®

August 12, 2009August 12, 2009

MTAC General SessionMTAC General Session

August 12, 2009August 12, 2009

MTAC General SessionMTAC General Session

Update

AgendaAgenda

Flat Volume Update

Program Status

● Deployment

• Transition to Operations

FSS Redirection Update (Phase 1A)

Questions

Flat Volume Trend 2001 - 2008Flat Volume Trend 2001 - 2008

RPW

20

25

30

35

40

45

50

55

60

Flats Yearly Volume Trend2001-2008

Flat Vol. Billions 58.2 57.8 51.7 52.4 53.9 53.8 52.4 46.6

2001 2002 2003 2004 2005 2006 2007 2008

FY 2008 vs. 2007 Flat Vol. Decline -11.1%FY 2008 vs. 2007 Flat Vol. Decline -11.1%

FY07 & FY08-7.2

Billion Flats

FY07 & FY08-7.2

Billion Flats

FY 2007 vs. FY 2006 Flat Vol. Decline -2.6%FY 2007 vs. FY 2006 Flat Vol. Decline -2.6%

Oct Nov Dec Jan Feb Mar Apr May Jun

FY 2008 4,916,461 4,652,469 3,456,228 3,917,546 3,688,136 3,798,982 3,840,611 3,632,112 3,208,799

FY 2009 4,937,090 3,771,708 3,273,437 3,019,795 2,958,265 3,323,996 3,220,135 2,873,069 2,827,973

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Vo

l P

ieces (

000)

Month

Total Flat Volume Comparison by Month FY 09 vs. SPLY

Flat Volume Trend by Month - FY 2009Flat Volume Trend by Month - FY 2009

RPW

-19%

+.4%

-5%-23% -20%

-12% -16%-21% -12%

First Class Periodicals Standard Total Flats

2008 232,348 707,516 2,268,935 3,208,799

2009 213,697 653,062 1,961,214 2,827,973

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Vol

ume

/ P

iece

s (0

00)

Flat Volume by Class - June 2009 vs. SPLY

Flat Volume - June FY 2009Flat Volume - June FY 2009

RPW

-8%

-8%

-14%

-12%

First Class Periodicals Standard Total Flats

2008 2,596,766 6,444,817 26,069,761 35,111,345

2009 2,195,516 6,014,521 21,995,429 30,205,467

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Vo

lum

e / P

ieces (

000)

Class & Total Volume

YTD Flat Volume Comparison by Class, FY 2009 vs. SPLYOctober - June

Flat Volume by Class - FY 2009Flat Volume by Class - FY 2009

RPW

FY 2009 YTD Total Flat Volume Decline

- 14%FY 2009 YTD Total Flat Volume Decline

- 14%

-15.5%

-15.6%

-6.7%

Program Status – DeploymentProgram Status – Deployment

FSS deployment in progress

● Installations & ramp-up continues

● Overall timeline revisions to include redirections

Training systems complete - NCED

● Maintenance training starting

Field readiness on target

● Focus on preparation and transition to operations

Sequencing on 3 FSS

• 4th FSS undergoing retrofits

• Complete mid September

Sequencing flats for 37 delivery units & 1,103 routes

Route adjustments in FSS offices have eliminated full-time routes

Downsized casing equipment capturing delivery space

Delivery vehicles have been freed up for redeployment

Transition to operations – Dulles VATransition to operations – Dulles VA

Columbus – sequencing on FSS #1 since June

Sequencing flats for 15 delivery units & 479 routes

Route adjustments in progress

Columbus FSS # 2

Installation complete

Test deck runs complete

Begin ramp-up to operations August 9th

Transition to operations – ColumbusTransition to operations – Columbus

Kansas City FSS #1

• Installation complete

• Test deck runs complete

• Begin ramp-up to operations August 28th

Transition to operations – Kansas CityTransition to operations – Kansas City

Kansas City FSS #2

• Installation in progress

• 73% complete

Phoenix (West Valley) FSS #1 - installation complete

• Test deck runs scheduled August 10th

• Begin ramp-up to operations August 30th

Transition to operations – Phoenix (West Valley)Transition to operations – Phoenix (West Valley)

FSS # 2

Install 79%

FSS # 3

Install 53%

Program Status – Moving ForwardProgram Status – Moving Forward

Finalizing revised deployment / installation schedule

Referring to deployment as Phase 1 & 1A

● Phase 1 – original 32 FSS sites

● Phase 1A – redirected FSS sites

Starting operational planning for Phase 1A sites

Redirection Plan is Complete

● Space reviews complete

● Workroom floor / machine layouts finalized

Communication plan in progress

● Assessment of stakeholder level of notification

Internal

External

● Message, timing & distribution

Phase 1A Status – Redirection PlanPhase 1A Status – Redirection Plan

Industry notification - resources

● MTAC Update

● RIBBs “All things FSS”

New FSS locations

Zone changes

● PCC Insider

Timeline for sharing Phase 1A Plan

● No later than the end of August

Phase 1A – Industry CommunicationPhase 1A – Industry Communication

National Postal Forum

®

®

NPF 2010 – Flats TrackNPF 2010 – Flats Track

Combined Flats Track again this year:

“Flats Track for Periodicals, Catalogs and Printers”

Certificate program well received

Expand offering based on participant’s feedback

● Printers

● Catalogs

Reminder – “call for papers”

● Deadline – August 21st

ConclusionConclusion