USPS Mayy, 11, 2009 Price and Regulatory Changes
Strategies and Solutions to Mitigate Price Increases
Illustration source: Microsoft® Clipart USPS® Mailing Services
Under the Postal Accountability and Enhancement Act, Mailing Services include: First-Class Mail® service Periodicals Standard Mail® service Single-piece Package Services: Parcel Post®, Library Mail, Media Mail® and Bound Printed Matter packages Single-piece International Mail Extra Services
Illustration Source: www.usps.com/communications/news/press/2006/pr06_089.pdf Mailing Services Price-Setting Policy
Minimum 45 days advance public notice; USPS intends to provide a90a 90-day notice Announcements ~ – February – new Mailing Services pricing announced – May - new prices take effect Moving average method for calculating the Consumer Price Index (CPI) for purposes of the price cap
Illustration source: www.prc.gov Unused Rate Adjustment Authority plus CPiIdConsumer Price Index
Class Unused Rate CPI% Total Authority for May Adjustment 2009 Price Increase Authority (%) First-Class Mail® .014 3.8 3.814 serv ice Standard Mail® .062 3.8 3.862 service
Periodicals .176 3.8 3.976
PkPackage Servi ces .025 383.8 3. 825
Extra Services .052 3.8 3.852 Price Changes Class % Change Class % Change First-Class Mail® service 3.771 Standard Mail® service 3.781 RtilLttRetail Letters /Cd/Cards 46%4.6% LttLetters 38%3.8%
Discount Letters/Cards 3.1% Flats 2.3% Flats 3.9% NFM /Parcels 16.4% Parcels 26%2.6% Carrier Route 4.3% High Density and Saturation 1.2% Extra Services 3.837 Letters High Density and Flats/Parcels 2.2% PkPackage S ervi ces %Ch% Change Retail Parcel Post® 4.5 Based on these figures, with the May packages 2009 price change, the Postal Service BPM Flats - 202.0 will have Unused Rate Adjustment BPM Parcels 2.5 Authority that it can use in future price adjustments. Library / Media Mail® 7.5% packages First-Class Mail® Service
Product Current May 11, 2009 % Change Price Price Retail – first ounce
LttLetters .42 .44 48%4.8%
Flats .83 .88 6.0%
Parcels 1.17 1.22 4.3%
Additional ounces .17 .17 0.0%
Nonmachinable surcharge .20 .20 0.0%
Retail postcards .27 .28 37%3.7% Standard Mail® Service
Product Current May 11, 2009 % Change Price Price Letters 3.3 ounce or less Machinable - AADC 0.258 0.256 -0.8% Nonmachinable - ADC 0.461 0.491 6.5% Automation - AADC 0.244 0.253 3.7% Flats 3.3 ounce or less Automation Mixed ADC 0.489 0.496 1.4% Automation ADC 0.436 0.486 11.5% Automation 3-digit 0.400 0.418 4.5% Automation 5-digit 0.339 0.346 2.1% Extra Services
Product Current May ‘09 % Price Price Change Cert ificate o f Ma iling $1. 10 $1. 15 4%4.5% Firm Mailing Book (min. 3) .40 .42 5.0% Delivery Confirmation™ service First-Class Mail® parcels and Package Services parcels
Retail .75 .80 6.7%
Electronic .18 .19 5.6% Priority Mail® packages Retail .65 .70 7.7% Electronic .00 .00 0% Signature Confirmation™ service Retail $2.20 $2.35 6.8% Electronic $1.80 $1.95 8.3%
Illustration sources: www.usps.com Extra Services Product Current May '09 % Price Price Change Certified Mail™ service $2. 70 $2. 80 37%3.7% Return Receipt $2.20 $2.30 4.5%
Electronic Return Receipt $1.00 $1.10 10%
Return Receipt after Mailing $4.35 $4.60 5.7%
Return Receipt for Merchandise $3.60 $3.80 5.5%
Pickup On Demand® service $14. 75 $15. 30 37%3.7% Registered Mail™ service (w/o $10.00 $10.60 6% insurance)
Illustration sources: www.usps.com New Standard for Mailing Services: Commercial Flat-size Mailpieces
Extend eligibility for automation prices to certain flat-size mailpieces that are not able to meet the flexibility standards but that are able to demonstrate flats machine compatibility through a PCSC-administered testing process
PCSC = Pricing and Classification Service Center New Standards for Mailing Services: DefCfCflection Criteria for Commercial Flats – effective Sept. 8, 2009
Applies to all flat-size mailpieces except those mailed at saturation carrier route prices Cannot droop more than 2” less than extended length
Testing for flats 10” or more Testing for flats less than 10”
Illustration source: DMM® Standards Strategies and Solutions Strategy - Avoid Nonmachinable Characteristics of Letter-size Mailpieces
First-Class Mail® letter-size pieces with one or more characteristics are subject to a 20¢ surcharge (no change 2008 to 2009) Standard Mail® letter-size pieces with one or more characteristics are rated as nonmachinable letters
Illustration source: PBI Strategy - Avoid Nonmachinable Prices and Qualify for Automation Pricing by Meeting Design Standards for CD ’ s
Height: Maximum 6” Minimum 5.5” Length: Maximum 9.75” Minimum 7.25” A piece < 8” must be made of paper with minimum 28-pound basis weight or equivalent A piece > 8” (up to 9.75 inches long) must be made of paper with minimum 32- pound basis weight or equivalent Thickness: Maximum 0.25” Minimum 0.009” Weight: Maximum 3 ounces Discs in mailpieces made of minimum basis weight paper must be inserted into a protective sleeve No windowed envelopes No plastic ‘clamshells’, plastic ‘jewel cases’ or inflexible cardboard sleeves
Source: DMM® 201.3.3 Dimension-Shape Standards for Automation-Compatible Enveloped Letters Containing Discs Automation Standard Mail® Letter Prices vs. Nonmachinable Presorted Prices
Standard Mail® Automation Savings Standard Mail® Nonmachinable Letter-Size Prices Letter-Size Prices 5-digit 3-digit AADC Mixed 5-digit 3-digit AADC Mixed AADC AADC $.233 $.251 $.253 $.270 $.097 $.330 $.447 $.491 $.578 to $.308
Savings of 29% to 53 %!
