Fostering Innovation in Postal Service Environmentally Preferable Shipping Supplies Sustainability Metrics Project Michael R. Barr, Alicia M. Case & Kim Werdeman December 2012 M.Sc. in Sustainability Management | SUS 602 - Enterprise Excellence National University The United States Postal Service (USPS) seeks to improve on revenue and brand identity on its retail shipping packaging and product lines that generated $11 billion in sales in FY 2011. Shipping supplies that are not considered environmentally preferable are candidates for improvement. Improvements will consist of integration of sustainable aspects such as economic and social value, efficient use of energy and materials, recycled content, compostability or biodegradability, and non-toxicity into identified shipping packaging and products. Identified packaging and product lines will be certified by a third party eco–labeling program, and measured as environmentally preferable retail products for profitability, volume, weight, and greenhouse gas measurements. It is being proposed that a product innovation team be formed for the purpose of using Six Sigma methodologies to determine importance, problems or opportunities, improvements, and sustainable gains necessary to foster gains and improvements in shipping supplies not considered environmentally preferable.

1. SUSTAINABILITY METRICS PROJECT
Fostering Innovation in Postal Service
Environmentally Preferable Shipping Supplies
Michael R. Barr, Alicia M. Case, and Kim Werdeman
National University

2. Introduction
• Problem Statement
– Opportunity for sustainable integration necessary for
Retail shipping supplies
• Packaging Tape
• Bubble Mailers
• Bubble Packaging Material
Mission Statement (Vision)
• “To be a sustainability leader”
– Building a Culture of Conservation throughout the Postal Service
– Continually evaluates how to offer more “green, high quality,
affordable products
– Protecting contents of products shipped are a top priority

3. Introduction
• Current Operation
• Obtains products from partnering suppliers
• Some products have certification by a 3rd party eco-
labeling program

4. Introduction
• Industry Best Practices
• Better sustainable packaging
• Reduced energy usage
• Reduced Raw Material Consumption
• Increased Recyclability
• Reduced Greenhouse Gas Emissions
• Decreased Waste Generation
• Increased Re-use

5. Risks
• Assign High/Medium/Low impact on project risk:
• Project Size
• Project Decision-Making
• Project Schedule
• Buy-In from Stakeholders
• Buy-In from Management
Mitigation Samples
•Add more time to project schedule
•Add another analysis
•Additional testing
•Additional product samples
•Phased curover of products
•Expose stakeholders to samples of proposed products

6. Measurement Strategy and
Metrics
• Key Performance Indicators
– Revenue
• $11 Billion in packaging sales out of $65 Billion in
FY2011
– Mail Volume
• 167.9 Billion Pieces in FY 2011
– Green House Gas Emissions
• 12.39 Million MTCO2e in FY 2011

7. Measurement Strategy and
Metrics
• Action Plan
– Split current retail sales measurements into
two groups
• sales of existing Cradle2Cradle products
• sales of products that have room for improvement
– packing materials such as tape, packing peanuts, bubble
wrap
– postal products such as self-inking stamps and digital
scales
– Reduce retail sales of non-sustainable
products

8. Measurement Strategy and
Metrics
• Action Plan
– Phase out all non CtoC products and replace
• Padded mailers
– made with recycled cushioning fiber padding
• Bubble packaging
– made from 35% recycled plastic
• Biodegradable packing peanuts
– compostable
• Packing tape
– made of 25% recycled resin or
– natural GSO gummed tape

9. Data Analysis
• Baseline data collection
– how much of what the USPS currently sells is not
eligible for Cradle to Cradle certification?
– Of what is not eligible, what can be replaced with
more sustainable products?
• Once baseline data has been collected and
sustainable sources obtained; a program to
phase out all current supplies and phase in new
products can be implemented.

10. Accountabilities
Executive Sponsors
Joseph Corbett Chief Financial Officer, Executive Vice President
Nagisa Manabe Chief Marketing & Sales Officer, Executive Vice President
Internal Stakeholders
Thomas Day Chief Sustainability Officer
Sam Pulcrano Vice President, Corporate Communications
Susan Brownell Vice President, Supply Management
Gary Reblin Vice President, Domestic Products
External Stakeholders

11. Business Value Sources
Environmentally Preferable Packaging and Products
Plan Business Values Goals/Objectives Relationship to Project
Marketing and Sales Revenue Growth Growing environmentally preferable packaging and
product markets through lean, efficient and “green”
processes can lead to revenue growth.
Finance, Supply Expense Reduction Specifying and optimizing environmentally
Management preferable packaging and product markets through
lean, efficient and “green” processes can lead to
expense reduction.
Brand Equity and Brand Recognition Improvement Helps to maintain brand awareness which plays a
Design major role in a customer’s buying decision
Finance, Strategy Leadership Position Development Helps Postal Service maintain “Most trusted
Federal government organization” status and
recognition as a leader in Environmental
Stewardship.
Marketing and Sales Market Expansion Abilities Research shows consumers becoming increasingly
aware and concerned about environmental impact
of the products they purchase.
Finance, Supply Product Quality Improvement Ensures commitment, helps to define quality and
Management institute product quality control, and identify and
address problems.

12. Chronicle of Activities
Milestones/Deliverables Target Date
Environmentally Preferable Packaging and Products Metric Project approved and funded; 12/20/2012
Begin final program development and rollout to selected vendor partners;
Plan and budget for FY 2014 operational and capital appropriation.
Update Management Team on progress and request approval for appropriation 12/22/2012
Operational (Expense) and Capital Budget submission to Finance; 03/20/2013
Select targeted Environmentally Preferable Packaging and Products for C-to-C Certification
Capital Budget approval from Capital Investment Committee (CIC) 05/20/2013
Operational (Expense) and Capital Budget approval from Finance 06/20/2013
C-to-C Certification of Environmentally Preferable Packaging and Products complete; 09/20/2013
Begin FY 2014. 10/01/2013
Newly C-to-C Certified Environmentally Preferable Packaging and Products production and
distribution begins to retail network.
Begin metrics measurement.
FY 2014, Q1 ends. 12/31/2013
Metrics measurement due for corporate progress reporting
FY 2014, Q2 ends. 03/31/2014
Metrics measurement due for corporate progress reporting
FY 2014, Q3 ends. 06/30/2014
Metrics measurement due for corporate progress reporting
FY 2014 ends. 09/30/2014
Metric measurements due for corporate progress reporting, FY 2014 Corporate Sustainability
Report

13. Recommendations to Improve
Process
• Receive bids for non-CtoC products
• Receive product samples
• Replace non-CtoC products with
sustainable products
• Promote fact that all retail products are
sustainable

14. References
• 2011 Sustainability Report (2012). Retrieved from http://about.usps.com/what-
we-are-doing/green/report/2011/key-indicators.htm
• USPS Sustainability Report. (2011). Retrieved from
http://about.usps.com/what-we-are-
doing/green/report/2011/annual_sustainability_report_2011.pdf
• USPS Website. (2012). Retrieved from http://about.usps.com/who-we-
are/postal-facts/welcome.htm
• Wooster, J. & Nuttall, J. (2007). The Dow Chemical Company. Case studies
for improved sustainability in packaging. Retrieved from
http://www.tappi.org/content/events/07place/papers/wooster.pdf
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