1. Welcome to the State Mail User’s Forum

2. Introduction to State Mail & Distribution Services

3. What is mail piece integrity?

4. Mail Piece Integrity Is: Ensuring that Customer A received all of the correct pieces of their mail set, and only their pieces. Essentially making sure that John Doe received all of his mail and none of Jane’s

5. Current Legislation Regarding Mail Piece Integrity HIPAA – Health Insurance Portability and Accountability Act of 1996. Applies to individuals health information and the institutions that hold them. Gramm-Leach-Bliley Act of 1999. Applies to individuals financial information and the companies that hold it.

6. Is 99% Integrity Enough? 99% integrity still means that 1 in every 100 mail sets is incorrect. In the world that we live in that is not enough.

7. How to Create Mail Piece Integrity Create a unique identifier for each page of the mail set and every mail set in the job. Use the unique identifier in the inserting process. Generate an audit trail.

8. Parts of the Unique Identifier The page number of the set. The number of pages in the mail set. A unique mail set number. Sequence numbers can add another layer of security.

9. An Effective Way of Adding the Unique Identifier Barcodes.

10. How the Barcode is Used The inserting machine has two cameras that will take a picture of the barcode and interpret the information. The inbound camera will use the barcode to match the mail sets properly. The outbound camera will use the barcode to verify that the mail set made it through the inserting process.

11. What the Inbound Camera is reading Page number of the set. (i.e. pg 1 of 3) All the pages of the set are accounted for. All of the pages are in order. All of the pages have the same set number.

12. Example of a 3 of 9 Barcode Page no. in the mail set No. of pages in the mail set Sequence no. used for mail set no.

13. What the outbound Camera can read The mail set number. If the mail set number is in sequence the camera will stop the inserter if there is a number missing or out of sequence. That an address is showing through the window in the envelope. Or that there is correct postage on the envelope

14. Platinum Camera Verify Address Track Statement Postage Verify

15. ON EDGE U/I & CAB 1 2 34 5 6 6 STA BASE 1234 Mr.Doe 1234 Camera 1 Camera 2 Match Basic Example of the Inserting Process with the cameras in place.

16. Video Example of the Inserting Process with Cameras in Place

18. Other Benefits of Using a Barcode Variable page mail sets in the same job. Variable inserts in the same job. More integrity than OMR Marks.

19. Disadvantages of OMR Marks The printing tolerances are tighter. No check characters. No mail set verification.

20. The Technology to read the Barcodes is in place The next step is adding the barcodes. Contact me to start working out the details. Jeff Mottishaw 801-323-4302

21. Any Questions?

22. Basics of the Proposed USPS Rate Changes

23. First-Class Mail Strategy  Shape-based pricing schedules –Letters –Flats –Parcels

24. First-Class Mail Strategy  Shape-based pricing schedules –Letters –Flats –Parcels  De-emphasize weight 2-ounce letter 63¢ ►62¢ 2-ounce flat 63¢ ►82¢ 2-ounce parcel 63¢ ►$1.20

25. First-Class Mail Significant Changes  Single-piece 39¢ ►42¢  Postcards 24¢ ►27¢

26. First-Class Mail Significant Changes  Additional ounce 24¢ ►20¢ –Letters over 1 ounce go down –Flats over 6 ounces go down  Similar pattern for workshare –Automation letters 23.7¢ ►15.5¢ –Presorted letters, flats, and parcels 23.7¢ ►20¢

27. First-Class Mail Significant Changes  Discontinue heavy piece discount  Discontinue carrier route rates  New Presorted Parcel category 5-digit3-digitADC Presorted Parcels rate tiers

28. First-Class Mail Significant Changes AADCMixed AADC5-digit3-digitAADCMixed AADC Presorted Letters Nonmachinable – no change Machinable Current Proposed

29. First-Class Mail Examples WeightCurrent Proposed 1 ounce 39¢42¢ 2 ounce 63¢62¢ 3 ounce 87¢82¢ Letters WeightCurrent Proposed 1 ounce 52¢62¢ 7 ounce $1.83$1.82 13 ounce $3.27$3.02 Flats WeightCurrent Proposed 1 ounce 52¢$1.00 7 ounce $1.83$2.20 13 ounce $3.27$3.40 Parcels

30. Standard Mail Strategy  Align pricing with operations –Encourage growth of efficient, effective mail  Expand shape-based pricing

31. Standard Mail Significant Changes AADCMixed AADC 5-digit3-digitADCMixed ADC3/5Basic  Nonmachinable surcharge factored into prices Nonautomation Letters Machinable rate tiers Current Proposed Nonmachinable rate tiers Current Proposed 3/5Basic

32. Standard Mail Significant Changes Flats Automation rate tiers Current Proposed 5-digit/scheme3-digit/schemeADCMixed ADC 5-digit3-digitADCMixed ADC 3/5Basic Nonautomation rate tiers Current Proposed 3/5Basic

33. Standard Mail Significant Changes Parcels Machinable rate tiers Current Proposed 5-digit3-digitADCMixed ADC 3/5Basic Nonmachinable rate tiers Current Proposed 3/5Basic 5-digitBMCMixed BMC

34. Standard Mail Significant Changes Not Flat-Machinable Proposed rate tiers 5-digit3-digitADCMixed ADC

35. Standard Mail Examples Item CurrentProposed Automation letter (3-digit, DBMC) 19.2¢20.7¢ Non-machinable letter (3-digit, DBMC) 30.3¢39.5¢ Catalog (3-ounces, 3-digit auto, DBMC) 25.3¢30.0¢ Catalog (3-ounces, 5-digit auto, DBMC) 25.3¢27.2¢ Catalog (8-ounces, 5-digit auto, DBMC) 44.1¢44.9¢ Catalog (8-ounces, 5-digit auto, DSCF) 42.8¢43.3¢

36. Package Services Examples - USPS Price change examples CurrentProposed 1-Pound Parcel Post $3.95$4.55 5-Pound Parcel Post (Chicago to Los Angeles) $9.11$9.45 5-Pound Parcel Select DDU $1.51$1.67 5-pound Parcel Select DSCF $2.23$2.62

37. Current State Shipping Contracts FedEx Companies – All Services. DHL – All Services. UPS Mail Innovations – