Evaluating and Implementing Delivery Point Sequencing

April 18, 2013

Webinar outline

� What is automated delivery point sequencing? How is it achieved?

� Evaluating automated delivery point sequencing –Does it make sense for my operation?

� Implementing delivery point sequencing � Steps towards implementation

� Equipment selection

� Infrastructure implications

� Distribution

� Training

� Performance

� Next Steps

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Automated Delivery Point Sequencing

� Technological advance that will

� Reduce operating costs

� Improve service / induce ad mail / simplify carrier tasks / reduce errors

� Other benefits: address management, new by-products

� Significant operational and network impacts

� Choice of hardware strategy

� Network and operations implications

� Implementation challenges

� Serious evaluation is necessary

� Initial assessment

� Business case

� Detailed evaluation

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What is “Automated Delivery Point Sequencing”?

What is automated delivery point sequencing?

� Delivery point sequencing (DPS) is an automated process to sort mail in the walk sequence of a letter carrier on his/her route.

� Using multiple passes, mail is sorted to bins (stackers) in carrier route delivery sequence.

� Mail is lifted from the bins in a way that preserves sequencing

� Carriers receive the mail in trays that are ready to ‘hit the street’

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Benefits of delivery sequencing

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Sort center

Secondary sort

by route

Casing

Additional

delivery sort

BE

FO

RE

AF

TE

R

Casing In Office

Street Delivery

Street Delivery

Ca

sin

g In

Off

ice

$avin

gs

Post Office

Additional processing step

BIN 1 BIN 2 BIN 3 BIN 4

Example: The sequencing processin 2 sorting passes

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Carrier 3 Carrier 2 Carrier 2 Carrier 2

Carrier 2 Carrier 3 Carrier 1 Carrier 3

Carrier 2Carrier 1Carrier 1 Carrier 1

Stop 4Carrier 1

Stop 4Carrier 2

Stop 4Carrier 3

Stop 3Carrier 1

Stop 3Carrier 2

Stop 3Carrier 3

Stop 2Carrier 1

Stop 2Carrier 2

Stop 2Carrier 3

Stop 1Carrier 1

Stop 1Carrier 2

Stop 1Carrier 3

Carrier Stop 1 Carrier Stop 2 Carrier Stop 3 Carrier Stop 4

BIN 1 BIN 2 BIN 3 BIN 4

Day DItem

posted

Coordinating pass 1 and pass 2

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Day d

Origin Post

OfficeDay DItem

posted

Day D Item

postedItem

posted on day d

Day D Outgoing

sort

Transport to destination center

day d

Day DTransport to

destination center

Day D+1Delivery point sequencing

Day D+1 Deliver

Day D/D+1Await all

incoming mail

Origin Post

Office Origin Sort Center

Origin Sort Center

Destination Sort Center

Destination Post Office

Delivery point sequencing: critical times influence the quantity of sequencing machines

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Run DPS Pass 2

Run DPS Pass 1Hold mail for DPS Pass 1

Hold mail for DPS Pass 1

Bin capacity influences the number of sequencing machines

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10 20 30 40 100 200 300

1,3 1,3 1,3

13 26 39 52 130 260 390

130 520 1 170 2 080 13 000 52 000 117 000

1,3 1,3 1,3 1,3

Number of Bins

Density N bins N PassesN bins

Determining the number of mail sequencing machines

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Machine deployment strategies

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Evaluating Delivery Point Sequencing

Automated delivery point sequencing components

� Address database and updates

� Route walk sequence database and updates

� Updated routes

� Distribution

� Hardware (Machines, trays) and software (Sort plans)

� Implementation – strategy and project management

� DPS performance measurement: machines & people

� Training (sequencing & delivery)

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Issues affecting the success of a delivery point sequencing program

Machinable versus Non Machinable Mail

How much of the mail cannot be processed on automated equipment

Addressing System and Address Database

Address database; address hygiene

Level of Automation

Number of sorting equipment required; % utilization

Mail mix

Levels of presort; needs to merge flows

Labor Costs and Labor Flexibility

Cost of casing - Ability to adjust routes

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Addressing System and address database

