REMITTANCE MAIL & TOUR CONSOLIDATION			        		  		 APRIL  2009

BACKGROUND
The Postal Service has been profoundly impacted by the turbulent economy. Weakness and failures in the financial, credit, insurance and housing industries, all extremely heavy senders of mail, resulted in a mail volume decline of more than 9 billion pieces in 2008. Mail volumes for single-piece First-Class Mail have declined to a level not seen since 1964. As the recession has expanded, volume has continued to decline. This has caused a significant shortfall in revenue, contributing to a loss of nearly $3 billion last year.
Streamlining operations and improving efficiency across the board is a constant, ongoing process. By modifying networks, consolidating functions, adjusting delivery routes and restructuring administrative and processing operations, the Postal Service becomes a more efficient and effective organization. We are adapting to meet the evolving needs, demands and activities of our customers.
REMITTANCE MAIL & TOUR CONSOLIDATION
The Postal Service is committed to maintaining world class Remittance Mail service.
Recently, there has been concern expressed by the remittance industry regarding the Postal Service’s initiative to improve efficiencies and reduce costs through an initiative we are calling “tour consolidation.”
What is “tour consolidation”?
The tour consolidation initiative is designed to improve operational efficiencies by shifting workload and resources from the lightest mail processing operational period of the day to later in the day when there the mail comes into the facility. 
This initiative will result in a more productive operation and will provide consistent mail availability. Although the lightest part of an operational day varies from site to site, the average tour consolidation window is typically between 7:00 a.m. and 1:00 p.m. 
What is the Postal Service doing?
At each facility, we are matching the workers with the workload by conducting efficiency reviews in our processing and delivery operations. As we have for many years, we are putting the right number of employees in the right operations at the right time.
Will postal customers be affected?
Residential and business customers should see no difference in their mail delivery whatsoever. 
Customers who bring large mailings to processing and distribution centers around the country may receive notification that they need to bring their mailings to another location within the general vicinity.
Will remittance mailers be affected?
The Postal Service has considered the importance of remittance mail in the planning this initiative and we believe we have minimized the impact on plant cycle times. 
Plans are now underway to capture additional cycle times out of the remittance process using Remittance Certification and a variety of internal processes. 
Every effort is being made to sustain the record level of remittance mail service performance that has been achieved. 
If a remittance mailer has a problem, where can they get additional information?
Customers are encouraged to contact their National Account Manager (NAM) or their Area or local Business Service Network (BSN) representative, should they have any questions or should they be experiencing any problems or delays.