Intelligent MailIntelligent Mail

February 2007

2

Vision Vision

Provide end-to-end visibility and a

seamless process for mail acceptance

and delivery, using standardized

intelligent barcodes, continuous mail

tracking, and mail quality feedback in

real-time, to position Letters and Flats as

a Key Communications Medium

3

Where Mail Enters the USPS Where Mail Enters the USPS

Retail

Consumer & Small Business

Deposit Single-Piece Mail

Business Mail Acceptance

Small, Medium & Large Business

Present Workshare Mail

»Barcode

»Presort

»Dropship

Retail ~ 26%Retail Revenue ~ 26%

Commercial Revenue ~ 74%

4

Old WorldOld World

TransportationTransportationBarcoding&

Addressing

Barcoding&

Addressing

U. S. Postal Service

6060 PRIMACY PKWY STE 201

Memphis TN 38188John Smith

123 Main Street

Memphis TN 38188-8134

Mail Processing &

Delivery

Mail Processing &

DeliveryAcceptanceAcceptance

5

BarcodingBarcoding

Old World Barcoding & AddressingOld World Barcoding & Addressing

U. S. Postal Service

6060 PRIMACY PKWY STE 201

Memphis TN 38188-0007

John Smith

123 Main Street

Memphis TN 38188-8134

POSTNET (1991) limited to delivery information

Any services requested requires additional barcodes

& Addressing& Addressing

6

Old World Barcoding & AddressingOld World Barcoding & Addressing

U. S. Postal Service

6060 PRIMACY PKWY STE 201

Memphis TN 38188-0007

John Smith

123 Main Street

Memphis TN 38188-8134

Limited checking of mailer’s address list quality

Barcoding &Barcoding & AddressingAddressing

7

Sorting from: Post Office Level Carrier Delivery Sequence

Good Address

2 Automation Handlings

Bad Address

Old World Cost of Poor AddressOld World Cost of Poor Address

@ $5/1000 pieces = 1 Cent

@ $5/1000 pieces

14.7 Cents

REJECTED

1 Automation Handling

@ $71/1000 pieces 2 Manual Handlings

=}

8

Old World AcceptanceOld World Acceptance

AcceptanceAcceptance

Verification based on sampling

Primarily manual record keeping, payment & verification

Limited information on mail arrival, quality, and whereabouts

9

Old World TransportationOld World Transportation

TransportationTransportation

Staffing and equipment planning not linked to mail arrival

»Primarily based on historical information

10

Old World Processing & DeliveryOld World Processing & Delivery

Mail Processing & DeliveryMail Processing & Delivery

Limited service performance (EXFC)

Limited tracking (CONFIRM)

11

New World New World

Integrated ApproachIntegrated Approach

TransportationTransportationBarcoding

& Addressing

Barcoding&

Addressing

U. S. Postal Service

6060 PRIMACY PKWY STE 201

Memphis TN 38188John Smith

123 Main Street

Memphis TN 38188-8134

AcceptanceAcceptanceMail Processing

&Delivery

Mail Processing &

Delivery

12

Standardized Intelligent Barcodes Standardized Intelligent Barcodes

Uniquely identify the sender

Uniquely identify the mail piece

Identify any service mailer requests

Provide a destination ZIP Code for sortation & routing

TRLR453012MOPS TRLR453012MOPS

RR DonnellySTANDARD FLATS

CARRIER ROUTE PRE-SORT55035

PPM33366666688888888

TR

AC

H

MA

ILE

RB

AR

CO

DE

Company X

Intelligent MailBarcode

Intelligent MailBarcode

Intelligent TrayBarcode

Intelligent TrayBarcode

Intelligent ContainerBarcode

Intelligent ContainerBarcode

6060 PRIMACY PKWY STE 201

MEMPHIS TN 38188Address Change Service

John Doe

6449 AMBERVIEW CV

MEMPHIS TN 38141 - 8346

13

Converting largest customer mailings

» Move confirmation letters (MVL / CNL) – Jan ‘07» Dialog campaign – June ’07

USPS Converting to Intelligent Mail BarcodeUSPS Converting to Intelligent Mail Barcode

John Doe

6449 AMBERVIEW CV

MEMPHIS TN 38141 - 8346

Dialog Campaign

Move Validation LetterCustomer Notification Letter

Converting largest employee mailings» Payroll – Spring ‘07» Area Updates – TBD

14

6060 PRIMACY PKWY STE 201

MEMPHIS TN 38188Address Change Service

John Doe

6449 AMBERVIEW CV

MEMPHIS TN 38141 - 8346

Mailer preparation » Mail prepared with unique barcodes

Mail Preparation Mail Preparation

Unique Container Barcode Unique Container Barcode

Unique Mailpiece Barcode Unique Mailpiece Barcode

TRLR453012MOPS TRLR453012MOPS

RR DonnellySTANDARD FLATS

CARRIER ROUTE PRE-SORT55035

PPM33366666688888888

TR

AC

H

MA

ILE

RB

AR

CO

DE

Unique Tray Barcode Unique Tray Barcode

15

Mailer interacts electronically

» Manifests with mailing details (barcodes)

» Centralized payment

» Advance notification

Electronic Mailing Information Electronic Mailing Information

PostalOne!

