Postal Logistics & Transportation Jeff Kruepke Quad/Transportation Services (414) 566-4255 [email protected]

Postal Logistics & Transportation

Jeff Kruepke

Quad/Transportation Services

(414) 566-4255

[email protected]

www.QG.com


– What Is It?– History– Why Do It?– How Is It Done?– Future


What Is It?

Planning And Execution Of The Movement Of Printed Matter Prepared To USPS Specifications From The Final Production Source To The Point Of Acceptance By The USPS

Or…

Delivering Printed Matter Closest To Destination USPS Facilities Based On Cost and/or Time Savings Opportunities

Or…

Dropshipping


When Did It Start?

R90-1 Rate Case (Effective Date 02/03/1991)2CZone Skipping & SCF Discount Previously AvailableDDU/SCF Zones For Ad WeightDDU/SCF Per Piece Discounts

3CDDU/SCF/BMC Piece or Pound Discounts

R97-1 Rate Case (Effective Date 01/10/1999)4C (Parcel Post)

Zone Skipping To BMC Previously AvailableDDU/SCF Rates


Why Do It?

Delivery Performance

Delivering Deeper Into The Postal Network Usually Results In More Predictable Delivery Performance

Predictable Delivery Performance Allows For Synchronizing The Production and/or Transportation Schedule With The In Home Requirements Desired


Why Do It?

In Home Performance (Estimate)Origin Entered (DMU)2 to 17 days

BMC5 to 8 days

ADC/SCF/ASF2 to 4 days

DDU1 to 2 days


Why Do It?

Cost SavingsPeriodicals

Dropship Independent Postage• Per Piece Charges• Bundle Charges

Dropship Dependent Postage• Advertising Weight• Editorial Weight• Container Charge


Periodical Dropship Postage

Advertising Weight Savings CWT

Editorial Weight Savings CWT

Zone DDU SCF ADC

1&2 $7.90 $3.00 $2.00

3 $9.70 $4.80 $3.80

4 $14.30 $9.40 $8.40

5 $21.20 $16.30 $15.30

6 $28.60 $23.70 $22.70

7 $37.40 $32.50 $31.50

8 $45.00 $40.10 $39.10

DDU SCF ADC

$6.60 $2.50 $1.70


Periodical Dropship Postage

Container Charge Savings

Pallet Type DDU SCF ADC

5 Digit $25.75 $18.95 $11.45

3 Digit/SCF N/A $16.28 $10.78

ADC N/A N/A $9.71


Weight Add % Sort Original Zone New Zone Savings CWT

500 0% SCF 5 SCF $5.76

500 10% SCF 5 SCF $7.14

500 20% SCF 5 SCF $8.52

500 30% SCF 5 SCF $9.90

500 40% SCF 5 SCF $11.28

500 50% SCF 5 SCF $12.66

500 60% SCF 5 SCF $14.04

500 70% SCF 5 SCF $15.42

1,000 0% SCF 5 SCF $4.13

1,000 10% SCF 5 SCF $5.51

1,000 20% SCF 5 SCF $6.89

1,000 30% SCF 5 SCF $8.27

1,000 40% SCF 5 SCF $9.65

1,000 50% SCF 5 SCF $11.03

1,000 60% SCF 5 SCF $12.41

1,000 70% SCF 5 SCF $13.79


Why Do It?

Cost Savings

Standard Mail

Dropship Independent Postage• Per Piece Charges• Per Pound Charges

Destination Entry Discounts• 3.3 oz Or Less = Piece Discount• Greater Than 3.3 oz = Pound Discount


Standard Mail Dropship Discounts

Piece Rate - Discount Per Piece

DDU SCF BMC

$0.051 $0.042 $0.033

Pound Rate - Discount Per Pound

DDU SCF BMC

$0.248 $0.203 $0.159


Piece Discount - 3.3 oz (.2063

pounds) Or Less

Pieces Piece Weight Pallet Weight Entry Level Savings CWT

2,424 0.2063 500 DDU $24.73

2,667 0.1875 500 DDU $27.20

4,000 0.1250 500 DDU $40.80

8,000 0.0625 500 DDU $81.60

2,424 0.2063 500 SCF $20.36

2,667 0.1875 500 SCF $22.40

4,000 0.1250 500 SCF $33.60

8,000 0.0625 500 SCF $67.20

2,424 0.2063 500 BMC $16.00

2,667 0.1875 500 BMC $17.60

4,000 0.1250 500 BMC $26.40

8,000 0.0625 500 BMC $52.80


Pound Discount - (Greater Than 3.3

oz)

Pieces Piece Weight Pallet Weight Entry Level Savings CWT

1,000 0.5000 500 DDU $24.80

1,000 0.5000 500 SCF $20.30

1,000 0.5000 500 BMC $15.90

2,000 0.2500 500 DDU $24.80

2,000 0.2500 500 SCF $20.30

2,000 0.2500 500 BMC $15.90


How Is it Done?

