Special Updates from the U. S. Postal Service

Issued: March and April 2011

CONTENTS

March 25, 2011

PMG PATRICK DONAHOE REACTS TO PRC DECISION ON FIVE-DAY MAIL DELIVERY ›

PMG CONTINUES EFFICIENCY IMPROVEMENTS ›

SUPPLY MANAGEMENT ORGANIZATIONAL REDESIGN ›

March 29, 2011

PMG ANNOUNCES APPOINTMENT OF NEW DEPUTY POSTMASTER GENERAL ›

April 11, 2011

POSTAL SERVICE HONORS SUPPLIERS FOR OUTSTANDING PERFORMANCE ›

PMG PATRICK DONAHOE REACTS TO PRC DECISION ON FIVE-DAY MAIL DELIVERY

Postmaster General Patrick Donahoe issued the following statement today.

“We have received the Commission’s advisory opinion on our proposal to move to a five-day delivery schedule. We have been awaiting the document and look forward to studying the views expressed by the Commissioners. Five-day delivery is an integral part of our action plan for the future.

“It’s important to remember that the Postal Service came well-prepared to this undertaking. Based on extensive outreach to our customers and other stakeholders, we developed an operational plan, analyzed the potential cost savings, and conducted extensive market research to document customer reaction and estimate mail volume changes that could result from implementation of this plan.

“Following tremendous losses in mail volumes and revenues, the Postal Service remains in the midst of a period of great financial instability. On March 30, 2010, we presented a compelling case to the PRC, reflected in the testimony of Postal experts in operations, marketing and finance, as well as a highly respected market research firm and academician. Their testimony demonstrated that the plan would effect a $3.1 billion annual saving and allow the Postal Service to continue providing excellent service in an economical and efficient manner.

“The Commission’s opinion is advisory only, and therefore, is not a final determination on the merits of our proposal. We remain convinced of our findings. As such, we will also continue to press our case with the Congress on this matter.”    
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PMG CONTINUES EFFICIENCY IMPROVEMENTS
LAYERS ELIMINATED, EXECUTIVE RANKS REDUCED

Postmaster General Patrick Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented, will help realize approximately $750 million of annual cost savings.

“I am confident that we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure. One that is fair to our employees and one that will meet the future needs of our customers and the mailing industry,” Donahoe said.

About 7,500 positions will be eliminated across the organization through the redesign that also includes the closing of seven district offices, and offers voluntary early retirement and limited financial incentives to those who meet specific qualifications.

The seven district offices that are closing are Columbus, Ohio; Southeast Michigan/ Troy, MI; Northern Illinois/ Carol Stream, IL; Southeast New England/ Providence, RI; Southern Georgia/ Macon, GA; Big Sky/ Montana (Billings); and Albuquerque, NM. District offices house only administrative functions and do not affect customer service, mail delivery, Post Office operations or ZIP codes. The functions of these seven districts will be assumed by district offices within close proximity.

“It’s critical that we adjust our workforce to match America’s changing communications trends as mail volumes continue to decline,” Donahoe said. “At every step and with every change, our focus remains on our customers and continuing to provide outstanding customer service.”

Today’s announcement focused on the administrative and executive corps. Additional staff reductions will occur as the Postal Service makes necessary changes to its network and retail operations. The full scope and financial impact of these personnel actions should be realized in one calendar year, by March 2012.

While cost savings will be realized, the main objective of the restructuring is to enhance and strengthen customer service and relationships. The realignment flattens the organization, enabling flexibility to more quickly adapt to changing market forces and continuing mail volume decline.

The Postal Service is streamlining operations and improving efficiencies across the organization in order to protect its ability to provide affordable, universal mail service. By modifying networks, consolidating functions and restructuring administrative and processing operations, the Postal Service is adapting to meet the evolving needs, demands and activities of its customers.

“Mail remains valuable. It is at the heart of a $900 billion industry that continues to drive commerce and the American economy,” Donahoe said. “We will continue to work with Congress and our employees to achieve the long-term, structural and legislative changes we know we need to remain a viable organization.” Back to Top ›

SUPPLY MANAGEMENT ORGANIZATIONAL REDESIGN
SUPPLIER RELATED Q&A

Consistent with the USPS organizational redesign goals, supply Management (SM) announced its restructure to better align with corporate strategies, improve operational efficiencies, reduce costs, and maintain high levels of service. “SM is charged to develop and implement world class supply chain management strategies through effective execution of sourcing, contract and asset management, and I am confident this new structure will allow us to more effectively carry out this mission, “ Susan M. Brownell, Vice President, Supply Management told the SM organization on Thursday. She further stated, “We have redesigned the organization to consolidate supply chain management activities into SM, realign related commodities and portfolios to maximize supply markets and leverage spend, and align SM with the overall corporate objectives.”

