Norfolk PDF, NE Area Mail Processing (AMP) Public Meeting November - PowerPoint PPT Presentation

Norfolk PDF, NE Area Mail Processing (AMP) Public Meeting November 14, 2011

Two Topics Radical Area Mail Network Processing Realignment Study 2

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

4 NETWORK CAPACITY

5 NETWORK CAPACITY

Potential Decrease in Processing Facilities Through 2013 Processing Facilities 6 As of 8/31/2011

Mail Processing Facility Footprint 487 Facilities Today Current Mail Processing Sites 7

Mail Processing Facility Footprint Studying 252 Facilities for Potential Consolidation Currently Under Study Announced Sept. 15th Gaining Sites 8

Mail Processing Facility Footprint Potential Network 9

Mail Processing Redesign 10

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 11

Our Customers CHANGES  Planning for new mail processing footprint and transport pattern  Transitioning to 2-3 day service standard OUR APPROACH  Ongoing communication and collaborative solutions 12

Our Employees 559,000 Total Career Employees 151,000 Total Mail Processing Employees 35,000 Fewer Mail Processing Positions 13

14 Processing Area Mail Topic Study

Norfolk to Omaha AMP DISTANCE BETWEEN FACILITIES – 117 miles 15

Norfolk to Omaha AMP BUSINESS CASE * Mail Processing Workhour Savings: $780,618 Mail Processing Management Savings: $156,323 Maintenance Savings: $205,337 Transportation Savings: $258,247 Other Workhour Savings: $39,682 Proposed Annual Savings: $1,440,207 One Time Implementation Costs: $279,180 16 *Preliminary results subject to change

Norfolk to Omaha AMP EMPLOYEE IMPACTS * Net craft employee impacts: -11 Net management employee impacts: -1 All bargaining employee reassignments will be made in accordance with the respective collective bargaining agreements. *Preliminary results subject to change 17

Norfolk to Omaha AMP CUSTOMER & DELIVERY SERVICES  Supports a 2-3 day service standard for First-Class Mail  Retail and other services  Business mail acceptance  Collection mail  Delivery of mail  Local postmark 18

Norfolk to Omaha AMP NEXT STEPS  Complete Area and HQ review  Review Public Comments  Continue Network Optimization studies 19

Norfolk to Omaha AMP Mail additional comments to: Manager, Consumer & Industry Contact Central Plains District PO Box 199504 Omaha NE 68119-9504 Must be postmarked by November 29, 2011 20