Embed Size (px)
DESCRIPTION
FY 2002, AP 5 Income Statement Revenue $5,051 $5,322 [ $271 ][ 5.1 ] -3.5 Expense 5,078 5, ($ Millions) [ ] = Unfavorable Variance to plan Note: Numbers may not sum due to rounding. %SPLYActualPlanVar%Plan Net Inc (Loss) ($ 27) $ 36 [ $ 63 ] FINANCIAL UPDATE
Citation preview
POSTAL DISTRIBUTIONThe Basics Of Postal Reform
PRIMEX ‘02 ConferenceFebruary 7
FinancialsTransformation PlanProduct Redesign
POSTAL DISTRIBUTION AND REFORMAgenda
FY 2002, AP 5 Income Statement
Revenue $5,051 $5,322 [ $271 ] [ 5.1 ] -3.5
Expense 5,078 5,286 -208 -3.9 -1.7
($ Millions) [ ] = Unfavorable Variance to plan Note: Numbers may not sum due to rounding.
%SPLYActual Plan Var %Plan
Net Inc (Loss) ($ 27) $ 36 [ $ 63 ]
FINANCIAL FINANCIAL UPDATEUPDATE
($ Millions) [ ] = Unfavorable Variance to plan Note: Numbers may not sum due to rounding.
Revenue $25,938 $27,247 [ $1,309 ] [ 4.8 ] -0.2
Expense 25,940 26,650 -710 -2.7 -0.1
%SPLY
Actual Plan Var %Plan
Net Inc (Loss)
($ 3) $ 597 [ $600 ]
FY 2002, AP 5 YTD - Income Statement FINANCIAL UPDATEFINANCIAL UPDATE
FY 2002 , AP 4 YTD - Volume by Class
Volume from Preliminary AP Data - Subject to Change from actual Quarterly RPW Results
0.0-0.9
-7.1
1.1
-4.7
-15.8
-8.3
-1.3
-20.0
-15.0
-10.0
-5.0
0.0
5.0
Total First-Class Priority StandardActual % SPLYPlan % SPLYPlan % SPLY
FINANCIAL UPDATEFINANCIAL UPDATE
FY 2002, AP 5 - Work Hour Trend
-23.1M
-33.0M-30
-25
-20
-15
-10
-5
0
-35
Cumulative Work Hour Reductions (from Prior Year)
Reduced 5600 Career Employees Reduced 11600 Career Employees
FINANCIAL UPDATEFINANCIAL UPDATE
TRANSFORMATION PLAN
Outline For Discussion Published Sept. 30th Stakeholders Comments By January 31–Customers–Suppliers
Focus Groups Ended Jan. 25th– 20 Focus Groups–Citizens and Small Businesses–Urban, Rural, and Suburban
Process
Incremental Operational And Administrative Changes
TRANSFORMATION PLANPhases
Incremental Operational And Administrative Changes
Moderate Legislative Reform
PhasesTRANSFORMATION PLAN
Incremental Operational And Administrative Changes
Moderate Legislative Reform
Structural Transformation
PhasesTRANSFORMATION PLAN
Submit Plan To Congress On March 31
Conduct Additional Stakeholder Outreach
Next StepsTRANSFORMATION PLAN
TRANSFORMATION PLAN
Predictable (Phasing) Price Changes Targeted Pricing–Experiments–Customized Prices
Ease Of Use–DMM Transformation
Corporate Pricing Plan–Pricing Strategy–How we implement
Pricing
TRANSFORMATION PLAN
Information Rich Products Process Chain Simplification Simplified Package Solutions Access Strategy
Product Development
PRODUCT REDESIGN
Products That Meet Customer Needs Products That Reduce Combined
USPS and Customer Costs Products That Fit Future
USPS/Customer Operations Prices That Generate Growth in
Volume and Contribution
What We Want To Accomplish
PRODUCT REDESIGN
Joint USPS/Industry Process Throughout Steering Committee: Strategic Focus
Workgroups: Develop & Refine Proposals
–One Workgroup for Each Major Product
–One or More for Multi-Product Issues Implementation Readiness Teams
–Later in the Process, As Needed
Process
PRODUCT REDESIGN
Provide A Process That Allows All USPS And Customers’ Views To Be Considered Equally And Fairly.
Workgroups’ Operating Principle
PRODUCT REDESIGN
Flexible Cost-Based Presort, Preparation and Entry
Define Additional Worksharing Opportunities Improve USPS Value (Price And Service) To
Customers Incentivize Mailing Practices Which Drive Out
Costs Develop Prices and Products That Generate
Growth In Volume and Contribution
Workgroups’ Goals
PRODUCT REDESIGN
Recognize Different Mailer Capabilities–Retail–Households & Other Single-Piece
Mailers–Commercial (Bulk-Entered Mail)–Mail-Intensive Customers–Moderate Users
Workgroups’ Goals