*Prices effective May 11, 2009 Strategy - Household Mailings
Consolidate Mailings - mail fewer but heavier pieces Ideal for households / consumers
Extra Ounces First-Class Mail® mailpieces - additional ounce rate is only 17¢, or 12.5¢ for discount (nonautomation and automation-price letters!) (no change 2008 to 2009) Standard Mail® mailpieces - postage ‘same’ for like-size pieces < 3.3 ounces! Strategy - Redesign Flats to Letter-size
Fold the Flat!
Flat: $1.05 Letter: 61¢ prices ® Mail First-Class
Letter-size design tips: Reduce thickness – convert #10s to 6” x 9.5” Duplex pages, saving money on paper and folding Use lighter weight stock
*Prices based on 2 ounce single-pieces effective May 11, 2009 Strategy – QQyualify for Automation Letter Prices vs. Flat Prices
Automation LettersSavings Automation Flats MIXED MIXED Ounces AADC AADC 3-DIGIT 5-DIGIT ADC ADC 3-DIGIT 5-DIGIT 1 $0.382 $0.360 $0.357 $0.335 $0.343 - $0.045 0.725 0.603 0.542 0.380 2 0. 507 0. 485 0. 482 0. 460 $0. 388 - $0. 090 08950.895 07730.773 07120.712 05500.550 3 0.632 0.610 0.607 0.585 $0.433 - $0.135 1.065 0.943 0.882 0.720 Additional 0.125 $0.045 0.17 ounce rate
1,000 1-ounce flats converted to letters saves $343 - 47%! 1,000 2-ounce flats converted to letters saves $388 - 43%! 1,000 3-ounce flats converted to letters (6 x 9 envelope) saves $433 - 40%!
*May 11, 2009 First-Class Mail® prices Intelligent Inserting By converting flats to letter size, you can take advantage of the efficiency and flexibility of intelligent inserting systems
Pitney Bowes offers folding and inserting solutions with a range of capabilities: Fold an d inser t in to enve lopes up to 5, 400/hour ! Selectively insert allows you to choose which customers receive what contents Use OMR (Optical Mark Recognition) marks to help ensure accuracy and mail piece integrity. Integrated document solutions can handle the full mailstream process from document creation & printing, folding & inserting, to printing postage! Strategy - Convert Letters to Postcards
Ideal for invitations and notifications! No “openability” issue!
MIXED AADC AADC 3-DIGIT 5-DIGIT
1 ounce Letter $0.382 $0.360 $0.357 $0.335
Postcard $0.230 $0.220 $0.218 $0.205
Savings $0.152 $0.140 $0.139 $0.130
1,000 automation-price Letters converted to Postcards could save $130 t o $152 d ependi ng on sort ati on leve l!
*Prices effective May 11, 2009 Illustration source: www.usps.com Strategy - Convert Parcels to Flats
1,000 parcels converted to flats could save $347 to $352 depending on sortation level!
