Mail Network Optimization Project Optimization of First Class

Mail Network Optimization Project: Optimization of First Class Mail Network & Delivery Process Meeting with the Service Unions New Delhi, 7 th June, 2011

Project roadmap and roll-out plan Geographical reach All India 2012 Roll-out 2011 Priority cities "Wave 1" “Wave 2” Scenario-based design and pilots (2010) Speed Post & International mail First class “Wave 3” Scenariobased design (2011) Second class Product range India Post | 1

Components of First Class Mail Network Optimization • Integration of various networks in mail operations • Revisiting the intra-city network • Redefining the pan-India network • Streamlining the mail flow pattern o between mail offices o from post offices to mail offices and viceversa • Mapping of all post offices to mail offices • Delivery process optimization in post offices • Monitoring system for First Class Mail & Registered mail SOURCE: Source India Post | 2

Integration of Networks: Approach • First Class ordinary mail and registered mail to be integrated for collection, transmission and delivery, to be co-located for sorting • Speed Post to remain a separate network across sorting and transmission, integrated for delivery with other mail; • First Class ordinary and second class mail (excluding parcels) to be co-located for sorting, remain separate for transmission, and integrated for delivery • Parcels could be kept separate for sorting in bigger cities, but co-located in sorting where volumes are low The integration would depend upon availability of sufficient space in cities India Post | 3

Consolidation of intra-city mail network • Ideally, entire mail operations should be handled under the same roof in a city at an integrated facility (also required for machine-based sorting) • However, space constraints might affect consolidation plan in some cities • Depending upon space availability, the cities could have: • One integrated mail office for all mail or, • One mail office handling first class and another handling second class mail or, • One mail office handling unregistered mail, one for registered mail and one for second class mail • Speed Post to remain separate • Functioning of BPCs and MBCs to be rationalized and functional overlap to be eliminated • If space permits, sorting of bulk mail also be merged with retail mail, while BPCs and MBCs continue to provide booking interface India Post | 4

Structure of pan-India Network of Mail Offices • A two-tier structure to be followed consisting of L-1 and L-2 mail offices • High volume mail offices/cities and better connected cities considered for L-1 consideration • Rest of the existing mail offices considered as L-2 offices • All L-2 mail offices mapped to L-1 mail offices • All post offices mapped to an L-1 or L-2 mail office • Mapping of post offices to mail offices currently being validated from the Circles • Only L-1 offices to close bags for each other, L-2 offices to close bags for L-1 office to which they are mapped India Post | 5

Proposed Mail Flow in the new Network for First Class Mail flows Post Office Level-1 mail office Level-2 mail office Post Office ▪ ▪ ▪ Post Office Level-1 mail office Level-2 mail office Post Office Level-2 mail office Post Office Level-1 mail offices exchange mail with each other and with selected L-2 in the Circle Level-2 mail offices exchange mail with the level-1 mail office to which they are mapped and the level-2 mail offices mapped to the same level-1 mail office, and with selected L-1 offices Post Offices exchange mail only with the mail office (level-1 or level-2) to which they are mapped SOURCE: Mail Network Optimisation Project India Post | 6

List of level-1 mail offices S. No. Circle 1 ANDHRA PRADESH 2 ANDHRA PRADESH 3 ANDHRA PRADESH 4 ANDHRA PRADESH 5 ANDHRA PRADESH 6 ANDHRA PRADESH 7 ASSAM 8 BIHAR 9 BIHAR 10 BIHAR 11 BIHAR 12 CHATTISGARH 13 CHATTISGARH 14 DELHI 15 GUJARAT 16 GUJARAT 17 GUJARAT 18 GUJARAT 19 GUJARAT 20 HARYANA 21 HARYANA 22 HIMACHAL PRADESH 23 HIMACHAL PRADESH 24 J&K 25 J&K 26 JHARKHAND 27 JHARKHAND 28 JHARKHAND Level-1 cities HYDERABAD NAMPALLY (Hyd’bd) KURNOOL TIRUPATI VIJAYAWADA VISAKHAPATNAM GUWAHATI BARAUNI GAYA MUZAFFARPUR PATNA BILASPUR RAIPUR DELHI AHMEDABAD ANAND RAJKOT SURAT VADODARA AMBALA GURGAON PATHANKOT SHIMLA JAMMU SRINAGAR DHANBAD JAMSHEDPUR RANCHI SOURCE: Mail Network Optimisation Project S. No. Circle 29 KARNATAKA 30 KARNATAKA 31 KARNATAKA 32 KARNATAKA 33 KARNATAKA 34 KARNATAKA 35 KERALA 36 KERALA 37 KERALA 38 KERALA 39 KERALA 40 KERALA 41 MADHYA PRADESH 42 MADHYA PRADESH 43 MADHYA PRADESH 44 MADHYA PRADESH 45 MAHARASHTRA 46 MAHARASHTRA 47 MAHARASHTRA 48 MAHARASHTRA 49 MAHARASHTRA 50 ORISSA 51 ORISSA 52 ORISSA 53 ORISSA 54 PUNJAB 55 PUNJAB 56 PUNJAB Level-1 cities BANGALORE GULBARGA HUBLI MANGALORE MYSORE BIRUR KOCHI KOTTAYAM KOZHIKKODE THIRUVALLA TRICHUR TRIVANDRUM BHOPAL GWALIOR INDORE JABALPUR AURANGABAD MUMBAI NAGPUR PANAJI PUNE BHUBANESWAR CUTTACK BERHAMPUR JHARSUGUDA AMRITSAR CHANDIGARH JALANDHAR S. No. Circle 57 PUNJAB 58 PUNJAB 59 RAJASTHAN 60 RAJASTHAN 61 RAJASTHAN 62 RAJASTHAN 63 RAJASTHAN 64 TAMILNADU 65 TAMILNADU 66 TAMILNADU 67 TAMILNADU 68 TAMILNADU 69 TAMILNADU 70 TAMILNADU 71 TAMILNADU 72 UTTAR PRADESH 73 UTTAR PRADESH 74 UTTAR PRADESH 75 UTTAR PRADESH 76 UTTAR PRADESH 77 UTTAR PRADESH 78 UTTAR PRADESH 79 UTTAR PRADESH 80 UTTAR PRADESH 81 WEST BENGAL 82 WEST BENGAL 83 WEST BENGAL 84 WEST BENGAL 86/87 APS Level-1 cities LUDHIANA PATIALA AJMER JAIPUR JODHPUR KOTA UDAIPUR CHENNAI COIMBATORE MADURAI SALEM TIRUNELVELLI TRICHY VELLORE VILLUPURAM AGRA ALLAHABAD BAREILLY GHAZIABAD GORAKHPUR KANPUR LUCKNOW SAHARANPUR VARANASI BURDWAN HOWRAH KOLKATA SILIGURI 1 CBPO & 2 CBPO India Post |

