improving the drop shipment process mtac workgroup 87 update
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Improving the Drop Shipment ProcessMTAC Workgroup 87
Update
Washington, D.C.August 2, 2007
2
MTAC #87MTAC #87
Agenda
• Mailer Rating Pilot
• National Deployment
• Next Steps
3
MTAC #87MTAC #87
Mailer Rating Pilot Status
• Executing the Mailer Rating Pilot (June 22 – August 17) at the following facilities:
• CEDAR RAPIDS Plant in Cedar Rapids, IA
• DES MOINES BMC in Des Moines, IA
• INDUSTRY Plant in Industry, CA
• QUEENS Plant in Flushing, NY
• NEW YORK Plant in New York, NY
• Weekly teleconferences are being held with the mailers, FAST coordinators, and Surface Visibility coordinators at pilot facilities
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MTAC #87MTAC #87
Top Four Areas of Improvement
1. No Show Appointments in FAST– At the pilot facilities from 6/16 to 7/13, 12.6% of all appointments resulted in a no show– The mailer with the highest number of No Show appointments at a given pilot facility had 11 out of the 89 total No
Show appointments for that facility.– Nationally from 6/16 to 7/13, 22.1% of all appointments resulted in a no show
2. Unscheduled Arrivals with valid Scheduler IDs in FAST– At the pilot facilities from 6/16 to 7/13, 6.1% of all arrivals were unscheduled– The mailer with the highest number of Unscheduled Arrivals at a given pilot facility had 12 out of the 112 total
Unscheduled Arrivals for that facility.– Nationally from 6/16 to 7/13, 2.9% of all arrivals were unscheduled
3. Cancelled Appointments in FAST– At the pilot facilities from 6/16 to 7/13, 4.7% of all appointments were cancelled– The mailer with the highest number of Canceled appointments at a given pilot facility had 16 out of the 61 total
Canceled appointments for that facility.– Nationally from 6/16 to 7/13, 4.6% of all appointments were cancelled
4. Recurring Appointments in FAST– At the pilot facilities from 6/16 to 7/13, 6.2% of all recurring appointments were No Shows– The mailer with the highest number of late arrivals for recurring appointments at a given pilot facility had 23 out of the
48 total late arrivals for recurring appointments for that facility.– Nationally from 6/16 to 7/13 recurring appointments represented 22.1% of all No Shows
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MTAC #87MTAC #87
Mailer Rating Pilot - Mailer Questions/Issues
Questions/Issues raised by mailers have included:
• Early arrivals and impact on rating
• Multi-stop appointments and impact on rating when USPS delays occur
• USPS requirement for appointment IDs on PS Form 8125. Drivers will need to contact dispatch/scheduler to obtain an Appointment ID. If an Appointment ID is unobtainable, then the Scheduler ID must be provided
• Manual entry of appointment number on PS Form 8125 is not considered as altering the PS Form 8125
• Acquiring return receipt of signed PS Form 8125. If mailers provide 2 copies of PS Form 8125, USPS will return a signed copy to the driver
• Discrepancy between FAST Closeout Data vs. the signed PS Form 8125
Please contact facility to address the issue within 120 hours of appointment date/time. If no response is returned from the facility within 1 business day, please contact Prat Shah from Operations
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MTAC #87MTAC #87
Surface Visibility Scan Utilization
Average Pilot Facility SV Drop Shipment Utilization
58%
1%
36%
60%
1%
38%
33%
62%
1.3%
26%
71%
3%
30%
67%
3%
2%
54%
44%
76%
23%
1%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Not Completed by SV Completed by SV Partially Completed bySV
Interaction with Surface Visibility
Per
cen
tag
e o
f A
pp
oin
tmen
ts
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MTAC #87MTAC #87
• Current Functionality
Four or less slots will be allocated to tiers automatically
– 1 slot per hour (Tier 4)
– 2 slots per hour (Tiers 4, 3)
– 3 slots per hour (Tiers 4, 3, 2)
– 4 slots per hour (Tier 4, 3, 2, 1)
Five or more slots will be distributed based on tier percentage
Partial Slots are not allocated. Tier 4 receives all slots that are not allocated to a specific tier
Tier Percentage and Slot Allocation – Current Functionality
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MTAC #87MTAC #87
Tier Percentage and Slot Allocation - Proposed Functionality
• Proposed Functionality
Slot allocation will always award the first slot to tier 4
Remaining slots distributed based on tier percentage and the “trickle down” effect starting with Tier 1
