Intelligent MAIL - National Postal Policy Council

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Implementing

Intelligent

MAIL

® in the U. S. Postal Service

Charles Bravo

Senior Vice President

Intelligent Mail & Address Quality

National Postal Policy Council

May 25, 2006

1

What is INTELLIGENT MAIL?

The use of one code to uniquely identify and allow end-to-end visibility into the mail stream.

 Evolution in postal technology

 Helps business customers better manage their resources and reduce costs

 Provides real-time access to processing and delivery information

2

IN THE MOST SIMPLE TERMS

4

WHY CHANGE? THE BENEFITS

 Simplifies use of postal services

 Frees up real estate on mail piece

 Supports accurate collection of postage

 Improved management of mailers’ business processes

 Increased transparency (mail visibility)

 Enhanced security while maintaining privacy

 GROW REVENUE!

5

INTELLIGENT MAIL COMPONENTS

Mail Preparation Induction Transport Process Delivery

Electronic

Manifest or

Pre-Shipment

Notification

Entry Scan

“Starts the

Clock”

Container

Scans

First

Automated

Scan

Last

Automated

Scan

Delivery

Scan

Planned

Induction

Date/Time

Actual

Induction

Date/Time

Status of

Mail

Mailpieces in Sorting

Mail

Available for

Delivery

Actual

Receipt

6

OneCode Vision™

Yesterday’s Mail Piece

Address Change Service Codes Special Services

Presorted

First-Class Mail

U.S. POSTAGE

PAID

Washington, DC

20260

Permit No. 1

6060 PRIMACY PKWY STE 201

MEMPHIS TN 38188-3333

ADDRESS SERVICE REQUESTED

#BWNGKVN

#9999 9920 0104 276

IRENE PAYNE

6449 AMBERVIEW CV

MEMPHIS TN 38141-8346

PLANET Code for CONFIRM Service POSTNET Code for Sortation

7

OneCode Vision™

A New Mailpiece for Today

Visibility & Special Services

COMPUTERIZED FORWARDING SYSTEM

UNITED STATES POSTAL SERVIICE

6511 BALTIMORE AVE

HYATTSVILLE MD 20782-9988

Address Quality Services

First-Class Mail

Postage & Fees

Paid

USPS

Permit No. G-10

CHARLES E. BRAVO

SR VP INTELLIGENT MAIL & ADDRESS

QUALITY

UNITED STATES POSTAL SERVICE

475 LENFANT PLZ SW RM 2100

WASHINGTON DC 20260-5500

CONFIRM Service Sortation

“One code per mail type that points to a suite of services”

8

OVERVIEW/BACKGROUND

 Uses 4-state barcode symbology

– Refers to 4 different positions of the bars within the barcode

 The code will:

– Uniquely identify the sender

– Uniquely identify the mailpiece

– Provide a destination ZIP Code for sortation & routing

– Encode Special Service indicators & Address Change

Service (ACS) requests

 Barcode will be acceptable for automation discounts

9

TESTING TO ENSURE SUCCESS

All Testing is Going Well

• Computer simulation – SUNY, LM & Omniplaner

Encoder testing – 22 mailers

Test deck – stress deck on specifications

Move Validation Mail (MVL)

Over 10 million mail pieces

• Read rate comparable to POSTNET

• Prudential Mail and American Express

Tested over 1 million mail pieces

Shorter height testing revealed no degradation for letters

Letter height specification updated to between .134 and .230

• Flats stress deck testing underway

10

OneCode CONFIRM vs. CONFIRM

Barcode

Symbology

Unique

Numbers

Can Combine

Services

4-State

1 Billion

Yes

PLANET

Codes

1 Million

No

Cost Same as

CONFIRM

Current

CONFIRM pricing

Available for all letter mail Sept. 2006

11

Customer

Data

Centers

DEVELOP ENABLING INFRASTRUCTURE

USPS National

Data Stores

Enterprise

Data

Warehouse

National

Application

Servers

District

Servers

Servers

USPS Wide Area

Network

9 Areas

80 Districts

280 Plants

38,000 Facilities

300,000 IMD Scanners

USPS Mail Processing Infrastructure USPS Associate Office Infrastructure

IMD

12

INTELLIGENT MAIL DEVICES

Imager for barcodes

– Reads 4-state,

POSTNET, and

PLANET barcodes

– Captures image of signature

Larger display

– Color display

– 2” x 3” dimension

Wireless capable

– Bluetooth enabled

– WLAN (802.11b) and

WWAN (GPRS) expansion capability

 Full alpha-numeric keypad

13

ENCHANCE ADDRESS QUALITY

Mailers expect the Postal Service to deliver their mail to the right destination and the right person the first time.

Supporting Facts:

Each year approximately 2 million addresses are added to the system.

