Intelligent Mail® Made Simple Through Outsourcing Dan Hindman PB Presort Services June 21, 2010 Dan Hindman PB Presort Services June 21, 2010

Workshop Overview Intelligent Mail® Vision & Overview The Value of Intelligent Mail Intelligent Mail Implementation Why Outsource? Outsourcing Solutions Questions

Intelligent Mail® allows mailers to increase the value of mail and improve their business operations –Optimize the value of mail by producing mail intelligently and knowing the most about your mail at the lowest cost –Service standard measurement –Simplified mail piece –Piece level tracking –Move Update tools and services –Advanced reporting Intelligent Mail ® Overview

Identifiable & Verifiable Traceable & Accountable Efficient & Predictable Valuable & Responsive Intelligent Mail® Vision Mail - a Key Communication Medium 6060 PRIMACY PKWY STE 201 MEMPHIS TN Address Service Requested IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN Presorted First-Class Mail U.S. POSTAGE PAID Washington, DC Permit No. 1

Advance Notification Business Customer Gateway Electronic Documentation (PostalOne! ® ) Advance Notification (FAST ® ) Start-The-Clock (PostalOne! ® ) Verification and Postage Payment (PostalOne! ®) Tracking (Confirm ® & PostalOne!) And UAA Information (ACS ™ ) Intelligent Mail® Overview with the Full Service IM ™ BC

Intelligent Mail ® Overview 6 PLANET Code ® for Confirm ® Service POSTNET™ Code for sortation and automation prices ACS™ Keyline and Participant Code Example of a Traditional Mailpiece

Intelligent Mail® Overview One Barcode for Basic or Full Service Routing Code for sortation Tracking with CONFIRM ® Service Address Quality Special Services 6060 PRIMACY PKWY STE 201 MEMPHIS TN Address Service Requested IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN Presorted First-Class Mail U.S. POSTAGE PAID Washington, DC Permit No. 1 Example of a Mailpiece With an Intelligent Mail ® Barcode

Intelligent Mail® Overview Basic and Full Service Requirements Basic –Intelligent Mail ® barcode (IM™BC) on mailpieces –Will replace POSTNET™ in May 2011 for automation discounts Full-Service –Unique Intelligent Mail barcode on mailpieces, trays and containers –Barcodes must be unique for 45 days –Electronic mailing documentation (PostalOne! ® ) –Scheduled Facility Access Shipment Tracking (FAST ® ) appointments –Customer Supplier Agreements (CSA) –Services/benefits included with Full-Service: Full-Service ACS™, Start-the-Clock, Mail Quality Data, Full Service Discount

Intelligent Mail® Over view Example of Intelligent Mail® Barcode with 6-digit and 9-digit Serial Numbers in relation to Mailer IDs. The Intelligent Mail ® Piece 6060 PRIMACY PKWY STE 201 MEMPHIS TN Address Service Requested IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN Presorted First-Class Mail U.S. POSTAGE PAID Washington, DC Permit No. 1

Intelligent Mail® Overview Full Service 24-digit Intelligent Mail ® Tray Tag ZIP Code TM Ex: Memphis, TN “38141” Content Identification Number (CIN) 3-digits describing the tray Processing Code Ex: “1” for Automation Compatible Serial Number Ex:“ ” Mailer Assigned Mailer ID Ex: “123456” USPS Assigned Label Type Ex: “1” for 6-digit MID

Full Service IM™BC Overview Application Identifier “99” Type Indicator “M” Mailer ID USPS Assigned, Ex: “123456” Serial Number Mailer Assigned, Ex: “ ” The Intelligent Mail ® Container Placard

Full Service IM™BC Overview Intelligent Mail ® barcode Tray Pallet Pieces Intelligent Mail ® tray barcode Intelligent Mail ® container barcode Nesting of Data Example Data for eDoc

The Value of Intelligent Mail® Maximum Deliverability and Effectiveness: –Who? –What? –Where? –When? –How? Production: –Intelligent Mail ® barcode –Mail Quality Reports Process Monitoring and USPS® Handling –Start the Clock –CONFIRM ® Service – Piece level tracking

The Value of Intelligent Mail® Discount Savings Regulatory Compliance CARD Act (UDAP Compliance) CMS Policy UAA and Return Mail handling – NCOA Link®, FASTforward®, ACS™, Endorsements Inbound Mail Processing Associate database & record to individual piece – CONFIRM® Service – ACS™ Optimized Marketing

Intelligent Mail® Implementation Optimal implementation within your business is most likely not a project of days to weeks, but months to years! Investigation Budget Education Operations IT

