PRESORT OPTIMIZATION

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• PRESORT OPTIMIZATION
• Issue 11
• WORK GROUP LEADERS
• Joe Lubenow Marc McCrery

Industry USPS
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DESIRED OUTCOME

• Issue Statement
• To study and recommend changes in presort
  software and sortation levels to improve the
  overall pattern of containerization by 1)
  Reducing or eliminating residual mail, and 2)
  Reducing or eliminating inefficient use of
  containers.
• Desired results
• Reduce operational costs for mailers and USPS -
  Improve consistency of mail delivery - Improve
  efficiency of drop shipping - Maintain/improve
  penetration of system when not in conflict with
  above

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RESOLUTION STATEMENT

• Work Group Resolution
• The group has promoted the alignment of mail
  preparation with USPS operations, in terms of the
  location of the mail processing equipment and the
  assignment of mail to processing sites. Mailers
  have been provided with additional options to
  optimize service, achieve delivery consistency by
  reducing the tail of the mail, and maximize
  drop shipping.

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SIGNIFICANT ACCOMPLISHMENTS

• Pallet protection / package reallocation options
• 5-digit scheme for containers of flat packages
  (L001)
• Co-packing and co-sacking of automation and
  presorted flats,
• Metro scheme (L006)
• 5-digit scheme for parcels (L606),
• Advanced preparation options for flats (M900)
• Options to reduce letter trays
• 5-digit scheme for packaged flats (L007)

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FLAT MAIL PREPARATION OPTIMIZATION

• Issue Statement
• To recommend changes in presort software relating
  to sortation rules and levels of flat-shaped mail
  that will promote and support the following
  goals
• Reduce or totally eliminate residual mail.
• Reduce the inefficient use of containers, as well
  as reduce the need for inefficient containers
  (e.g. sacks).
• Improve the preparation of flat-shaped mail to
  match the needs of current and scheduled
  automated processing equipment and network design
  in the near-term.

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FLAT MAIL PREPARATION OPTIMIZATION

• Desired Results
• To support the overall reduction of operational
  costs for mailers and the USPS as a result of
• Recommended preparation standards for flat mail
  packages that are better aligned with the new
  bundle sorting technology,
• Provide input towards a more efficient
  shape-based preparation and processing
  environment, and
• Develop cost-based presorting requirements for
  the packaging of flat-shaped mail.
• Target Completion Date
• 12/31/04

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NEW WORK GROUP INITIATIVE

• Full Merging of Non-AFSM 100 Flats
• Allow 5-digit packages to be fully combined with
  carrier-route packages on 5-digit containers for
  all zones
• Very limited incoming secondary distribution
  performed in plants on non-AFSM 100 compatible
  pieces
• Align customer preparation with postal processing
• Improves delivery consistency and eliminates
  unnecessary and costly handlings

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NEW WORK GROUP INITIATIVE
Full Merging of Non-AFSM 100 Flats
Current
Proposed
CR
5-DIGIT
5-DIGIT
CR
5 and/or Non- Auto Zones
Merged Pallet
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NEW WORK GROUP INITIATIVE

• 3-Digit Package Scheme for Flats
• AFSM 100 compatible Periodicals, Standard, and
  BPM flats
• Presorted, automation and co-packaged automation
  and presorted pieces
• Pieces in packages would be rated as 3-digit
• Possible OEL ? SCH 3-DIGIT 123
• Customer preparation aligned with postal
  automated handling

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NEW WORK GROUP INITIATIVE
3-Digit Package Scheme for Flats
Before
After
3D 110
AFSM 100 INC PRIMARY SORT PLAN
3D 111
SCH 3D 110
3D 113
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ADDITIONAL GOALS OF NEW WORK GROUP

• Explore modifying the standards for OELs,
  presort stickers, and package preparation prior
  to deployment of the advanced package sorting
  equipment
• Improve preparation standards related to
  Periodicals FIRM bundles
• Further pursue cost-based presorting standards
  beyond the optional 17-piece 5D package of STD
  flats

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WRAP-UP

• QUESTIONS??????