Proposed mail flow from POs to Mail Offices ▪ Mail Office (level-1 or level-2) HO/SO ▪ ▪ ▪ BO ▪ ▪ Mail Office receives unsorted mail from all HOs/SOs/BOs/letter boxes in catchment area Mail office sorts mail and retains mail meant for delivery in catchment area, and sends rest of mail to adequate sorting facilities (see flows between hubs) HO/SO collect mail from the BOs and the letter boxes under jurisdiction No sorting done at HO/SO Letter box BO sends all its mail to HO/SO with accounts jurisdiction through account bags No sorting done at BO SOURCE: Mail Network Optimisation Project India Post | 8

Plan for Registered Mail • Registered mail to follow the pattern of first class mail in terms of L-1 and L-2 structure • Track and trace to be provided for Registered mail, software developed by PTC Mysore • Testing of software done in Chennai, Bangalore and Hyderabad • Processes followed at CRCs to be based on Speed Post processes • Hardware would be supplied to the Circles, specifications for article barcode and bag label decided and communicated to Circles • The new software to be used at CRCs and gradually all mail offices handling registered articles would be provided the hardware India Post | 9

Monitoring System for First Class Mail: KPIs Domestic unregistered Domestic registered Tracked Performance KPIs 1 Share of undelivered mail 2 Transit analysis within city 3 Transit analysis across city 4 Time per leg of transit within city 5 Time per leg of transit across city Supporting KPIs 6 Share of missorted articles across city 7 Share of articles with missing PIN codes 8 Share of articles not dispatched in same-set 9 Staff absenteeism Scan Compliance (if scanning is introduced) 10 Articles processed per hour per FTE 11 Scan compliance in entire network 12 Scan analysis per leg of transit within city 13 Scan analysis per leg of transit across city SOURCE: Mail Network Optimisation Project India Post | 10

Proposed Test Letter Programme Manual test letters Electronic test letters ▪ Manual test letter program is scalable and would help India Post track performance on all main flows to unveil every contributor to quality loss ▪ ▪ Manual test letter program would enable India Post to: Electronic test letters would help India Post improve its performance by deep diving on issues highlighted by manual test letter program (as they would provide tracking similar Speed. Net) ▪ Electronic test letters would allow India Post to have – Leg wise analysis of mail flow from booking/ collection point to final delivery point – Root causes of delay in delivery at every leg ▪ Using electronic test letters would allow India Post cost to reduce the volumes of manual test letters to be sent in specific routes – Get reliable and statistically – representative D+X KPI for metro cities, capital cities and remaining hub offices within a circle Monitor performance on an ongoing basis with frequencies to be decided for each flows (metro to metro, capital city to capital city and within city flows) Test letter program will enable India Post to track performance on an on-going basis and take real time remedial actions SOURCE: Mail Network Optimisation Project India Post | 11

Optimisation of delivery processes ▪ ▪ What is the right sequence of activities ? What is the right scheduling of manpower? ▪ 2 ▪ Processes 1 What are the KPIs needed to track improvements? What are the performance management tools and systems to monitor continued progress? 3 Performance management Layout 4 ▪ ▪ What should be the layout of the PO? What are the local details to consider? Equipment ▪ ▪ What equipments are required? How can feedback from staff be incorporated in design? India Post | 12

Look and Feel Aspects • The objective is to improve the quality of working conditions of mail offices • Providing tools and equipments to mail offices • Basic civil and electrical maintenance India Post | 13

THANK YOU India Post | 14