FLAT MAIL PREPARATION OPTIMIZATION WORK GROUP #81 MTAC Report May 6, 2004

2 MAJOR TOPICS COVERED Simplified Mail Prep Proposal Full Merging of Non-AFSM 100 Flats APPS Issues: 1Address Block 2OEL Update 3“Clear” strapping and shrinkwrap Rename packages to bundles Cost-based rates market research

3 SIMPLIFIED MAIL PREP PROPOSAL Presented by Gary Hegsted Issue: adapt mail preparation for AFSM 100 Consider bypass of SPBS, APPS Orient mail on pallets for manual offloading Less shrinkwrapping and strapping Consider standard package sizes Applies to 3DG, SCF, ADC, BMC pallets

4 SIMPLIFIED MAIL PREP PROPOSAL Mailers save materials USPS reduces work hours Mail pieces need fewer handlings Concerns: differences from SPBS, APPS requirements Concerns: pallet integrity Concerns: skills required in mail production Concerns: software modifications

5 SIMPLIFIED MAIL PREP PROPOSAL Could fit in to future flats processing Further testing needed Looking for a test facility Not expected to be ready for next rate case

6 FULL MERGING OF NON-AFSM 100 FLATS Presented by Neil Berger Creates more pallet options Non-automation mail to bypass machines No “5% rule” for this situation Federal Register notice issued Comments needed by May 26

7 APPS ISSUES: ADDRESS BLOCK Presented by Barry Walsh Visibility of address block has been required in DMM Clarification to define that in terms of readability Upcoming Federal Register notice Linked to OEL revisions Linked to issue of clear strapping and shrinkwrap

8 APPS ISSUES: OEL UPDATE Revised proposal unchanged Based on 30 character line length Includes backup designation of package types Allows room for ACS codes USPS tests needed before final requirements definition Federal Register notice eventually

9 APPS ISSUES: CLEAR STRAPPING AND SHRINKWRAP Term “clear” needs definition Includes issues of welds, seams, bubbles USPS Engineering has been testing Industry seeks greater involvement Concern about costs of materials Concern about Federal Register notice too early in process USPS will facilitate industry participation Barry Walsh:

10 RENAME PACKAGES TO BUNDLES Presented by Cheryl Beller Current term “packages” is confusing Had earlier eliminated concept of packages being combined to make bundles Now want to change references to packages as strapped or wrapped mail pieces to “bundles” Packages would be akin to parcels Put in DMM, gradual transition for other references

11 COST-BASED RATES MARKET RESEARCH Presented by Cheryl Beller For Periodicals and Standard, begin with Standard Avoid conflict with complaint case in Periodicals Mailers could access scenarios Mailers would forecast responses to new rate structure using supplied “non-final” rates Consistent with simpler rules for small mailings