CORPORATE AUTOMATION PLAN PHASE 2 UPDATE

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CORPORATE AUTOMATION PLAN PHASE 2UPDATE
August 17, 2005
MTAC Washington DC
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CORPORATE AUTOMATION PLAN PHASE 2
CAP PHASE 2 CONTENTS COMPARED TO ORIGINAL CAP
Issued May 2004
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CORPORATE AUTOMATION PLAN PHASE 2
CAP PHASE 2 CONTENTS COMPARED TO ORIGINAL CAP
CAP Phase 2
Original CAP

• Automate Letter Distribution
• Automate Flat Distribution
• Automate Parcel Sorting
• Automate Bundle Processing
• Automate Tray Container Processing
• Longer Term Plans
• Delivery Automation
• Transportation
• Scanning and Tracking

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CORPORATE AUTOMATION PLAN PHASE 2
LETTERS

• AFCS Improvements
• Add OCR Capability
• Upgrade Ink Jet Canceller
• Doubles Detector

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CORPORATE AUTOMATION PLAN PHASE 2
LETTERS

• DIOSS
• OCR Capability
• Sprays Barcodes
• Transmits Images of Non-readable Mail Pieces to
  the RCR

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CORPORATE AUTOMATION PLAN PHASE 2
LETTERS
Postal Automated Redirection System
Phase 2 Deployment Should be Completed by Late
2007
282 Plants and 12 Remote Encoding Centers
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CORPORATE AUTOMATION PLAN PHASE 2
FLATS
Postal Automated Redirection System
Deployment TBD
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CORPORATE AUTOMATION PLAN PHASE 2
FLATS

• OPTION 1 Delivery Point Packaging
• Develop a machine that will sequence both
  letters and flats in delivery order.

• OPTION 2 Flats Sequencing System
• Develop a machine that will sequence only flats
  in delivery order.

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CORPORATE AUTOMATION PLAN PHASE 2
FLATS

• OPTION 2 Flats Sequencing System
• Develop a machine that will sequence only flats
  in delivery order.

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CORPORATE AUTOMATION PLAN PHASE 2
FLATS SEQUENCING SYSTEM - TIMELINE
STATUS OF RD EFFORTS 1 Contractor
Completion and Decision Point
Event
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CORPORATE AUTOMATION PLAN PHASE 2
FLATS SEQUENCING SYSTEM
POTENTIAL BENEFITS

• Letters and Flats Sorted Separately
• DPS Letter Sorting Continues
• Flats Sequencing in Delivery Point Order
• Reengineer Our Processes for Handling "Residue
  Volumes"

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CORPORATE AUTOMATION PLAN PHASE 2
FLATS SEQUENCING SYSTEM
POTENTIAL CHANGES

• Drop Ship Entry Points Would Change
• CR Presort Eliminated in Automated Zones
• 11-Digit Barcode or ID TAG Required
• Detached Address Labels To Be Determined
• Increased 5-Digit Presort Volume
• Standardized Label Placement
• Rates Reflect Appropriate Savings

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CORPORATE AUTOMATION PLAN PHASE 2
FLATS
AUTOMATED TRAY INDUCTION
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CORPORATE AUTOMATION PLAN PHASE 2
FLATS
AUTOMATED TRAY HANDLING SYSTEM
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CORPORATE AUTOMATION PLAN PHASE 2
PARCELS AND BUNDLES
AUTOMATED PACKAGE PROCESSING SYSTEM
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CORPORATE AUTOMATION PLAN PHASE 2
PARCELS AND BUNDLES

• Automate Bundle Processing
• Optional Endorsement Lines
• Pressure Sensitive Barcoded Labels
• Reduce Sack Usage
• Increase Bundle Integrity and Reduce Bundle
  Breakage

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APPS DEPLOYMENT STRATEGY
CORPORATE AUTOMATION PLAN PHASE 2
PARCELS AND BUNDLES

• Align Deployment with Future Network
• Network Package and Bundle Processing Role
• Sort to Destinating RDCs at Origin RDC
• Reduce Network Handlings
• Minimize Transportation Requirements
• Support Local and Destinating Processing Centers
• Sort to 5-Digit or Scheme at Destination

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CORPORATE AUTOMATION PLAN PHASE 2
PARTNERSHIP WITH INDUSTRY

• Mail Presort Requirements Will Change As
  Technology Evolves
• Industry Participation Is Critical

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CORPORATE AUTOMATION PLAN PHASE 2
PARTNERSHIP WITH INDUSTRY

• Work Together to
• Ensure Lowest Combined Processing Costs
• Explore Innovative Processing Options
• Match Products and Penetration to Automated
  Equipment
• Establish Lead Times For Changes

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Thank you.
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