Mail Delivery Schedule Change-020613 ()

Mail Delivery Schedule Change-020613 ()

TITLE OF PRESENTATION
(24PT. ARIAL, BOLD, ALL UPPERCASE)
Subtitle
Press
Event
(20pt. Arial, Bold, Title Case)
February 6, 2013
FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)
Today’s Announcement
New Delivery Schedule
2
Adapting to America’s Changing Mailing Habits
First-Class, Single-Piece Volumes
40.0
30.0
20.0
10.0
0.0
2007
2008
2009
2010
Volume in Billions of Pieces
2011
2012
3
Ongoing Financial Challenges
$15.9B loss in FY2012
$11.1B default in FY2012 to
the United States Treasury for
Retiree Health Benefits
$15B borrowing authority exhausted
Liquidity very low
4
Aggressive Cost Reduction Since 2006
Reduced career workforce by
193,000 positions – without layoffs
Reduced annual cost base by $15B
Consolidated more than 200 mail
processing facilities
5
Changes to Mail Delivery
New Delivery Schedule
• Six Days of Package Delivery
• Five Days of Mail Delivery
• Begins the week of August 5, 2013
6
6
New Delivery Schedule Components
Package Delivery
Post Offices (P.O.)
Mail Delivery
• Monday –
Saturday
package delivery
service continues
• Post Offices
remain open on
Saturdays
• Monday – Friday
mail delivery
service
• Mail delivered to
P.O. Boxes on
Saturdays
7
Package Business Growth
Rising Demand for Package Delivery
Driven by eCommerce Growth
8
Survey Research: Five-Day Mail Delivery
Seven out of Ten Americans Support a
Five-Day Mail and Package Delivery Schedule
Higher support likely with six days of package delivery
Sources: Gallup Poll, March 26, 2010 ● New York Times/CBS News, June 27, 2012 ● USA Today, March 17, 2010 ● Washington Post, March 30, 2010
9
Preparation and Timing
Our Commitment
Business
Mailers
Residential
Customers
Employees
10
New Delivery Schedule:
Projected Cost Reduction
Approximately $2B in annual
cost reduction
Reduction of approximately 45 million
Work hours annually
11
Timeline
March
Release detailed
implementation plan
Feb
Mar
Feb. 6
Initial notification of
new delivery schedule
Apr
Week of August 5
Implementation of
new delivery
schedule
March - August
Webinars/outreach with
business mailers
May
June
July
Aug
March - August
Customer
communication
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Conclusion
Achieves
Savings
• Saves approximately $2B annually
• Consistent with five-year plan
• Speeds return to financial stability
Meets
Customer
Needs
• Maintains Saturday package delivery
and Post Office access
• Customers supportive of change
• Helps preserve affordability of mail
Postal Reform
Legislation
Needed
• Delivery change is one part of a
larger strategy
• More flexibility is needed to support a
sustainable business model
13
TITLE OF PRESENTATION
(24PT. ARIAL, BOLD, ALL UPPERCASE)
Subtitle
(20pt. Arial, Bold, Title Case)
FOOTER (10PT. ARIAL, BOLD, GREY, CAPS)