Northeast Area New Jersey PCC. December 2, 2015
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1 Northeast Area New Jersey PCC December 2, 2015
2 NEA Hand Volumes Actual July December 2015 Columbus Day Election Day Veteran s Day Christmas Day Labor Day Thanksgiving Black Friday July 4th Holiday Fall Mailing Season Peak Season
3 National Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
4 National Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
5 National Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
6 National Quarter 1, FY 2016 Target % On-Time October 1 November 13, 2015
7 National Quarter 1, FY 2016 Target % On-Time October 1 November 13, 2015
8 National Quarter 1, FY 2015 Target % On-Time October 1 November 13, 2015
9 Northeast Area Quarter 1 Performance
10 Northeast Area Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
11 Northeast Area Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
12 Northeast Area Quarter 1, FY 2016 Target % On-Time October 1 November 20, 2015
13 Northeast Area Quarter 1, FY 2016 Target % On-Time October 1 November 13, 2015
14 Northeast Area Quarter 1, FY 2016 Target % On-Time October 1 November 13, 2015
15 Northeast Area Quarter 1, FY 2015 Target % On-Time October 1 November 13, 2015
16 Physical to Digital Mail Promotions MyUSPS my.usps.com Faster Shipping. More Visibility. Simpler Returns. 16
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19 Direct Mail responses increase by using Multi-Channel marketing Using direct mail, web and in integrated campaigns creates synergies that boost response more than using any medium alone. Source: 19
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21 2015 Promotion Strategy Explores New Ways to Use Mail to Engage Consumers First-Class Mail Promotions Shows the value of First-Class Mail and encourage new uses: - Drives new revenue through color advertising on bills/statements - Provides more information to reduce calls to call center - Builds brand loyalty through Cause Marketing Direct Mail Promotions Demonstrate how direct mail, combined with mobile technology, can increase response rate and drive consumers to: - Shop on marketers mobile optimized site - Allow online purchasing from mail ( buy now! ) - Enhanced customer experience (video, augmented reality.) 21
22 Encourage FCM mailers to use color messaging on bills and statements Discount: Upfront 2% postage discount Promotion: June 1 November 30 Results to date: 600M total pieces 22
23 Encourage Direct Mailers to incorporate interactive technology to drive interest in mail as a marketing channel Discount: Upfront 2% postage discount Promotion: May 1 October 31 Results to date: 2B total pieces 23
24 Encourage marketers and retailers to utilize state of the art mobile purchasing technology with direct mail Discount: Upfront 2% postage discount Promotion: July 1 December 31 Results to date: 1.7B total pieces 24
25 Growth USPS Package Volume ,500 4,000 +8% 3,500 3,000 2,500 2,000 1,500 3,064 3,259 3,503 3,716 4,016 4,481 1, (Forecast)
26 Future Growth e-commerce growth is a key indicator of retail parcel growth e-commerce market size $B Forrester Euromonitor emarketer 1 % = CAGR % % % emarketer data available through 2017; market size calculated by applying CAGR. Forrester and Euromonitor available only through 2018 so CAGR used to calculate 2019 and 2020 sizes. Estimates include online grocery. 2 Average for Forrester, Euromonitor and emarketer estimates SOURCE: Forrester 2014, Euromonitor 2014, emarketer 2013 Assuming an average long-term CAGR of 11.6% growth in the baseline, retail packages could grow by ~2.5b between 2013 and 2020
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28 Relentlessly Focus on the Customer Equip, Engage & Empower USPS Employees Innovate to Deliver Value Invest in our Future 28
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32 Next Generation Mail Box (NGMB) Urban Mailboxes Suburban Mailboxes Next Generation Mailbox (NGMB) Fits 2 large priority boxes along with other mail 32
33 Next Generation Mail Box (NGMB) Urban Suburban Four pilot sites: Boston, New York, Pittsburgh and Washington DC Customers continue to register in pilot areas Four pilot routes in CA, CO and ND 462 customers have registered for the Next Generation Mailbox Customer Feedback This is amazing. I don t have to go to the PO anymore. I ve been making more online purchases because the mailbox is so convenient. 33
34 Blend into the feel of a neighborhood Allow convenient and secure pickup options Keyless (solar or hardwired power) Available 24/7 34
35 Customized (Grocery) Delivery Current Locations City USPS ZIP Codes San Francisco CA 41 Los Angeles CA 447 San Diego CA 59 New York NY (Metro) 141 Long Island NY 138 Total 826 Piloted in San Francisco Expanded to Southern CA: Los Angeles, San Diego and Orange County And now in New York 35
36 36
37 Ship-From-Store solutions enable retailers to create online fulfillment centers in-store, to help deliver a seamless customer shopping experience across channels. 37
38 Ship from Store FY 15 Success 8,700 retail locations $165 million in revenue program to date $65 million in revenue FY15 EOY projection 90% of volumes in zone 1 Average revenue per piece = $6.00 Average Cost per piece = $3.74 FY 16 Projections double FY 15 success 8,500 new and over 17,000 total retail locations $130 million in new revenue 38
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40 Immediate Investment Commercial Off-the-Shelf Left Hand Drive vehicles Replacing vehicles well-past useful life Minivans fully deployed Mixed Delivery and Collection Vehicles 2 tons Extended Capacity Left-Hand Drive (LHD) Vehicles to replace minivans Service Vehicles (tow trucks and maintenance vehicles) Next Generation Vehicle Special Purpose Right Hand Drive Vehicle RFI completed and RFP for multiple prototype vehicles underway In process of determining what is available and can be done Identifying best-in-class flexible technology to ensure future adaptability as innovations emerge 40
41 Mobilize Our Managers Fully Connected Carriers Realize Operational Efficiencies 41
42 Small Package Sorting System (SPSS) Deployment of 5 phase I machines completed 21 machines in place for PEAK 2015 Increased Separations Bin Expansion of 10 APPS machines Bin Expansion of 47 APBS machines Supplemental Induction Units Additional induction units on single induction APPS machines Next Generation Sorters Development efforts underway 42
43 PASS Technology Employees pass mail piece under overhead camera to capture AAU scan Camera instantly captures multiple barcodes storing image Barcode data transmitted real-time to Package Database system for analysis Feedback returned to employee within <500 milliseconds with further handling instructions DSS Technology Low cost scanning system using standard laptop and ring scanner Barcode data transmitted real-time to Package Database system for analysis Feedback returned to employee within <500 milliseconds with further handling instructions 43
44 Deployed more than 200,000 MDDs to date Scans packages as they move through the USPS network real- time with GPS data Customers can track their package s progress through the My USPS.com tracking app Eliminates paper delivery receipts which improves efficiency 44
45 IV is an enterprise system that will be a real-time single source of all mail and mail aggregate information. IV will leverage data to provide business intelligence for USPS functional groups and the mailing industry, providing: Event-Driven Internal Measurement of all Mail Real-Time Service Performance Diagnostics Mail Inventory Management of Mail and Packages Predictive Workloads on Mail and Packages End-to-End Tracking of Mail Ease of Use 45
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48 Scan Events Carrier Assignments Depart Facility Carrier Pivots & Street Assistance 48
49 The Four Pillars of Focus NORTHEAST AREA Employee Well Being The Customer Experience Productivity & Financial Performance Process Capability & Lean Employee Engagement
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