� The national addressing systemis deficient or simply lacking

� The address database does not reconcile the address due to address inaccuracy or improper format

� The address is incomplete or incorrect (undeliverable as addressed)

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Level of automation

� Total cost of equipment and related operational requirements

� Machine deployment strategy

� Centralized

� Distributed

� Hybrid

� Service standards/operating windows

� Mail density/bin capacity

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Non-machinable mail

� Mail not sequenced because its physical and dimensional characteristics cause it to get rejected from the sorting equipment

� Mail rejected by mail sorting equipment because of unreadable addresses

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Mail mix

� In-office work is necessary to case mail, including:

� Residual letters that could not be sequenced by mail sorting equipment

� Flat mail (oversized envelopes)

� Saturation mail (unaddressed mail)

� In-office labor hours affect total time on the street and, thus, the justification of the sequencing program

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Several machines versus one machine

Machine

One for each sorting step• Standard: IRV, FSM,

CSS• Flat: FSS

• overlapping time windows

• flexibility

• space for machines• long Idle times• many piles

One for all sorting steps• Standard: 2LS• Flat: FSS

• machine utilization• space for machines• short Idle times

• many piles

One for all sorting steps and formats• Flatsorter

• machine utilization• one pile

• throughput rate• transport of different

formats inside one tray

Machine deployment strategies: pros and cons

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Fewer sequencing equipment required

Narrow processing window for overnight mail

Higher utilization of sequencing equipment

Large demands for real estate (240 bins or more)

Equipment can be used for other types of sort

Reject mail handled twice, at plant and at post office

Maintenance is centralized

Less expensive machine

More machines required

Versatility means it can be used for other types of sort

Slower operation –usually 3-pass sort

Longer operating window

Maintenance must be provided at local level

Sequencing: pros and cons

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Office time savings: time in the office manually sequencing a route is ultimately eliminated, but not necessarily entirely

Mail processing costs: New costs are incurred by acquiring mail sequencing equipment:

• The second pass of a sequencing plan is a cost

• There is a cost associated with underutilized machines if, for instance, operating windows are too tight thus requiring more equipment

Improved efficiency: In principle, sequencing standardizes the process of street delivery which should lead to improved carrier’s efficiency.• For instance, sequencing introduces a program of standardization of trays and

of the elimination of sacks and other inefficient forms of containerization

Improved accuracy: the automated sequencing is generally more accurate than the manual casing

Reduced equipment: by reducing the number of routes, vehicles, carrier cases, and other equipment needed for each eliminated route are also eliminated

Address database: This is both an asset and a liability. The address database can help improve sequencing effectiveness and introduce new services (such as the redirection of mail), but there is also a cost to maintain a complex database.

Implementing delivery point sequencing

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Steps towards implementation

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� Assessment & Evaluation

� Strategy selection

� Equipment selection

� System architecture and databases

� Implementation plan

� Infrastructure and distribution implications

� Training development and delivery

� Performance management

Next Steps

Next Steps

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Assessment

Business Case

Detailed Study

Initial Assessment

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� How much of an impact would a reduction in delivery labor costs make?

� What does the addressing system look like?

� What is your current level of automation?

� What do mail volume and mail mix look like, today and tomorrow?

� How much of the mail is machinable?

Business Case

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� A rough, conservative comparison of costs and benefits over time.

� Rough estimates of

� Net labor savings

� Other benefits

� Hardware and system costs

� Training costs

� Implementation & management costs

� Evaluation of risks

� Estimate of the return on investment

Detailed Study

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� Sequencing strategy

� Distribution impacts and changes

� Hardware technical requirements and capacity

� Infrastructure and system changes

� Address management

� Training

� Detailed program plan

� Various subsystems required

� Video encoding

� Vehicle impacts

� Material handling & containerization

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> insight > action > transformation

decision/analysis partners LLCwww.decisionanalysis.net

Tel: 703 691 038010400 Eaton Place, Fairfax VA USA

Email: Pierre Kacha: pkacha@decisionanalysis.net

Bernard Markowicz: bmarkowicz@decisionanalysis.net