1. Federal Mail Education Forum 2015 Intelligent Mail® Package Barcode (IM®pb) June 3, 2015 Juliaann Hess/Ron Kecman United States Postal Service

2. Agenda  Intelligent Mail ® Package Barcode −Overview and Current Status −Signaling New IMpb 3.0 Rules −MTAC Work Group #166 Recommendations  Visibility Enhancements  Coming Attractions  Questions 2

3. What is it? The Intelligent Mail® Package Barcode (IM®pb) is the critical bridge between physical packages and digital information required to enable world class service and tracking for our package products. Intelligent Mail Package Barcode

4. World Class Visibility and Service Essential to compete Offers transparency and predictability Foundation for shipping industry Track all volume More data to support customer service Customer Value Provide information about reliability Manage networks and logistics Correct problems Identify pinch points Innovation opportunities Business Value A unique tracking barcode on every package Full end-to-end tracking Tracking included for all shipping products* Rich digital information improves CX and performance Creates value! 100% Visibility * Effective May 31, 2015, USPS Tracking is included for First-Class Mail, Library Mail, Media Mail, and Bound Printed Matter parcels. Excludes Standard Mail parcels.

5. Delivery Sortation System PASS Real-Time Scanners Mobile Delivery Device (Replaces Real-Time Scanners) Product Tracking & Reporting System Ring Scanners New Parcel Sorters Future Vehicles USPS Technology Investments C007 Slated to Debut 2017

6. Intelligent Mail Package Barcode *Note: Barcode is an art image only and is not to spec or scale. What’s in the barcode?

7. Access to the best prices for package products End-to-End tracking information at no additional charge* Proactively manage expectations – you and your customers know when to expect your packages to arrive Access to Priority Mail baked-in insurance up to: o $50 for Retail and Commercial Base Pricing o $100 for Commercial Plus customers o Note: Some restrictions apply Address information in shipping files supports efficient sorting to carrier routes, using data instead human memory Three digit service type codes identify product and service Required for new products, services, features IMpb Benefits and Features 7

8. IMpb Timeline Advanced Notice New IMpb Standards to Enhance Visibility 8 April 2011 January 2014 Proposed Rule IMpb for All Products Compliance Thresholds and Non-Compliance Fee Address and/or 11-Digit DPV ZIP Code Required in files Barcode all metered parcels IMpb Final Compliance Threshold Levels, Non-Compliance Fee, Address and/or 11- Digit DPV ZIP Code Required in files September 2010 Advanced Notice January 2015 September 2011 February 2013 April 2013 Final Rule IMpb on all parcels, Compliance Thresholds, Non-Compliance Fee, address and/or11-Digit DPV ZIP Code, IMpb required for CPP and CBP prices, Barcode all metered parcels Proposed Rule IMpb required for Presort and entry discounts Final Rule IMpb required for Presort and entry discounts IMpb 2.0 December 2013 Final Rule Implemented IMpb 1.0 January 2012 Final Rule Implemented $0.20 Non-Compliance Fee Competitive Products only IMpb 3.0 2015 – 2016 Coming Next

9. IMpb Compliance 2015 vs 2014 Source: Product Tracking & Reporting 2015: Month Ending April 30, 2015 2014: Month Ending February 28, 2014 * Commercial parcels only Note: Timeliness not factored into performance Dynamic Routing Thresholds as of January 25, 2015 94.6% vs 90.8% 98% 96.1% vs 86.7% 99% 94.9% vs 84.7% 97% Effective January 25, 2015, Commercial Mailers must electronically provide 11 Digit DPV and/or destination delivery address in Shipping Services File. % Shipping Services File v1.6 or higher % Address and/or 11-Digit DPV ZIP Code % Packages with IMpb*

