IBM Postal Solutions

Logistics Management

Parcels/Express Demand planning Letter mail Sort centre management Transportation management

Development of new, Internet economy-based revenue streams Reduction of operating costs.

Cost reduction techniques In the cost reduction area, the biggest targets are generally the operations where the posts spend the highest percentage of their operations budgets the postal logistics supply chain, otherwise known as mail processing (sortation) and distribution (transportation). The keys to reducing costs in these areas are the same techniques that are used in any other industry with a supply chain. Such techniques are aimed at gaining visibility and control across the supply chain. In addition to strategic planning and optimisation at the network-level, the techniques include demand planning, demand-and-resource-based operational planning, exception-based performance monitoring, and information-based adjustments to the plan. Functional Requirements From a functional perspective, a complete postal logistics management solution must address the following requirements:

Highlights
Reduced operational cost Improved quality of service Increased capacity Cross-enterprise sharing of information Intelligent decision support.

The offering

Requirements definition and solution design Process re-engineering Integration and implementation services Field-proven resource planning and optimisation software from Manugistics Operational management and/or Hosting on Demand Hardware, including highly scalable IBM servers Software and middleware, from a range including MQSeries*, WebSphere*, Tivoli* and Lotus* Financing.
Pressure and response Posts face commercial pressures from many directions. Elimination of existing monopolies, reduction of subsidies, calls for privatisation, and increasingly aggressive competition are just a few. The exact response to these pressures varies, but the overall goals remain the same:

Revenue growth, often through mergers and acquisitions

Planning accurate forecast of demand Monitoring real-time tracking of the status of resources and of mail in process

 Notification proactive alerting of decision makers Simulation modelling of potential corrective actions Control support for proactively changing the current execution plan Measurement provision of key performance indicators and metrics to assess past and current performance.
Sort centre management At the sort centre level, the resulting solution forecasts volumes and arrival times based on historical data and collaborative information sharing. It also allocates and schedules resources, taking account of personnel numbers and skills as well as sortation equipment, dispatch times and other parameters. By taking an integrated view of all processes, by incorporating buffers, by respecting dispatch times, and by monitoring real-time performance against the plan, the solution not only promotes more cost-effective scheduling of resources, but also enables exception-reporting-based management. As a result, it contributes to improved dispatch performance and associated improvements in on-time delivery.

pick-up/delivery points. In case of disruptions to planned services, the solution also allows the Post to select and implement alternative strategies in near-real time. Changes to processes It is important to recognise that the full
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benefit potential of these techniques will not be achieved just by installing technology solutions. Some degree of process engineering is required along with the technology deployments. This is an area where the change management experience of IBM and its partners can be invaluable. Solution integration and services The solutions themselves must link to appropriate internal and external systems, accommodate varying demand patterns and be available 24 hours a day. That is another area where IBM comes in. We not only provide scalable, reliable technology platforms, but also offer integration and implementation services that will help you see swift, long-lasting results. In addition, our hosted services offerings can take such issues as application security and capacity variability off your hands. Through IBM Global Financing, we

Transportation management At the transportation management level, the solution uses similar demand and resourcing tools to optimise the use of both internal and external fleets. It is capable of addressing all transportation modes and all network links between depots and hubs, between hubs, and between depots and

can even provide alternatives to traditional payment terms, thereby minimising the requirement for up-front investment. For more information To find out more, please contact your IBM marketing representative, or visit ibm.com /solutions/postal, or e-mail us at: postal@uk.ibm.com
GISEE01005-2 (09/02) CP