Improving the Drop Shipment Process MTAC Workgroup #87 Update Washington, D.C. November 8, 2007

MTAC Workgroup #87 2 National Deployment USPS deployed Mailer Rating nationally following a 10 week pilot at 5 facilities Mailer Rating National Deployment was based on a phased approach by area  Deployment included FAST/Surface Visibility (SV) enabled facilities with 80% SV Drop Ship Compliance or higher Mailer Rating National Deployment Activation  A facility must reach 80% SV Drop Ship Compliance for 2 consecutive weeks before being activated  Activated facilities falling below 80% SV Drop Ship Compliance for 2 consecutive weeks are deactivated  In order to be reactivated, a facility must reach 80% SV Drop Ship Compliance for 2 weeks –Customers are notified as facilities are activated for Mailer Rating –Despite the notification, customers should operate as if all USPS facilities are activated at this time to encourage better performance Mailer Rating National Deployment Plan  Phase I: 1 Area; Western  Phase II: 3 Areas; Great Lakes, Southwest, Eastern  Phase III: 5 Areas; NY Metro, Capital Metro, Pacific, Northeast, Southeast

MTAC Workgroup #87 3 Deployment Status Phase I: 67% of Phase I facilities are activated  14 out of 21 facilities activated in the Western Area Phase II: 64% of Phase II facilities are activated  12 out of 18 facilities activated in the Great Lakes Area  9 out of 12 facilities activated in the Southwest Area  9 out of 17 facilities activated in the Eastern Area Phase III: 54% of Phase III facilities are activated  7 out of 12 facilities activated in the NY Metro Area  8 out of 14 facilities activated in the Northeast Area  5 out of 14 facilities activated in the Capital Metro Area  10 out of 14 facilities activated in the Southeast Area  7 out of 14 facilities activated in the Pacific Area NOTE: Although formal deployment has concluded, FAST will continue to track and monitor SV Drop Shipment Compliance and activate or deactivate facilities as required according to data compliance

MTAC Workgroup #87 4 Activated Facilities

MTAC Workgroup #87 5 Mailer Rating – Summary Deployment execution activities included increased communications, data analysis and weekly teleconferences held with customers and facilities Both facilities and customers demonstrated changed behavior from the start of the pilot to the conclusion of national deployment SV utilization and compliance has improved through increased communication A small percentage of USPS customers contribute significantly to lowering average mailer rating scores at facilities Enhancements were made to slot allocation functionality to better align mailer performance to facility slot allocation

MTAC Workgroup #87 6 Slot Allocation New York Metro Area – New York PLANT (100) Percentage of Corporations in each Tier Percentage of Total Appointments Scheduled for each Tier Percentage of Allocated Slots TIER 117%2%0% TIER 211%18%16% TIER 38%7%6% TIER 464%73%78% Appointment data from 9/1- 9/28 activity is included in the calculations for Tiers beginning 10/20 Percentage of Corporations in each Tier Percentage of Total Appointments Scheduled for each Tier Percentage of Allocated Slots TIER 124%4%3% TIER 26%17%13% TIER 35%2%10% TIER 465%77%74% Appointment data from 9/15- 10/12 activity is included in the calculations for Tiers beginning 11/3

MTAC Workgroup #87 7 Mailer Rating National Deployment – Western  Western – Phase I  Total number of possible facilities: 21  Total number of facilities activated: 14 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 800DENVER PDCPlant 550SAINT PAULPlant 970PORTLANDPlant 640KANSAS CITYPlant 66ZKANSAS CITYBMC 554MATWIN CITIES METRO HUBPlant 80ZDENVERBMC 570SIOUX FALLSPlant 85HPHOENIX STCPlant 890LAS VEGASPlant 852PHOENIX SCFPlant 660KANSAS CITYPlant 680OMAHAPlant 553MINNEAPOLISPlant 980SEATTLEPlant 500DES MOINESPlant 612QUAD CITIESPlant 55ZMINNEAPOLIS/SAINT PAULBMC 50ZDES MOINES (Pilot Facility)BMC 98ZSEATTLEBMC 522CEDAR RAPIDS (Pilot Facility)Plant

MTAC Workgroup #87 8 Mailer Rating National Deployment – Great Lakes  Great Lakes – Phase II  Total number of possible facilities: 18  Total number of facilities activated: 12 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 48ZDETROIT BMCBMC 615PEORIAPlant 535MADISONPlant 600PALATINEPlant 488LANSINGPlant 493GRAND RAPIDSPlant 480ROYAL OAKPlant 610ROCKFORDPlant 605FOX VALLEYPlant 604SOUTH SUBURBANPlant 606CHICAGOPlant 63ZSAINT LOUIS BMCBMC 630SAINT LOUISPlant 60ZCHICAGOBMC 541GREEN BAYPlant 460INDIANAPOLISPlant 601CAROL STREAMPlant 617BLOOMINGTONPlant

