gla focus group august 20, 2015. mailing industry ecosystem 2 mail owners e-commerce logistics...

GLA FOCUS GROUP

August 20, 2015

Robert CintronVice President Enterprise Analytics

MAILING INDUSTRY ECOSYSTEM

2

MailOwners

E-Commerce

Logistics

Printers& Mailers

SoftwareVendors

Equipment Manufacturers

Letter Shops &Mail Service Providers

HINDSIGHT ACTIONABLE INSIGHTS FORESIGHT

UPSTREAM DOWNSTREAM

MAKING DECISIONS EARLIER IN THE PROCESS

3

4

FULL SERVICE MAIL TREND

FCM Letters & Cards

STD Letters STD Flats PER Flats All Mail Types0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

83%

71% 74% 75% 76%

90%87%

83% 82%87%

QTR 3 FY14 and QTR 3 FY15

FY14 FY15

Overnight increased by 0.44%; 2-Day increased by 2.43%; 3-to-5-Day increased by 2.08%

6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/1580%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

0

15

30

45

60

75

90

105

12098.62% 98.92% 98.42% 97.88% 98.15% 98.59%

97.06% 97.33% 96.70%

94.71% 94.97%

97.40%

93.96% 94.21%93.22% 92.77% 92.88%

94.96%

SPLY Volume Overnight - Volume 2-Day - Volume 3-To-5-Day - VolumeOvernight 2-Day 3-To-5-Day

Scor

e Pr

ior t

o La

st M

ileVolum

e in Millions

Q4 TD Total Pieces Measured

Processing On-Time

Last Mile Impact

Overall Score

Target Score

SPLY Pieces Measured

Volume Change

SPLY OverallQTD Score

SPLY Change

Overnight 27,195,467 98.44% -1.72% 96.72% 96.80% 26,551,887 2.40% 97.53% -0.81%

2-Day 80,669,680 96.12% -1.40% 94.72% 96.50% 87,147,896 -7.40% 96.98% -2.26%

3-to-5-Day 337,944,504 93.39% -1.74% 91.65% 95.25% 294,455,418 14.80% 94.84% -3.19%

Total 445,809,651 92.93% 96.00% 408,155,201 9.20% 95.74% -2.81%

Presort First-Class Mail® (Letters) Great Lakes Area Score Trend

5

All QTD FCM Letters scores would be above 98.27% (prior to last mile), if pieces that failed by 1 day passed

Note: Volumes may not sum to 100% due to rounding.

Overnight 2-Day 3-To-5-Day60%

65%

70%

75%

80%

85%

90%

95%

100% 98.44%

96.12%

93.39%

99.67% 99.09% 98.27%99.83% 99.72% 99.38%99.90% 99.89% 99.76%

QTD Score If Service Variance +1 If Service Variance +2 If Service Variance +3

Actual Volume: 6%ODIS Volume: 15%



Presort First-Class Mail® (Letters) Great Lakes Area Service Variance

6

All QTD FCM Letters scores would be above 97.75% (including last mile), if pieces that failed by 1 day passed



65%

70%

75%

80%

85%

90%

95%

100%96.72%

94.72%

91.65%

99.35% 98.75%97.75%

99.72% 99.59% 99.17%99.83% 99.82% 99.65%





Presort First-Class Mail® (Letters) Great Lakes Area Service Variance

7

Overnight decreased by 4.37%; 2-Day decreased by 2.25%; 3-to-5-Day decreased by 1.38%

6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/1560%

65%

70%

75%

80%

85%

90%

95%

100%

0.0

0.5

1.0

1.5

2.0

90.63%

87.71%

83.60%

89.09%

95.91%

91.54%

80.91%

87.79%

87.62%

79.53%

91.31%89.06%

80.09% 80.82%

88.62%

76.72%

85.10%83.72%

Overnight - Volume 2-Day - Volume 3-To-5-Day - Volume Overnight 2-Day 3-To-5-Day

Scor

e Pr

ior t

o La

st M

ileVolum

e in Millions


Processing On-Time

Last Mile Impact

Overall Score

Target Score

Overnight 164,701 90.65% -4.42% 86.23% 96.80%

2-Day 418,037 87.26% -4.64% 82.62% 96.50%

3-to-5-Day 3,097,983 82.88% -5.29% 77.59% 95.25%

Total 3,680,721 79.05% 96.00%

Presort First-Class Mail® (Flats)Great Lakes Area Score Trend

8

All QTD FCM Flats scores would be above 92.90% (prior to last mile), if pieces that failed by 1 day passed



