MAIL NETWORK OPTIMISATION

PROJECT

2

Why MNOP?

|India Post

Mail Network Optimisation project focuses on postal (mail) business, which account above 50% of the department’s revenues

3SOURCE: Postal and saving bank split taken from Demand for grants and the mail revenue split based on the semiannual survey

India Post’s revenuesPercent

100% = INR 5,862 crore

48 52

SB & Financialservices

Postalreceipts

9

22

69

International mail

Speed post

Ordinary and registeredmail

Mail RevenueRough estimates in percent

|India Post 4

There are 3 main reasons why improvement inMail Business is required

1 Based on annual report and book of information 2 Based on 50 extensive and structured interviews with 20 loyal and 30 former Speed Post customers3 EBIT = Earnings before Interest and Tax 4 Mail division only

SOURCE: Mail Network Optimisation Project

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*/09*/05

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EXAMPLES – NON-EXHAUSTIVE

India Post is losing volume and market share significantly

Customers rate India Post low, especially in reliability

India Post's total mail volume, million items p.a.1

0

0.3

-0.1

-0.3

0.1

0.4

-0.1

-0.3

-0.3

-0.2

-0.7

-0.3

-0.3

-0.7

2.7

3.3

3.5

3.5

Condition of goods

3.9

Speed of delivery

4.0

Proof of delivery

4.0Booking process

4.1

Pick up of items

4.1

Reach in rural/semi-urban area

4.1

Product pricing

4.2

Product information

4.2

Product range

4.2

Relationship/3rd party involvement

4.3

Customer service

On-time delivery

Track & Trace mechanism

Loss of goods

0.5

0.2

-0.1

-0.1

-0.5

-0.2

-0.3

-0.5

-0.4

-1.2

-1.0

-0.7

-1.2

-0.9

India Post vs. importance

5 = Critical1 = Not important at all

India Post vs. competition

Importance

5 = Excellent1 = Not acceptable

5 = Excellent1 = Not acceptable

India Post's financial performance is poor compared with that of other players

44

EBIT3 margin of postal operators

4

Customer survey results2

-27%

> *> *> *

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MNOP

Objectives?Scope?

6

The objective of MNOP

– To rationalize the mail network.– To streamline mail operations.– To establish a monitoring system.

India Post 7

SCOPE OF THE PROJECT

GET THE CORE RIGHT

Mail Network to be optimized

Mail Processes to be standardized

Performance should be monitored through effective

mechanisms

MODERNISE THE LOOK AND FEEL

Improve the ambience of mail offices

To be more trustworthy and reliable

Upgrade the processing facilities

Improve working conditions

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The Approach

Pilot project was introduced for Speedpost in 6 major cities

89 Sorting Hubs and 105 Intra Circle Sorting Hubs were identified.

The project has been extended to First Class and Second Class mail to be brought in soon

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STANDARDISATION OF OPERATION OF SPEED POST

Processes at Booking Offices

Optimisation of Network Schedule

Processes at Sorting Hubs

Processes at Delivery POs

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PROCESSES AT BOOKING OFFICE

Booking offices should close

separate bags for TD and Non TD

You should check that it is done, else report the matter in

the DR

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OPTIMISATION OF NETWORK SCHEDULE

RECEIPT FROM POs

NON TD –Sorted first and

schedule should suit the cut off for

connecting Schedule for Other SPCs/sorting

hubs

TD – Sorted while waiting for receipts

from other sorting hubs

RECEIPT FROM OTHER SPCs

TD – Sorted after

receipt and the schedule should suit the cut off

for delivery.

|India Post

Processes at SPC/Sorting Hub

SOURCE: Mail Network Optimisation Project

Layout▪ Assembly Line concept was introduced▪ Mail agency/TMO was streamlined

Improved sorting process▪ Volume based Sorting logic was introduced▪ Sorting diagram was designed to suit this logic▪ New sorting case was designed

Adequate equipments and infrastructure▪ New roller containers, trays, trolleys and bag cutters

were used▪ Computers, scanners, printers and internet connectivity

were provided.

|India Post

Layout of a Sorting Hub

13 SOURCE: Mail Network Optimisation Project

Can you identify your position in this lay out?ove

|India Post

Equipments for Sorting Hub

14 SOURCE: Mail Network Optimisation Project

Sorting Cages

Bag cutter and stool Tray trolleysRoller containers

15

Processes at Delivery PO

All mail delivery related branches were brought under one roof and lay out was standardized

Stamp Cancellation machines were used Postmen were involved in beat sorting activity Delivery status were fed into Speednet

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• To include the before photo of SPC

BEFORE MNOP

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• To include the After Photo of SPC

AFTER MNOP

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KPI – Key Performance Indicator.