Approximately 45 million change of addresses are filed each year

In 2005, the Postal

Service processed

212 billion mail pieces.

14

USPS FOCUS

Overall improvement in Address Quality:

 Reducing UAA

 Increasing DPS percentage

15

MOVE-RELATED UAA

New York

Pennsylvania

New Jersey

16

PHYSICAL ADDRESS UAA

Common Address Quality Problems

ACME PRODUCTS

4759 WESTERN ST

NEW YORK NY 10022-5279

CARL SHULER

1414 LAKE ST APT

CHICAGO IL 60614-1910

Missing Apt or

Ste Number

Incorrect

Number

Incorrect

Recipient

Missing

Number

Missing RR or

Box Number

Incorrect

Street Name

17

ENHANCE ADDRESS QUALITY

Services to keep up with movers:

Existing:

– NCOA Link ™

– The most secure method to keep customer address information current .

– Over 270 Licensees

New:

– OneCode ACS

– Provides mailers with electronic address correction services without need of costly manual processing.

18

OneCode ACS

OneCode ACS is available for First Class letter mail Sept. 1, 2006

ABC Company

123 Main St

Memphis TN 38101- 1234

Address Service Requested

INTELLIGENT MAIL & ADDRESS QUALITY

USPS Forward

6060 PRIMACY PKWY STE 201

MEMPHIS TN 38188 - 0001

2020 OneCode PKWY

MEMPHIS TN 38188 -

• MVL testing for over a year

• Testing with multiple mailers

• PARS will allow standard mail to be offered late in 2007

19

OneCode ACS vs. ACS

4-State Barcode

Symbology

Percent Electronic High 90’s

Yes

None

80-85% plus hardcopy

No Can Combine

Services

Response Time Hours Days

Cost 21¢ per record 21¢ per electronic record/75¢ per hard copy

20

ENHANCE ADDRESS QUALITY

Services to improve address quality:

Just Launched:

– Address Element Correction II (AEC II)

– Allows mailers to submit bad addresses to USPS for correction .

– Uses Delivery Force Knowledge™

– ANKLink

– Provides mailers with information on addresses not known after the forwarding period concludes.

– Over 20 Licenses have been issued.

21

ENHANCE ADDRESS QUALITY

Quality address information from movers:

– Internet Change of Address

– see www.usps.com

– Telephone Change of Address

– call 1-800 ASK - USPS

– Movers Guide™

– Visit your Post Office

22

INTERNET CHANGE OF ADDRESS

23

INTERNET CHANGE OF ADDRESS

600,000

500,000

400,000

300,000

200,000

100,000

0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2002 Electronic 102,342 81,599 61,826 69,005 84,122 85,671 101,615 112,727 90,942 87,860 95,436 92,693

2003 Electronic 108,687 94,949 108,176 119,437 153,540 173,797 185,602 215,179 175,727 152,849 136,610 166,764

2004 Electronic 185,789 170,777 187,318 200,840 257,777 298,076 299,831 321,101 253,188 226,121 223,547 249,074

2005 Electronic 276,818 252,314 303,081 317,303 424,851 450,755 436,332 503,674 562,045 393,652 358,275 369,206

2006 Electronic 408,069 353,685 409,439 414,172

11.9 Million ICOA’s Processed Electronically

January 2002 – April 2006

24

ICOA PUBLICITY

Last year, this story was featured in over

484 newspapers across the country reaching 39 million readers.

25

THE LATEST MOVING INNOVATION

 Catalogers lose contact with customers during the move

 Consumers hyper-spend immediately following their move

 Catalogers miss the hyper-spending window

 Movers are interested in trying new catalogs

Catalog Request Card

26

INCREASING DPS PERCENTAGE

 Increasing the use of ICOA

 Promoting more DPV by mailers

 Encouraging mailers to use AEC I and II

 Using internal tools

 Launching Suite Link ™

27

WHAT YOU CAN DO?

 Learn more about the 4-State Barcode

– Rapid Information Bulletin Board System (RIBBS) web site ( https://ribbs.usps.gov/onecodesolution/ )

 Encourage your customers to use ICOA at usps.com

 Learn more about our Address Quality tools

– NCOA Link™, OneCode ACS, ANKLink, AEC I, AEC II

 Obtain a copy of the “Address Quality Methodologies-

Best Practices.” It can be downloaded at:

– https://ribbs.usps.gov/mtac.htm

28

THE BIG PICTURE

MTE

License

Plate

Identity:

Unique ID across assets, containing or linked to customer IDs

TRLR453012MOPS

Truck/Trailers

Airplanes

Pallet / MTE Placard

D&R Tag Scans

24-Digit

Distribution Labels

Unique Mailpiece ID

(4-State, UCC EAN 128)

29

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