Product Redesign

1

• Product Redesign
• MTAC Update
• February 6, 2003

2
PRODUCT REDESIGN
Steering Committee - Industry

• Bob OBrien Industry Co-Chair
• John DePiazza
• Joe Lubenow
• Clarence Banks
• Robert Lindsay
• Pierce Myers
• Anita Pursley
• Dennis MacHarg
• Val Scansaroli

3
PRODUCT REDESIGN
Workgroup Co-Chairs Industry / USPS

• First-Class - John DePiazza / Susan Campbell
• Periodicals - Val Scansaroli / Rick Arvonio
• Standard - Anita Pursley / Cheryl Beller
• BPM - Charley Howard / Sharon Daniel
• Parcels - Steve Zwieg / Jim Cochrane
• Addressing - Joe Lubenow / Wayne Orbke

4
Workgroups
PRODUCT REDESIGN

• Steering Committee Met Tuesday 02/04
• Redesign in the Context of
• CSRS Legislation
• Omnibus Rate-Case Timing Phasing
• NIA Combined Cost Mailer Response
• Joint Meeting of Workgroups
• Wait For Clarification on Above Items
• Send Out Summary of Where Workgroup Proposals
  Stand

5
PRODUCT REDESIGN
Optional 10-17 5-D Bundle Minimum in Standard

• Analyzed Data on Make-up Before After
• Results From Real Mailings Very Close to Results
  From Simulated Mailings
• Still Need Additional Data on Real Mailings
• Collected Information on Extent of Use
• Wide Variation
• Some Use 17-piece Minimum for Most Mailings
• Some Continue to Use 10-piece Minimum

6
Factors Affecting Optimal 5-D Minimum
PRODUCT REDESIGN

• Low Piece Weights
• More 5-D bundles convert into one 3-D bundle
• Low-to-Moderate Mailing Density
• 25 or more of 5-D bundles lt 17 pieces
• Ability to Build 3-D Bundles Up to 20-pound
  Limits
• If 3-D bundles limited to 3 high, get fewer 5-D
  bundles converting to one 3-D bundle

7
Need Your Help to Learn About Effects
PRODUCT REDESIGN

• Make-up at 10-pieces alternative minimum
• Would Like Before After Data For
• Number of 5-Digit 3-Digit Bundles
• Number of 5-Digit 3-Digit Pieces
• Piece Weight
• Total Pieces and Bundles
• Constraints on Make-up other than 20 lbs.
• Maximum Heights for Bundles in Sacks
• Maximum Heights for Production Reasons

8
PRODUCT REDESIGN
DDU Entry for Standard Parcels

• Mailer Suggestion Allow DDU entry of Standard
  Parcels at DBMC or DSCF rates
• Improve Service Consistency for Customers
• Postal Service Cost Savings
• Implement With Customer Support Ruling
• Allow DBMC Rate With No Minimum
• Allow DSCF Rate With 10 pounds for a 5-Digit
• Customer Support Ruling Issued December 10th

9
PRODUCT REDESIGN
Co-palletization of Periodicals Flats Bundles

• For small volume mailings now origin-entered in
  sacks
• Additional incentives for bundles that are newly
• Co-palletized on ADC and SCF pallets and
• Drop shipped to DADC or DSCF
• Settlement Accepted by PRC and Governors
• Applications Accepted February 10th
• Implementation on April 20th

10
PRODUCT REDESIGN
Parcel Select Return Service

• Low cost, no frills merchandise returns service
• Capitalize on USPS operational savings
• Mailer or Consolidator Picks up Bulk Returns at
  DDU, DBMC, or Origin BMC
• Allows providers to offer value added services
• Credit returns
• Redirect merchandise
• Assumptions Underlying Financial Analysis Being
  Validated
• Probable Spring Filing