USPS Product InformationMTAC

Jim CochraneVice President, Product Information

February 17, 2011

Product Information Meet the Team

VP PRODUCT INFORMATIONJames P Cochrane

EXECUTIVE ADMINISTRATIVE ASSISTANTCarol D McNair

MGR OPERATIONAL PERFORMANCERobert H Raines JR

MGR PRODUCT VISIBILITY SYSTEMSJuliaann S Hess

MGR PRODUCT INFORMATION REPORTINGEdward H Ryan

MGR EMERGING TECHNOLOGIESThomas T Williams

MGR SCANNING SYSTEMS AND PERFORMANCEJeffrey L Freeman

MGR PRODUCT VISIBILITY & COMMUNICATIONSandra R Latham

MGR ADDRESS MANAGEMENTJames D Wilson

MGR INTELLIGENT MAIL PLANNING/STANDARDSSteve M Dearing

MGR CUSTOMER KNOWLEDGE MANAGEMENTMaryellen J Clarke

MGR MAIL TECHNOLOGY STRATEGYEdward A Lichorat

PROGRAM MGR INTELLIGENT MAILClayton C Bonnell

Enhance USPS Business ValueOne barcode per pieceCapture workload by productImproves cost modelingReduce labor costsTransportation analyticsEnhances ability to offer new products and servicesAllows for delivery efficienciesService analyticsProduct InformationIMb/IMpbGetting to World Class

Create Customer ValueFoundational for shipping: Why not mailing?Track all volumeSeamless acceptanceImproves customer experienceProvides data to support marketing initiatives Manage business processes, service measurement and logistic providers

Product InformationIMb/IMpbGetting to World Class

When you barcode a letter,you receive a discount

When you barcode a package, we make you payValue of InformationCore to the product or value with a charge?Barcode Intelligence

Testing Status 01/29/2010 - 01/28/2011Full-Service VolumeService Performance Measurement

Full-Service Volume GrowthService Performance MeasurementFull Service Volume has seen a 59% growth from Q2-FY10 to Q1-FY11

Intelligent Mail vs. FS Volume Growth Q1 FY11 had marginal increase in IMb adoption from POSTNET bar codeService Performance Measurement

Full Service Statistics PQ1, FY 2011 Service Performance Measurement

Sheet1

FS IMbVolume (000)Total CommercialVolume (000)% of FS IMb

First-Class Mail

Letters & Cards5,012,93411,390,36844.01%

Flats10,753179,7055.98%

Total5,023,68711,570,07343.42%

Periodical

Letters16219,7570.82%

Flats736,8101,820,04340.48%

Total736,9731,839,80140.06%

Standard Mail

Letters3,752,30215,679,14223.93%

Flats2,271,8648,106,41728.03%

Total6,024,16623,785,55925.33%

IMb StatisticsFull Service MailingsIMb Mailings% Imb MailingsTotal Mailings

Number of Customers3,8111.82%19.87%209,366

Piece Volume (000)8,320,28239.31%76.34%21,167,776

Full Service Mailings

% Full Service Mailings

IMb Mailings

% IMb Mailings

Total Mailings

Number of Customers

3,811

1.82%

41,609

19.87%

209,366

Piece Volume (000)

8,320,282

39.31%

16,159,213

76.34%

21,167,776

IMb Statistics

IMb Statistics

Sheet2

Sheet3

Full Service Production Trends Service Performance MeasurementMay 2009 January 2011

Moving ForwardUSPSStabilize PerformanceRobust reporting capabilitiesEXFC report-type quality (depth of failure analysis per piece level)Increase number of Certified MailersCustomerImprove value for customerRefocus on IMb, move off of SPMSimplify start-the-clock process

Service Performance Measurement

Full Service Certification Update Container YieldsCertified mailer container yield is twice that of non-certified mailersStreamlined review checklist for standard & periodicals mailersSystem Change RequestsFeb - CSA Verification Errors will be corrected to STC Origin Yield: +20%June - SV Unload Scans will generate STC - Drop Ship Yield: +15%Data based on Containers with Mailing Date of 1/22 1/28

Mailers continue to fail certification; BMS working with mailers to identify required updates to their software and operations to address key issuesOther Errors include: MID Verification Errors and Invalid Entry Point Errors Full Service Analytics Container Level Mail Quality Errors

Full Service Certification Update Certified Mailer MonitoringMeasured weekly against 8 metricsMailers that fail metrics related to direct inputs to STC are decertifiedDecertified mailers eligible for recertification after confirming issue(s) addressedCertified Mailer Monitoring ProcessCertified Mailers Weekly Monitoring Strategy

Transportation fields used in CSA association will not be used in the future CSA TypeRecurring Appointment IDArrival TimeDispatch TimeCSA Trip IDStronger reliance on USPS scans to Start-the- ClockScan all 99Ms upon arrival at USPSResolves pallet to FAST appointment challengesStart the Clock Changes