10. 10 Product % IMpb Barcode Threshold 99% % Address and/or 11- Digit ZIP Code* Threshold 98% % Address and 11Digit ZIP Code % Address Only % SSFv1.6 or Higher* Threshold 97% Bound Printed Matter Parcels99.77%86.43%53.26%19.18%77.84% Library Mail88.77%64.87%22.56%26.74%57.07% Standard Post35.56%73.11%20.41%3.67%27.52% Media Mail94.85%95.49%47.23%36.94%91.37% Critical Mail100.00%93.22%23.67%68.84%92.82% Priority Mail Express63.71%63.49%46.32%11.34%62.79% First-Class Package Service98.11%95.97%64.62%25.36%94.89% Parcel Select Lightweight99.84%96.48%44.45%47.04%98.26% Priority Mail95.28%96.53%61.48%25.37%93.64% Parcel Select99.54%97.82%62.14%30.73%98.70% Standard Mail Marketing Parcels100.00%90.38%42.23%44.02%91.58% Standard Mail Parcels Non-Profit100.00%35.00%28.63%3.33%35.28% Unspecified45.22%15.24%8.60%6.13%10.75% Total97.85%94.56%55.91%32.56%94.85% April 2015 IMpb Metrics Source: USPS Product Tracking & Reporting * Note: Timeliness not factored into performance IMpb Compliance Performance

11. 11 Shipping Services File Timeliness Product % Arrival at Post Office Event Prior to Shipping Services File Bound Printed Matter Parcels3.86% *Critical Mail0.74% *First-Class Package Services1.16% Library Mail1.15% Media Mail1.24% *Parcel Select4.74% *Parcel Select Lightweight4.45% *Priority Mail Express1.52% *Priority Mail1.00% Standard Mail Marketing Parcels10.85% Standard Mail Nonprofit Parcels0.06% Standard Post0.51% *Unspecified0.78% Total3.22% Source: USPS Product Tracking & Reporting (PTR) USPS Product Performance Reporting (PPR) April 2015 Timeliness by Product File received for 96.8% of packages before Arrival at Post Office Event * Currently only Competitive products are subject to noncompliance fees.

12.  Extend IMpb Compliance Fee and Thresholds to all products  Delivery Point Validation for Address Information and 11-Digit DPV ZIP Code  Barcode Quality, including placement  Shipping Services File Data Quality  99M Container Placards and Electronic Nesting Information in Shipping Services File  Secure File Transmission  Shipping Partner Events  Timely Shipping Services File Transmission (Work Group) – Separate Track  Upgrade to Electronic Verification System (eVS) for payment – Separate Rule Making  Implementation 6 months after Final Rule or sooner Signaling IMpb 3.0 Rules in 2015

13. 13 Delivery Point Validation for Address Information and 11-Digit DPV ZIP Code Use USPS Address product to validate address and 11-digit DPV for accuracy Validated address/11-digit DPV ZIP Code compliance threshold supplants current addressing requirements Recipient name required in Shipping Service File for all Signature Services, strongly encouraged for all products Transition period Signaling IMpb 3.0 Rules in 2015

14. 14 Barcode Quality Barcode uniqueness Readability Function 1 codes included in correct field position Check digit calculated accurately Barcode on address side, fully visible Smooth, without creases or edge foldover Service Type Code accurate Matches Product Correct for Extra Service combination Conforming Mailer IDs Signaling IMpb 3.0 Rules in 2015

15. 15 Shipping Services File Data Quality Accurate electronic representation of package level details Entry location ZIP Code Service Type Code, barcode construct, extra services codes Payment information including rate indicators Name when required for product Signaling IMpb 3.0 Rules in 2015

16. 16 Intelligent Mail Container/Tray Barcodes 99 M Container Placards and/or 24-Digit Tray/Sack Labels Electronically nest package tracking number to container barcode in Shipping Services File Logical container record may be used Indicate containerization level in Shipping Services File Provides start the clock and additional visibility Signaling IMpb 3.0 Rules in 2015

17. 17 Secure File Transmission Protocols Secure Postal and Customer Networks Eliminate unsecure FTP connectivity and inherit vulnerabilities for file transmissions Addresses audit findings Protects brand and data integrity Signaling IMpb 3.0 Rules in 2015

18. 18 Shipping Partner Files and Events Share package details and tracking information from package inception Improves visibility with clearer handoffs and better tracking experience Promotes seamless experience when multiple service providers in delivery chain New Shipping Partner File v4.0 includes field for: Entry location ZIP Code Return or Pick Up 11-digit DPV ZIP Code Containerization indicators Entry and promise dates Signaling IMpb 3.0 Rules in 2015

