MTAC Update January 2015 Consumer & Industry Affairs / Industry Engagement & Outreach

Slide 2 Postmaster General’s Mailers Technical Advisory Committee An association of associations  Representatives of the industry – not companies  Currently 50 Associations have an MTAC membership One Association Executive and up to Three Association Representatives per Association Approximately175 Association Executives and Representatives Focused on sharing information between the USPS and Mailing  The Postmaster General’s Mailers’ Technical Advisory Committee (MTAC) is a venue for the United States Postal Service (“Postal Service”) to share technical information with mailers, and to receive their advice and recommendations on matters concerning mail-related products and services, in order to enhance customer value and expand the use of these products and services for the mutual benefit of Mailing Industry stakeholders and the Postal Service Focus Areas – defined by PMG  First-Class Mail  Periodicals  Standard Mail  Package Services  Preparation and Entry  Visibility/Service Performance and Address Quality  Mail Piece Design and Product Development  Payment and Acceptance

Slide 3 MTAC Executive Committee Members IndustryU. S. Postal Service Christopher G. Lien -- Industry Chair ( ) BCC Software Cell: Jim Nemec -- Postal Chair Vice President, Consumer & Industry Affairs 475 L'Enfant Plaza RM 4016 Washington DC Erv Drewek-- Industry Vice Chair & Treasurer ( ) Manager of Postal Affairs Graphic Communications, a Veritiv company 5700 Darrow Road, Suite 110 Hudson, OH, Judy de Torok -- Postal Co-Vice Chair Manager, Industry Engagement & Outreach Consumer & Industry Affairs 475 L'Enfant Plaza SW RM 4437 Washington DC Phil Thompson -- Immediate Past Industry Chair ( ) Manager of Postal Operations Quad/Graphics Inc N61 W23044 Harry's Way Sussex WI Dale Kennedy -- Postal Co-Vice Chair Manager, Business Customer Support & Service 475 L'Enfant Plaza SW RM 4541 Washington DC Debbie (Branagan) Goldman -- Program Manager Customer Outreach Specialist Consumer & Industry Affairs 475 L'Enfant Plaza SW RM 4411 Washington DC

Slide 4 MTAC Industry Leadership Industry Leaders: Classes of MailIndustry Leaders: Focus Areas Sharon Harrison / First-Class Mail / Major Mailers Association AT&T Services Inc: VP, Postal Strategy Finance 3900 Channel Dr West Sacramento CA Angelo Anagnostopoulos / Payment / Edison Electric Institute GrayHair Software Inc: VP Postal Affairs 124 Gaither Dr Ste 160 Mt Laurel NJ John Medeiros / Package Services / Parcel Shippers Association DHL Global Mail: Director, Postal Affairs 7415 Emerald Dunes Drive. Ste 600 Orlando FL Lisa Bowes / Service Performance / Natl Alliance of Standard Mailers & Logistics Intelisent: Manager, Account Services & Postal Affairs 597 North Mountain Road Newington CT Wanda Senne / Standard Mail / Natl Assn of Advertising Distributors World Marketing:Vice President, Postal Affairs 1961 S Cobb Industrial Blvd Smyrna GA Bob Schimek / Preparation & Entry (Operations) / IDEAlliance Satori Software: Senior Director - Postal Affairs th Ave Ste Seattle WA John Stark / Periodicals / IDEAlliance Condé Nast: Executive Director of Distribution Operations 1166 Avenue of the Americas 19th Fl New York NY Steve Colella / Mailpiece Design & Product Development / Association of Marketing Service Providers (AMSP) The Calmark Group: VP- Postal Affairs 6755 S. Sayre Ave Bedford Park, IL

Slide 5 MTAC U.S. Postal Service Leadership USPS Focus Area Leaders Visibility & Service Performance Measurement Robert Cintron VP, Product Information U.S. Postal Service 475 L'Enfant Plaza SW Washington DC (202) Payment and Acceptance Pritha Mehra VP, Mail Entry & Payment Technology U.S. Postal Service 475 L'Enfant Plaza SW Washington DC (202) Product Development Gary Reblin VP, New Products and Innovation U.S. Postal Service 475 L'Enfant Plaza SW Washington DC (202) Mail Preparation & Entry / Operations Dave Williams VP, Network Operations U.S. Postal Service 475 L'Enfant Plaza SW Washington DC (202)

Slide 6 MTAC Meetings: Policy Meetings are quarterly and generally held at USPS Headquarters  MTAC members are required to attend. Substitutes are not allowed. Approved Industry experts can attend as guests  Each association is permitted a maximum of three guests per year  The Association Executive must formerly sponsor the guest  The MTAC Executive Committee must approve all guests  MTAC Leadership (Focus Area leaders, Executive Committee, and Ex Officios) may sponsor a guest. However: The guest should be an industry expert representing a part of the industry that is not currently being represented by an existing MTAC Association Becoming an MTAC Member:  Check the MTAC Roster posted on ribbs.usps.govribbs.usps.gov  Contact the Association Executive of an association to which your employer belongs and find out how the association selects their representative for MTAC

Slide 7 MTAC Meetings: Format Tuesday Morning – MTAC Committee Meetings  Face-to-face meetings at USPS Headquarters for some committees Tuesday Afternoon MTAC General Session – Open  General overview of USPS finances, operations, and other areas  A 5 to 10 minute update on open workgroups, user groups, and task teams.  An evening reception typically follows the Tuesday meeting Wednesday All Day Focus Group Meetings – Closed  MTAC Business Meeting for current MTAC members only  Opening announcements and recognition of new MTAC members  75 minute discussions per Focus Group, led by USPS and industry Focus Area Leaders Thursday Morning – Workgroup Sessions & Meetings  Face-to-face meetings at USPS Headquarters  MTAC Leadership and Executive Committee meetings

