Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010
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Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010
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Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010. Alternative Channel. As an Alternate sales channel for USPS, SFS provides stamps to a variety of customers Single site, centrally located in Kansas City - PowerPoint PPT Presentation
Transcript of Stamp Fulfillment Services A Division of USPS Government Relations & Public Policy May 19, 2010
Stamp Fulfillment ServicesA Division of USPS
Government Relations & Public Policy
May 19, 2010
May 2010Stamp Fulfillment Services, Khalid Hussain 2
Alternative Channel
As an Alternate sales channel for USPS, SFS provides stamps to a variety of customers
Single site, centrally located in Kansas City
Originating as a philatelic center, now supplies USPS stamps & philatelic products globally
Annual revenue growth of 15% (average) in last 8 years
Distinction between SFS & Distribution Centers
May 2010Stamp Fulfillment Services, Khalid Hussain 3
Core Beliefs of SFS
Continuously evolving with customers
Recognizing the customer and their needs
Learning organization; listening to customers and providing solutions
Adoption and successful implementation of best industry practices
Provide added value by innovation and diversification
May 2010Stamp Fulfillment Services, Khalid Hussain 4
SFS Revenue, 2002 – 2010 (Projected)
$173.6
$211.9
$246.0
$305.1
$374.6
$501.5
$468.4$474.7
$437.2
$0
$100
$200
$300
$400
$500
$600
2002 2003 2004 2005 2006 2007 2008 2009 2010
Mill
ion
s
Source: SFS Blue Book for FY 1998 - 2010
$297.6
May 2010Stamp Fulfillment Services, Khalid Hussain 5
TFP Annual Change by Revenue / Workhour (FY 2002 – 2009)
98
.1%
12
0.6
% 14
2.0
%
15
3.2
% 17
3.4
% 18
8.1
%
19
1.3
%
Ba
se
0%
50%
100%
150%
200%
250%
2002 2003 2004 2005 2006 2007 2008 2009
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Cumulative % TFP Growth Total Revenue / Total Workhours
Average YearlyChange of TFP
= 14.6%
2002 2003 2004 2005 2006 2007 2008 2009
Revenue / Workhour $574.37 $702.71 $860.70 $1,045.52 $1,162.31 $1,396.50 $1,602.06 $1,653.03
Yearly% TFP Change Base 22.3% 22.5% 21.5% 11.2% 20.1% 14.7% 3.2%
Cumulative% TFP Growth
Base 98.1% 120.6% 142.0% 153.2% 173.4% 181.1% 191.3%
May 2010Stamp Fulfillment Services, Khalid Hussain 6
Diversification
For the purposes of simplification each program has
been presented as having equal weight. In reality
each program contributes differently to SFS
profitability. The various programs may require more
or less labor hours, contribute more or less revenue,
and affect customer satisfaction to varying degrees.
2002
2010
May 2010Stamp Fulfillment Services, Khalid Hussain 7
Automation
State-of-the-Art Automation
Continuing practices of Lean Six Sigma
Involvement of all stakeholders in exploring optimal solutions
May 2010Stamp Fulfillment Services, Khalid Hussain 8
SFS Business Model – S I P O C
Personalized Stamped Envelope
Stamped Envelope
Catalog OrdersInternet OrdersLicensing / RetailPriority & Express Mail EnvelopesSales & Advertising
Catalog OrdersInternet OrdersLicensing / RetailPriority & Express Mail EnvelopesSales & Advertising
Digital Color PostmarkseBayFirst Day CoversIn-House AffixingPromotionsSpecialty StoresStanding Order ProgramSubscription Orders
OUTPUT
Outside Vendor Customer Orders
Bulky
PPU
Custom
Ashton-Potter
AFES Equipment
PROCESSING
Proc
ANCMS Output
Gateway
GL AP
AR OM
INV BOM
APPLICATIONS
EXTERNAL STAKEHOLDERS
Eagan Raleigh
San MateoWilkes-Barre
EMRSFDMSeCap
CitiBank
ANCMS Input Gateway
Stamp Services System
Vault Inventory Reporting
CHECKSLockbox / CitiBank
CREDIT CARDFDMS & eCap
ACHWells Fargo
CASHBank of America
REFUNDSAPEX / San Mateo
e-MOVESElectronic Money Order Voucher Entry System
(Reporting)
PAYMENT OPTIONSSystems
FAX
Internet
3rd Party
Sales & Advertising
EMCA
INPUTReceipt of Various Orders
Phonevia 1-800
SUPPLIER
Sta
mp
Ma
nu
fact
ure
r
CUSTOMERS
Customers
Domestic Dealers
Vendors
EMCA
International Dealers
Government Agencies
Business
Serious Collectors
Casual Collectors
Personalized Stamped
Envelopes
May 2010Stamp Fulfillment Services, Khalid Hussain 9
SFS Customer Database Overview
STAMPS Now™Businesses
Serious Collectors
Casual Collectors
Stamps for Use
Domestic Dealers
International Dealers
Federal Agencies
Local Postmasters
Express Mail Corporate Accounts
Personalized Stamped Envelopes
International Customers
STAMPS Now™Businesses
Serious Collectors
Casual Collectors
Stamps for Use
Domestic Dealers
International Dealers
Federal Agencies
Local Postmasters
Express Mail Corporate Accounts
Personalized Stamped Envelopes
International Customers
Customer Types
Payment Types
Checks Wire TransfersCredit Cards SubscriptionACH Lines of CreditTrust Accounts AutochargesEDI
Checks Wire TransfersCredit Cards SubscriptionACH Lines of CreditTrust Accounts AutochargesEDI
NCMS Database = 5.5 million Customers
NCMS Database = 5.5 million Customers
May 2010Stamp Fulfillment Services, Khalid Hussain 10
Turnaround Times
58%
24%
2%3%
7%
4%
2%
Same Day
1 Day
2 Days
3 Days
4 Days
5 Days
5 Days +
Time to Ship Orders Following Induction of Orders into System1
4.7 million Shipments in FY 2009
92.5% of tracked orders are received within the standard delivery time of 1 – 3 days
(Priority Mail) from the time they leave SFS2
1SFS Postal Store Order Report, reports both Postal Store & Non-Postal Store Orders
2Reported by Expedited Shipping, 2/2010
May 2010Stamp Fulfillment Services, Khalid Hussain 11
Value-Added Contributions
One-to-one relationships with Preferred Customers
Various payment methodologies
Scheduled shipments
Electronic Data Interchange & Reconciliation
Provide electronic reports
Excellent Customer Service
May 2010Stamp Fulfillment Services, Khalid Hussain 12
Questions & Answers