*May 11, 2009 First-Class Mail® prices Mailpiece Design for Automation Flats
Rectangular Flexible Automation- rate flats must Uniform thickness meet deflection criteria
Maximum thickness ¾” Maximum weight: 13 ounce First-Class Mail® flat-size piece 15.999 ounce Standard Mail® flat-size piece
Illustration source: DMM® standards Strategy – Reduce UAA Costs with Correct Use of Ancillary Endorsements
En dorsements instruct t he USPS on how to han dle UAA mail : Address Service Requested – Forwarded* / New Address Provided Return Service Requested – Returned With New Address Change Service Requested – Discarded / New Address Provided – Used With Address Change Service For First-class Mail® And Can Be Used As A ‘Stand-alone’ Option For Standard MilMail® Temp-return Service Requested – Returned With New Address Or Forwarded
UAA = Undeliverable as Addressed Mail The Impact of an Endorsement
“Address Service Requested” On a Standard Mail® flat-size mailp iece Addressee moved 13 months ago Mailpiece would be returned with new address attached and weihtdfighted fee c harge d Weighted Fee = single-piece First-Class Mail® or Priority Mail® single- piece price (plus the nonmachinable surcharge, if applicable), multiplied by 2.472 Standard Mail® postage for a 14-ounce automation Mixed ADC flat-size catalog is $.980 Actual return cost: Priority Mail® package $4. 95 X 2. 472 = $12. 23
*Prices effective May 11, 2009 Strategy – Reduce UAA Costs with ACS™ or OneCode ACS® Services
Per manual notice issued— $0.50 (Same) Per electronic notice (or manual notice for electronic option customers) issued: First-Class Mail® mailpiece — $0.10 Other than First-Class Mail® mailpiece — $0.26 Per automated notice issued (using OneCode ACS® service): First-Class Mail® letters (first two notices)— $0.02 First-Class Mail® letters (per additional notice)— $0.08 Standard Mail ® letters (first two notices) — $0. 05 Standard Mail® letters (per additional notice)— $0.20 Notices are free** using the Full-Service Option of Intelligent Mail® barcode and OneCode ACS® service
** Limitations apply to classes other than First-Class Mail® *Prices effective May 11, 2009 Strategy – Reduce UAA Costs with “Proactive” NCOALINK® Solution
A pre-mailing method leveraging USPS-provided data A secure dataset of permanent USPS® Change Of Address (COA) records – Individuals, families and businesses – Containing up to 48 months of COA history
Benefits: Proactive solution as addresses are corrected before mailpieces are addressed and entered into the mailstream. This prevents the need to regenerate and/or re-mail mailpieces and provides faster delivery of revenue-collection and revenue-generating mailpieces. Process ing can be comp le te d jus t “momen ts ” be fore you ma il!
*COA = Change of Address In Review: Pre vs. Post -Mailing Move Update Methods Post-mailing Corrections are provided after the piece is mailed Changes must be applied to mail lists (often manually) Remailing may be necessary Delivery may be delayed Returns some changes that Premailing methods do not Labor, material and postage is wasted Pre-mailing Corrections are identified and applied prior to the creation and mailing of piece Lists are automatically updated Can sometimes be more expensive (direct costs) Best Practice – Apply a combination of pre and post-mailing methods to optimize costs and minimize undeliverable mail Address Accuracy Solutions Pitney Bowes offers a range of addressing solutions which will help you reduce UAA mail by validating address accuracy including change of addresses.
Address Accuracy Pitney Bowes mail management software solutions are CASS™ certified Eliminating duplicates Reducing undeliverable addresses . MUdtMove Update process ing Pre-mailing - VeriMove™ Net solution (via NCOALink® product) Real time, 24/7 update processing Integrated with mail management software
Post-Mailing – Track My Mail Update Pro – ACS™ service Leverages the Intelligent Mail® barcode Presort Solutions Pitney Bowes offers a range of solutions which will help you take advantage of postal discounts by presorting your mail.
Mail Management software Helps you complete all necessary steps to presort your mail – up to 53% postage savings Generates the appropriate barcodes including the Intelligent Mail® barcode Keeps your addresses current with our address hygiene solutions Presort Solutions continued…
Presort Services (Formerly PSI) LtdlLargest and only nationa l network USPS work sh are part ner 14B pieces processed annually >20% Automated First-Class Market Share Commingling process and Mail Exchange Network expedites delivery of your business-critical mail throughout the US and can save you up to 25% in postage! Suite of Solutions and Services: Full Disaster Recovery Solution First-Class™ Letters & Flats Presort Standard Mail® Presort PresortXtra™ Solution for low -volume mailers Customer Education – Webinars and seminars – Regular communications – Free, web-based reporting International Mail Services
Largest US & UK international mail outbound provider: Priority and Economy Services Operations facilities – US (NJ, IL, CA) and Europe (United Kingdom) Process more than 80 million pounds of mail and parcels each year TSA Certified Cargo Screening Facilities Customized delivery network and partnerships with major Posts and agents - providing reliable service and significant savings worldwide Suite of Solutions: International Package Service USPS® Consolidation Services PtlDitSiPostal Direct Service Publication Service Letter & Flat Mail Strategy – Use Right USPS Extra Service Objective: Proof of Mailing
Cer tifica te o f Ma iling Provides evidence of mailing only First-Class Mail®, Priority Mail®, Standard Mail® or Package Services mailpieces Must be presented to the USPS
Single-piece (itemized) 3 or more (itemized) Bulk – for identical pieces $1. 15 $0. 42 First 1, 000 $6. 50 Per additional 1,000 $0.75
*Prices effective May 11, 2009 Illustration source: www.usps.com Strategy – Use Right USPS Extra Service Objective: Confirmation of Delivery
Certified Mail™ service Delivery Confirmation™ service 1 ounce envelope $0.44 3 ounce parcel $1.56 Certified Mail $2.80 Retail DelCon $0.80 Total $3.24 Parcel* $0.50 Total $2.86 or 3 ounce parcel $1. 56 e-DelCon $0.19 Parcel* $0.50 Total $2. 25
Savings $0. 38 - $0. 99!
