AUSPL CONFERENCE 2015 Tom Samra Vice President, USPS Facilities - - PowerPoint PPT Presentation

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AUSPL CONFERENCE 2015 Tom Samra Vice President, USPS Facilities - - PowerPoint PPT Presentation

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AUSPL CONFERENCE 2015 Tom Samra Vice President, USPS Facilities April 2015 AGENDA USPS STATE OF THE UNION USPS FACILITIES REORGANIZATION Leasing New - Conflict of Interest Forms Maintenance (EMCOR) Purchase

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AUSPL CONFERENCE 2015

Tom Samra Vice President, USPS Facilities April 2015

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SLIDE 2

AGENDA

  • USPS – STATE OF THE UNION
  • USPS – FACILITIES REORGANIZATION
  • Leasing
  • New - Conflict of Interest Forms
  • Maintenance (EMCOR)
  • Purchase Existing Building (PEB) considerations
  • REAL ESTATE TAX ABATEMENT PROGRAM
  • AUSPL/USPS COOPERATIVE OPPORTUNITIES
  • QUESTIONS AND ANSWERS

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SLIDE 3

STATE of the UNION

USPS

STATE of the UNION

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SLIDE 4

PROMPT, RELIABLE SERVICES TRUSTED, SECURE, RESPECTED BRAND CONNECTING & INFORMING CITIZENS & COMMUNITIES CONVENIENT, AFFORDABLE UNIVERSAL SERVICE HELPING BUSINESSES CONNECT & GROW

USPS MISSION:

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SLIDE 5

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The Unrivaled Network

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POST OFFICES PROCESSING CENTERS VEHICLES EMPLOYEES DELIVERY POINTS

31,000 300+ 600,000 153M 210,000

Delivering 40% of the World’s Mail

PROCESSING EQUIPMENT

8,500

USPS Global Footprint

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SLIDE 7

Business Platforms

First Mile Physical Network Last Mile Digital

  • Retail
  • Collection boxes
  • Carrier pick-up
  • usps.com
  • Sales
  • Business mail

acceptance

  • Self-serve
  • Mail Processing

Centers

  • Post Offices
  • Transportation

assets

  • Carrier delivery
  • Home and

business customer interaction

  • Post Offices
  • Secure digital

communication

  • Identity

authentication

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SLIDE 8

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Volume Price Labor Costs Universal Service Obligation

  • Limited pricing flexibility

Postal network driven by:

  • Delivery points
  • Retail locations
  • Sortation facilities
  • Six-day delivery
  • ~80% of total costs
  • COLA increases
  • Benefits: pensions, retiree

health, health insurance

  • Limited flexibility
  • Retiree prefunding
  • bligation, rising workers’

compensation costs

These trends will continue to put pressure on USPS ability to provide affordable universal service

Declining steadily

  • Transactional volume

declining due to e-diversion

  • Advertising mail is subject

to more substitution options

  • Mail volume highly sensitive

to economic changes

  • Mail mix changes –

lost profit contributions Fixed cost base Rising but capped Rising cost per hour

Challenges

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SLIDE 9

Projected Mail Volume By Major Classes of Mail

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10 20 30 40 50 60 70 80 90 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Volume (billions)

First Class Standard Packages

  • Std. Mail grows 2%

FCM declines 22% Packages grow 49%

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SLIDE 10

$1.5 $3.5 $8.3 $11.4 $12.8 $13.9 $14.9 $15.6 $16.1 1,459 1,423 1,373 1,258 1,183 1,149 1,122 1,110 1,107 1,102 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 1,000 1,100 1,200 1,300 1,400 1,500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 IFP Savings ($ billions) Total Work Hours (millions)

Total Work Hours

Cumulative Savings

Continuous Efficiency $16 Billion of Annualized Savings in the past eight fiscal years with workhours reduced by 24%

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SLIDE 11
  • Financial losses of $26 Billion over last 3 years
  • Continued decline of First-Class Mail volume
  • Increasing wage inflation and operating costs
  • Debt pressures
  • Uncertainty regarding legislative reform
  • Review of postal prices in courts
  • Needed capital investments to acquire package sorting

equipment and replace aging delivery vehicle fleet Business Imperative

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SLIDE 12

USPS Business Plan

  • Closing the Gap
  • Legislative Initiatives
  • Operational Initiatives
  • Transforming Infrastructure
  • Continuous Improvement
  • Workforce
  • Increased Flexibility
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  • Network
  • 350 Processing Facilities Eliminated
  • 320 Processing Facilities Remain
  • Retail
  • POST Pan – 50% of Post Offices Moved to Part-Time
  • Consolidated 2,413 Delivery Units
  • Delivery Streamline Governance Model
  • Eliminated 24,000 Delivery Routes since 2006
  • 60% of New Delivery is Centralized

Closing the Gap Infrastructure

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TECHNOLOGY

“Leveraging to drive

CUSTOMER AND BUSINESS VALUE” INNOVATION

and

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Visibility Provides Business Intelligence

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Apply an intelligent and trackable barcode to every mail product

  • IMb for letters and flats
  • IMPb for packages
  • IMtb for trays and sacks
  • IMcb for pallets and containers

STRATEGY Visibility Provides Business Intelligence

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SLIDE 17

Scan all mail products for all events across the USPS network

  • Expand the number of events

provided

  • Ensure all postal sites have scanning

capability for all events

  • Move to real-time delivery

information STRATEGY Visibility Provides Business Intelligence

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Growing Consumer Expectations

Consumers’ busy lifestyles demand more delivery convenience New businesses take notice of these demands and offer more expedient deliveries Existing players improve their offerings to meet demand These changes set new consumer expectations

Our Customers Expectations

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SLIDE 19

QUESTIONS

QUESTIONS

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