Payment

FAST

Appointment

WebMessage

Mail.Dat

Web Services

Postage Statement Wizard

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188

Address Change Service

John Doe

6449 AMBERVIEW CVMEMPHIS TN 38141 - 8346

16

Resource and transportation optimization

» Advance notification & USPS transportation systems

– Enables better staffing and equipment management

– Enables transportation planning

TransportationTransportation

WebMessage

USPSSystems

FAST

Appointment

17

Verify while mail is being processed

Scanning» Induction scan

» Processing scans

» Last scan predicts delivery

Reconcile scan data against manifests

Quality Feedback

Seamless Acceptance Seamless Acceptance

Automated Reconciliation

Processing Scans

Induction Scans

18

Passive scanning of mail pieces

Scans provide data to measure address qualityEvery mailing measured

Incentives or disincentives based on measured quality

Seamless Acceptance: AddressingSeamless Acceptance: Addressing

Automated Reconciliation

Processing Scans

19

Comprehensive service performance» By plant

» By class

» By customer

» By pre-sort level

Point-to-Point diagnostics

Service PerformanceService Performance

Barcoding & AddressingBarcoding & Addressing

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188

Address Change Service

John Doe

6449 AMBERVIEW CVMEMPHIS TN 38141 - 8346

TransportationTransportation

Integrated ApproachIntegrated Approach

Mail Processing &

Delivery

Mail Processing &

Delivery

AcceptanceAcceptance

20

Continuous Mail Tracking and Quality Feedback

Electronic

Collaboration

Automated Payment

Advance Notification

Automated Reconciliation

21

Customer Feedback – Manifest & PaymentCustomer Feedback – Manifest & Payment

» Postage Estimates

» Balance Information

» Fee Schedule

» Postage Transactions

» Payment Receipts

Mailer receives payment feedback

Automated Payment

Electronic

Collaboration

22

Customer Feedback – Advance NotificationCustomer Feedback – Advance Notification

» Processing Confirmation

» Appointment Number

» Date/Time/Location

Mailer receives advance notification feedback

Advance Notification

Electronic

Collaboration

23

Customer Feedback – InductionCustomer Feedback – Induction

» Arrival Date/Time

» Arrival Content Profile

Mailer receives induction feedback

Electronic

Collaboration

24

Customer Feedback – Visibility & PerformanceCustomer Feedback – Visibility & Performance

Track

» Containers/Pallets

» Trays/Sacks

» Mailpieces

Service Performance

Mailer receives visibility & performance feedback

Electronic

Collaboration

25

Customer Feedback – Address QualityCustomer Feedback – Address Quality

Mailer receives address quality feedback

» Undeliverable-as-Addressed

» Updated Address

» Incorrect Address

» Correct Address

Electronic

Collaboration

98765** NATIONAL POSTAL FORUM

MOUNT VERNON PLACE NW

WASHINGTON DC 20001-3614

1735 N LYNN ST

ARLINGTON VA 22209-6030

26

Customer Feedback – QualityCustomer Feedback – Quality

Mailer receives mail quality feedback

» Piece Count Quality

» Presort Quality

» Barcode Quality

» Address Quality

Electronic

Collaboration

27

Customer Feedback – ReconciliationCustomer Feedback – Reconciliation

Mailer receives reconciliation feedback

Adjustments

» Piece Count Quality

» Presort Quality

» Barcode Quality

» Address Quality

Automated Reconciliation

Electronic

Collaboration

28

Mail as a Key Communications MediumMail as a Key Communications Medium

Decision Support

Finance

Marketing

Operations

Supplier Management

Supplier Selection

Finance

OperationsMarketing

Messaging

Technology

Smarter Decisions

with

Intelligent Mail

29

New WorldNew World

Intelligent Mail celebrated as a Key Communications Medium

John Doe

6449 AMBERVIEW CV

MEMPHIS TN 38141-8346

Traceable Mail

Identifiable Mail

Efficient Mail

Quality Mail

Responsive Mail

Predictable Mail

Reliable Mail

Accountable Mail

6060 PRIMACY PKWY STE 201

MEMPHIS TN 38188-0007Address Change Service

30

Vision Vision

Provide end-to-end visibility and a

seamless process for mail acceptance

and delivery, using standardized

intelligent barcodes, continuous mail

tracking, and mail quality feedback in

real-time, to position Letters and Flats as

a Key Communications Medium