We've identified several issues within the three major processes we examined. We are making specific recommendations for the Incoming and Outgoing Mail processes, but have limited our comments to general recommendations regarding the Accounts Payable aspect, since we do not have the requisite expertise to address this area.

A. PROCESS: INCOMING FEDEX PACKAGES (Click here to see attachment B)

Our "Gold" plan solution would resolve all incoming issues. This solution requires allocating the resources necessary to have a person and a vehicle available within Mail Services dedicated to the Fed-Ex process.

If this is unrealistic, specific issues and our "Silver" and "Bronze" solutions follow:

Silver Plan: Allocate resources to have a person and a vehicle available at Mail Services to go out and deliver all A.M. Perishables once received from FedEx.

Bronze Plan: Mail Services would deliver with normal Mail route in P.M. to departments with no P.M. delivery, at no extra charge to the customer. The bronze plan, with no additional resources, will impact Mail Services ability to fulfill its primary mission, and will require a decision regarding prioritizing our resources.

1. Structured Delivery Schedule.

2. Lack of Resources

3. FedEx Refusal to Add Delivery Information and Deliver.

Silver Plan: Install a sophisticated tracking program which would require minimal additional resources to accomplish the tracking. (Tracking package means: ability for Mail Services to track the incoming packages to the point of delivery with a signature and Mail Code.)

or

Allocate the resources (i.e., personnel, time) to enter mail codes by hand next to each tracking number.

Bronze Plan: Utilize POD (proof of delivery) labels to manually track packages returned to FedEx and to annotate the mail code for packages delivered.

1. Verbal Policy Not to Track.

2. Need for Improved Tools.

3. Lack of Effective/Efficient Tracking Method (Accountability).

Silver Plan: Allocate resource to allow a person to go out to the Mail Stop and re-deliver package if necessary.

Bronze Plan: Mail Services would redeliver if requested at time of mail delivery, and the if the delivery is in the same area of the mail route.

1. Mail Services makes deliveries to assigned mail stop, not to multiple physical locations.

Gold Plan: Ensure time and resources are allocated to sort campus mail daily in time to screen for Fed-Exs; screen budget mail daily for Fed-Exs; screen stamped mail daily for Fed-Exs. In addition, the Customer Service Representative approach would benefit the Outgoing mail process.

1. Departments not using identifying packaging.

2. Departments not having three Outgoing Bins.

3. Carrier Error - Mixed after pick-up from Department.

Gold Plan: Mail Services staff would be trained to process hazardous materials to allow pick up of all FedEx mail/packages, unless it does not meet weight/size criteria.

Silver Plan: Educate departments on clearly marking/placing outgoing packages according to who should pick them up.

1. There are three possible carriers - Mail Services, Shipping and Receiving and FedEx.

This team has chosen not to pursue all of the processes for invoice payment problem resolution, because these processes do not fall within the scope of their charge (Mail Services operations.) The team did initially include the participation of a temporary team member from Disbursements to ensure their perspective was considered, as well as the assistance of the Fed-Ex contact point for Disbursements to document the Fed-Ex payment processes within Disbursements. Disbursements participated in order to help ensure that any operational recommendations made by the team did not negatively impact the Fed-Ex invoice payment processes.

The general problems identified in these processes included incomplete billing information (missing index number, name, address); invoices which do not balance; and invoices rejected by the department; all of which result in delay of payment potentially resulting in credit holds by Fed-Ex.

It is recommended that a follow-on team be charged to investigate the invoice payment process in more detail, including problems associated with batch feeders, responding to inquiries, credit hold situations, etc.

It has also come to our attention that the SIO Departmental Reconciliation team also identified some issues at the departmental level with FedEx processes. Since these problems did not appear to be related to Mail Services operations, they were not pursued by this team. Perhaps the recommendation should be expanded to include a follow-on team with wide enough representation to ensure the departmental perspective is represented in further Fed-Ex/Campus process improvement.

We feel the customer is not being effectively served, employee morale is negatively impacted, the process generates less net revenue than previously believed, and the primary functions of Mail Services are impacted by the draw off of resources to support Fed-Ex.