Supplier Q&A

Question: What does the new Supply Management structure look like? The attached slides show the overall Supply Management structure.

Question: When will it take effect?The overall USPS redesign effort will take the remainder of the 2011 fiscal year to complete. The transition will be a phased approach as each organization is staffed and responsibilities are shifted to the new organizations. Until this transition occurs, the current resources will continue to perform the duties as currently assigned.

Question: Will I have a new contracting officer for my contract as a result of this reorganization? It is too early to tell at this point, but if a change occurs you will be notified by your Contracting Officer.

Question: Will we hear more about the overall redesign to include information on what the rest of the USPS organization looks like? As information about the overall redesign is publicly released by each organization, it will be available on www.USPS.com. Back to Top ›

PMG ANNOUNCES APPOINTMENT OF NEW DEPUTY POSTMASTER GENERAL

The Postmaster General today announced the appointment of Ronald A. Stroman as Deputy Postmaster General (DPMG). Stroman, who most recently served as staff director, Committee on Oversight and Government Relations at the U.S. House of Representatives, will bring more than 30 years of professional experience in government, legislative affairs and leadership when he joins USPS as DPMG April 4.

As DPMG, Stroman will lead all outreach and communications with congressional and mailing industry leaders, as well as help ensure that every customer experience is a positive one.

The DPMG position, like the Postmaster General position, is hired by the USPS Board of Governors. As DPMG, Stroman will serve on the board and on PMG Pat Donahoe’s Executive Leadership Team. The vice presidents of Government Relations, Corporate Communications and Consumer and Industry Affairs, and the Judicial Officer will report to Stroman.

“The board is pleased that Ron has accepted this appointment,” said Board Chairman Louis Giuliano. “His depth of understanding of the legislative process, as well as his demonstrated ability to work with members on both sides of the aisle, makes him an important addition to the USPS team as we work through the many issues facing us today.”

As DPMG, Stroman will play the lead role in continuing to work with Congress to restructure the prefunding of retiree health benefits, adjust delivery frequency, and gain greater flexibility in aligning the Postal Service processing, distribution and retail networks. He will work closely to help strengthen relationships with the mailing industry and identify opportunities to improve interactions with postal customers.

Stroman has held senior positions at the U.S. House of Representatives, the General Accounting Office and the U.S. Department of Transportation, among other positions. He earned his Juris Doctorate from Rutgers University Law Center.

“A manager and a leader, Ron’s career is a testament to his ability to work in a bipartisan fashion and communicate effectively through challenge and change,” said Donahoe. “I look forward to working closely with Ron as we continue our evolution as a forward-thinking, fast-acting company with outstanding service as its foundation.” Back to Top ›

POSTAL SERVICE HONORS SUPPLIERS FOR OUTSTANDING PERFORMANCE

THIRTEEN COMPANIES RECOGNIZED FOR DELIVERING OPTIMUM SOLUTIONS

Back Row (Left to Right): Mari Snyder, Vice President, Social Responsibility and Community Engagement, Marriott International, Inc.; Patrick R. Donahoe, Postmaster General and CEO, U.S. Postal Service; Yves Badaroux, General Manager, Marriott Hotel Services, Inc.; Susan M. Brownell, Vice President, Supply Management, U.S. Postal Service; Cassie Ellis, National Account Operations Coordinator, Eaton Corporation; Dan Schultz, Vice President and General Manager, Lockheed Martin; Harry H. Mellon, Chairman, The Gordian Group; Robert M. Vacek, President and Chief Executive Officer, Western Industrial Contractors; Dennis Stoker, Partner, IBM Corporation; Kelly M. Sigmon, Vice President, Engineering Systems, U.S. Postal Service; Todd Brekke, General Manager, Hallmark Custom Marketing; Stacy Kohlmeier, Vice President, Marketing and Sales, Florence Manufacturing Company; Dale Grant, Executive Vice President, NCR Corporation. Front Row (Left to Right): Brenda Etzel, Global Account Manager, Eaton Corporation; Mark Hanna, Vice President, Government Sales, W.W. Grainger, Inc.; Ian Cato, Managing Partner, Lean Sigma Professionals; John Kassiri, Senior Client Manager, Foth Production Solutions, LLC; Robbie Anderson, President, United Cargo.

