Seamless Acceptance Update

2 Seamless Approach  Value Stream Mapping (Measure) –Initial mailers: IWCO (08/22-26), Arandell, DST(10/4), Quad, PBPS –Map current mailer and acceptance and verification process –Integrated team from USPS HQ, USPS local, and mailers –Results from each DMU site to be shared with MTAC 143  Develop Future State (Analyze) –Uses results from value stream mapping –Identify activities to be automated –Define value proposition with mailers  Proof-of-Concept (Improve) –Test future state processes and verifications in a limited environment –Validate USPS and mailer capabilities –Identify changes needed prior to full implementation –Report results to MTAC 143  Develop/Implement Requirements, Pilot, Parallel, Launch 2

3 IWCO Direct Business Profile  End-to-end provider of direct marketing solutions  Financial services, insurance, travel, membership, telecommunications, non-profit, healthcare/pharmaceutical, education,  Manufacturing and distribution locations in CA, MN, and PA  List mailings & Commingled Mailings  Continuous Mailing Environment – 24 hr production  Predominantly (95%) standard mail letters, Some First-Class  Standard Mail dropship to 300 possible induction points (SCF/NDC)  All pallets and handling units with unique barcodes Full-Service88% Non-Full-Service12% 3

4 USPS IWCO Direct Hamburg  DMU on site –6 Clerks: 2 clerks X 3 tours –Staffed 24 hr/day  5 AMS verification/day  8 Verification Results Storage Records (VRSR)/day –MERLIN, Tap test, PVDS  Mailpiece Count Verification (MPCV) for commingled mailings  Paper intensive process 4

5 IWCO-Direct Entry – Current State 1 5 Blue = USPS Activity Pick = Mailer Activity

6 IWCO-Direct Entry – Current State 2 6

7 IWCO-Direct Entry – Current State 3 7

8 IWCO-Direct Entry – Current State 4 8

9 IWCO - Co-Mingle - Current State 1

10 IWCO - Commingle - Current State 2

11 IWCO - Commingle - Current State 3

12 Opportunities to Streamline DMU OpportunityImpact on MailerImpact on USPS AMS and VRSR for direct mail add 47 min to the release of a mailing Mailer needs to build time into production plan for verification Work hours for verification Multiple handling of mailings to facilitate verification Additional labor and equipment required due to multi-handlings Commingle pallets held for 49hr due to verification Mailer needs to build time into production plan for verification, storage space for mail awaiting clearance. Work hours for verification IWCO Direct gives DMU paper estimated postage statements Mailer uses eDocs, wasted paperWork hours for handling/tracking paper statements AMS verificationsAdditional time and handling to accomplish verification Work hours for verification USPS verification used as key QC step Mailer holds mail, disassembles pallet if error found Work hours for verification Pallets for VRSR sit for entire day, 2-3 verified per shift Mailer needs to build time into production plan for verification DMU staffed for entire day 12

13 Thank you