Prototype equipment will be tested in 2006 for possible deployment starting in 2008. The Postal Service expects more rapid deployment of flats sequencing than it achieved for letter sequencing given the experience gained from that earlier effort. Industry participation is critical as this technology evolves. Postal and industry efforts will focus on ensuring that the lowest combined processing costs are realized as flats sequencing may require some changes to mail make-up and entry at high-volume locations. The Postal Service will work with customers to maximize the number flats barcoded to delivery point. Concurrently, the Postal Service will study standardized work methods related to flat sorting because the equipment will significantly alter delivery operations.

The Postal Service will create route structures that reduce office time and capture savings from improvements in street productivity, automation, and the handling of undeliverable-as-addressed mail. The current standardization of morning delivery operations will be expanded by standardizing operations on the street and when carriers return to the office. The goal is to decrease variance in office time and help reduce the number of routes. An alternative approach to delivery, where office work is de-coupled from street work, will be explored. The Postal Service also intends to consider new delivery strategies to redefine how mail is delivered. New approaches to street delivery are essential to control the overall cost of delivery and ensure the continued affordability of mail.

The Carrier Optimal Routing (COR) system introduced in 2004 will help design more efficient routes to minimize street time, reduce vehicle-related expenses, and establish safer lines of travel. COR will be used to make initial route adjustments that can result in immediate savings. It will also be beneficial to prepare for future route restructuring required by implementation of flats sequencing.

The Postal Service must address the need to replace or retrofit the current fleet of 180,000 delivery vehicles over time. The fleet includes 142,000 long life vehicles (LLVs) that are an average of 14 years old, with some as old as 18 years. The Postal Service is examining options to extend the LLV's 24-year service life. However, it must address other factors as well, including the need to reduce life-cycle costs and improve safety, fuel consumption, and maintenance requirements. The Postal Service is working with the automotive industry to evaluate prototype and off-the-shelf replacement vehicles. Significant capital investments are planned to replace or retrofit the aging delivery fleet. The Vehicle Operations Information System will be implemented in 2006, providing actionable maintenance and management data for improved control of vehicle cost per delivery. The Postal Service will strive to further expand adoption of alternative fuel vehicles.