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Area Mail Processing
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The U.S. Postal Service continually examines elements of its nationwide network to identify opportunities to improve efficiency by making better use of space, staffing, equipment and transportation in processing the nation's mail. This practice has become increasingly important as we have experienced a significant reduction in the amount of single-piece First-Class Mail that enters our system. In fact, mail volume for this category has declined by 11 billion pieces — 20 percent of its volume — since 1998. At the same time, the deployment of state-of-the-art automated mail-processing equipment allows us to sort this type of mail more efficiently than ever. In many cases, larger mailers are entering their mail deeper into our system, closer to its final delivery point, bypassing many Postal Service processing and transportation operations.
Considered together, these factors have created excess processing capacity at many postal facilities where mail is canceled and sorted. The Postal Service is actively looking into opportunities to increase efficiency by consolidating some mail processing operations, allowing us to make better use of our resources. Area Mail Processing is a key element of this important effort.
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What is Area Mail Processing?
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| Area Mail Processing (AMP) is the consolidation of some mail processing operations from one or more postal facilities to other facilities to improve operational efficiency and/or service. AMP may involve the consolidation of originating distribution operations (canceling/sorting locally generated mail), destinating distribution operations (sorting and preparing mail received from more distant areas for local delivery), or both. The intent is to make more efficient use of Postal Service assets such as equipment, facilities, staffing and transportation.
Today's mail processing system — a network of large, centralized mail processing facilities — represents about three decades of experience with AMP initiatives. However, as we continue to experience shifts in the types of mail we handle and changes in how and where mail enters our system, we must continue to examine opportunities for improvement.
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AMP Guidelines
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| The Postal Service has developed a formal process for the review and implementation of Area Mail Processing proposals. This process is defined in Handbook PO-408, Area Mail Processing (AMP) Guidelines.
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AMP Development and Evaluation Process
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Feasibility Study: An AMP study analyzes the feasibility of relocating processing and distribution operations, as well as necessary support functions, from one location to another. The study examines how a consolidation would affect employees, the community, and customers. It also considers the consolidation's effect on service, costs, productivity and future strategic initiatives. Postal Service field operations are divided into 80 districts, each of which is supported by a number of mail processing facilities. Our nine Area offices are responsible for the administration of multiple district offices. An AMP study may be initiated at any time by the manager of the appropriate Postal Service District or Processing and Distribution Center to examine the feasibility of consolidating processing operations. After notifying the Area office of its intent to conduct an AMP feasibility study, the initiating office has six months to complete the study. Following a preliminary determination indicating that service and/or efficiency might be effectively improved by the AMP consolidation, the sponsoring Area office must inform the senior vice president, Operations, at Headquarters, that the AMP study is being conducted. |
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AMP Proposal Documentation: An AMP proposal is supported by the development and submission of specific documentation through appropriate approving officials prior to final Headquarters consideration. AMP documentation consists of an executive summary, required supporting worksheets addressing issues such as local notification, costs, mail volumes, transportation, equipment, service impacts, and a map of the area with geographic descriptions. |
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Proposal Approval: The approval process of an AMP proposal begins at the local level with the signatures of the managers of each affected processing facility after their final evaluation of the operational feasibility. The district manager must then evaluate the proposal on the merit of customer service and satisfaction, and forward the locally approved AMP proposal to the vice president, Area Operations. The vice president, Area Operations, will review all aspects of the AMP proposal to establish that all human resource and employee impacts are correctly administered; appropriate government officials have been notified; customer, community, service, and operational effects are explored and have been resolved; workhour, costs, savings, and budget adjustments are addressed; and that all transportation and network modifications are correct for each class of mail. The Area has up to thirty days for its review and approval of the proposal which often involves repeated interaction with the supporting district. The district and area development and review process should not exceed seven months. Once this evaluation is completed, the Area office will either disapprove and return the AMP proposal package to the local originator or approve and forward it to Headquarters. The senior vice president, Operations, Headquarters, will coordinate the final review of the AMP proposal with other functional offices at Headquarters and once their review is completed, and any issues resolved, give final approval. The AMP review and approval process at the headquarters should be completed within 30 days once a complete AMP study documentation package has been assembled. |
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AMP Implementation: As soon as practicable following final approval of the AMP proposal, an implementation date is established and communicated to the managers of the affected facilities, as well as the District and Area offices. Notification is also provided to affected employees, national and local employee organization representatives, government officials and customers. There must be close coordination between Area and local Human Resources throughout the implementation so that any necessary reassignment and/or excessing of bargaining and nonbargaining unit employees conforms to the provisions of the applicable collective bargaining agreements and the Employee and Labor Relations Manual. |
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Post-Implementation Reviews: Two post-implementation reviews are conducted after the AMP has been completely implemented, to determine if projected operational and service efficiencies have been achieved. The first post-implementation review will occur within nine months of implementation. The Post-Implementation Reviews must be reviewed by the vice president, Area Operations, for accuracy. |
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