® Service Performance Measurement using Intelligent Mail & Seamless Acceptance

Service Measurement Initiatives  MTAC WG #114 ●4 subcommittees  Intelligent Mail Plan needed to define system capabilities and readiness ●Devise array of potential internal systems ●Outline phased implementation plan ●Project likely system design & cost

Key Factors  Availability of measurement tools/systems by mail type ●Deployment of necessary equipment and barcodes  Passive Scans (barcodes, system infrastructure)  Active Scans (unit load barcodes, handheld scanners)  Necessity for hybrid external measurement  Final mile?  Current seeding programs (EXFC, Red Tag….) ●Entry location readiness  Plants  BMCs  Detached Mailing Units  Delivery Units  Validations needed for service measurement ●Wrong entry or make-up ●Plants Critical Entry Time compliance ●Bad barcode quality ●UAA mail Service Performance Measurement

Key Considerations  What level of reporting necessary ●Is more than entry and exit scans necessary?  What is the volume and coverage requirements for statistical validation? ●Is it just volume based?  Provider type  Entry location  Presort level  What can be done about manual mail?  What is acceptable over time? ●System evolution to cover wider base Service Performance Measurement

 Use mailer provided electronic information to ●Uniquely identify containers, handling units, and mailpieces ●Define the makeup of the mail (i.e. which pieces are in which trays) ●Differentiate pieces by presort level (i.e. 3-Digit, Mixed AADC, etc) ●Start-the-Clock for the mailing  Use container, handling unit, and mailpiece scans of unique barcodes to verify induction  Determine accurate Start-the-Clock  Determine accurate Stop-the-Clock  Calculate service performance ●By facility ●By Origin-Destination (OD) pairs ●By individual transportation components between OD pairs ●By tray preparation (pre-sort) levels ●By customer ●By class Service Performance Measurement: The Approach

Measuring Mail Streams Mail Type Mail Stream IM Solution Time line by locationBarrier LettersAutomation Discount Manual Start the Clock: Mail.dat, Pallet Barcode & Dock Scanners Interim Scans: Intelligent Mail Barcode, Intelligent Tray Barcode, and IMVIS Infrastructure Exit Scan: DPS Scan, Scan Intelligent Mail Tray barcode Seamless Validation: Intelligent Mail Barcodes, Seamless Acceptance, National CET, Validation tool, FAST Overall : Service performance software Valid start clock If quality issue, should this count? Mail.dat Pallet barcodes – limited usage Dock scanners – 150 Plants, 0 Delivery units (could use IMD at plants – deployment by September) Intelligent Mail Barcode – 7 million per week (assessment of mailer type and class needed) Intelligent Tray barcode – Seamless pilot today & limited usage to begin in summer Acceptance Scans at DMUs – Seamless solution? IMVIS infrastructure: Upgrade underway – available in June Mailer participation: willingness of enough sources to implement required barcodes and systems

Measuring Mail Streams Mail Type Mail Stream IM Solution Time line by locationBarrier FlatsAutomation Discount Manual Start the Clock: Mail.dat, Pallet Barcode & Dock Scanners Interim Scans: Intelligent Mail Barcode, APPS and SPBS scanners, and IMVIS Infrastructure Exit Scan: Incoming Secondary Scan, Scan Intelligent Mail Tray barcodes or Bundles at DU Validation: Intelligent Mail Barcodes, Seamless or MERLIN verification, National CET, Validation tool, FAST Overall : Service performance software Valid start clock - Mail.dat Pallet barcodes – limited usage Dock scanners – 150 Plants 0 Delivery units (could use IMD at plants – deployment by September) Intelligent Mail Barcode – May 1 implementation Intelligent Tray Barcode – Seamless pilot today & limited usage to begin in summer Acceptance Scans at DMUs – Seamless solution? IMVIS infrastructure: Upgrade underway – available in June Exit Scan: Is hybrid system necessary or is carrier unit enough? Mailer participation: willingness / capabilities of enough sources to implement required barcodes and systems Hybrid system for manual mail?

Measuring Mail Streams Mail Type Mail Stream IM Solution Time line by locationBarrier ParcelsAutomation Discount Or Retail Start the Clock: EVS manifest, scan at plant, BMC or DU – retail scan Interim Scans: Intelligent Mail Parcel Barcode BMC Exit Scan: Delivery Scan Validation: UAA exclusion – Scan at CFS Overall : Inclusion in PETE measurement system? EVS manifest Dock scanners – 150 Plants – limited BMCs 0 Delivery units (could use IMD at plants – deployment by September) Intelligent Mail Parcel Barcode – Large segments current use Intelligent Mail Parcel Barcodes Mailer participation: willingness of enough sources to implement required barcodes and systems

Several different systems are in place to provide service performance information  Confirm ●Scan data is collected from processing equipment for IMB and Planet Code pieces  Seamless Pilot  EXFC ●Measures single piece First Class letter service performance ●Measures time from drop in collection box to receipt by customer  Red Tag reports ●Utilizes monitors to report delivery ●Pilot will attempt to validate reports Existing Service Performance Systems

Incremental improvements are required from USPS and mailers before intelligent mail can be used to drive service performance  Intelligent Mail® Barcode (IMB) Read Deployment: Complete  Expansion of IMB to Flats: May 1, 2007  Use Tray Scans in Service Performance Analysis: Qtr 3 FY07  Use Container Scans in Service Performance Analysis: Qtr3 FY07  PARS Deployment: October 2007  Intelligent Mail Tray Label available to all mailers: Qtr2 FY08  Surface Visibility at Delivery Units: FY08  24 Digit Tray Label: FY08/09  IMB Mandate: FY 09  Seamless Acceptance: FY09 Intelligent Mail Timelines

Questions??