Proposed CAT- CET

Sheet1

FCMSTDPERBPM

OffsiteOnsiteOffsiteOnsiteOffsiteOnsiteOffsiteOnsite

BMEU Entry150018001500150015001500

DMU Mailer TransportNo Seperation190015001500

Mixed/Wkg200015001500

Presort210015001500

DMU USPS TransportPresort Assigned2200

HUB (STC)2400

HUB (THS)0200

BMEU Mailer Transport

Drop Ship16001600

Drop Ship FSS

Sheet2

Sheet3

Completed Value Stream Mapping of package and mail flowsOn-going process capability analysisRolled Throughput Yield on all processesUsing LSS to Drive Performance Lean Six Sigma ApproachMeasure All ProcessesService Performance Measurement

Full Service Analytics Rolled Throughput Yield

On-Time Goal GAP Analysis Rolled Throughput Yield

Infrastructure Initiatives

Proposed 6-Digit Mailer ID IMcb(1) NOTE: The Serial Number field shall be padded with leading - characters or dashes (ASCII value 0045) if the mailer-defined value is less than the required 12 characters. For example, if the mailer opts for a container identifier of 123456, a value of ------123456 should be encoded.Intelligent Mail Container Barcode

6-digit Mailer ID FormatField No.FieldDescriptionFieldSizeCharacterPositionLogicalValuesAllowableValues1Application Identifier21-2Numeric99 (Only)2Type Indicator13AlphaM (Only)3Destination Facility ZIP54-8Numeric4Mailer ID69-14NumericUSPS-assigned ID with the leading digit ranging from 0 through 85Serial Number1215-26AlphanumericMailer-defined (1)

Proposed 9-Digit Mailer ID IMcbIntelligent Mail Container Barcode

Proposed IMcb Placard Destination Facility 5-Digit ZIPHuman Readable Intelligent Mail Container Barcode

Flexible scanning solutionProvide enroute scans on all Priority MailEnhanced technology to handheld IMDsIntegration of hands-free imager (Ring Scanner)Increases visibility, productivity, and operational efficiencyPackage Barcode Reader ProgramInfrastructure InitiativesFills the gap where MPE is not used

Electronic Mailing InformationElectronic Centralized PaymentScan atEntry InductionElectronic Advance NotificationElectronic In-Process & Performance-BasedMail VerificationTotal VisibilityBarcode Intelligence

Passive Scan InfrastructureActive Scan InfrastructureScan InfrastructureInfrastructure Initiatives

Sheet1

EquipmentNumber of SortersNumber of Facilities

PSM sorters2121

APPS7362

SPBS199147

AFSM100530237

UFSM100010481

Overhead scanners5737

FSS198

Robotics72

LCTS218122

IMDAS Delivery and Retail Scanners312,57736,183

Surface Visibility16,500174

Acceptance Scanners2,0001,100

Sheet2

Sheet3

Sheet1

EquipmentNumber of ScannersNumber of SitesPercent of Scan

ScannersSites% of Scans

IMDAS Delivery and Retail Scanners312,57736,18369.44%

Surface Visibility16,5001740.01%

POS/IRT/APC/CARS60,94622,1856.79%

Sheet2

Sheet3

Final ThoughtsFull Visibility Process MapIMpb updateFull Service ACS challenge

Questions?

Done - 10/16/2009Expedited Certification ProcessesStandard and Periodicals mailers that meet STC & appointment thresholds are eligible for certification under a streamlined 2nd Level Review checklist20 mailer sites identified so far (16 from high priority mailers) Netflix has resolved their CSA errors; sites that previously passed all criteria besides CSA errors are eligible for expedited certification based on review of 2 jobs rather than standard 5 jobs9 mailer sites (and growing) identified for this expedited process

System Change RequestsCSA ErrorsFollowing 2/22 release, CSA Verification Errors will no longer impact STCMailer sites that passed all other certification criteria are currently being marked as certified with an implementation date after 3/1 (6 mailers certified via this method as of 2/8)Expected Origin FCM Yield Impact: +20%STCFollowing June release, SV Unload scans will be used to generate STC for USPS Transported (Container Release Scans will no longer be used) and Mailer TransportedExpected Drop Ship Yield Impact: +15%*Focus Areas:CSA Verification Errors decreased 45% over 3-week periodInaccurate Scheduled Ship DatesContainer arrival on different day or facility than the associated FAST appointmentFive mailers accounted for 57.3% of 17,870 mail quality errorsNon-Unique IMcb Errors account for 99.9% of First Datas errors

All certified mailers will be measured weekly against 8 metrics:100% of jobs properly use CSA ID in eDocs