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Local offices will continue to review operations for area mail processing (AMP) opportunities. AMP is the consolidation of selected processing functions, typically from several facilities into one centralized facility. It eliminates excess capacity and makes better use of space, staffing, equipment, and transportation. AMP will result in some consolidation of mail cancellation and outgoing distribution. Consolidation among existing facilities will also be identified for processing of First-Class Mail 2- and 3-day service areas. Consolidating mail from multiple plants improves productivity, increases mail density in containers, and achieves better utilization of transportation capacity. The role of airport mail centers will also be re-examined, case by case, to determine if high-cost on-airport facilities can be reduced and better coordinated using third-party facilities.
For its retail network, the Postal Service will continue to ensure that customers obtain quick, easy, and convenient access. Criteria for locating retail services will be customer need and cost effectiveness. The current policy for Post Office closings will be maintained.
5. Streamline and Create Flexibility in the Transportation Network
An important opportunity to increase value exists in the Postal Service's continuing efforts to optimize logistics. Since 2002 it developed several systems to scan, transport and effectively route mail, and support longer-term plans to streamline the transportation network. Significant efforts have been made to assess utilization and performance of contracted transportation. The Transportation Optimization Planning and Scheduling (TOPS) system is being further developed to plan and manage transportation resources. TOPS analyzes alternative scenarios to determine the lowest cost transportation network given service commitments. Changes in capacity requirements will be rapid and responsive to customer and marketplace demands.
Through 2010 the Postal Service will reduce the volume of mail transported via air by as much as 25 percent by reconfiguring the surface transportation network. The transportation network will be streamlined by establishing national surface transfer centers and using data from TOPS and surface visibility applications. Surface transfer centers will consolidate containers from multiple facilities to maximize transportation utilization. This will permit a large portion of mail currently transported by air to be carried on less expensive surface vehicles. The surface transportation network will be expanded concurrently with the evolution of existing facilities into RDCs. Surface transfer centers, with standardized operations, will be established in six new cities. The existing 14 surface hubs will be brought into conformity with this distribution concept.