Parcel Shipping with USPS Debunking the Myths

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Vanessa Thompson
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1 Parcel Shipping with USPS Debunking the Myths Presented by Carl Hutchinson Chief Operating Officer idrive Logistics (385)

Objectives Separating Myths from Reality Fact v Fiction Discussion; Case

2 Understanding The Players Discuss impact on marketplace perceptions Common Beliefs Regarding USPS What led to our current belief system Objectives Separating Myths from Reality Fact v Fiction Discussion; Case Study Leveraging Your Position in the Marketplace Things to Consider Moving Forward

3 Marketplace Perceptions When you think shipping, who do you think of? What are your perceptions?? Is UPS best for ground shipping? What do you think led to that? Is FedEx Air best for over-night shipping? What about USPS? Mail and envelopes?

4 Not as Technologically Advanced Tracking not up to par with FedEx, UPS Common USPS Perceptions Lower Class Service Slower, slow mail, snail mail, etc Not as Reliable Timely deliveries Branding Innovation, premium brand association

5 Tracking Myth: Can t track and/or not enough scans Reality: Heavy investments have brought tracking essentially on par with FedEx & UPS, showing label creation, pickup, facility entry/departure, out-for-delivery and Delivered Separating Myths from Reality Branding Myth: USPS not an innovator. Not premium brand. Reality: Built early-american roads for mail delivery, Invested in the rail, Airline Industry, eretail Revolution. Time in Transit Myth: Slow service, basic economy Reality: 1 st Class Mail and PM are 2-3 day shipping. Customer Experience Myth: My customers will be upset by slow, late deliveries with poor tracking. Reality: Priority Mail (vs. major carrier/postal injection product) time-in-transit equates to better customer experience.

6 Large e-commerce Shipper Shipping Profile Annualized Summary of Services Utilized Case Study Light-weight packages Heavy-Utilization of SurePost/SmartPost Broad U.S. Distribution Focused on reducing orderto-ship time Service Used Shipments Annualized % of Total FedEx SmartPost 400,798 4,962, % FedEx Home Delivery 81,997 1,015, % FedEx Ground 45, , % FedEx 2 Day 5,903 73, % USPS 1,034 12, % FedEx Standard Overnight 748 9, % FedEx Express Saver 189 2, % FedEx Priority Overnight % FedEx International Economy 146 1, % Total shipments 536,866 6,646, %

7 Transit Time, Customer Experience Impact Case Study Transit Days Shipper A SmartPost Number of Packages % of Total % 2 1, % 3 3, % 4 2, % 5 1, % % % % % % % Total 10, % 54.1% Shipments Delivered in 4 days or more Shipper B (Same Distribution Profile) Priority Mail Transit Days Number of Packages % of Total 1 1, % 2 6, % 3 1, % % % % % % % % % Total 10, % 94.1% Shipments Delivered in 3 days or less

8 Better Customer Experience USPS Priority Mail Day-Definite Delivery 1 to 3 Days Case Study Packaging can make impression of importance. Tracking and Insurance coverage Innovation with the USPS

9 The New Reality USPS is a Leader & Innovator, especially in Residential Small Package Shipping Myths Revisited Heavy Investments have brought tracking on par Vs. SmartPost, PM much faster at similar cost. PM cut order-to-delivery time in half vs. Postal Induction. Rise of ecommerce has elevated brand status. 01 TRACKING TIME-IN- 02 TRANSIT CUSTOMER 03 EXPERIENCE 04 BRANDING

10 Things to Consider Going Forward Package Characteristics Leveraging Your Position In the Marketplace Commercial vs. Residential Zone Distribution Cost vs. Time-in-transit Weight Distribution *Don t Discredit the USPS Based on Out-of-Date Perceptions

Customer Experience Carl Hutchinson (COO) Carl@iDriveLogistics.

11 QUESTIONS? idrive Speakers at NPF Don t Miss Out Shaun Rothwell (Founder & CEO) Shaun@iDriveLogistics.com (801) Monday May 11am-12pm Using the USPS to Enhance the E- Commerce Customer Experience Carl Hutchinson (COO) Carl@iDriveLogistics.com (385) Tuesday May 11am-12pm USPS Shipping: Debunking the Myths Glenn Gooding (EVP) Glenn@iDriveLogistics.com (678) Tuesday 2:45pm 3:45pm Priority Mail vs SurePost/SmartPost: Costs, Customer Experience & Branding

Priority Mail vs. SurePost/SmartPost: Cost, Customer Experience, Branding and Execution

Priority Mail vs. SurePost/SmartPost: Cost, Customer Experience, Branding and Execution Presented by Glenn Gooding President idrive Logistics Glenn@iDriveLogistics.com (678) 567 6847 www.idrivelogistics.com