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TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) SEPTEMBER - PowerPoint PPT Presentation

TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) SEPTEMBER 15, 2011 Subtitle (20pt. Arial, Bold, Title Case) FOOTER (10PT. ARIAL, BOLD, GREY, CAPS) Two Announcements Mail Radical Processing Network Facility Study Realignment


  1. TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) SEPTEMBER 15, 2011 Subtitle (20pt. Arial, Bold, Title Case) FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

  2. Two Announcements Mail Radical Processing Network Facility Study Realignment List 2

  3. Mail Volume Shifting to a Less Profitable Mix Volume in Billions of Pieces 3

  4. 4 NETWORK CAPACITY

  5. 5 NETWORK CAPACITY

  6. Decrease in Processing Facilities Through 2011 Processing Facilities 6 As of 8/31/2011

  7. Proposed Decrease in Processing Facilities Through 2013 Processing Facilities 7 As of 8/31/2011

  8. Mail Processing Facility Footprint 487 Facilities Today Current Mail Processing Sites 8

  9. Mail Processing Facility Footprint Studying 252 Facilities for Potential Closure Currently Under Study Announced Today Gaining Sites 9

  10. Mail Processing Facility Footprint Proposed Network 10

  11. Mail Processing Redesign 11

  12. Current Reach 12

  13. Potential Network Change 13

  14. Driving Efficiency FUTURE NETWORK � Support 2-3 day Service Standards � Revised Entry Times � Reduced Equipment � Reduced Footprint BENEFITS � Eliminate Excess Capacity � More Efficient Transportation Network � Fully Utilized Workforces � Up to $3 Billion Cost Reduction 14

  15. Our Customers CHANGES � Planning for new mail processing footprint and transport pattern � Transitioning to 2-3 day service standard OUR APPROACH � Industry-specific strategies � Ongoing communication and collaborative solutions 15

  16. Our Employees 559,000 Total Career Employees 151,000 Total Mail Processing Employees 35,000 Fewer Mail Processing Positions 16

  17. Our Future Network 17

  18. $20 billion Cost Reduction by 2015 18

  19. Key Areas Requiring Legislative Action � Delivery Frequency – authority to go from 6- to 5- Day Delivery � FERS Refund – return $6.9 billion in overpayments to the Postal Service � Resolve the current mandate to pre-fund Retiree Health Benefits by $5.5 billion annually and manage legacy cost going forward • Transfer CSRS overpayment ($50 billion), or • Allow Postal Service to restructure its healthcare system to make it independent of federal programs — USPS Health Care Program 19

  20. Key Areas Requiring Legislative Action � Managing Workforce – allow reductions in the number of bargaining unit postal employees to follow Reduction-in-Force provisions applicable to other federal employees � Retirement Plan – allow Postal Service to provide a defined contribution retirement plan for its new hires; can be accomplished via OPM � Streamlined Governance Model to speed pricing and product decisions 20

  21. TITLE OF PRESENTATION (24PT. ARIAL, BOLD, ALL UPPERCASE) Subtitle (20pt. Arial, Bold, Title Case) FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)

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