® Great Lakes Area Focus Group Meeting February 3,

® 2 Mail Entry Roadmap The Mail Entry Roadmap outlines the Postal Service’s key initiatives to streamline the acceptance, induction, and verification of commercial mailings.  Full-Service Verification  Move Update  eInduction  Seamless  Non-Profit Identification 2

® 3 Full-Service Initiatives  84% of volume is on Full-Service  DMU Privileges  Transition to Trend- Based Verification - Full-Service Verification - Move-Update Validation - eDoc Presort Validation

® 4 MAIL ANYWHERE Use of One Permit Across All Mailing Locations (“Mail Anywhere”) TRACKING & VISIBILITY Track and Monitor Service Performance Start-the- Clock Bundle, Tray, Container, and Piece Visibility and Tracking LOWER COST Access to lowest possible rates Access to mailing incentives RETIREMENT OF PERMIT FEES Elimination of permit fees via Mail Anywhere Full-Service Benefits 4 FREE ADRESS CORRECTION Free Address Correction Change of Address and Nixie IMPROVED DATA QUALITY

® 5 Full-Service Verification Error Type Mailer Scorecard Error ThresholdWhat is it? Valid MID MID Container2% Is the Mailer ID in the Intelligent Mail container barcode valid and registered with the Postal Service? MID Handling Unit2% Is the Mailer ID in the Intelligent Mail tray barcode valid and registered with the Postal Service? MID Piece2% Is the Mailer ID in the Intelligent Mail barcode valid and registered with the Postal Service? Valid STID STID2% Is the Service Type ID in the Intelligent Mail barcode valid and correct for the class and service level of the mailpiece? By/For 5% * Is the mail owner and mail preparer identified in the eDoc and accurate? Unique Barcode Barcode Uniqueness Container 2% Is the Intelligent Mail container barcode unique across all mailings from all mailers over the previous 45 days? Barcode Uniqueness Handling Unit 2% Is the Intelligent Mail tray barcode unique across all mailings from all mailers over the previous 45 days? Barcode Uniqueness Piece 2% Is the Intelligent Mail tray barcode unique across all mailings from all mailers over the previous 45 days? Note: The MID, Serial Number, and Class from the STID define a unique IMb. If the same MID and Serial Number are used on two mailpieces with two different STIDs that indicate the same class of mail (for example First- Class STIDs 314 and 320), those pieces will be flagged as non-unique. Entry Facility Entry Facility Container 2% Is the entry facility a valid the Postal Service location? Unlinked Copal Unlinked Copal (Previously OCI) 5% Was a tray/virtual Sack marked for co-palletization at origin and no electronic documentation is submitted with the tray/virtual sack on a pallet? This was previously called an OCI error. * A custom by/for threshold may be set for a mailer who accepts more than 5% of volume from small mailers presenting less than 5,000 pieces per day 5

® 6 Move Update Census Move Update does the following: Replaces the MERLIN PBV process for mailers who prepare more than 75% of eligible volume as full-service Compliant method for meeting the Move Update Requirement Performing address hygiene via other move update methods becomes optional for mailers over 75% full-service Mailer agrees to pay postage deficiency assessments when the threshold is exceeded for a given month Move Update:  Postage Assessed for pieces above threshold in July

® 7 Move Update What’s Included Move Update are errors logged when:  A COA record is associated to electronic documentation  The later of the COA create date and COA effective date is between 95 days and 18 months of the postage statement finalization date The following are not included in Move Update:  Simplified Addresses  MLNA, BCNO or Foreign moves  Temporary moves (FS R19/November 2014)  Single Piece (January 2015)  Pieces associated to Legal Restraint mail owners (January 2015) Census Move Update logs verification errors for aged COA records

® 8 Move Update Getting Data Change-of-Address (COA) data  Full-Service COA data is available at no charge  Download from PostalOne!  Subscribe to SingleSource ACS Move Update errors  Drill from Mailer Scorecard into the detailed data report to view up to 100 errors per mail owner and mailing  If additional data is needed above the cap, check out RIBBS to submit a data request Move Update data is available through multiple data sources

® 9 Seamless Entry (3) Capture data by handheld scanner (FS- IMD) at acceptance or induction (1) Mailers submit eDoc for all mailings, which will include: Unique Barcodes Piece data provided (1) Mailers submit eDoc for all mailings, which will include: Unique Barcodes Piece data provided (2) Auto-finalize postage statements Seamless Acceptance Mail Preparation Submit Mailing Information Mail Induction & Scanning Reconcile & Report (6) Detailed mail quality reporting (5) Compare data scans to electronic documentation (4) Capture data by Mail Processing Equipment (MPE) scans 1 1 The complete Seamless process is as follows:

