Operations Update February 2001

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Operations Update February 2001
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Topics

• Fall Mailing Season
• Christmas Holiday
• Rate Implementation

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Standard A Volume Trends
2000

1998
1999
1997
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Fall 2000 Standard A Volume Much Higher than
Last Year
1.5 Billion more pieces
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Fall 2000 - Monitoring

• DSAS Appointments
• Operating Conditions
• Communications
• BSNs, Account Managers, Operations
• HQ Area Managers Operations

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Observations of Mail Conditions By Inspection
Service

• Requested by the COO
• Weekly Findings to AVP and MOS,
• September through January 2001
• Corrective Actions to the COO
• Focus on sites of Customer Concern

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Fall 2000 Standard A Delays in Plants Similar
to Last Year
Fall Mailing
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Flats Processing - AFSM 100

• Faster and Higher Throughput
• OCR / BCR / Keying / Added Bins
• Real Time Keying of Rejects
• Focus on Incoming Secondary
• Deploying Now
• 165 operating as of January 2001
• additional 362 deployment begun

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Fall 2000

• Election Mailings
• AFSM 100
• Focused on Weekend Processing and Inventory
  levels
• Communications
• Operations, BSNs Customer Support Teams

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Christmas Holidays Priority Mail Processing
Centers

• Emery operated through Christmas
• Area Operations used contingency plans to offload
  heavy destinating volumes
• 10 PMPCs converted to postal facilities on
  January 7th

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Christmas Holiday Logistics Issues

• Most severe weather in a decade
• High commercial airlines flight cancellations
• Significant daily mail backlogs at major air hubs
• Highway transportation suffered delays and
  cancellations
• 200 dedicated network aircraft flights were
  canceled due to weather in 13 days

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Christmas Holiday

• Christmas Eve and Christmas Day delivery of
  Express Mail and obvious gifts
• Dedicated networks moved 92 million pounds
  in 13 days
• Cancellation volumes reached all time high
• 314 Million on Dec 18th
• Two Peak Plant Delivery Day
• 4 Billion cards letters during holiday season

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Rate Implementation

• New Rates implemented January 7th
• Plant Verified Drop Shipments entered
  until January 20
• Significant increase in Standard A volumes at
  plants from Jan 5 - 20th

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Standard A Delays in PlantsVery High following
New Rate
New Rates Implemented
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Rate Implementation Actions to Correct

• COO directly involved
• HQ and Area Operations telecons
• COO and Area VP telecons
• Area Action Plans implemented
• Delays dropped dramatically last week

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Results Standard A Delays have been
significantly reduced
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Summary
Fall - Volume Christmas - Weather Rates -
Recovered