FLAT MAIL PREPARATION OPTIMIZATION November 5, FLAT MAIL PREPARATION OPTIMIZATION Issue #81 MTAC November 5, 2003

FLAT MAIL PREPARATION OPTIMIZATION November 5, – Digit Package Scheme for Flats (L007)  Covers Standard Flats, Periodicals, & Bound Printed Matter Flats  Run multiple 5-digits on same AFSM 100 sort plan  Incoming secondary sortation  In effect since early 2003  Experienced problems with newspapers & rigid items

FLAT MAIL PREPARATION OPTIMIZATION November 5, – Digit Package Scheme for Flats (L007)  Reinforced machinability criteria to mailers  Borderline AFSM 100 compatible items should not use scheme  Majority of issues have been resolved  Very few reported concerns recently  Preparing to expand concept to 3-digit scheme

FLAT MAIL PREPARATION OPTIMIZATION November 5, – Digit Package Scheme for Flats  L007 issues cleared up – ready to start  Covers Standard Flats, Periodicals, & Bound Printed Matter Flats  Run multiple 3-digits on same AFSM 100 sort plan  Incoming primary sortation  All within single ADC?

FLAT MAIL PREPARATION OPTIMIZATION November 5, – Digit Package Scheme for Flats  Increases bundle size  Decreases number of bundles  Reduces allied labor expenses associated with prepping flats (Operation 035)  LDC 17 is one of last major areas of opportunity to target

FLAT MAIL PREPARATION OPTIMIZATION November 5, – Digit Package Scheme for Flats  Notified field operations coordinators of intent  Scheduled on MOS agenda to introduce  Letter to MOSs prepared to begin data collection  Should have scheme combinations by next MTAC

FLAT MAIL PREPARATION OPTIMIZATION November 5, Co-Palletization / Co-Packaging of Mixed Classes  Product Redesign initiative  Covers Standard flats, Periodicals, & Bound Printed Matter flats  Lukewarm industry reception to Co-Pal  Stronger support for Co-Packaging  Co-Packaging subgroup met to discuss initiative

FLAT MAIL PREPARATION OPTIMIZATION November 5, Co-Palletization / Co-Packaging of Mixed Classes  Helps consolidate flat streams  Gets out of sacks and onto pallets  Allows for deeper penetration into system  Reduces number of containers used  Reduced bundle breakage from decreased sack usage

FLAT MAIL PREPARATION OPTIMIZATION November 5, Co-Palletization / Co-Packaging of Mixed Classes  Concerns about acceptance and verification  Issues around minimum package size  Timing issue – will this take away time from cost based rates work?  Industry split on how to proceed

FLAT MAIL PREPARATION OPTIMIZATION November 5, Co-Palletization / Co-Packaging of Mixed Classes  Operational concerns about Standard ADC pallets  Can all ADCs handle Std. pallets?  Periodicals and Std flats often processed in different facilities  How to give Std service, but process in Periodicals mailstream?  Uncertain status

FLAT MAIL PREPARATION OPTIMIZATION November 5, Periodical Firm Bundles  Periodicals mailings prepared under M940 and M950  5% limit would not apply to non-CRRT Firm bundles  Only for Firm bundles claiming 5-digit or basic rate  Firm bundle is treated as CRRT mail  Firm bundle is not opened/processed on FSMs

FLAT MAIL PREPARATION OPTIMIZATION November 5, Periodical Firm Bundles  Bottom line – If L001 container exists, put all Firm bundles for those zips in container  Idea newly introduced to workgroup  Being reviewed for reasonableness and practicality  Will have status update at next MTAC

FLAT MAIL PREPARATION OPTIMIZATION November 5, APPS – Barcoded Labels  5 new presort barcoded labels  Width modulated barcode on labels  Proposed rule issued August 18, 2003  Final rule issued October 17, 2003  Postal Bulletin – October 30, 2003  Effective date for use – April 1, 2004

FLAT MAIL PREPARATION OPTIMIZATION November 5, APPS – Optional Endorsement Lines  Subgroup formed to address concerns  Issues with maximum character length  Abbreviations may be necessary  Soliciting industry member for subgroup  Suggestions to be tested by Engineering  Proposed rule will be issued for comments

FLAT MAIL PREPARATION OPTIMIZATION November 5, APPS – Address Visibility Requirement  Address block on top piece must be clear:  DMM M020 (Packages) 1.1 (Facing) – “Except as noted in 1.2, all pieces in a package must be “faced” (i.e., arranged with the addresses in the same read direction), with an address visible on the top piece”.

FLAT MAIL PREPARATION OPTIMIZATION November 5, APPS – Packaging Guidelines  Do not use rubber bands  Do not use string  Strap before shrinkwrapping works best  Guidelines at this point  If intend to make requirements – will have supporting data, and will provide ample lead time  Will update at next MTAC