30%

40%

50%

60%

70%

80%

90%

100%

90.65%87.26%

82.88%

97.29% 95.85%92.90%

98.72% 98.40% 96.80%99.42% 99.21% 98.32%





Presort First-Class Mail® (Flats) Great Lakes Area Service Variance

9

All QTD FCM Flats scores would be above 90.53% (including last mile), if pieces that failed by 1 day passed



30%

40%

50%

60%

70%

80%

90%

100%

86.23%82.62%

77.59%

96.20%93.96%

90.53%

98.14% 97.46%95.59%

99.21% 98.78% 97.69%





Presort First-Class Mail® (Flats) Great Lakes Area Service Variance

10

DSCF decreased by 0.12%; DNDC increased by 1.18%; End-to-End increased by 1.84%


Processing On-Time

Last Mile Impact

Overall Score

Target Score


Volume Change


SPLY Change

SCF Letters 263,854,510 95.97% -1.29% 94.68% 91.00% 191,092,855 38.10% 95.51% -0.83%

NDC Letters 41,783,081 95.38% -1.06% 94.32% 91.00% 35,305,460 18.30% 94.74% -0.42%

E2E Letters 44,515,939 60.60% -1.00% 59.60% 91.00% 40,338,695 10.40% 71.66% -12.06%

Total 350,153,530 89.33% 91.00% 266,737,010 31.30% 91.81% -2.48%

6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/1520%

30%

40%

50%

60%

70%

80%

90%

100%

0

20

40

60

80

100

120

140

160

95.26%

97.74%94.77%

95.22%

96.61% 96.49%95.45%

96.75% 94.61%

95.66%

94.89% 96.07%

64.65% 66.48%60.77%

55.00%60.85% 62.69%

SPLY Volume DSCF - Volume DNDC - Volume End-to-End - VolumeDSCF DNDC End-to-End

Scor

e Pr

ior t

o La

st M

ile Volume in M

illionsStandard Mail® (Letters)Great Lakes Area Score Trend

11

QTD DSCF and DNDC Standard Letters scores would be above 98.53% (prior to last mile), if pieces that failed by 1 day passed


DSCF DNDC End-to-End20%

30%

40%

50%

60%

70%

80%

90%

100%95.97% 95.38%

60.60%

99.12% 98.53%

76.47%

99.60% 99.28%

86.33%

99.76% 99.55%

92.06%





Standard Mail® (Letters)Great Lakes Area Service Variance

12

QTD DSCF and DNDC Standard Letters scores would be above 98.15% (including last mile), if pieces that failed by 1 day passed