19. MTAC Work Group #166 Recommendation: Measure IMpb compliance for assessment at the first Arrival-at-Post Office* Event (07) for: –Destination delivery address and/or 11-Digit DPV ZIP Code –Shipping Services File v1.6 or higher Thresholds must be met to avoid non-compliance fees Recommendations formally submitted May 13, 2015 *The Arrival at Post Office scan is typically synonymous with sorting to carrier route, except when carrier route sorts occur on parcel sorters at upstream plants. 19 Shipping Services File Timeliness

20. Implementation for Assessments : – February 2015 – April 2015: Measure only, no $0.20 fee assessed for non-compliant pieces – May 2015 – July 2015 – Measure compliance at the Arrival at Post Office event, assess $0.20 fee for non- compliant pieces – August 2015 – Determine if compliance measurement at the Arrival at Post Office event is effective or needs to occur at an earlier event – PTR fixes for eVS IMpb report implemented May 6, 2015 20 Shipping Services File Timeliness

21. Agenda  Intelligent Mail ® Package Barcode −Overview and Current Status −Signaling New IMpb 3.0 Rules −MTAC Work Group #166 Recommendations Visibility Enhancements  Coming Attractions  Questions 21

22. 22 USPS SMS Tracking™ USPS T EXT T RACKING ™ Over 5 million messages sent per month A million plus unique mobile numbers Two ways to track on the go! Text your tracking number to 28777 (2USPS) Sign up online on USPS Tracking website

23. USPS Text Tracking™ Enhancements  New features added for text tracking alerts with corresponding keywords 1011100010010101 01 Keywords 01 001010100100101  Text tracking number with keyword to short code 28777 (2USPS™)  Some keywords can be used without a tracking number  Confirmation text messages confirm user requests Delivered

24. USPS Text Tracking™ Keywords Keyword: “All” subscribes user to text alerts for all future activity on active or future text tracking requests Keyword: “DND” subscribes user to delivery and attempted delivery text alerts only Keyword: ‘DND’

25. Delivery Location Attributes In/At Mailbox Front Door/Porch Parcel Locker Left With Individual (at address) Front Desk/Reception Other at Address (Garage/Side or Back Door/Porch) Neighbor (by Request)

26. − Capture delivery location for packages delivered at Post Offices and other USPS facilitates − Event Code remains ‘01’ with ‘Delivered’ as primary description − Event description will include location attribute − Different suite of location attributes active now in handheld scanners for On- Street Users − Launches for In-Office Users April 26, 2015 on IMDAS Scanners − Additional attributes in the works for CMRAs Coming for In Office Users! Delivery Location Attributes

27. MyUSPS

29. New Events for Customer Contacts Creates and links events for actions initiated by customer or USPS  Redelivery requests  Customer Care complaints  Delivery Instructions  Package pickup scheduling  Second and return notices Most events provided to mailer extracts, some revealed on USPS.comUSPS.com Customer Initiated Events

30. Event Description and Code Customer Interaction/Notification External Visibility Visibility Mediums Package Research Case Created (VC) Issue or complaint referred to local Post Office. An eCC case has been created. YesScan Event Extract File. Package Research Case Closed (VX) An eCC case has been closed on an issue or a complaint referred to a local Post Office. YesScan Event Extract File. Tracking Contact (VT) (FUTURE) Customer called, emailed, chatted, direct- messaged to inquire about tracking on package. NoIntranet USPS Tracking website. Package Intercept (VI) Customer requested package intercept service for a package “in flight” to hold for pick up, redirect to another location, or return to original sender. No Intranet USPS Tracking website Note: The Package Intercept (Recall) event currently exists and is scanned when packages are successfully intercepted. The event displays on external and internal USPS Tracking websites. Electronically Authorize Shipment Release (VE) Customer used EASR feature to provide USPS instructions to deliver package, hold for pick, leave with neighbor or redirect. YesExternal and Internal USPS Tracking websites. Redelivery Scheduled (VR) Package has been scheduled for redelivery.Yes External and Internal USPS Tracking websites and Scan Event Extract File. Carrier Pick Up (VP) (FUTURE) Package has been scheduled for carrier pick-up.Yes External and internal Tracking websites, Scan Event Extract file Final Notice Generated (VF) A final notice (PS Form 3849) has been created.Yes (Future) External and Internal USPS Tracking websites and Scan Event Extract File. Returns Notice Generated (VS) A returns notice has been generated through MyPO. Yes Intranet USPS Tracking website and Scan Event Extract File Note: Events currently exists and are scanned when customers refuse delivery or fail to claim packages before the prescribed return date. Customer Initiated Events

