| 1. |
What is Flats Sequencing System (FSS)?
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FSS is the Postal Service's concept for a system, which would sort flat mail in
delivery point sequence, the order in which the letter carrier delivers the mail.
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| 2. |
What is Delivery Point Packaging (DPP)?
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DPP is the Postal Service's concept for a system that would sort both letters and
flats into a delivery point package. DPP would be a way for the Postal Service to
use highly efficient low-cost automation to provide each customer with a package
containing both letters and flat sized mail.
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| 3. |
How is DPP different from FSS?
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DPP would process letters and flats; FSS would process only flats.
DPP would output "packaged" mail; FSS would sequence flats in delivery order.
DPP would eliminate Delivery Point Sequenced (DPS) letters; FSS would not have any affect on DPS letters.
DPP would eliminate most carrier casing; FSS would eliminate some flats casing.
DPP would improve street productivity; FSS may not.
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| 4. |
Why is the Postal Service studying DPP?
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DPP would save money by automating much of the routine office work that carriers do to
put mail into delivery ready condition. It would allow USPS to maintain stable rates
for longer periods by reducing the costs associated with mail sortation and delivery.
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| 5. |
How would DPP affect business and residential customers and the delivery of their mail?
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DPP would simply be a more efficient method to sort and deliver mail. A carrier would
still deliver your mail six days a week, but it would be packaged. DPP would reduce the
amount of time the carrier would spend in the office, which would allow the carrier to
service more delivery points on the street. Packaging the mail would reduce carrier's
delivery time by facilitating separation of mail and minimizing handling before each stop
on the delivery route. DPP is expected to contribute toward an overall reduction in the
number of routes, vehicles, and employees required to sort and deliver the mail.
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| 6. |
How would FSS affect business or customers and the delivery of their mail?
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FSS would simply be a more efficient method of preparing mail for delivery. FSS should
not affect mail delivery to business or residential customers.
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| 7. |
When would DPP or FSS be deployed?
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It is too early in the research and development process to forecast precisely when
either DPP or FSS might be deployed. If the R&D efforts are successful, deployment
would not begin before 2006 for FSS and 2007 for DPP.
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| 8. |
What would a DPP package look like?
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We do not know what the DPP package itself would look like or what packaging material
would be used. The vendors have been tasked to use innovative ideas in the packaging
of the mail. We will also be working with the mailing industry to research the packaging
options to determine the impacts of various packaging alternatives.
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| 9. |
Why is the Postal Service studying FSS?
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To control costs and keep rates affordable in the future to ensure that mail continues
to be an attractive option for businesses to communicate with customers. FSS would
sequence flat-size mail in delivery ready condition, which would save money by reducing
our combined sorting and carrier casing costs. It should contribute toward maintaining
stable rates by reducing the amount of flats a carrier must manually case in the office
before leaving to start the route.
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| 10. |
Would DPP or FSS be implemented at all offices?
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Not all offices would be considered for either DPP or FSS processing. Smaller post
offices may not be considered as potential FSS offices.
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| 11. |
Would DPP or FSS equipment handle all sizes of flats?
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The Postal Service is working with DPP/FSS vendors to design equipment capable
of handling the full range of mailpiece sizes.
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| 12. |
Would implementing DPP or FSS delay time-sensitive mail like daily newspapers?
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No degradation in delivery times is anticipated. Mail received before the processing cut
off time, would be sorted and delivered the next business day.
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| 13. |
Does the USPS know how much would be saved by DPP and FSS?
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USPS estimates gross savings in the delivery function of $2.8 billion for DPP and
$1 billon for FSS. The research and development effort will better identify additional
costs and net savings potential.
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| 14. |
Will the USPS continue to pursue efforts with the industry to optimize the current flats processing environment?
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The USPS will continue to work with the industry to optimize mail products and services.
If DPP and FSS are successful, both could reduce the technical and economic viability of
carrier route sorting. However, the USPS is committed to minimizing the total industry/USPS
cost of mailing.
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| 15. |
How do the flats initiatives being considered under Product Redesign relate to the USPS DDP or FSS strategies?
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There are two major Product Redesign initiatives that affect flats: "shape-based rates in
First-Class Mail, and "cost-based" rates for flats in both Standard Mail and Periodicals.
Both are primarily aimed at reducing combined mailer/USPS mail processing costs that
occur upstream from DPP or FSS processing. Therefore, they should not alter the path
or decisions being made in DPP or FSS research and development.
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| 16. |
How does Network Integration and Alignment (NIA) relate to the USPS' DPP and FSS strategies?
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There is no direct relationship between the NIA program and the DPP and FSS initiatives.
Both DPP and FSS are final destination sorts; the only network interface is the location
for the sort itself.
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| 17. |
Can there be a strategy of FSS in some areas, DPP in some areas, and carrier route mail in others, based on volume and similar conditions?
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We do not know at this time. It depends on the results of the research and development effort.
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| 18. |
As the flats strategy develops, will the USPS work with the mailing industry to ensure a mutually beneficial result?