Intelligent Mail® Implementation Investigation Business needs –Track Individual Pieces –Who gets Start the Clock and mail quality data? –Full Service ACS™: Which format of data, who gets, what is done with data? USPS® requirements –Education –Satisfy Move Update Requirement Operational Requirements –Upgrades –Process –Maintaining uniqueness

Intelligent Mail® Implementation Investigation Resource availability In-house talent IT requirements –How many databases? –Level of integration Process Gap Analysis Risk Analysis Future initiatives

Intelligent Mail® Implementation Budget Financial resources Staffing resources Education/Training Hardware and Software Real estate In-house vs. outsourcing cost analysis

Intelligent Mail® Implementation Education Intelligent Mail® seminars Industry certification Industry association meetings USPS® documentation In-House training program

Intelligent Mail® Implementation Operations Process flow Upgrades Intelligent Mail® Barcodes –Mailer Identifier (MID) types –Service Type Identification (STID) –Uniqueness of pieces, trays and containers for 45 days –Printing of the Barcodes Quality program Electronic Documentation (eDoc) creation and submission Customer Supplier Agreement FAST® integration Testing

Intelligent Mail® Implementation IT Intelligent Mail® Barcode payload Uniqueness Database integration Electronic Documentation (eDoc) creation –Mail.dat –Mail.XML eDoc maintenance Data storage and management Financial, operational and quality reporting ACS™ results matching –Multiple databases

Extensive requirements Reduce costs Access to Subject Matter Experts Improve operations Reduce risk Solve business needs Revamp out of date best practices Reduced time to implement Simplified solution Why Outsource?

Consulting Services Hybrid solution / Partnership Outsourced Onsite solution Presort Bureau Outsourcing / Implementation Solutions

Pros: –Various levels of engagement –Subject Matter Expert –Diverse experience –Merge mailer’s current and future needs with USPS® regulations and technology Cons: –What are consultant’s credentials? –Are recommendations unbiased? –Are all available opportunities explored? Consulting Services Consulting services provide an analysis to help determine the most viable Intelligent Mail® options.

Pros: –Associate mailpiece back to appropriate database –Utilize Presort Partner’s Move Update solutions –eDoc requirements handled by Presort Partner –Improved postage rates due to increased qualifications –Reduced mail finishing labor –Shared risk Cons: –Capital and on-going expenses required to create and apply barcode Hybrid Solution / Partnership In-house application of Intelligent Mail® barcodes. Mail is given to a Presort Partner for commingling and induction to USPS®.

Pros: – Access to Subject Matter Experts – Monitor on-site process – Maintain control – Associate mailpiece back to appropriate database – Focus on core business – Shared risk Cons: – Implementation Cost – Ongoing management and labor costs – Limited mailing qualification – Is mail processing core business? Outsourced On-site Solution Implementation outsourced to an on-site team for ongoing end to end mail management.

Pros: –No capital investment –Improved postage rates due to increased qualifications –Reduce operational labor –Current with USPS® rules & regulations –Presort Bureau will interface with USPS –Automated mailing requirements –Full Service requirements –Mail acceptance –Visibility with Intelligent Mail® –You can start today Cons: –Is there a requirement to associate a specific piece back to multiple databases? –Is there a quality program? –Is facility secure? Outsource to Presort Bureau Mail is given to a Presort Partner for commingling and induction to USPS®. Presort Bureau applies Intelligent Mail® Barcodes.

For Additional Information From USPS® Customer Support ribbs.usps.gov

For additional information from Pitney Bowes Presort Services…. Dan Hindman

Workshop Knowledge Validation Questions Question: Unique Intelligent mail barcoded pieces, Intelligent Mail tray tags, pallet placards, and electronic documentation are all requirements of Full Service. Answer: True Question: A full service barcode must have a mail class, Mailer ID, and serial number that is unique for 45 days from the day the mail is submitted to the USPS. Answer: True Question: Address Change Service and CONFIRM services are available for mail pieces that have either a Basic or Full Service Intelligent Mail Barcode. Answer: True

Questions? Please fill out the workshop evaluation form on your way out. Trademark Notice: Intelligent Mail, IM, FAST, USPS, NCOA Link, ACS, FASTforward, PostalOne!, Confirm, PLANET Code, ZIP Code and POSTNET are trademarks owned by the United States Postal Service.

The LI PCC would like to thank today ’ s session sponsor Thank you TMG Mail Solutions Inc Trademark Notice: Intelligent Mail, IM, FAST, USPS, NCOA Link, ACS, FASTforward, PostalOne!, Confirm, PLANET Code, ZIP Code and POSTNET are trademarks owned by the United States Postal Service.