The U.S. Postal Service has honored 13 companies for superior supply chain performance and delivering optimum solutions that reduce costs, enhance performance, maintain high levels of service and provide innovative and sustainable solutions.

At a recent ceremony at Postal Service headquarters, the 2010 winning companies received awards in six categories: Supplier Performance, Supplier Excellence, Supplier Innovation, Supplier Diversity, Supplier Sustainability Excellence, and Postal Supplier Council Excellence.

“Your continued innovative ideas will help the Postal Service grow the business, improve the customer experience, and become leaner, faster and smarter,” said Postmaster General Patrick R. Donahoe. “Your partnership has enabled us to accomplish good things, and I appreciate that you’ve given your best to the Postal Service and to the American people.”

Susan Brownell, vice president, Supply Management, helped present the awards. “Suppliers play a key role in the success of the Postal Service,” said Brownell. “You are the cream of the crop and serve as role models to thousands of suppliers. You help us deliver excellent service to our customers each day, and I hope to see you here again next year.”

The 2010 winners are:

Eaton Corporation, Cleveland, OH
Supplier Performance Award

Eaton Corporation provides power distribution maintenance services for electrical switchgear equipment in Postal Service facilities nationwide.

Kevin McLean, senior vice president, Global Marketing “Eaton proudly accepts the U.S. Postal Service Supplier Performance Award for operational excellence in executing our National Switchgear Predictive and Preventive Maintenance contract. We appreciate being nominated by postal professionals and this is recognition of Eaton’s exceptional electrical business and our dedication to serving the USPS and other public sector customers.”

Hallmark Custom Marketing, Kansas City, MO

Supplier Performance Award

Hallmark Custom Marketing provides ReadyPost Postal Service-branded retail packaging and mailing supplies sold in Postal Service retail lobbies nationwide.

Donald J. Hall Jr., president and CEO, Hallmark Cards, Inc.

“The USPS is an important partner, and we value our relationship, built on a long-standing and shared commitment to quality and service. We are pleased Hallmark was chosen to receive this honor, one that epitomizes the high standards of the Postal Service for providing superior service to its customers.”

NCR Corporation, Duluth, GA

Supplier Performance Award

NCR Corporation provides retail equipment, software and services.

Bill Nuti, chairman and chief executive officer

“NCR is truly honored to receive the Supplier Performance Award from the U.S. Postal Service. This award reflects NCR's dedication to the USPS mission by delivering superior customer service, solutions and software that operate and support their Post Offices nationwide. NCR takes great pride in its partnership with USPS and we look forward to building on our partnership for many years.”

United Cargo, Chicago, IL
Supplier Performance Award

United Cargo provides mail and package air transportation services.

Robbie Anderson, president

“The airline that evolved into United was formed in 1926 for the purpose of carrying mail, and the United States Postal Service has been our largest customer since United Cargo began. So we are honored and gratified to be selected as a 2010 USPS Supplier Performance Award winner. We work very hard to achieve performance excellence across our global mail network, and we’re very proud that the Postal Service recognizes our efforts. As we complete our merger integration into the world’s leading carrier, we anticipate even greater success in our collaboration with the USPS.”

W.W. Grainger, Inc., Lake Forest, IL

Supplier Performance Award

W.W. Grainger provides maintenance, repair, and operations (MRO) supplies to postal facilities nationwide.

Mark Hanna, vice president, Government Sales

“On behalf of the entire Grainger team, we’re honored to receive the U.S. Postal Service Supplier Award. Our team members across the country work hard each day to make it fast and easy for postal professionals to get the products they need to repair, maintain and operate their facilities. We do this as part of our commitment to helping the Postal Service enhance its bottom line performance and achieve its mission of providing mail service to the American public. We look forward to continuing to work with the Postal Service to achieve these goals.”

The Gordian Group, Mauldin, SC

Supplier Excellence Award

The Gordian Group provides job order contracting services for facility construction projects.

Robert D. Coffey, president and CEO

“The Gordian Group is honored and touched to be receiving this award. We hold our relationship with the USPS and our many teammates there in the highest regard and are proud of the significant strides we have made together in developing and implementing a job order contracting program that provides such significant benefits. The success of the program is due to dozens of people in both of our organizations who rolled up their sleeves and got this work accomplished. This prestigious award is due to their effort, and I want to take this opportunity to thank them for it.”

Western Industrial Contractors, Aurora, CO

Supplier Excellence Award

Western Industrial Contractors provides material handling and mechanization products and services.