Slide 8 Types of Committees Group Type Intended Function Primary Sponsor / Oversight Group Participants Approval of Participants Timeframe User Group Ongoing forum for USPS & users of a particular postal product or process. MTAC Focus Area Leader (postal and/or industry) Subject Matter Experts (both USPS and industry) User Group Leaders Open - No specific end date. Annual review of issue statement. Work Group Address defined issues, and provide recommendations MTAC Focus Area Leader (postal and/or industry) Primarily MTAC Members and industry experts MTAC Focus Area Leader Concludes when recommendations are submitted for consideration (per the issue statement) Task Team Quickly address very narrow issue, achieve results in a strict, often urgent period of time. MTAC Executive Committee (may also be delegated to Focus Area Leader if subject is specific to an Area) Selected by MTAC Leadership and Executive Committee MTAC Executive Committee Concludes when task or problem resolution is completed (per the issue statement)

Slide 9 Current User Groups and Task Teams User Group 1 - PostalOne!, SASP, Intelligent Mail  Weekly meetings User Group 2 - eVS/Product Tracking System  Monthly meetings User Group 3 - FAST User Group  As needed User Group 4 – Visibility (CONFIRM)  Biweekly meetings User Group 5 – Addressing  Biweekly meetings User Group 7 – MTEOR  As needed User Group 8 – USPS Promotions  Monthly meetings User Group 9 (NEW!) – Labeling Lists and Data Distribution  Weekly meetings Task Team 22 – MTAC 50th Anniversary Event Planning (2015)  As needed

Slide 10 Current Open Workgroups 143 – Seamless Acceptance  Open items to resolve that are dependent on other workgroups 151 – Streamlined Weight and Ad Capture Process  Still working through some active items: simplified approach to capture weight and ad percentage, tolerances for weight fluctuations (humidity, etc.) 159 – Evaluation/Recommendation entering product at Hubs  Pilot began in November 2014 with Phase 1 implementation targeted for Feb – Third Party Reporting and Invoicing  Supply chain responsibility for errors in the event of invoicing due to non-compliance with Seamless Acceptance, eInduction, and Full Service IMb 164 – Informed Visibility Data Provisioning Improvements  Informed visibility data delegation to get more mail into measurement 165 – Improve MDA Support Process  Continuing to work through remaining open issues such as the creation of a Mailpiece Design Quick Service Guide, and posting of commonly asked Q&A’s on RIBBS. 166 – IMpb Compliance for Shipping Services File Timeliness  Working through the assessment of fees when mailers do not submit shipping services files prior to the physical tender of packages to USPS

Slide 11 MTAC Related Webinars conducted in 2014 Representative Sample: IMpb impacts for Market Dominant products Mail Entry Roadmap Webinar Secure Destruction – A Primer for Mailers Mail Preparation and Entry Focus Session Network Rationalization Phase II 2014 Fall Mailing Season Update Accessing & Understanding Mail Quality Reporting NCOALink® and ACS™ — Which is the Best? Structured Release Schedule for 2014

Slide 12 Major Topics discussed in 2014 Meetings FSS Preparation Requirements  FSS Prep moved from optional to required in January including the requirement to create scheme pallets at 250 pounds  Industry found the quantity of smaller pallets created operational challenges. Joint team identified potential solutions which are being tested.  USPS pursuing more robust FSS pricing Network Rationalization  Planned 2015 consolidations, CET and service standard impacts Monthly labeling lists  User Group 9 is working to improve data quality and timeliness Flats Strategy  Collaborative effort with industry to identify opportunities to reduce flats supply chain costs Mail Preparation and Entry

Slide 13 Major Topics discussed in 2014 Meetings Exigency / 2015 CPI price increase  Addressed concerns related to one price change or two price changes due to software release issues Full Service IMb Adoption  Full Service invoicing and requirements roadmap  Undocumented pieces and who to charge: Mail Service Provider or Mail Owner  Seamless acceptance roll out and what/when/whom is required  Move Update tolerance of 0.8% for census verification  Duplicate MIDs and CRIDs; especially for non-profits  eInduction for non-Surface Visibility sites Mailpiece Design Analyst (MDA) accessibility and support DMM Simplification Payment and Acceptance

Slide 14 Major Topics discussed in 2014 Meetings UAA Secure Destruction program Priority Mail Open and Distribute service levels Address quality and the OIG report on UAA mail Continue Start the Clock/Continuous Mailer  Addressed errors, and mail excluded from measurement.  Addressed rationale for volumes excluded from service  Explored needed improvements Isolating Remittance Mail performance statistics Service Performance status for First-Class Mail Addressing and Service Performance & Measurement

Slide 15 Major Topics from 2014 and proposed for 2015 Results from 2014 promotions  Branded Color Mobile Technology  Premium Advertising  Mail and Digital Personalization  Earned Value Credit  Color Print in First Class Mail Transactions  Emerging Technology featuring NFC  Mail Drives Mobile Commerce Exciting promotions proposed for 2015  Earned Value Credit  Advanced or Emerging Technology Promotion  First Class Mail Color/TransPromo Promotion  Mail Drive Mobile Engagement Promotion Product Development

Slide Meeting Schedule MTAC Meeting Dates  February , 2015  May 20, 2015 (in conjunction with National Postal Forum in Anaheim, CA)  August , 2015  November , 2015

Questions? Interim MTAC Update 2015 status and inquiries should be directed to: Consumer & Industry Affairs / Industry Engagement & Outreach