*Prices effective May 11, 2009 *reflects estimated cost of parcel box Strategy – Use Right USPS Extra Service Objective: Delivery Info with Signature
Certified Mail™ Return Receipt Signature Confirmation™ service 1 ounce envelope $0.44 3 ounce parcel $1.56 Return Receipt $2.30 Retail SigCon $2.35 Certified Mail™ service $2. 80 Parcel* $0. 50 Total $5.54 Total $4.41
or Savings $1. 13 or
1 ounce envelope $0.44 3 ounce parcel $1.56 E-RtReturn Rece itipt $1. 10 e-Sig Con $1. 95 Certified Mail™ service $2.80 Parcel* $0.50 Total $4.34 Total $4.01 Savings $0.33
*Prices effective May 11, 2009 *reflects estimated cost of parcel box Illustration source: PBI Sample Image Strategy – Use Right USPS Extra Service Selectively Use Return Receipts
Will you need a proof of delivery source for potential legal or other situations? – If “yes”, then Return Receipt a good option When th e recei pt s come b ack , d o you al ways file them appropriately? And are they always signed? Can you always identify the originator? Do you always need to prove the letter was delivered with a signature? – If you answer “no” to any of these questions , you need to look at why you are routinely spending $2.30 for every Return Receipt!
*Prices effective May 11, 2009 Strategy – Use Right USPS Extra Service Objective: Protection in Transit
Registered Mail™ Insured Mail Express Mail® Most secure service for Purchased retail - indemnity Guaranteed service, evidence First-Class Mail®, coverage of up to $5,000; of mailing and proof of Priority Mail® purchased online - up to delivery Provides mailing receipt $500 indemnity Insured coverage $100.00; and delivery status Standard Mail® parcels, can purchase more Max. liability $25,000; Package Services, or insurance handling charges apply First-Class Mail ® or Customers may access for articles valued > Priority Mail® delivery information via $25,000 merchandise www.usps.com or Without insurance, declared FbFee base d on va lue 1-800-222-1811 value $0.00 = $10.00 A delivery record, including With insurance, the recipient’s signature, declared value $0.01 to faxed or mailed upon 100.00 = $10.80 request.
8 ounce First-Class Mail® 8 ounce First-Class Mail® Express Mail® parcel $ 2.41 parcel $2.41 ½ pound envelope $17.50 Reg Mail w/insur $11.50 Insurance $2.25 Total $13. 91 Total $4. 66
*Prices effective May 11, 2009 Examples based on package valued at $100 Registered Mail™ service, Express Mail® service, First-Class Mail® service Resources
Pitney Bowes www.pbpostalinfo.com, www.pb.com/ratechange Pitney Bowes presort solutions www.pbpresortservices.com Pitney Bowes international mail solutions www.mailservices.pb.com Trackmymail.com® USPS http://www.usps .com/prices/ PCC Insider e-newsletter [email protected] DMM Advisory e-newsletter [email protected] Federal Register Notices: http://pe.usps.gov/FederalRegisterNotices.asp MailPro – usps.com/mailpro Rapid Information Bulletin Board System: http://ribbs. usps. gov/
We have created a handy guide to USPS® prices for you! You will be receivinggp it in a follow up email communications at the conclusion of this webinar event! Thank You!
TRADEMARKS Pitney Bowes, the Corporate logo, Presort Xtra, ShipStream, Update Pro, SendSuite, AddressRight Pro and VeriMove are registered trademarks Pitney Bowes Inc.
ACS, BRM, CASS, Certified Mail, Delivery Confirmation, DMM , DPV , Express Mail, FASTforward, First-Class Mail, IM, Intelligent Mail, LACSLink, Media Mail, NCOALink, OneCode ACS, Parcel Post, Parcel Select, PC Postage, Pickup on Demand, PostalOne!, POSTNET, Priority Mail, Registered Mail, Signature Confirmation, Standard Mail, USPS, USPS Click-N-Ship and ZIP Code are trademarks of the United States Postal Service . Move UUdtpdate and Int elli gent Ma il® Barcode Compliance
Webinar: Tuesday, May 5 Host: Tracey Evans, VP, Operations, Pitney Bowes Presort Services
1 Move Update Requirement
Move Update is required for First‐Class™ and Standard Mail® automation and presorted mailings.
Address must be updated a minimum of 95 days prior to the date of Mailing.
“Address” means specific address associated with specific occupant name.
Reduces the number of your mailpieces that require forwarding, returning, or disposal.
2 Move Update Requirement
Requires periodic matching of your address records with USPS® Change‐of‐Address (COA) orders.
Use of an AAdpproved Move UdtUpdate MMthdethod RRidequired
Meet the standard by “updating” address databases, not by using an approved methhdod.
3 Move Update Requirement
Updated addresses on mailpieces at one class of mail are qualified to be used for other classes during current Move Update cycle.
Each address in mailing is subject to Move Update.
