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Mailer’s Technical Advisory Committee (MTAC) Task Team 2 General Session Presentation November 16, 2010 Mailer’s Technical Advisory Committee (MTAC) Task Team 2 General Session Presentation November 16, 2010

Agenda § § Mission Accomplishments Strategic Initiatives Next Steps/Recommendations 2 Agenda § § Mission Accomplishments Strategic Initiatives Next Steps/Recommendations 2

Issue Statement § Postal Service developed a vision to address cost, quality, and convenience Issue Statement § Postal Service developed a vision to address cost, quality, and convenience in mail acceptance and induction. § Postal Service vision contains 4 strategic initiatives: – – Results-based Automated Verification Centralized Account Management Integrated Customer Support and Feedback Optimized Business Mail Acceptance Network § Purpose - provide direction on the vision strategy and identify approaches to develop the business needs, benchmarks, and process changes to fulfill the strategic vision. 3

Accomplishments § USPS and Mail Industry agree that the four initiatives necessary to achieving Accomplishments § USPS and Mail Industry agree that the four initiatives necessary to achieving strategic goals § USPS and Mail Industry reach consensus on the key objectives of each strategic initiative – Identified high level business needs for each initiative § Collected mail industry input to update Postal Service BMA Vision & Strategy document § Developed recommendations for next steps 4

Business Needs § Enterprise Business Needs – Continuous improvement in service processes – Automation Business Needs § Enterprise Business Needs – Continuous improvement in service processes – Automation and standardization – Make mail more intelligent and valuable medium of communication – Developing flexible networks § BME/PT Business Needs – Superior customer experience – Want to make mail a valuable medium of communication – Making the mail supply chain more effective and efficient 5

Strategic Initiative #1 – Results-Based Automated Verification Description Leverage technologies such as electronic documentation Strategic Initiative #1 – Results-Based Automated Verification Description Leverage technologies such as electronic documentation (e. Doc) and Intelligent Mail Full Service capabilities to automate business mail acceptance and verification processes to keep mail costs affordable and mail desirable as a medium of innovative business communications. Realign labor resources and processing to be sustainable and effective. Leverage Postal. One! system features like e. Induction, Full Service IMD scanning, and e. MIR to transition to Seamless Acceptance providing 24 x 7 mailing access. Key Capabilities Develop a new business model that standardizes USPS acceptance and verification processes for all mail products and mailers’ mailing environments and support a continuous entry of mail. Utilize both historical and/or trending metrics based on mailer mailings over time to determine mail quality assessments. Utilize USPS facility processing quality metrics based on processing over time to be factored into determining mail quality performance Support the promotion of superior mailing supply and quality while adjudicating mail quality deficiencies based on operational impact Provide flexibility to promote innovative mailing campaigns. Cross Functional Partners Mailing Standards Product and Sales Pricing Operations Human Resources (HR)/Labor Mail Service Provider Mail Owners Customer Benefits Automated 24 x 7 customer access to initiate, manage and present mailings. Increased mail manufacturing cycle time Timely notification of business mail quality issues Systemic instead of incident measurement of mailing quality Reduced financial risks due to single incident quality deficiency identification Standardize acceptance and verification processes USPS Benefits More efficient resource utilization/allocation Improved mail quality Improved operational efficiencies 6 Improved SOX compliance

Strategic Initiative #2 – Centralized Account Management Description Enable customers to establish one secure Strategic Initiative #2 – Centralized Account Management Description Enable customers to establish one secure account to mail anywhere in the country. Provide product visibility within the BME network. Enable customers to manage their accounts online and leverage electronic payment methods to eliminate transactions across the retail window and foster e. Commerce. Key Capabilities Establish a centralize account number associated to a single business location. Establish account management features that meet online payment/e. Commerce business needs. Enable the secure access of information in a manner that facilitates continuous business process flows. Provide state-of-the-art best industry practices for security and fraud protection. Cross Functional Partners Mailing Standards Product and Sales Pricing Finance Corporate Treasury HR/Labor Mail Service Providers Mail Owners Customer Benefits Automated 24 x 7 customer access to initiate, manage, and present mailings. Centralized account funding solutions. Flexible payment options Mail anywhere Pay for all products and services (e. g. Return Services, PO Boxes, etc…) Secure and protected financial transactions Simplified and low cost account administrative and management processes Improved customer financial account management USPS Benefits Simplified and low cost account administrative and management processes Significant reduction in hard copy transactions (e. g. checks, refunds) 7 Improved SOX compliance Easier accounting of revenue contribution