KPI – a set of parameters, used to define and measure progress towards organizational goals.

Thorough this the performance of your office will be monitored regularly by your Higher ups

Your role in making your office a better one is very much essential.

Scanning of all the Mails received and despatched plays a vital role.

|India Post

What information does the "scan compliance KPI" provide?

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Available breakdowns

Example

Description

Share of scan compliance Articles with full scan history

▪ KPI identifies actual number of scans available against prescribed scans

▪ KPI identifies number of articles with full scan

Illustrative TD example

Booking post office

Booking scan

Dispatch scan

SPC

Receipt scan

Dispatch scan

Delivery post office

Receipt scan

Delivery scan

KPI: Full scans(%)Article

12345

Per SPC

TD vs. NTD

By sector (e.g., Mumbai to Delhi)

Leg-by-leg analysis

1

2

3

4

100 60 40 100 20 80 20KPI: Share of scans (%)

SOURCE: Mail Network Optimisation Project

2

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Scan compliance – No of Scans

• Articles Booked at PO/SPCC–TD Articles: 8–NTD Articles: 12

• Articles Booked at BNPL centre/ MBC/ OSA facility/ BPC–TD Articles: 5–NTD Articles: 9

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Scans for TD Articles Booked at PO/ SPCC

PO/SPCC Booking Scan

PO/SPCC Despatch

Scan

SPCC MA/TMO Reciept Scan

SPCC Bag Opening Scan

SPCC Bag Closing Scan

SPCC MA/TMO Despatch Scan

Delivery PO receipt

Scan

Delivery PO Final Delivery Scan(Delivery data upload)

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Scans for Non TD Articles Booked at PO/ SPCC

PO/SPCC Booking Scan

PO/SPCC Despatch

Scan

Origin SPCC MA/TMO

Receipt Scan

Origin SPCC Bag Opening

Scan

Origin SPCC Bag Closing

Scan

Origin SPCC MA/TMO

Despatch Scan

Destination SPCC MA/TMO Receipt Scan

Destination SPCC Bag

Opening Scan

Destination SPCC Bag

Closing Scan

Destination SPCC MA/TMO Despatch Scan

Delivery PO receipt

Scan

Delivery PO Final Delivery Scan(Delivery data upload)

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Scan of TD articles booked at BNPL centre/ MBC/ OSA facility/ BPC

Booking Office Booking Scan

Booking Office

Despatch Scan

Mail Agency Despatch Scan

Delivery PO receipt Scan

Delivery PO Final Delivery Scan(Delivery data upload)

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Scan of Non TD articles booked at BNPL centre/ OSA facility/ BPC

Booking Office Booking Scan

Booking Office

Despatch Scan

Mail Agency

Despatch Scan

Destination SPCC MA/TMO Receipt Scan

Destination SPCC

Bag Opening

Scan

Destination SPCC

Bag Closing Scan

Destination SPCC

MA/TMO Despatch

Scan

Delivery PO receipt Scan

Delivery PO Final Delivery Scan(Delivery data upload)

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• Now can you identify your role in making your office a better one?

MNOP for First Class Mail

India Post 27

• Existing network has been rationalized and a two tier structure of mail office i.e Level 1(L1) and Level 2(L2) has been created.

• Fragmentation in mail processing has been minimized, especially in metro cities.

• Bag closing arrangement has been revised with a view to expedite a majority of mail.

• All post offices have been mapped to mail offices in a comprehensive manner.

India Post 28

Mails from POs to Mail Office

• From LBs and counters

BOs

• From BOs• From LBs

and counters

HOs/SOs

Mail Office (L1 or L2)

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Mail Flow

Your office L-1 (Mail Office / PH /

EPH) L-2 Offices within Circle

Other L-1 Offices

Post Offices

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Mail Flow

Your office L-2 (Mail Office / PH )

L-1 & L-2 Offices within Circle

Post Offices

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Mail Flow

Your office NSH ICH within

Circle

Other NSH

Post Offices

ICH mapped with parent NSH

Post Offices

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Mail Flow

Your office ICH

NSHs & ICHs within Circle

Post Offices

Monitoring system

• All mail offices handling registered articles would be computerized, and barcode and scanning of registered articles at CRCs has been started.

• KPI for registered mail are being designed.• For unregistered mail, a new test letter

program has been set up• A bag receipt and dispatch monitoring

system for unregistered mail has been started.

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