Welcome Bemidji, MN Area Mail Processing (AMP) Public Meeting - - PowerPoint PPT Presentation

Welcome

Bemidji, MN Area Mail Processing (AMP) Public Meeting August 23, 2011

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• Video Presentation -

Area Mail Processing (AMP)

• USPS Management Presentation
• Public Comments
• Meeting Close

Agenda

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AMP Video

AMP Video Presentation

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• AMP (Area Mail Processing)

Consolidation of all outgoing or all incoming mail processing operations from one or more facilities into other automated processing facilities for the purpose of improving operational efficiency and/or service.

• Effective process used for decades to

help us adjust to changes in the environment

Area Mail Processing (AMP) Area Mail Processing (AMP)

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The Need for Change The Need for Change

• Postal Service faces “Acute Financial

Crisis”

• Impacts due to the rise in Electronic

Communications

• Economic Recession
• Change in Mail Mix

– Increase in Work Sharing and Drop Shipments – Decrease in First-Class Mail Volume

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The Need for Change The Need for Change

25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 FY 2001 FY 2002 FY 2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010

T o ta l P ie c e V o lu m e (in '0 0 0 s )

First-Class Single Piece

42.2% decline since FY2001

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Benefits of Consolidation

• Puts the Right People in the Right

Location with the Right Resources

• Utilizes Equipment Efficiently
• Reduces Overall Costs
• Supports Our Network Plan

Benefits to USPS Benefits to USPS

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• Office Inspector General (OIG)

validated the new AMP process calling it credible and sound

• Recent OIG audits show AMP

consolidations were prudent business decisions

• General Accounting Office (GAO)

Report stated we consistently follow the AMP process

AMP Process AMP Process

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Service Standards for First-Class Mail – Upgrade 2-day to Overnight

• Bemidji to/from St Cloud
• Bemidji to/from Willmar
• Bemidji to Minneapolis

– Downgrade Overnight to 2-day

• Grand Forks to Bemidji

Bemidji to St Cloud Bemidji to St Cloud

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Customer & Delivery Services – Delivery Services – Customer Services

• Retail Hours
• Business Mail Acceptance
• Drop Shipment

Bemidji to St Cloud Bemidji to St Cloud

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• Jobs

–Impacted Jobs

• Community Identity

–Local Postmark Remains Available –Meter and Permit Indicia Do Not Change

Bemidji to St Cloud Bemidji to St Cloud

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Bemidji to St Cloud Bemidji to St Cloud Distance: Approx. 169.7 miles between facilities

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Proposed Annual Savings of $662,839 *

Business Case Business Case

* Preliminary results subject to change

Mail Processing Employee Savings: $452,521 Mail Processing Management Savings: $0 Maintenance Savings: $94,676 Transportation Savings: $115,642 One-Time Costs: ($17,560)

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Projected net decrease of 5 positions * Net craft impacts: -5 Net supervisor/management impacts: 0 All bargaining employee reassignments will be made in accordance with the respective collective bargaining agreements.

* Preliminary results subject to change

Employee Impacts Employee Impacts

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Benefits from consolidation

• Annual savings
• Maximize resources
• Reduce excess capacity
• Eliminate duplicate operations
• Focus on remaining operations

Bemidji to St Cloud Bemidji to St Cloud

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• No changes to delivery times
• No changes to retail services
• No changes to meter and permit indicia
• Hours and location of business mail

acceptance remains the same

• Mailers who drop ship to Destination

Sectional Center Facility (DSCF) 566 can expect changes if the AMP is approved.

Bemidji to St Cloud Bemidji to St Cloud

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• Reduces Costs
• Improves Efficiency
• Puts the Right People in the Right

Location with the Right Resources

• Transparent to Customer Services
• Supports our Strategic Plan

Summary Summary

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If you wish to comment or have a question, please come to the microphone and state your:

Name Affiliation Comment or Question

Please be courteous

Public Comments Public Comments

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Mail additional comments to: Manager Consumer and Industry Contact 100 S 1st Street, Room 115 Minneapolis, MN 55401-9631 Must be postmarked by September 7, 2011