Strategic Initiative #3 – Integrated Customer Support and Feedback Description Leverage technology to provide Strategic Initiative #3 – Integrated Customer Support and Feedback Description Leverage technology to provide integrated, dynamic, and relevant customer support systems for an online service that enables better decisions , access to mail piece design self service and mailing preparation standards, and feedback on mailing quality results. Key Capabilities Provide customer support capabilities in a manner that meets the dynamic and continuous operational environment of the mail supply chain. Centralize services to provide access to support that is relevant to the specific business needs Enable the flow of information that is timely, accurate, and relevant to enable supply chain decision support activities. Cross Functional Partners Product and Sales Pricing Finance HR/Labor Mail Service Providers Mail Owners Customer Benefits Automated 24 x 7 customer access to mailing support services. Timely, accurate and consistent information regarding mailing design/preparation rules, processes and decisions 24 X 7 online support for business mail products. Centralized support channels relevant to customer support needs; “how to”, education, general information or technical assistance regarding billing, quality reporting and service issue Timely decision support information regarding mailing quality performance Integrated reporting across mailing manufacturing and supply chain processes USPS Benefits Simplified and low cost administrative and management processes Significant reduction in hard copy transactions (e. g. authorizations, applications, appeals, and other activity) Improved SOX compliance Centralized information and status tracking Constant (24 X 7) and consistent information and communication 8 Improved customer response time

Strategic Initiative #4 - Optimized Business Mail Acceptance Network Description Implement strategies to simplify Strategic Initiative #4 - Optimized Business Mail Acceptance Network Description Implement strategies to simplify and track products, streamline procedures and contain costs. Migrate manual verifications to key induction points, reduce need for Postal Service staff at mailer facilities while standardizing and improving the BMA channel. Consolidate business mail entry and plant induction and business functions. Key Capabilities Optimize and streamline business mailing access and induction to support a diverse mail supplier base and customer needs. Provide inventory management capabilities used by industry best practices and technology to manage and track products throughout the mailing cycle Develop product simplification strategies Standardize and improve the Business Mail Entry channel process to facilitate Induction entry, Online entry, and Office entry channels-optimized for effectiveness and efficiency Cross Functional Partners Operations Pricing Product and Sales Visibility and Performance Mailing Standards HR/Labor Mail Service Providers Mail Owners Customer Benefits Automated 24 x 7 customer access to initiate, manage and present mailings. Business mailing product ease of use Increased mail production cycle times Continuous or more streamlined mailing entry Access to timely mailing management information throughout mailing process Near real-time, centralized mailing status feedback and customer support. USPS Benefits Simplified and low cost administrative and management processes Consistent right-sizing of resource allocation Expanded access channels Reduced inventory Improved mail flow 9 Consistent application of business processes and rules

Next Steps § Recommend MTAC workgroups to develop solution requirements – – Results Base Next Steps § Recommend MTAC workgroups to develop solution requirements – – Results Base Verification (New WG) Integrated Customer support and Feedback (New WG) BMA Network Optimization (New WG) Centralized Account Management (Existing WG 140) § Recommend an oversight governance committee be established to track WG integration and progress § Complete and submit MTAC Issue statements for new work groups § Update RITS with all “enterprise” level issues surfaced § Update and publish the BMA Strategic Vision document Task Team 2 has accomplished its mission and recommends 10 closure.

Closing Good-Bye Questions? Auf Weidersehen Sayonara Ciao Au Revoir L’hitraot Adio s Sla n Closing Good-Bye Questions? Auf Weidersehen Sayonara Ciao Au Revoir L’hitraot Adio s Sla n Kwa Heri