Welcome

Kinston, NC P&DF

Area Mail Processing (AMP) Study

November 4, 2009

Slide 2

Agenda

• AMP Video

• PowerPoint Presentation

• Question & Answer Period

• Close

Area Mail Processing (AMP)Area Mail Processing (AMP)

Slide 3

AMP Video

AMP Video Clip

Slide 4

• AMP (Area Mail Processing)Consolidation of all outgoing or all incoming mail processing operations from one or more facilities into other automated processing facilities for the purpose of improving operational efficiency and/or service.

• Effective process used for decades to help us adjust to changes in the environment

Area Mail Processing (AMP)Area Mail Processing (AMP)

Slide 5

The Need for ChangeThe Need for Change

• Postal Service faces “Acute Financial Crisis”

• Rise in Electronic Communications

• Economic Recession

• Change in Mail Mix – Increase in Work Sharing and Drop Shipments– Decrease in First-Class Mail Volume

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The Need for ChangeThe Need for Change

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

FY 199

8

FY 199

9

FY 200

0

FY 200

1

FY 200

2

FY 200

3

FY2004

FY2005

FY2006

FY2007

FY2008

To

tal

Pie

ce

Vo

lum

e (

in '0

00

s)

First-Class Single Piece

~ 29%declinesince 1998

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Benefits of Consolidation

• Puts the Right People in the Right Place with the Right Resources

• Utilizes Equipment Efficiently • Reduces Cost• Does Not Affect Customer Services• Supports Our Network Plan

Positive OutcomesPositive Outcomes

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Service

• Service Standards for First-Class Mail– Upgrades to Overnight Service

• Customer & Delivery Services– Delivery Services – Customer Services

• Retail Hours• Business Mail Acceptance• Drop Shipment

Common ConcernsCommon Concerns

Slide 9

• Jobs

– Impacted Jobs

• Community Identity

– Local Postmark Remains Available

– Meter and Permit Indicia Do Not Change

Common ConcernsCommon Concerns

Slide 10

Kinston to FayettevilleKinston to Fayetteville

Travel Distance 88 miles

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Benefits from consolidation

• Approximately $1.3M annual savings

• Maximize resources

• Reduce excess capacity

• Eliminate duplicate operations

• Focus on remaining operations

Kinston to FayettevilleKinston to Fayetteville

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• Delivery times are not affected

• Retail services are not affected

• Meter and permit indicia do not change

• No change in hours for business mail acceptance

• Drop shipments at Kinston continue

Kinston to FayettevilleKinston to Fayetteville

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Potential employee impact

• Projected net decrease of 19 positions

• Reassignments will be made in accordance with union collective bargaining agreements

Kinston to FayettevilleKinston to Fayetteville

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• Reduces Costs

• Improves Efficiency

• Puts the Right People in the Right Place with the Right Resources

• Transparent to Customer Services

• Supports our Strategic Plan

SummarySummary

Slide 15

QUESTIONS and COMMENTS

Please come to the microphone and state your:

NAME and BUSINESS AFFILIATION

Question & Answer PeriodQuestion & Answer Period

Slide 16

Mail additional comments to:

CONSUMER AFFAIRS MANAGER

MID-CAROLINAS DISTRICT

2901 SCOTT FUTRELL DRIVE

CHARLOTTE NC 28228-9976

Must be postmarked no later than November 19, 2009

Question & Answer PeriodQuestion & Answer Period