Mail.dat

Container Summary DataContainer Type (Pallet/Sack/Tray)Sort Level (5 Digit/SCF/ADC/BMC)Weight

Detail DataBundle Level Detail

Counts By Mail Piece/Zip/Rate LevelMail Piece Unit Detail

Add %Piece Weight


How Is it Done?

Critical Mass

Logistical Analysis• Detailed Study

• News Weekly• Production Constraints• Critical Entry Times (In Home)• Cost

• Simple Study• Desired In Home Window• Cost


How Is it Done?

Load Planning

Creating Critical Mass

Common Delivery Point

Common Delivery Window

Common Availability Window

Origin Consideration

Direct Delivery

Oklahoma City

Saratoga Springs

Jacksonville

Martinsburg

HartfordLomiraPewaukeeSussexWest Allis

The Rock

Nashville

Atlanta

- 100,000 lbs. to Jacksonville, FL out of Lomira- Create 2 straight loads to Jacksonville of 45,000 lbs.- 10,000 lbs. left residual- Multi-stop option

- Take residual product and combine product destined for Nashville and Atlanta to make one full load - Make multiple stops to deliver product

Miami

Regional Delivery

Oklahoma City

Saratoga Springs

Jacksonville

Martinsburg

Ft. Myers

HartfordLomiraPewaukeeSussexWest Allis

The Rock

- 100,000 lbs. to Jacksonville, FL out of Lomira- Create 2 straight loads to Jacksonville of 45,000 lbs.- 10,000 lbs. left residual- Multi-stop option vs. one full load




How Is it Done?

Appointment Scheduling

FAST (Facility Access and Shipment Tracking)

Web Enabled USPS System For Scheduling Dropship Appointments

Currently Standard Mail and Parcel Select Only

Periodicals Soon!

Mail.dat Integration


How Is it Done?

Appointment Scheduling

FAST (Facility Access and Shipment Tracking)

Web Enabled USPS System For Scheduling Dropship Appointments

Currently Standard Mail and Parcel Select Only

Periodicals Soon!


How Is it Done?

Transportation Network

Time and/or Shipment Size = $$$

Best “Value” Option For Shipment

Transit Times

Reliability

Cost


How Is it Done?

Air Freight

Shortest Transit Times

Very Reliable

Very Expensive

Limited Wide Body Service (Palletized)


How Is it Done?

LTL (Including Redelivery Agents)

Published Transit Schedules

Reliable

Cost Effective For Non Critical Mass Deliveries


How Is it Done?

Truckload - Truck

Most Flexible

Reliable

Cost Effective For Critical Mass Deliveries


How Is it Done?

Truckload - Intermodal

Limited Lanes

Generally Longer Transit Times vs Truck

Reliable

Can Be Very Cost Effective (50% vs Truck)


How Is it Done?

Tracking

In Transit (To Postal Facility)EDI Integration

Carrier Web Sites

Check Calls

Delivery (To Postal Facility)EDI Integration

Carrier Web Sites

Check Calls

FAST



How Is it Done?

Tracking

In Transit (within USPS)

Surface Visibility

CONFIRM (Non CART Flats)

Delivery (Final)

Seed Tracking


Future

USPS Sent Strong Signal To Standard Mail

Dropship Discounts Increased > 50%

USPS Sent Mixed Signal To Periodical Mail

Dropship Discounts Decreased For Certain Segments

Low Add % Heavier Pallets

Shape Based Network Will “Shift” Costs From USPS To Mailer

Sample – Atlanta Area

Atlanta SCF

North Metro Atlanta BMCSCF FlatsSCF LettersSCF Parcels

SCF FlatsSCF LettersSCF Parcels

BMC FlatsBMC LettersBMC Parcels

Athens

SCF FlatsSCF LettersSCF Parcels

Sample – Atlanta Area

Atlanta SCF

North Metro Atlanta BMC

SCF LettersSCF Parcels

SCF LettersSCF Parcels

BMC FlatsBMC LettersBMC Parcels

Athens

Periodical FlatsSCF LettersSCF Parcels

BMC Annex

PeriodicalFlats

SCFSTDFlat

SCFSTDFlat

SCFSTDFlat

PeriodicalFlats

PeriodicalFlats

STDLtr


Questions?

Documents

Postal Logistics & Transportation Jeff Kruepke Quad/Transportation Services (414) 566-4255 [email protected]