Robert M. Vacek, president and chief executive officer

“On behalf of the entire Western Industrial Contractors team, we value and appreciate this recognition from the USPS. Western has supported the USPS as a certified engineering, fabrication, installation and integration contractor for more than 12 years and over these years has enjoyed the relationships we have built with professionals throughout the organization. These relationships have been critical to our ability to evolve our capabilities and successfully complete numerous fixed mechanization and modernization projects at facilities throughout the country.”

Florence Manufacturing Company, Manhattan, KS

Supplier Innovation Award

Florence Manufacturing provides mail collection boxes, distribution equipment and related supplies and services.

Stephen Duffy, president, Engineered Products Group - Gibraltar Industries, Inc.

“Florence Manufacturing is deeply honored to receive this award for Supplier Innovation from the U.S. Postal Service. It is especially meaningful to the team of Florence associates who support USPS on a daily basis and because of the importance we place on driving innovation in our own business processes to provide high quality solutions for all our customers. We look forward to supporting the Postal Service in ways that continue to help it move forward in achieving its important mission and business objectives.”

Lean Sigma Professionals, Charlotte, NC

Supplier Innovation Award

Lean Sigma Professionals provides consulting and training services in Lean Six Sigma methodologies.

Ian Cato and Ismael Sanchez, managing partners.

“Working with the dedicated members of the Postal Service to help this storied institution execute to its maximum efficiency has been our privilege. Being presented with the Supplier Innovation Award is a great honor and a testament to the fact that the Lean Six Sigma methodology can generate significant sustainable savings.”

Eaton Corporation, Cleveland, OH

Supplier Diversity Award

Eaton Corporation provides power distribution maintenance services for the electrical switchgear equipment in Postal Service facilities nationwide.

Kevin McLean, senior vice president, Global Marketing

“Eaton gratefully accepts the U.S. Postal Service Supplier Diversity Award, which is recognition of our commitment to doing business right. Eaton believes that a diverse supplier base is vital to the success and continued growth of our company and the community. We are honored to know the Postal Service appreciates our commitment.”

IBM Corporation, Armonk, NY

Supplier Diversity Award

IBM provides the Postal Service with business consulting services, mail transit time measurement, and software services.

William Takis, partner

“IBM is honored to be selected as a recipient of the 2010 USPS Supplier Diversity Award. This award exemplifies IBM’s commitment to supplier diversity in both our workforce and supply chains. The United States Postal Service continues to lead the way in both supporting and ensuring supplier diversity through its continued support and emphasis on ensuring that small, minority, and women-owned businesses continue to be a major player in its critical mission. Through this award, IBM is proud to be recognized as a leader in the area of supplier diversity.”

Lockheed Martin, Baltimore, MD

Supplier Diversity Award

Lockheed Martin provides the Postal Service with automation equipment and information technology services.

Dan Schultz, vice president and general manager, Lockheed Martin Ship & Aviation Systems

“We are honored to have received this recognition from the U.S. Postal Service. This award is a testament to the good working relationship between Lockheed Martin and the U.S. Postal Service to deliver high-quality products to our customers.”

Marriott Hotel Services, Inc., Bethesda, MD

Supplier Sustainability Excellence Award

Marriott Hotel Services, Inc., manages the National Employee Center for Development (NCED), a living, learning and conferencing campus in Norman, OK.

Mari L. Snyder, vice president, Social Responsibility & Community Engagement

“Marriott is honored to receive the U.S. Postal Service's Supplier Performance Award. We were especially pleased to learn that employees nominated us for this award. Marriott's focus on sustainability delivers more value for our customers, like USPS, while ensuring a more sustainable future for all. We look forward to progressing in our sustainability efforts as part of Marriott’s reputation for excellence with guests, associates, business partners and our global community.”

Foth Production Solutions, LLC, Green Bay, WI

Postal Supplier Council Excellence Award

Foth Production Solutions provides the Postal Service with engineering services and solutions focused in the areas of infrastructure, environmental engineering and science, production solutions engineering and manufacturing.

Tim Weyenberg, CEO

“Foth Production Solutions is truly honored to receive this award. There is no better proof we can receive that we are providing personalized, client-centered service to our customers than for them to recognize our company through a supplier performance award. Postal Supplier Council has been a great forum for cooperation, exchange of ideas and open communication with the postal service stakeholders. We value our involvement in the council and look forward to future collaborations.”

For more information about the Postal Service’s supplier initiatives, visit http://about.usps.com/what/business-services/suppliers/. Back to Top ›

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