Exception: Mailpieces using Alternative Address Format are not subject to Move Update. Examples: ‐ “Jane Doe or Current Resident” ‐ “l“Postal Customer”, ““”Occupant”, etc.
4 USPS Approved Methods
NCOALink® Processing ACS™ OneCode ACS® – Intelligent Mail® Barcode FASTforward® MLOCR Processing Appropriate Ancillary Service Endorsement Alternative Method (First‐Class™ Mail only) Legal Restriction 99 Percent
5 National Change of Address (CO(NCOALINK®)
Expands mailer’s accessibility to USPS National Change‐of‐Address Provides electronic Change‐of‐Address (COA) information prior to mailing Variable vendor costs – volume, set‐up, etc. Typical match rate – 75%
6 Address Change Service (ACS™ ‐ Traditi onal )
Post‐Mailing Service – Provides electronic COA Notices for undeliverable mailpieces Mailers apply a Participant Code and an Optional Keyline to each mailpiece Participant Code assigned for each class of mail Using ACS, customers can reduce cost associated with manual keyyging of data
7 OneCode ACS®
IM™BC contains data to sort mail and data to support ACS™ Numeric Mailer Identifier in place of ACS information, one code for all classes of mail Flexibility of standardized IM™BC barcodes enables future enhancements without altering mailpiece design
8 Ancillary Service Endorsements
On‐piece mailing instructions Same hdlihandling across all classes of mail Endorsements consist of variable keyword plus “Service Requested” Address Forwarding Return Temp ‐ Return Change Electronic See DMM® 50715507.1.5 for more information
9 Forwarding Service Requested
Forwarding or Return Service Provided
If Forwarded, Separate COA Notification Is NOT Provided If Returned, Reason for Nondlidelivery is Provided
This Endorsement DOES NOT Meet the Move Update Requirement!
10 Return Service Requested
Mail is NOT Forwarded Mailpiece is returned to sender with new address or reason for non‐delivery provided
Temp‐Return Service Requested (First‐Class™ Mail only) If Temporary COA – Mailpiece is forwarded without temppyorary address provided If Permanent COA – Mailpiece is returned with new address provided
11 Change Service Requested (COA)
Mail is NOT Forwarded or Returned, Separate Notification Provided
StSeparate COA NtifitiNotification With New Address or Reason for Non‐Delivery Provided. Mailpiece is Disposed of As Waste
On First‐Class™ Mail, Only Available When Used in Conjunction With ACS™
12 Electronic Service Requested
Only Available When Used in Conjunction With ACS™ or OneCode ACS® In all cases mail sent to CFS or PARS for processing "Address Service Requested" and "Change Service Requested" handling instructions are predefined within the ACS mailer profile data. COA Notification With New Address or Reason for Non‐ Delivery Provided. Mailpiece is Forwarded / Returned if “Address Service Requested” is used Mailpiece is Disposed of as Waste if “Change Service Requested” is used
13 Address Service Requested
Forwarding, Return, & New Address Notification PiddProvided If Forwarded, A Separate COA Notification Is Provided
If Returned, New Address or Reason for Nondelivery Is Provided
Fees may apply (Class of Mail, ACS or no ACS)
14 Alternate Methods (First ‐Class™ MilMail onl)ly)
In Limited Circumstances, An Alternate Method to Meet Move Update Requirement May Be Approved: Mailer Demonstrates That Their Internal List Management Maintains Address Quality at 99% or Greater Accuracy for Change‐of‐Address
Mailer Demonstrates a Valid Legal Restriction Which Prevents Changing Customer Address Without Approval
15 FASTforward® MLOCR: What Is It?
Enables mailers to update COA information directly on mailpieces prior to mailing
USPS‐license d tthechno logy for MLOCR & RVE (Remote Video Encoding) users
FASTforward System Consists of: – Tamper‐Proof Microcomputer System With Defined Interface Protocol – USPS supplied matching software and encrypted 13‐ month COA database – updated weekly
16 Proposed FASTforward Roadmap
April 15, 2009 –Last day to order a new FASTforward hardware system Requests for new FASTforward® systems must be submitted by April 15, 2009. New FASTforward systems must be attached to a new or existing MLOCR that is currently MASS™ certified without a FASTforward system. June 30, 2009 – USPS will no longer provide new FASTfoward hardware systems USPS will continue to license FASTforward software and data New and existing FASTforward licensees will be permitted to license FASTforward software and data if they suppl y their own FASTforward hardware. June 30, 2010 – USPS will no longer provide FASTforward hardware support for USPS supplied boxes. June 30, 2011 – USPS will no longer accept new FASTforward Licensees Current Licensees will continue to receive data. June 30, 2012 –Targeted date for the discontinuation of all FASTforward software and data fulfillment
17 Proposed FASTforward Roadmap
Evaluate transition from a 13‐month dataset to an 18‐month dataset Achieves consistency across all Move Update Programs Expanded dataset facilitates readdressing of mail for full 18 months Timeline Currently in development Implementation target: 07/01/2009 Require mandatory usage of FFMUN (FASTforward Move Update Notification) as prerequisite for licensing of FASTforward FFMUN is a process for feeding address corrections back to the mailer Facilitates the ability of the mailer to update mailing lists Reduces potential of return‐to‐sender after expiration of data July 1, 2009 licensees must offer FFMUN to all customers FASTforward Licensees or their customers must be FFMUN participants Clarification of policy for Move Update compliance when the FASTforward system is offline No “automatic” or “indefinite” waiver of Move Update compliance provided due to unavailability of FASTforward system
18 Compliance and Verification
The Signature of the mailer or its agent certifies compliance with the standards. 6014 not required but still very useful. PB Presort Services has created a new, similar required form for customers. Postage statements have been revised to provide checkboxes for the mailer to identify the specific methods used in the mailing. The USPS can request additional proof of compliance and reserves the right to audit or other procedures to ensure compliance.
