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Siemens receives USD560 million postal automation contract from US Postal Service

Analysis

EUROPE (Siemens) - The United States Postal Service (USPS) has awarded Siemens Logistics and Assembly Systems with an order of about EUR460 million (U.S. $560 million). Over the next 28 months L&A provides software, equipment and services to expand the Postal Automated Redirection System (PARS) to all mail sorting centers across the United States.

The PARS software and special mail processing equipment will be installed at additional 233 of the approx. 500 processing centers. The contract follows the PARS Phase 1 contract awarded in 2002. During the first phase, the complex program was deployed and proven at 50 mail processing centers, 180 forwarding centers and 16 remote mail encoding centers.

The USPS forwards over four billion letters each year. PARS contributes to improved USPS operations by automating change-of-address forms processing, recognizing mail that needs to be forwarded the first time it runs on USPS mail processing equipment, and then sending that mail through a special redirection process. The advantage to consumers is that mail forwarded by PARS arrives at their new address days faster than before.

The Siemens group, Logistics and Assembly Systems (L&A), based in Nuremberg/Germany, is the world's leading supplier of logistics and factory automation equipment. As a systems integrator, L&A supplies a whole range of products and services, from individual products and systems right up to complete turnkey facilities as a general contractor. L&A consists of four divisions: Distribution and Industry, Airport Logistics, Postal Automation and Electronics Assembly Systems.

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