MTAC Workgroup #87 9 Mailer Rating National Deployment – Southwest  Southwest – Phase II  Total number of possible facilities: 12  Total number of facilities activated: 9 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 707BATON ROUGEPlant 720LITTLE ROCK P&DCPlant 750NORTH TEXASPlant 760FORT WORTHPlant 740TULSA P & DCPlant 707P APORT ALLENAnnex 773NORTH HOUSTONPlant 786AUSTINPlant 770HOUSTONPlant 75Z DALLAS BULK MAIL CENTERBMC 752DALLASPlant 780SAN ANTONIOPlant

MTAC Workgroup #87 10 Mailer Rating National Deployment – Eastern  Eastern – Phase II  Total number of possible facilities: 17  Total number of facilities activated: 9 Activated Facilities One Week Compliant Two Weeks Compliant

MTAC Workgroup #87 11 Mailer Rating National Deployment – New York Metro  New York Metro – Phase III  Total number of possible facilities: 12  Total number of facilities activated: 7 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 076NORTHERN NJ METROPlant 085TRENTONPlant 105WESTCHESTERPlant 07ZNEW JERSEY BMCBMC 077MONMOUTHPlant 07099DOMINICK V DANIELSPlant 115WESTERN NASSAUPlant 117MID ISLANDPlant 112BROOKLYNPlant 100NEW YORKPlant 110QUEENSPlant 088KILMERPlant

MTAC Workgroup #87 12 Mailer Rating National Deployment – Capital Metro  Capital Metro – Phase III  Total number of possible facilities: 14  Total number of facilities activated: 5 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 212BALTIMOREPlant 217FREDERICKPlant 275RALEIGHPlant 230RICHMONDPlant 233NORFOLKPlant 280CHARLOTTEPlant 296GREENVILLEPlant 201DULLESPlant 220NORTHERN VAPlant 290COLUMBIAPlant 200WASHINGTONPlant 20ZWASHINGTON BULK MAIL CTRBMC 270GREENSBOROPlant 27ZGREENSBOROBMC

MTAC Workgroup #87 13 Mailer Rating National Deployment – Pacific  Pacific – Phase III  Total number of possible facilities: 14  Total number of facilities activated: 7 Activated Facilities One Week Compliant Two Weeks Compliant Two Weeks Non -Compliant

MTAC Workgroup #87 14 Mailer Rating National Deployment – Northeast  Northeast – Phase III  Total number of possible facilities: 14  Total number of facilities activated: 8 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 120ALBANYPlant 060HARTFORDPlant 040SOUTHERN MAINEPlant 018MIDDLESEX ESSEXPlant 010 SPRINGFIELD P & D CTRPlant 015CENTRAL MAPlant 140BUFFALOPlant 023BROCKTONPlant 144ROCHESTERPlant 01ZSPRINGFIELD BMCBMC 130SYRACUSEPlant 064SOUTHERN CTPlant 021BOSTONPlant 028PROVIDENCEPlant

MTAC Workgroup #87 15 Mailer Rating National Deployment – Southeast  Southeast – Phase III  Total number of possible facilities: 14  Total number of facilities activated: 10 Activated Facilities One Week Compliant Two Weeks Compliant NASSFacilityFacility Type 333FORT LAUDERDALEPlant 32ZJACKSONVILLE BMCBMC 328PMORLANDO L&DCAnnex 38ZMEMPHIS BMCBMC MCOORLANDOPlant 350BIRMINGHAMPlant TPATAMPA P&DCPlant 301NORTH METROPlant 380MEMPHIS P&DCPlant 335DCTAMPA L&DCAnnex 390JACKSONPlant 337SAINT PETERSBURGPlant 303ATLANTAPlant 30ZATLANTABMC

MTAC Workgroup #87 16 National No Show Tends There was a 2.7% decrease in total No Shows from the start of deployment to today (21.7 to 19) There was a 3.7% decrease in Recurring Appointment No Shows from the start of deployment to today (22.1 to 18.4)

MTAC Workgroup #87 17 Next Steps Raising the bar for SV Drop Shipment Compliance from 80% Increase the FAST finalization period from 5 days to 12 days Address customer/facility concerns on operational issues at USPS facilities  Please direct operational and policy issues to Debby Cataldi at or (W) (202)  Please direct Mailer Rating functionality questions to November 15 th meeting to determine whether to sunset workgroup. A new workgroup might be needed to focus on operational issues.