19 Testing Compliance
USPS® has begun using MERLIN® samples to test for compliance. MERLIN® machine will capture the name & address and transmit to the NCSC who will process it using NCOALINK®. Pieces found not to be in compliance will be identified by MERLIN® mail piece ID’s and can be pulled from the sample and returned to the mailer. First‐Class™ mailings that fail will be assessed the single piece rate (Now Jan. 2010) Standard Mail® mailers will have until Jan. 2010 before penalties will be assessed (proposed .07 per piece).
20 Move Update Test Scoring
USPS has said that assessments can be reduced to those customers who have pieces that fail with in the sample.
MERLIN® sample is evaluated on available COA’s in the mailing versus the COA’s that were updated.
Currently the USPS requires a score of 70% to pass. (They plan on raising the required score in the future)
For mailers who use FASTforward® as part of the Move update compliance mailings will be scored at the 95 days to 13 months.
21 Scoring continued
USPS will not grant automatic exceptions for FASTforward being down.
New scoring on failures where mailer would pay the full rate on the percentage of available COA’s in the mailing based upon the sample.
22 23 Steps for Pitney Bowes Presort Services Compliance 1. Review Customer Requirements (even to the job level) 2. Complete Customer Forms Ensure 100% of customers have signed 6014’s or new Presort Services form on file All customers who want FF will need to sign a PAF (Process Acknowledgement Form) 3. Update Current FF Equipment Ensure ample machines and black boxes Reject processors will need FF 4. Invest and Migrate to new FF Technology Industry vendor supported 18 months of data Presort Services upgrades throughout balance of 2009
24 New Pitney Bowes Presort Services FASTfd®forward® PiiPricing
Added to sort fee per piece
< 7,000 pieces per day: $.003 per piece
7,001 to 25,000 pieces per day: $.0027 per piece
> 25,001 pieces per day: $.0025 per piece
25 Intelligent Mail® Barcode for Customers
The Basics of IM™ BC
26 The Basics of IM™ BC
What is Int elli gent Mail®? A technology platform made possible by the suite of Intelligent Mail® Barcodes. A technology that will support future generations of Postal products, services, and associated features. Why use Intelligent Mail®? It provides end‐to‐end visibility into the mailstream (with CONFIRM® Services) and information to improve the value of mail.
27 Intelligent Mail® Barcode
The Mailing Industry had hoped that the USPS would offer deeper discounts for the use of the full service Intelligent Mail® Barcode. The discount that will become effective on November 29, 2009 has been set by the USPS at $0.003 per piece for First‐Class™ and $0.001 for Standard Class. Pitney Bowes Presort Services has already invested close to $10M in preparing for full service Intelligent Mail® Barcode and we are not done. The discount offered by the USPS will be needed to cover Presort Services’ investment costs
28 Intelligent Mail® Barcode Implementation
Testing IM™ BCwith USPS for 3 years PB leadership on 12 IM™ BC technical committees and associations Currently testing full service in Cedar Rapids and Phoenix Plan is to roll out full service as USPS capabilities are established
29 Example of Today’s Mailpiece
ACSACS™™ Keyline and Participant Code
PLANET® Code for POSTNETPOSTNET™™CodeCode for Confirm® Service sortation and automation prices
30 Mailpiece with the Intelligent Mail® barcode
Presorted First-Class Mail U.S. POSTAGE PAID 6060 PRIMACY PKWY STE 201 Washington, DC MEMPHIS TN 38188-3333 20260 Permit No. 1 Address Service Requested
IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN 38141-8346
One Barcode: • Sortation • Tracking • Address Quality • Special Services
31 31 POSTNET™ Code & Intelligent Mail® BdBarcode CCdompared
The POSTNET •In use until 2011
IM™ BC
32 Full Service and Basic Intelligent Mail® Barcode Options
IMb Implementation Detail Basic Full IMb with 11 digit routing code, an assigned Mailer ID, the class and USPS® XX service requested on First‐Class™, Standard Letters and Flats 11 digit POSTNET™ barcode allowed until 2011 X Free Address Change Service in May 2009 X Deepest automation discount in November 2009 BddBarcoded UUinique ID’s for each mail piece, tray, and container ((iunique for 45 X days) Postage statements and mailing documentation submitted electronically. X BttBetter vis ibility iitnto the MiltMailstream, end to end ttkiracking capability with X CONFIRM® Service and feedback from the USPS on mail preparation and address quality. Also ACS feedback, if requested, and start‐the‐clock information is free of charge for automated pieces For drop‐ship mailings and all origin‐entered mail verified at a detached mail XX unit (DMU), schedule appointments using the Facility Access and Shipment Tracking (FAST) system