Additionally, if the distribution equals 0.6 of a full slot or greater, a full slot will be allocated to tiers 1, 2 and 3
The remaining slots will be assigned to tier 4 if not utilized in other tiers
Partial Slots will carry over to the next available tier:
– If distribution < 0.6
– If a fractional slots remain after allocation (e.g. 0.2 slots will be carried to tier 2 if 1.2 slots are allocated to a tier 1 based on tier percentage)
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MTAC #87MTAC #87
ANY FACILITY (ABC)
Example - Slot Allocation Conversion
Percentage of Total Appointments Scheduled for
Each Tier
Number of Pallet Slots per Hour
Current Functionality - 4 Slots At 8 PM (See Below)
Proposed Functionality – 4 Slots At 8 PM (See Below)
TIER 1 30% 1 slot 1 slot
TIER 2 15% 1 slot 0 slot
TIER 3 15% 1 slot 1 slot
TIER 4 40% 1 slot 2 slots
Current functionality with 4 Pallet Appointments at 8 PM
Four or less tiers are distributed without regard to tier percentages
Tier 1: 1 slot allocated
Tier 2: 1 slot allocated
Tier 3: 1 slot allocated
Tier 4: 1 slot allocated
Proposed functionality with 4 Pallet Appointments at 8 PM
First Slot awarded to Tier 4 with 3 Slots Calculated by Tier Percentage
Tier 1: 3 X .30 = .90 (1 slot rounded up)
Tier 2: 3 X .15 = .45 (0 slot rounded down)
Tier 3: (3 X .15)+.45 = .90 (1 slot rounded up)
Tier 4: (3 X .40) = 1.20 (1 slot awarded + 1 slot remaining = 2 slots)
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MTAC #87MTAC #87
ANY FACILITY (ABC)
Example - Slot Allocation Conversion
Percentage of Total Appointments Scheduled for
Each Tier
Number of Pallet Slots per Hour
Current Functionality - 6 Slots At 8 PM (See Below)
Proposed Functionality – 6 Slots At 8 PM (See Below)
TIER 1 30% 1 slot 1 slot
TIER 2 15% 0 slot 1 slot
TIER 3 15% 0 slot 1 slot
TIER 4 40% 5 slots 3 slots
Current functionality with 6 Pallet Appointments at 8 PM
Tier 1: 6 X .30 = 1.8 (1 slot rounded down)
Tier 2: 6 X .15 = 0.9 (0 slot rounded down)
Tier 3: 6 X .15 = 0.9 (0 slot rounded down)
Tier 4: 6 X .40 = 2.4 (5 slots remaining)
Proposed functionality with 6 Pallet Appointments at 8 PM
First Slot awarded to Tier 4 with 5 Slots Calculated by Tier Percentage
Tier 1: 5 X .30 = 1.5 (1 slot rounded down)
Tier 2: (5 X .15)+.50 = 1.25 (1 slot rounded down)
Tier 3: (5 X .15)+.25 = 1.00 (1 slot rounded down)
Tier 4: (5 X .40) = 2.00 (1 slot awarded + 2 slots remaining = 3 slots)
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MTAC #87MTAC #87
National Deployment
• Mailer Rating National Deployment will be based on a phased approach by area
Deployment will include FAST SV enabled sites with 80% SV drop ship compliance or better
Deployment Approach based on mailer/facility performance by area
Deployment will span 3 months beginning August 18 (immediately following pilot)
• Mailer Rating National Deployment will continue communicating to mailers and facilities
• Deployment team will continue teleconferences with mailers and facilities to help familiarize rating rules and review weekly metrics
• Mailers should look at FAST rating reports to determine if operational changes need to be made to improve their rating score for each drop shipment facility
• Mailer Rating National Deployment Plan
Phase I: 1 Area; Western
Phase II: 3 Areas; Great Lakes, Southwest, Eastern
Phase III: 5 Areas; NY Metro, Capital Metro, Pacific, Northeast, Southeast
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MTAC #87MTAC #87
National Deployment- Fall Mailing Season
• Mailers expressed concern about national deployment during fall mailing season
• Mailers agreed based on:
Review of pilot data for accuracy
SV sites at 80% compliance or higher only
Willingness to closely monitor facilities
Ability to "turn-off" a facility if problematic
Agreement to "take action" if impacting the fall mailing season
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MTAC #87MTAC #87
Mailer Rating Timeline
Mailer Rating Pilot
July OctAug SeptJuneMay Nov
Communication
Preparation
Execution6/22/2007
National Deployment*
Phase I - Western
Phase II - Great Lakes, Southwest, Eastern
Phase III - NY Metro, Capital Metro, Pacific, Northeast, Southeast
Dec
08/18/2007
09/15/2007
10/20/2007
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MTAC #87MTAC #87
Next Steps
• Complete Mailer Rating Pilot
• Continue communicating National Deployment schedule to mailers and facilities
• Begin National Deployment Phase I
• Review National Deployment status at next MTAC 87 meeting
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