Mailers Technical Advisory Committee Update July 2015

Slide 2 Postmaster General’s Mailers Technical Advisory Committee An association of associations  Representatives of the industry – not companies  Currently Over 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 – Updated 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, Cell: 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 John Budzynski -- Postal Co-Vice Chair Consumer Advocate and Manager Customer Relations Consumer & Industry Affairs 475 L'Enfant Plaza SW Washington DC (202) Dale Kennedy – Program Manager Manager, Business Customer Support & Service Industry Engagement & Outreach 475 L'Enfant Plaza SW RM 4541 Washington DC

Slide 4 MTAC Industry Leadership (2014 to 2015) 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 Informed Vis/Addressing Nat'l Alliance of Standard Mailers & Logistics Intelisent: Manager, Account Services & Postal Affairs 597 North Mountain Road Newington CT Wanda Senne / Standard Mail / Nat'l 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, Enterprise Analytics 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 Linda Malone VP, Network Operations U.S. Postal Service 475 L'Enfant Plaza SW Washington DC (202)

Slide 6 Meeting Schedule for 2015: Election Year May  Vice-Chair candidates announced August 11 – 13  MTAC 50 th Anniversary Celebration  Vice-chair (2016 – 2017) elections at the MTAC Business Meeting  Nominations for MTAC Leadership (2016 – 2017) are opened November 17 – 19  MTAC Leadership (2016 – 2017) elections at the MTAC Business Meeting

Slide 7 MTAC 50 th Anniversary Pres. John F. Kennedy  Executive Order February 26, 1962 May 27, 1965  Post Office Department Headquarters  Circular No  PMG John Gronouski Partnership Results  ZIP Code  Barcoding  Drop Shipping  Flats Sequencing System  Etc.

Slide 8 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 9 MTAC Meetings: Typical 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 General Assembly (announcements; recognize new members)  75 minute discussions per Focus Group, led by USPS and industry Focus Area Leaders  MTAC Business Meeting for current MTAC industry members only Thursday Morning – Workgroup Sessions & Meetings  Face-to-face meetings at USPS Headquarters  MTAC Leadership and Executive Committee meetings

Slide 10 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 in August by the MTAC EC. 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 specific issue to 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) Specifically selected by MTAC Leadership and Executive Committee MTAC Executive Committee Concludes when task or problem resolution is completed (per the issue statement)

Slide 11 Current User Groups User Group 1 - PostalOne!, SASP, Intelligent Mail  Weekly meetings User Group 2 - eVS/Product Tracking System  Monthly meetings User Group 3 - FAST User Group  Biweekly meetings User Group 4 – Visibility (previously CONFIRM)  Biweekly meetings User Group 5 – Addressing: Technology & Business Strategy  Biweekly meetings User Group 7 – MTEOR  Quarterly User Group 8 – USPS Promotions  Monthly meetings User Group 9 – Presort Reference Data User Group  Biweekly meetings

Slide 12 Current Workgroups and Task Teams MTAC Workgroups  Workgroup 143 – Seamless Acceptance  Workgroup 151 – Streamlined Weight and Ad Capture Process  Workgroup 168 – FSS Multi-scheme Pallets  Workgroup 169 – Refining Package Machinability Standards (Parcels, Letters, Flats) Two years of study for each mail piece type starting with parcels, then letters, and finally flats.  Workgroup 170: Certificate of Mailing (COM) Improvements  Workgroup 171: Improving Accuracy and Use of UAA Reason Codes MTAC Task Teams  Task Team 23 – Readiness for Trend Based Verification Focusing on four key industry concerns: Data Quality vs. Reports/Invoices, System stability per metrics, Data Methodology, Threshold transparency vs. compliance

Slide 13 Recent and Planned MTAC Related Webinars Webinars and Related information is located on the Industry Outreach page of RIBBS  Industry Alert communications are also archived at this location.

Slide 14 Mail Preparation and Entry Hub Phase 1 Completed and Workgroup 159 Concluded  46 Active Hubs became effective on April 1st  Includes 4 pilot sites activated in January  Phase II Sites Selected Approximately 166 additional sites will become live on July 1st  USPS to review remaining former SCFs for eligibility to become a Service Hub with a July update coming soon along with a label list Phase 2 Network Rationalization Largely Suspended  Many locations now reflect a TBD for implementation Bundle breakage concerns  Especially for bundles using strings and loose, single pieces SPSS Machines for packages weighing 20 lbs or less  Purchased five (5) SPSS sorters purchased and enhanced requirements are being developed for purchasing 26 additional units

Slide 15 Visibility, Service, Addressing Awaiting FRN on pieces excluded from Move Update compliance  MLNA, BCNO, Foreign, and Legal Restraint Review of WG 167 – Increasing Mail in Measurement  Minimal improvements thus far (5% to 6% improvement in measurement)  Desire to continue efforts to seek higher (double-digit) increases in improvement New Service Type IDs discussed  Including Bound Printed Matter for Full Service IMb tracing (UG4) IMb Planning Tool Discussion  Data feeding the tool is too late to be useful for many in the industry Up to 2 weeks late  Will explore ways to improve the latency – perhaps as part of I.V.

Slide 16 Payment and Acceptance Full Service IMb Adoption is now at 87% Guide to Postage Assessments updated Human readable labeling list was deployed on Sunday May 17,  USPS will provide access to this human readable labeling list through Postal Explorer. Develop an Industry workgroup on Payment Modernization once approved Determine status of Non-Profit Validation in Mail.dat  Implementation of recommendations from Workgroup 160

Slide 17 New Product Development 2016 Promotion Ideas – Over 20 ideas submitted  MTAC User Group 8 is a contributing source for these ideas  Packages should be considered for future promotions as well Real Mail Notification Pilot  Reviewed the Real Mail pilot being conducted in Northern Virginia Participants receive an with scanned images of the actual mail pieces due to arrive in their mailbox later in the day, thus enhancing anticipation of delivery Mail piece owners and originators could have a “click here” or some type of complimentary message applied to the scanned mail piece image that would trigger action supportive to the delivery of the mail piece.  Suggested the formation of an MTAC Workgroup based on the pilot results Industry suggested exploring more incentives that would also benefit Mail Service Providers

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