31. Package Research Case Created (VC) Event Intranet View Customer Initiated Events

32. Package Research Case Closed (VX) Event Intranet View Customer Initiated Events

33. 9481710123456123456780 Redelivery Scheduled (VR) Event USPS Tracking Internet View Customer Initiated Events

34. Out for Delivery + Redelivery Scheduled = Out for Redelivery verbiage + Updated Delivery Day Reveal Customer Initiated Events

35. Expanded Out for Delivery Event Packages and trackable items Scanned Out-for-Delivery before sort or hand off to carriers that will take the items out for redelivery. – Improves customer and shipper experience for packages that were not delivered on the first attempt – Additional visibility for packages going out for “redelivery” – Fills in events between “Notice Left” and final delivery – Refreshes “Updated Delivery Day” – Allows specific scripting on our USPS Tracking site for packages out for redelivery “Your item is out for redelivery on October 16, 2014 at 12:30 pm in Zachary, LA 70791.” – National Roll Out April 11, 2015

36. Accepted At Destination Event

37. Shipping Label Created – GX Event

38. In Process Acceptance Event      Concatenated IMpb  Arrived (10) event  Calculates In Process Acceptance  Qualifies for Delivery Day reveal

39. Predicted Delivery Day Lite Based on Last Mile Scans Arrival at Unit and Out for Delivery Covers all domestic and inbound international products

40. 40 Processing Exceptions

41. Barcode on “Sorry We Missed You” notice linked to USPS Tracking™ numbers  Allows tracking with the PS Form 3849 (‘Sorry We Missed You!’) number on USPS.comUSPS.com  Similar use as UPS Info Notice and FedEx Door Tag  Improves customer experience  Assists in automating the Final Notice process  Launched Nationally March 8, 2015! Form 3849 Link to Tracking #

42. Agenda  Intelligent Mail ® Package Barcode −Overview and Current Status −Signaling New IMpb 3.0 Rules −MTAC Work Group #166 Recommendations  Visibility Enhancements Coming Attractions  Questions 42

43. 02 Visibility for Colleges & Universities New Delivery Partner Events and File Improves Delivery Experience

44.  Coming Soon  Piloting a mobile app to capture final disposition of package delivery for students  Event would only be displayed after a tendered to delivery agent event  Enable posting of event on USPS Tracking™ site and messaging to customers  Piloting at University of North Carolina IOS and Android App for Capturing Events

45. Product Simplification: Extra Services Transition period for retired codes – Add new Service Type and Extra Services Codes for expanded services, new combinations – Tracking baked into all package products  Except Standard Mail Parcels – Implement new retirement process for obsolete codes Expand Sunday Delivery, Same Day, and Next Day, Extended Coverage (NSA) Support First-Class Package Flat-Rate Return Service (NSA) Other Features Enhancements to support nesting at Post Offices Resume extracts for MID Visibility Events PTR Price Change Release May 31. 2015

46. Obsolete Service Type Codes and Extra Services Codes will be retired from use Transition period for retired codes – Codes are retired after 6 Months of notification – Accepted in files without issuing warnings – Warnings issued after 6 months – Starting November 30, 2015 – Extract visibility suppressed after one year – May 30, 2016 Reclaimed codes eligible for new identity after one year – May 301, 2016 Service Code Retirement Process

47. Predictive and Prescriptive Does USPS have the mail? Where is it in the process? When will it be delivered? How did the overall mailing perform? An optimized plan for: Consistent, predictable delivery Avoiding bottle necks Maximizing transportation & resource utilization Balancing resources & reducing costs

48. Q & A 48