The Changing EnvironmentFor Package Delivery

Dennis NicoskiNorthwestern University Transportation CenterApril 21, 2016

WE CONNECTEVERY ADDRESS,EVERY DAYFrom business to personal and everyplace in between for over 240 years

200,000+ vehicles

154M delivery points nationwide

31,662 retail outletsMore than McDonald’s, Walmart, and Starbucks

Delivery 7 days/week

512.8M mailpieces/day4B packages/year

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OUTPACING THEMARKETPLACEIn growth and reach

While our industry is growing at a rate of 7%,USPS is growing at 17%

Key player in e-commerce delivery

USPS even takes competitors’packages the “last mile” for delivery

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INNOVATIVESOLUTIONSThat redefine the customer experience

Sunday delivery

Same-day delivery

Ship-from-store

Grocery andcustomized delivery

Poised for the nextbig thing

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HOLIDAYDELIVERY

We increased holiday operations to deliver for our customers.

Christmas Day delivery in major metros

Three shifts per day in key markets

30,000+ seasonal workers

WE DELIVERED MORE PACKAGESTHAN FEDEX AND UPS5

SECURITY ANDCONFIDENTIALITYWe ensure high-level security and have theIT to protect and process transactions.

Customer packages are protected byfederal law.

Our IT systems process more than 363million credit card transactions annually.

We use secure data transfer forpersonal information.

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SUSTAINABILITY PERFORMANCE

Americans rankUSPS no. 1of 13 federal agencies

Greenhousegases cut13.3%since 2008

Facility energyuse reduced

31.4%since 2003

(According to a 2014 poll)

Purchased$236 millionof environmentallypreferable products

We recycled223,796 tonsof waste

Our free packagingmeets Sustainable Forestry Initiativeor Forest Stewardship Councilcertification standards

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ENHANCEMENTSIN VISIBILITYInnovations that answer ourcustomers’ expectations

My USPS lets consumers manageincoming packages

Informed Delivery™ sends a dailyemail with images of mailthat’s on its way

Improved scanning technology for bettertracking and real-time notifications

Predictive delivery notifies customersof estimated delivery time within one hour

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LOOKING FORWARDTo a future of transforming the customerexperience through data, infrastructure,and technology

World’s third-largest IT infrastructure

Upgrading vehicle fleet

Deploying 263,000 new Mobile Delivery Device (MDD) scanners nationwide

Upgrading retail POS systemsand kiosks

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EXCEEDING CUSTOMEREXPECTATIONS IS CRITICALTO OUR COLLECTIVE SUCCESSWe put our strengths to work for you.

Established infrastructure

Emphasis on sustainability

Innovative and customized solutions

Enduring partnerships and expertise

Convenience of our nationwide access

Secure technology infrastructure

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