OPERATIONS UPDATE

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OPERATIONS UPDATE
MTAC February 18, 2009
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Agenda

• FSS Status
• Delivery Route Reductions
• Consolidation Activities
• Network Distribution Centers

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FSS Program Status

• Acceptance Testing
• Timeline Revisions
• Installations Continue
• All Support Activities on Target
• Remodeling Deployment Assumptions
• Expanded geographical reach
• Reduce units in certain sites
• Additional Phase 1 sites

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Delivery Route Reductions

• Joint USPS/NALC Route Adjustment Process
• 92k routes evaluated nationwide
• Jan March 80k routes adjusted
• 2500 routes eliminated
• Industry Impacts
• Potential 30M delivery points impacted
• AMS/Industry changes going smooth
• Implementation schedules posted on RIBBS website
• Joint Route Adjustment Process Next Steps
• Ongoing discussions with NALC

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Consolidation Activities

• Equipment Runs
• Related Manpower Adjustments
• Tour Consolidations
• Plant Operation Consolidations (AMPs)
• AMC Consolidations
• Ground Network Reengineering

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Network Reengineering

• Transformation of Bulk Mail Centers (BMC) to
  Network Distribution Centers (NDC)
• Consolidate originating volumes to achieve end to
  end efficiencies
• Combine BMC Surface Transfer Center (STC)
  containerization and dispatch plans to eliminate
  redundant networks and improve transportation
  utilization
• Leverage multiple trailer loading and dispatching
  techniques (tandems/triples) to further improve
  trailer utilization
• Aligns induction of originating products into one
  ground network
• Three tiers of NDCs will exist
• Phase I implementation begins in the Northeast