30%

40%

50%

60%

70%

80%

90%

100%94.68% 94.32%

59.60%

98.75% 98.15%

75.63%

99.45% 99.11%

85.69%

99.68% 99.47%

91.62%





Standard Mail® (Letters)Great Lakes Area Service Variance

13

DSCF increased by 0.50%; DNDC increased by 0.98%; End-to-End decreased by 1.75%

6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/1520%

30%

40%

50%

60%

70%

80%

90%

100%

0

5

10

15

20

25

30

35

4095.51%97.98%

95.63% 95.43% 94.38% 94.88%

90.46%95.17%

91.80%94.43%

90.19% 91.17%

48.49%

63.82%

52.83%55.31% 53.31% 51.56%

SPLY Volume DSCF - Volume DNDC - Volume End-to-End - VolumeDSCF DNDC End-to-End

Scor

e Pr

ior t

o La

st M

ileVolum

e in Millions


Processing On-Time

Last Mile Impact

Overall Score

Target Score


Volume Change


SPLY Change

SCF Flats 59,542,641 95.20% -7.05% 88.15% 91.00% 46,170,941 29.00% 90.96% -2.81%

NDC Flats 8,734,585 92.06% -3.13% 88.93% 91.00% 5,404,635 61.60% 89.55% -0.62%

E2E Flats 7,287,820 55.16% -3.73% 51.43% 91.00% 6,167,189 18.20% 63.29% -11.86%

Total 75,565,046 85.59% 91.00% 57,742,765 30.90% 90.82% -5.23%

Standard Mail® (Flats)Great Lakes Area Score Trend

14

QTD DSCF and DNDC Standard Flats scores would be above 96.75% (prior to last mile), if pieces that failed by 1 day passed


Note: DDU Mail Pieces were not included in the RPW Volume calculation.


30%

40%

50%

60%

70%

80%

90%

100%95.20%

92.06%

55.16%

98.27% 96.75%

69.01%

99.08% 98.49%

79.67%

99.38% 99.18%

86.93%





Standard Mail® (Flats)Great Lakes Area Service Variance

15

QTD DSCF and DNDC Standard Flats scores would be above 95.38% (including last mile), if pieces that failed by 1 day passed


30%

40%

50%

60%

70%

80%

90%

100%

88.15% 88.93%

51.43%

95.95% 95.38%

66.18%

98.19% 97.82%

77.47%

98.97% 98.84%

85.30%

QTD Score If Service Variance +1 If Service Variance +2 If Service Variance +3Note: Volumes may not sum to 100% due to rounding.





Standard Mail® (Flats)Great Lakes Area Service Variance

16

EDDM-Retail decreased by 1.82%; Saturation increased by 0.12%

120%

30%

40%

50%

60%

70%

80%

90%

100%

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

84.01%86.90%

82.46% 88.99%87.15% 85.33%

94.41%

88.11%

81.61%

89.47%94.21% 94.33%

SPLY Volume EDDM Retail - Volume Saturation - Volume EDDM Retail Saturation

Scor

eVolum

e in Millions

Q4 TD Total Pieces Measured Compliance Overall

ScoreTarget Score


Volume Change


SPLY Change

EDDM-Retail 1,461,847 20.67% 86.88% 91.00% N/A N/A N/A N/A

Saturation 1,833,621 86.02% 89.16% 91.00% 95,444 18,211.49% 99.52 -10.36

Total DDU 3,295,468 82.36% 88.88% 91.00% N/A N/A N/A N/A

EDDM-Retail and Saturation MailGreat Lakes Area Score Trend

17

All DDU scores would be above 95.10%, if pieces that failed by 1 day passed

EDDM Saturation0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

86.88%89.16%

95.10%97.99%97.54% 99.53%98.40% 99.94%




EDDM-Retail and Saturation MailGreat Lakes Area Service Variance

18

DSCF decreased by 0.20%; DADC decreased by 3.10%; End-to-End increased by 3.69%

6/20/15 6/27/15 7/4/15 7/11/15 7/18/15 7/25/1520%

30%

40%

50%

60%

70%

80%

90%

100%

0

2

4

6

8

10

12

14

16

87.75%

93.68% 93.35% 92.48%90.02% 89.82%

83.98%87.17% 89.31% 90.04% 88.17%

85.07%

63.90%69.37%

54.34%

71.08%66.19%

69.88%

SPLY Volume DSCF - Volume DADC - Volume End-to-End - VolumeDSCF DADC End-to-End

Scor

e Pr

ior t

o La

st M

ileVolum

e in Millions


Processing On-Time

Last Mile Impact

Overall Score

Target Score


Volume Change


SPLY Change

SCF Flats 25,541,961 92.14% -9.09% 83.05% 91.00% 17,665,266 44.60% 87.15% -4.10%

ADC Flats 618,573 88.08% -5.88% 82.20% 91.00% 2,724,040 -77.30% 91.78% -9.58%

E2E Flats 12,448,510 66.59% -2.85% 63.74% 91.00% 11,221,008 10.90% 61.31% 2.43%

Total 38,609,044 78.46% 91.00% 31,610,314 22.10% 80.79% -2.33%

Periodicals Great Lakes Area Score Trend

19

QTD DSCF and DADC Periodicals scores would be above 95.46% (prior to last mile), if pieces that failed by 1 day passed