33 What Kind of Intelligent Mail® Barcode will Presort Services Use?
Full Service Why? Improved postage discounts Ability to use all the IM™ BC features ACS™ CONFIRM® Enhanced tracking statistics HlHelp the USPS improve mail dlidelivery throug h eDoc Provide the latest mail entry times thus helping our customers with their needs
34 Intelligent Mail® Barcode on Letters and Flats
Sequence Routing Code Barcode ID Service Type Mailer ID Number Ex: 6449 Amberview Ex: “00” for Mixed Ex: “700” for First Ex: “123456” Ex: Ct., Memphis, TN AADC Class Mail USPS assigned “200800001” 38141834649 Mailer assigned
Barcode ID –constant Service Type ID –represents Mail class, ACS™, CONFIRM®, Basic or Full Service Mailer ID – assigned by the USPS, 9 or 6 digits (volume based) Sequence NbNumber – MiliMailpiece ID (6 or 9 dig its ) Routing ZIP™ ‐ 0, 5,9 or 11 digit ZIP Code
35 35 Intelligent Mail® Barcode Tray Labels
Existing Legacy Label
Transitional10/24-digit Int elli gent M ail® T ray L ab el
Future 24-digit Intelligent Mail® Tray Label
36 What the USPS® will see End‐to‐end visibility and seamless process for mail acceptance and delivery Standddardize d intelligent bbdarcodes across system
------6060 PRIMACY PKWY STE 201 ------Unique Container MEMPHIS TN 38188-3333 Unique Tray Barcode
ADDRESS SERVICE REQUESTED Barcode IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN 38141-8346
37 New Intelligent Mail® Barcode Discount s As of November 29, 2009 – For Full Service only First‐Class™ – additional .003 Standard – additional .001
Will everyone get a .003 discount in November? No, as the Presort Services investments in IM™ BC infrastructure needs to be recovered Pitney Bowes is still iden tify ing the itimpact of USPS rate and process changes, some of which are still not finalized yet.
38 Mail Owner Identification to USPS
If customer regularly provides average mail volumes greater than 3,000 mail pieces, they are to be processed with unique mail owner identification. Jobs under 3,000 will use general Presort Services MID, but will separated by job number for billing purposes. Mail owner identified through electronic documentation Three methods of identifying mail owner (only one required) MID –6 or 9 digit Mailer ID assigned to mailers based on volume (6 digit for PB Presort customers) CRID –Customer Registration ID assigned to every mailer by site Permit Number – Required by USPS for all permit and non‐profit customers for each USPS acceptance location
39 Mailer ID (MID) Overview
Sequence Routing Code Barcode ID Service Type Mailer ID Number Ex: 6449 Amberview Ex: “00” for Mixed Ex: “700” for First Ex: “123456” Ex: Ct., Memphis, TN AADC Class Mail USPS assigned “200800001” 38141834649 Mailer assigned
When Presort Services applies Intelligent Mail® Barcode ‐ 6‐digit only in IM™BC Caused by multi‐vendor MLOCR limitation Customer MID NOT required in IM™ BC, but in the eDoc or CRID in eDoc Presort Services POInTS system will feed information to eDoc to identify customer 6‐digit will be used in eDoc May also identify customer in eDoc using Customer Registration ID (CRID) or permit number
40 Mailer ID (MID) Overview
Sequence Routing Code Barcode ID Service Type Mailer ID Number Ex: 6449 Amberview Ex: “00” for Mixed Ex: “700” for First Ex: “123456” Ex: Ct., Memphis, TN AADC Class Mail USPS assigned “200800001” 38141834649 Mailer assigned
Customer may request their MID in the IM™BC 6‐digit only Dedicated to the PS operating site Customer MID in barcode is not required by USPS, just electronic documentation Same as identifying customer in eDoc
41 Electronic submission –the eDoc
Presort Services Customer Applies Applies IM™ BC IM™ BC
The IM™BC is a “pointer” to more information that is contained in the eDoc
42 Service Type IDs
Sequence Routing Code Barcode ID Service Type Mailer ID Number Ex: 6449 Amberview Ex: “00” for Mixed Ex: “700” for First Ex: “123456” Ex: Ct., Memphis, TN AADC Class Mail USPS assigned “200800001” 38141834649 Mailer assigned
Presort Services may apply USPS Service Type ID for customer in IM™BC Service Type identifies Class of Mail Identify piece as Full Service Type Appropriate move update options for ACS™ or non‐ACS CONFIRM® active or not
43 Your Options
There are many options in which Intelligent Mail® Barcode can be applied. The best way depends on what features and capabilities an organization needs, the resources available and other factors.
