Streamlining Verification MTAC Workgroup 93

2 Mission Statement: –Collectively determine how the USPS and the Industry can leverage existing, or guide future, technological solutions into the mailing life cycle that can enhance the verification and induction process. Workgroup Lifecycle – May 2005 through Quarter I, 2006 Four Task Teams (Subgroups): – Vision Team – Barcode Team – Implementation Team – Measurement and Reporting Team

3 Vision Team (Complete Work by Sept 2005) Define a vision for seamless acceptance for all classes of mail. Determine the business value to the Industry and the USPS for implementing the process change.

4 Enable integrated Electronic Payment capabilities for all customers, products & services Transition to Electronic Collaboration with all Customers Promote Advance Notification from Customers to align resources against customer needs Leverage barcodes for in process revenue assurance controls and visibility Transition to Inline Electronic Verification across processing lifecycle Adopt a risk-based verification approach Continuous Proactive Customer Feedback Loop Business Mail Acceptance Accountability for Quality Vision: Seamless Acceptance

5 Vision: Integrated Payment Centralized Payment –Customers structure account portfolios to meet needs –Accounts linked by Customer ID that permits visibility across all mailer locations and products Flexible Payment Options –ACH Credit/Debit, FedWire, eCheck Available For All Products and Services –Bulk mailings, stamps, PC postage, P.O. Boxes, Click-N-Ship, pick-ups Accessible Across Customer Channels –Web, phone, post office, back dock, meter Centralized Payment Accounts Enabler: Payment Engine

6 PostalOne! ® Mailing Information Customers Links to Appointments (FAST) Accepts Documentation Forwards Information To Induction Facility (Surface Visibility) Customer Visibility: Account Management, Mail quality, Mail status Translate/Debit Postage, Automated Deduction Advance notification Enables Resource Planning Vision: Electronic Collaboration

7 PostalOne! ® Mailing Information Customers Feedback Appointment Status Documentation processed, postage estimated Induction Status Customer Visibility Postage Charges Mail Preparation Quality Mail Tracking & Delivery Performance Vision: Electronic Collaboration

8 Vision: Electronic Collaboration Methods Comprehensive approach to electronic documentation and postage: –Mail.dat » File-Based Electronic Exchange –Web Services » Form-Based Electronic Exchange –Web Browser Wizard » Postage Statements Online Electronic Documentation translates to electronic Postage Web Services mail.dat Web Wizard

9 Barcode Team (Complete Work by Nov 2005) Guide and assess the utilization of customer- applied bar codes across the supply chain Identify and resolve issues relating to postal specifications for customer-applied barcodes. Recommend specifications for customer barcode elements that will meet the needs of the mailing industry and support effective use of barcodes in providing multiple services and postage reporting.

10 Leverage Barcode Identity: Unique ID across assets, containing or linked to customer IDs Unique Mailpiece ID (4-State, UCC EAN 128) 24-Digit Handling Unit (Tray) Labels Pallet / MTE Placard Truck/Trailers MTE License Plate

11 Implementation Team (Complete Work by March 2006) Define processes for automated verification for Standard and Periodical mailers utilizing pallet and bundle barcodes. Initiate a proof of concept for automated verification with pallet barcodes. Develop, guide, and assess a “proof of concept” pilot to be launched on August 2005 for an electronic Implement the e8125.

12 MTAC Workgroup # 84 Presort Info. Container Appts. Verification Payment Release 8125 Shipment Status Reconciliation Report Appointments Scheduling Mailer via MAIL.DAT via Web Services Qualification Report Submission e8125s Induction PostalOne!

13 Measurement and Reporting Team (Complete Work by March 2006) Apply experience and findings from Implementation Team to enhance the utilization of data throughout the supply chain. Determine quality metrics to position data from a quality improvement orientation rather than audit approach.

14 Work Group 93 Notional Schedule Vision Team 05/17/05 – 9/30/05 Pilot 1 08/25/05 – 11/30/05 Implementation Team 08/08/05 – 03/31/06 Measurement and Reporting 09/01/05 – 03/31/06 May 2005 June 2005 July 2005 Aug 2005 Sept 2005 Oct 2005 Nov 2005 Dec 2005 Jan 2006 Feb 2006 Mar 2006 Barcode Team 05/17/05 – 11/30/05 Pilot 2 11/30/05 – 01/31/06 Meeting Schedule May MTAC June Telecon & IDEA July Telecon Aug 16 MTAC Sept Telecon Oct Telecon Nov MTAC Dec 2005 Jan 2006 Feb 2006 Mar 2006