® 10 Seamless Acceptance Requirements/Eligibility - Seamless Parallel 10 Verifications And Thresholds Mail Quality Evaluation Onboarding Designated USPS personnel sets each CRID unique business location to Seamless Parallel or Acceptance using the Seamless Admin Page eDoc validations trigger warning messages and identify necessary changes to qualify for Seamless Acceptance; USPS and Mailers evaluate and improve their mail quality, business processes, and software to Seamless Acceptance quality standards Mailers transition from Seamless Parallel into Seamless Acceptance after one calendar month with below-threshold errors Parallel uses both traditional and Seamless Acceptance verifications to determine Seamless Acceptance eligibility; verifications compared against established egregious thresholds to determine if Mailer can switch to Seamless Acceptance

® 11 Uses two set threshold levels:  Mailer Contact threshold – if errors exceed this, the Business Mail Entry Unit (BMEU) contacts the Mailer and works with them to reduce errors  Egregious threshold – if errors exceed this, Business Mail Entry (BME) Acceptance employees work with mailers to resolve issues, and additional postage charges may apply Results compiled in reports accessible to Mailers and the USPS, provide high- level monthly overview of mail preparation quality and allows Mailers and the USPS to drill into detailed error information Mail Verification: Seamless Acceptance Verification and Reporting Electronic Documentation Sampling Mail Processing Equipment Have all the pieces been paid for? Are the pieces addressed correctly? Is the mailing prepared correctly? Undocumented Delivery Point Weight, Barcode Quality, Postage, Mail Characteristic, Nesting/Sortation

® 12 Mailer Scorecard Verifications Seamless Acceptance verification results are compared against the established Mailer Contact Threshold and Egregious threshold Verification Mailer Contact Threshold Egregious Threshold Undocumented0.5%0.8% Delivery Point2%5% Nesting/Sortation (MPE)1%3% Nesting/Sortation (Sampling) 3%5% Mail Characteristic0.1%0.5% Postage2%5% Weight3%5%

® 13 Seamless Acceptance VerificationWhat is it? Undocumented Was every piece scan from a mailer participating in Seamless Acceptance able to be matched to eDoc? Delivery Point Is the delivery point contained in the IMb valid for the service level of the mailpiece? Nesting/Sortation (MPE) Were the mailpieces placed in a different tray or bundle than indicated in the eDoc? This verification uses MPE scans to identify how the mail was physically prepared. Nesting/Sortation (Sampling) Were the mailpieces placed in a different tray or bundle than indicated in the eDoc? Or was the tray/sack placed on a different container than indicated in the eDoc? This verification uses sampling scans to identify how the mail was physically prepared. 13

® 14 Seamless Acceptance VerificationWhat is it? Postage Is the type of postage payment and the amount of postage affixed match the eDoc for the mailpiece? This is a sampling verification. Weight Is the weight of the mailpiece different than the weight indicated in the eDoc? Is this difference enough to cause a change in the amount of postage due? This is a sampling verification. The Postal Service is working with the industry to establish the threshold for environmental factors for pound postage. Mail Characteristic Does the mailpiece match the same mail class and processing category as indicated in the eDoc? Does the piece content quality for nonprofit or standard mail rates (as appropriate)? This is a sampling verification. Barcode Quality Was a mailpiece sampled that didn’t have a scannable barcode in an automation mailing? 14

® 15 eInduction Scan-Based Paperless Entry at Dock - Use eDoc & scanners to accept container at entry - Automated decision making - Save time at origin and at entry by streamlining process 30% of Drop-Ship Containers on eInduction Non-SV Solution began Jan PREPARE MAIL eDOC UPLOAD AND USPS VALIDATIONS SCAN CONTAINER PLACARD INDUCT MAIL REVIEW MAIL QUALITY REPORTS

® 16 Why is eInduction Important to USPS? eInduction Benefits Mailers and the USPS by Eliminating the Need for Paper Forms 8125 and 8017 Mailer Benefits Streamline the preparation and induction of drop shipments and expedited plant load mailings Provides flexibility and supports mailers using non-standard preparations Supports use of all eDoc types, linking payment data and appointment data to container barcodes USPS Benefits Quicker appointment processing Reduces errors Takes advantage of existing technology to allow for paperless shipments Improves revenue protection

® 17 eInduction Verifications ErrorMailer Contact Threshold Egregious Threshold What is it? Misshipped1.05%2.00% Did the mailer induct the container at the correct location per the eDoc? Duplicate0.17%0.33%Did the mailer apply unique barcodes to each container within a 45-day period? Payment0.00% Did the mailer submit an eDoc with the appropriate amount of payment? Zone0.01%0.02%Based on how far the container traveled relative to the origin, did the mailer earn the zone discount claimed on the eDoc?

® 18 Nonprofit Eligibility In November 2014, for Mail.dat & Mail.XML submissions USPS started validating any combination of Mail Owner MID, CRID, Permit or the paying Permit ‒ All nonprofit entities in the mailing need to be identified in the eDoc ‒ Will support current identification methods for a period of time National Nonprofit Authorization numbers (NPA)  All Nonprofit mailers to use National NPA  Ensure all National NPAs are associated to a valid CRID Nonprofit MSPs/customers to contact the PostalOne! Help Desk to confirm NPA/CRID association Beginning 11/24 BMEs started assisting customers with CRID cleanup and NPA association 18