DSCF DADC End-to-End20%

30%

40%

50%

60%

70%

80%

90%

100%

92.14%88.08%

66.59%

96.96% 95.46%

77.24%

98.57% 98.27%

85.13%

99.08% 99.09%

90.77%





PeriodicalsGreat Lakes Area Service Variance

20

QTD DSCF and DADC Periodicals scores would be above 93.51% (including last mile), if pieces that failed by 1 day passed

DSCF DADC End-to-End20%

30%

40%

50%

60%

70%

80%

90%

100%

83.05% 82.20%

63.74%

94.73% 93.51%

75.32%

97.64% 97.32%

83.70%

98.69% 98.67%

89.75%






PeriodicalsGreat Lakes Area Service Variance

21

© 2014 USPS

FULL SERVICE VISIBILITY

Electronic Info for Containers and Trays

Received

Piece level automation scans

Full Service Customers Only

All IMb™ Users

170,461,000

64 Billion(as of August 1, 2015)

Container Scans

Tray Scans

Entered at USPS: 5,036,000Enroute Arrive: 827,000Enroute Depart: 625,000

6,487,000

140,441,000Enroute: 118,760,000Enroute Arrive: 10,858,000Enroute Depart: 10,823,000

Visibility for Mailers

Data from 2015-01-03 to 2015-08-14

22

Standard Flats

23%

August 2014 - Mail Currently in Measurement

First Class

51%

Standard Letters

47%

Periodicals

36%

Standard Flats

29%

June 2015 - Mail Currently in Measurement

First Class

56%

Standard Letters

62%

Periodicals

45%5% 15% 6% 9%

GROWTH IN MEASUREMENT

23

MAIL IN MEASUREMENT

Actions undertaken to get more mail into measurement

Surface Transfer Centers added to FAST file

Deployed Bundle Visibility nationwide

Enhanced Start-the-Clock Business rules for facilities within the same 3-Digit

Bundle Breakage identification of eDoc Nesting issues

Area specific webinars

24

BUNDLE VISIBILITY

Entry

Mail Moment

Post Office

Processing

Plant

CreatingValue

25

SURFACE VISIBILITY EXPANSION

New software/hardware infrastructure

26• Current Sites

SURFACE VISIBILITY EXPANSION

90 Additional Sites: November 2015 - February 2016

27

• Current Sites• New Sites

January – MayNew SV Site Deployment

Peak Mailing Season

10/23 50% DELIVERED

August – NovemberCurrent SV Site

Deployment

2/1New Site Deployment

SV DEPLOYMENT PLAN (22,330 Scanners)

2015

Pea

k Se

ason

28

INFORMATION GAPS

Bundle Visibility

SurfaceVisibility

Mail in Measurement

Predictive Delivery

InformedVisibility

29

Powerful Enterprise Analytics

Inventory & Workload

Service Measurement & Diagnostics

Single Source of Mail Visibility Data

INFORMED VISIBILITY

is real-time, end-to-end mail tracking

The future is near . . .

30

INFORMED VISIBILITY

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

31

Event-driven, real-timeSERVICE

PERFORMANCE MEASUREMENT

for all mail

Event-driven,real-time

MAIL INVENTORY AND PREDICTIVE

WORKLOADS

Event-driven,real-time

MAIL TRACKING AND REPORTING

1 2 3

INFORMED VISIBILITY

. . . will be a phased approach

32

INFORMED VISIBILITY

Phase Service Performance Measurement

Mail Inventory & Predictive Workload

Mail Tracking & Reporting

Release 111/3/14 – 7/27/15 (Commercial Mail)

Release 21/15/15 – 7/27/15 (Single-Piece)