44 Presort Services Preferred IM™BC Configuration
Pitney Bowes Presort Services Applies Full Service IM™BC in clear zone Mail owner identified through eDoc using CRID Mail Preparer identified using MID in IMb FASTForward as Move Update Method ((poptional ) PB Presort Solutions Piece Tracking Solutions (optional) Confirm® Service On Route
45 When Presort Services Applies the IM™BC to the Mail Piece Permit number or MID used in eDoc if required or requested Permit Number required in eDoc for all permit and non‐profit customers for each USPS acceptance location MID required in eDoc if Address Change Service Sequential Serial numbers must be assigned by Presort Services (set up by opp)erations) Service Type identifier printed in IMb Class of mail Full Service type mailing Appropriate move update options for ACS Confirm® Service
46 When Customer Applies the IM™BC to the MiliMailpiece Pieces precoded with Full Service IM™ BC Allows customer to track inddldividual mail pieces to associate each piece to a database and record to be used for CONFIRM® tracking or ACS™ reconciliation Customer must make sure that MID & serial number must be unique for 45 day s from USPS drop date Keeping serial numbers unique is a challenge PB Business Insights is one area for SW solutions Customer MID on piece may be 6‐digit or 9‐digit Pieces precoded with a Postnet or Basic Level IMb Presort Services prefers to apply a full service IM™BC in the clear zone (Ex: If customer prints a Postnet in the address block, we will spray a full service IM™ BC in the clear zone) If Customer applies IM™BC 6‐digit or 9‐digit in barcode Cannot use a Presort Services’ MID
47 Intelligent Mail® Barcode Services Offered by PB Presort Services
The IM™BC can be applied at various stages of producing a document/mailpiece. PB Presort Services offers the easiest way to take advantage of some of these benefits by spraying the IM™BC: Confirm™ service – ablbility to spray the service code so the USPS tracks the mailpiece, sends the information to PB Presort Services where it can be viewed by the customer ACS™ – Ability to spray the service code that the USPS will send move update information to a customer
48 Address Change Service ()(ACS™) ACS is one of several methods used for move compliance – and‐ there are several versions of ACS This discussion focuses on OneCode® service ACS. Other forms of ACS will continue to be available through the USPS. ACS data is always sent to the mail owner identified in eDoc (sent by the USPS direct to owner) Mail owner must apply for ACS Mailer ID (MID) required for ACS Provide MID to PSI Presort Services enters the MID into the sorter job in POInTS MID can be 6 or 9‐digit Mail owner identified to USPS through MID eDoc – MID not required on the mail piece in IM™BC
49 Address Change Service (ACS™)
Mail owner may set up static profile with USPS to direct ACS™ data to a third party or service provider Free ACS only applies to Full Service Mail with Delivery Point Barcode (details are still being worked out) vs. .06 per hit (electronic) .50 (manual) Machinable & rejects are charged for ACS
50 CONFIRM®
CONFIRM® service data always goes to the MID on the mail piece. (ACS goes to mail owner) When Presort Services applies a new IM™BC to the mail piece Pitney B/PtBowes/Presort SiServices Piece TTkiracking SltiSolutions Presort Service’s MID on mail piece USPS sends CONFIRM data sent to customer –Dedicated customer 6‐digit customer MID per Presort Services site –MID CONFIRM activated CONFIRM data is sent to MID in the IMb Mail pppreparer (Presort Services) The only time the customer MID is required on the piece Mail owner Third party
51 CONFIRM® Third party CONFIRM providers Customer may apply the IM™BC in the address block OR PB Presort Services applies the IM™BC on the piece – Dedicate customer 6‐digit MID per customer per Presort Services site – MID CONFIRM activated – Customer sets up static profile wiihth USPS to re‐direct all scans from an MID to a third party CONFIRM has been moved back by the USPS until July or AtAugust 2009
52 Implementation Schedule
Time Period Activity Current Continue to test at Cedar Rapids, Phoenix and LA 4/1/2009 Presort Test E doc 5/1/2009 Full Service IM™BC starts 5/1/2009 New Verification Procedures 7/1/2009 CONFIRM IM™BC starts Summer 2009 USPS to implement new verification tolerances 11/29/2009 Full Service discounts implemented
53 Pitney Bowes IM™BC Solutions: CltiCompleting CCtionnecting the MiltMailstream
• IMB assign & render • Rules based services • Prep for finishing integrity
54 More Information on Intelligent Ma il® BdBarcode
Presort Services Educational Services working on training material Check internet for updates http://ribbs. usps. gov Intelligent Mail® Services links on left side
55 Trademark Notice:
Intelligent Mail, IM BC, First-Class, First-Class Mail, Standard Mail, USPS, NCOALink, ACS, OneCode ACS, FASTforward, DMM, MERLIN, PostalOne!, Confirm, PLANET, PLANET Code, POSTNET and ZIP are trademarks owned by the United States Postal Service.
Pitney Bowes, the Corporate Logo, SmartMailer, VeriMove, DOC1, StreamWeaver, Emtex, VIP, VDE and DFWorks are trademarks owned by Pitney Bowes Inc. or a subsidiary.
© 2009 Pitney Bowes Inc.
56