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The Postal Service has an extensive record of working with our partners in the mailing
industry. We fully expect this partnership to continue during FSS and DPP research and
development. The Corporate Automation Plan was developed to ensure that the industry
was involved in the letter automation process. As with the letter automation plan,
the Postal Service anticipates that changes in our flats strategy will occur and industry
advocated changes would be considered.
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| 19. |
Is the USPS considering standardization of flat-size mailpieces for either DPP or FSS initiatives?
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The Postal Service recognizes that each flat-size mailpiece is unique in design and
intention and that each flat-size mailpiece is targeted for a specific customer. The
Postal Service has stressed during presentations and meetings that flats standardization
is not in our plans.
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| 20. |
Has the USPS done any market research to determine likely industry trends in flat-size mailpiece design over the next 3-7 years?
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The USPS has conducted and will continue to conduct mailpiece characteristics studies to
determine types, sizes, shapes, weights, and construction materials used in mail. There
are currently plans to conduct new research to address this specific issue.
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| 21. |
Will the existing dropship discount structure or preparation requirements be altered due to the implementation of DPP or FSS?
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At this time, we are unable to determine with certainty what the rate structure under
either a DPP or FSS operational environment would be. However, it certainly might be
possible that DDU drop shipment opportunities may be replaced by other worksharing or
discount opportunities.
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| 22. |
Will DPP or FSS negatively affect the USPS' ability to meet mailers' requested in-home delivery dates?
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No. We believe the operational benefits resulting from DPP may actually enhance mailers'
ability to target specific date ranges.
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| 23. |
Does the concept of a DPP package mean my mail would be delivered in a bag or wrapper?
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We do not know at this time. In order to encourage innovation, no restrictions have been
placed on DPP "packaging" alternatives. Many factors will be considered when evaluating
"packaging" scenarios proposed for DPP.
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| 24. |
If a bag, wrapper, or other such mechanism is considered for DPP, would the USPS cooperate with the industry to study the possible changes in response rates?
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The Postal Service intends to examine the response rate issue as it moves forward with
the research and development effort. One round of market research has already been
conducted concerning consumer attitudes toward receiving mail in a package as well as
the use of plastic packaging materials. The USPS intends to conduct more comprehensive
qualitative research to explore mail recipient's attitudes about mail packages. This
research will cover perceptions and attitudes concerning the look of the package,
environmental concerns, and the potential change in behaviors relating to mail receipt
and reading routines.
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| 25. |
How does the USPS plan to manage shifts in flats volume mail flow if DPP or FSS changes the existing mailer incentives of delivery unit drop ship and carrier route presort?
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FSS and DPP are both expected to change mail volume flow to some extent; but this will vary
based on each vendor's proposed solution. Each vendor's solution must address both equipment
location and processing methods.
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| 26. |
How does the USPS plan to manage the differing streams of flat-size mail, i.e., Periodicals, First-Class versus Standard, time sensitive versus non-time sensitive?
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Mail flow management will continue to be determined by mail class and by operating plans
that support the service requirements of each mail classification. All of the mail sequenced
for delivery will be delivered the next business day.
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| 27. |
What does the USPS plan to do with mail that is not machinable on DPP or FSS equipment?
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It is the Postal Service's intent to automate all letter- and flat-size mail. Residual FSS
volumes would be processed as is currently being done.
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| 28. |
Does the USPS envision that a DPP machine might process small parcels?
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Vendor technology will define enhanced handling capabilities, including parcels, and will
be evaluated in USPS economic models. Depending on the concepts proposed, these enhancements
may increase the viability of a vendor's solution and cost model.
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| 29. |
Is mail tracking part of DPP and FSS?
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As with all automated equipment, these machines will have the capability of capturing
any data supplied in barcodes on the mailpiece, thereby providing a method for obtaining
the location of that piece in the postal system. However, the key behind mail tracking
is the ability to identify a single mailpiece. Programs, like CONFIRM, have already begun
to demonstrate how mailers and the Postal Service can work together to provide tracking
information back to the mailer. Vendor concepts must have the ability to track single
mailpieces.
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| 30. |
Will DPP require greater floor space to stage and process mail than is required today?
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It is our intention to process DPP volumes as they are received thereby minimizing the
need for a staging area. No specific restrictions have been placed on vendors and proposals
will be simulated and evaluated for many factors including floor space requirements.
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| 31. |
Would presorted 5-digit volumes be accepted for DPP or FSS zones?
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We expect that presorted 5-digit volumes would continue to be accepted.
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| 32. |
What should mailers do now in terms of DPP and FSS strategies?
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Mailers should be improving address quality, OCR readability, and 11-digit barcoding
on their flats. These are key issues in both the DPP and FSS environments. They are
also relevant for efficiency and speed of delivery even without DPP or FSS.
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| 33. |
How will the procurement process work in terms of awarding contracts to multiple vendors during the research and development phases of DPP or FSS?
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Six suppliers were pre-qualified for DPP and five for FSS. Contracts will be awarded in
accordance with USPS procurement rules. The USPS will use a phased development approach;
Concept and Simulation, Test Bed/ Proof of Concept, Prototype Development and Field Test
and Evaluation.
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