Flexible and Dynamic Co-Palletization

What is Co-Palletization? (Co-Pal) Co-Pal is a postal program that allows for trays of mail from multiple jobs to be combined in order to achieve a greater destination-entry discount: Origin to NDC Origin to SCF NDC to SCF Carrier route, 5-Digit, and AADC trays can be upgraded for SCF entry MxAADC trays can be upgraded for NDC entry Mixed working trays are not eligible for upgrade Offshore mail can co-pal, but no USPS discount is applied

Mystic’s Streamlined Co-Pal Process Mystic Pools Trays and Ships to USPS Pallets Shipped to Mystic for Co-Pal Sorting Updated Mail.dat is Uploaded to PostalOne Mail Trays are Produced and Palletized Amadeus Qualifies, Marks, and Returns Updated File Mail.dat Files Dropped to Amadeus FTP Folder Mystic’s unique approach to co-pal allows for a much greater flexibility for lettershops Entire jobs, or individual pallets can be qualified for co-pal Pallet counts are typically reduced 40 to 60% when co- palletizing an entire mailing Co-Pal qualification is fast enough to occur “Just in Time” with no mailing production changes Mystic’s Co-Pal SCF penetration is > 96% Daily co-pal pools result in far better in-home performance compared with NDC or Origin entry, and introduce little to no delay to our drop-ship delivery pipeline

Option A – 100% Co-Pal Mail shop produces max-height Mixed NDC Pallets. This is the simplest approach and reduces the number of pallets produced by 40-60%. Common for national mailings < 100k pieces. New Co-Pal SCF Pallet A New Co-Pal SCF Pallet B New Co-Pal SCF Pallet C New Co-Pal SCF Pallet D Mixed NDC Pallet

Option B – Produce NDC only Pallets, and SCF when possible Mail shop sets a high threshold for producing SCF-level pallets. Eligible SCF pallets and the remaining NDC pallets achieve SCF entry through co-pal. This combination is a good compromise of maximum postage savings and less pallets being produced up front. Common for mailings between 100k and 250k pieces. NDC Pallet A New Co-Pal SCF Pallet A New Co-Pal SCF Pallet B NDC Pallet B New Co-Pal SCF Pallet C New Co-Pal SCF Pallet D

Option C – Produce NDC / SCF Pallets as Normal High-volume lettershops with ample production floor space may be producing mostly SCF pallets already. In this case co-pal may be leveraged to upgrade any residual NDC or potentially Origin entry skids. Common for mailings > 250k pieces. SCF Pallet A New Co-Pal SCF Pallet A SCF Pallet B NDC Pallet A New Co-Pal SCF Pallet B SCF Pallet C SCF Pallet D New Co-Pal SCF Pallet C