Release 33/26/15 – 10/11/15

(Operational Pilot &National Deployment)

Release 46/25/15 – 1/10/16 (Release 4

enhancements)

Release 59/24/15 – 4/10/16

(Release 5 enhancements)

Release

1 2 3

33

Enhanced Mail Tracking

Current IMb Tracing• Visibility for letters, flats & bundles

• Bundle visibility limited to piece automation scans

• Raw data download, or push subscription (1-24 hour)

PostalOne! & Mail.xml• Visibility for trays & containers

• Push, pull, or download data

• Latency issues

Future • Comprehensive end-to-end• Real-time reporting• Flexible data provisioning• Customer specific mail performance• Additional scan events

• Delivery unit related bundle visibility

• “Out for delivery” & “delivered” events

INFORMED VISIBILITY

34

● Lack of system to provide “real-time” actionable information

● Inadequate real-time data and tools to accurately forecast resource needs

● Latency issues

Current Challenges

● Multiple, disparate systems

● Gaps in end-to-end tracking and reporting

● Cannot fulfill all customers needs “Cast of Characters”

MAIL VISIBILITY

35

● Leverages ‘Big Data’ Technology

● Streamlined Data Processing

● Real-Time Data

● Single Source for Letters, Trays, Containers, and Packages

36

Challenges Solved

● Provides End-to-End Visibility

● Flexible Data Provisioning ● What you want

● When you want

● How you want

● With easy sharing capability

MAIL VISIBILITY

MAILER MONITORING – CURRENT STATE

Informed Visibility Good to Be Healthy Corp.

Site SupportUSPS Privacy Policy

Mailer Monitoring

Seattle

Mailer Lookup

Go

Containers

Trays

Letters

Flats

Packages

Location Search

Tue Wed Thu

Containers 15 15 15Container Scans 517 573 673Container Scan % 74% 82% 96%

PortlandTue Wed Thu


SpokaneTue Wed Thu


37

MAILER EARLY WARNING – PREDICTIVE STATE

Informed Visibility Good to Be Healthy Corp.

Site SupportUSPS Privacy Policy

Mailer Early Warning – Expected Drop Dates

Version 2.0 c 2015 US Postal Service

Seattle

Mailer Lookup

Go

Containers

Trays

Letters

Flats

Packages

Location Search

Trips

MPE

VisibilityPortland

Spokane

Sun 8/16

Mon 8/17

Tue 8/18

Wed 8/19

Thu 8/20

Fri 8/21

Sat 8/22

14

Sun 8/16

Mon 8/17

Tue 8/18

Wed 8/19

Thu 8/20

Fri 8/21

Sat 8/22

12 6

Sun 8/16

Mon 8/17

Tue 8/18

Wed 8/19

Thu 8/20

Fri 8/21

Sat 8/22

19

Mail Class

First ClassStandardPeriodicalsPackages

Flats

Letters

Message Center

Good to Be Healthy Corp. begins dropping 8/20 at 3:00 PM in Seattle. FAST appointment 1372958

Good to Be Healthy Corp. begins dropping in Portland at 6:00PM. FAST appointment 1589425

1

38

The Mailboxis the Hub

If the Mail Piece is the Hook…

39

Mail Delivered

Real-Time Data Received

Email Sent Mail Moment

Customer Conversion

MailerNotified

HOW TO CREATE VALUE

40

From Different Data Sources

August 10, 2015

PACKAGE VISIBILITY IS INCREASING:

Thresholds as of January 25, 2015IMpb Metrics July 2015

% IMpb Barcode Threshold 99%

%SSF v1.6 or Higher Threshold 97%

Timeliness of v1.6 or Higher

% Address and / or 11-Digit Zip Code

Threshold 98%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

ThresholdCommercial Mail

97.79%

90.99%

94.38%

96.70%

89.97%Timeliness

QUESTIONS?

42

gla focus group august 20, 2015. mailing industry ecosystem 2 mail owners e-commerce logistics...

Documents

estimated service performance

given service standard

performance score

mail processing

processing score

official service target

mile processing

measured volume