1. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 1 FLAT MAIL PREPARATION OPTIMIZATION Issue #81 MTAC November 5, 2003

2. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 2 5 – Digit Package Scheme for Flats (L007)  Covers Standard Flats, Periodicals, & Bound Printed Matter Flats  Run multiple 5-digits on same AFSM 100 sort plan  Incoming secondary sortation  In effect since early 2003  Experienced problems with newspapers & rigid items

3. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 3 5 – Digit Package Scheme for Flats (L007)  Reinforced machinability criteria to mailers  Borderline AFSM 100 compatible items should not use scheme  Majority of issues have been resolved  Very few reported concerns recently  Preparing to expand concept to 3-digit scheme

4. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 4 3 – Digit Package Scheme for Flats  L007 issues cleared up – ready to start  Covers Standard Flats, Periodicals, & Bound Printed Matter Flats  Run multiple 3-digits on same AFSM 100 sort plan  Incoming primary sortation  All within single ADC?

5. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 5 3 – Digit Package Scheme for Flats  Increases bundle size  Decreases number of bundles  Reduces allied labor expenses associated with prepping flats (Operation 035)  LDC 17 is one of last major areas of opportunity to target

6. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 6 3 – Digit Package Scheme for Flats  Notified field operations coordinators of intent  Scheduled on MOS agenda to introduce  Letter to MOSs prepared to begin data collection  Should have scheme combinations by next MTAC

7. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 7 Co-Palletization / Co-Packaging of Mixed Classes  Product Redesign initiative  Covers Standard flats, Periodicals, & Bound Printed Matter flats  Lukewarm industry reception to Co-Pal  Stronger support for Co-Packaging  Co-Packaging subgroup met to discuss initiative

8. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 8 Co-Palletization / Co-Packaging of Mixed Classes  Helps consolidate flat streams  Gets out of sacks and onto pallets  Allows for deeper penetration into system  Reduces number of containers used  Reduced bundle breakage from decreased sack usage

9. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 9 Co-Palletization / Co-Packaging of Mixed Classes  Concerns about acceptance and verification  Issues around minimum package size  Timing issue – will this take away time from cost based rates work?  Industry split on how to proceed

10. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 10 Co-Palletization / Co-Packaging of Mixed Classes  Operational concerns about Standard ADC pallets  Can all ADCs handle Std. pallets?  Periodicals and Std flats often processed in different facilities  How to give Std service, but process in Periodicals mailstream?  Uncertain status

11. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 11 Periodical Firm Bundles  Periodicals mailings prepared under M940 and M950  5% limit would not apply to non-CRRT Firm bundles  Only for Firm bundles claiming 5-digit or basic rate  Firm bundle is treated as CRRT mail  Firm bundle is not opened/processed on FSMs

12. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 12 Periodical Firm Bundles  Bottom line – If L001 container exists, put all Firm bundles for those zips in container  Idea newly introduced to workgroup  Being reviewed for reasonableness and practicality  Will have status update at next MTAC

13. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 13 APPS – Barcoded Labels  5 new presort barcoded labels  Width modulated barcode on labels  Proposed rule issued August 18, 2003  Final rule issued October 17, 2003  Postal Bulletin – October 30, 2003  Effective date for use – April 1, 2004

14. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 14 APPS – Optional Endorsement Lines  Subgroup formed to address concerns  Issues with maximum character length  Abbreviations may be necessary  Soliciting industry member for subgroup  Suggestions to be tested by Engineering  Proposed rule will be issued for comments

15. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 15 APPS – Address Visibility Requirement  Address block on top piece must be clear:  DMM M020 (Packages) 1.1 (Facing) – “Except as noted in 1.2, all pieces in a package must be “faced” (i.e., arranged with the addresses in the same read direction), with an address visible on the top piece”.

16. FLAT MAIL PREPARATION OPTIMIZATION November 5, 2003 16 APPS – Packaging Guidelines  Do not use rubber bands  Do not use string  Strap before shrinkwrapping works best  Guidelines at this point  If intend to make requirements – will have supporting data, and will provide ample lead time  Will update at next MTAC