do you Test to ensure comprehension
Have you done so recently
Are your delivery manager training programs updated and
current
Does your training program for delivery managers support
addressing poor/unacceptable performance
Do you involve Human Resources/Labor Relations in the training
The three “R’s” – Does your training program encourage the
managers to do the right thing at the right time the right way
“Inspect what you Expect”
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17. Long Term Delivery Improvement-
Slide 18
AMS/Street Management
Validated AMS data to support Plant automation
Are each of your delivery route certified at +99% accurate
Is every delivery point is in the AMS data base
The letter carrier line of travel matches the AMS data base and
casing equipment labeling
Does the letter carrier follow the official line of travel as defined
in the AMS data base
Are your supervisors visiting each letter carrier during their street
activities to ensure good growth management, customer service and
good safety practices
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18. Long Term Delivery Improvement-
Slide 19
Growth management
Are you proactive in dealing with new construction
Do you promote/require centralized delivery
Have vacant/abandon homes/businesses been identified in the
AMS data base
Are you involved in assigning/approving new addresses
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19. Long Term Delivery Improvement-
Slide 20
Vehicle Management
For your motorized routes:
Does each delivery route have known Base miles/kilometer?
Does each delivery unit have a daily/weekly/monthly budgeted
mileage target and is it tracked?
Are your vehicles maintained to ensure the best fuel usage possible?
Are you using the right vehicle on each route?
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20. Long Term Delivery Improvement-
Slide 21
Increase the use of automation
Ensure the accuracy of your AMS Data Base
Survey the levels of cased volumes arriving at each route
Complete Quality Control checks on residual volumes
Review each delivery operation to ensure national guidelines and policies are
in place AND being followed
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21. The Bottom Line - Slide 22
The Bottom Line
Ensure your data is correct
Identify opportunities for improvement based upon “Biggest bang for
your buck”
Assemble qualified teams to identify performance opportunities
Review operations to validate data assumption
Measure management skill levels and commitment
Develop and provide specific training
Leadership
Addressing performance
Delivery skills requirements
Ensure accountability
Consider outside contract sources for support
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> insight > action > transformation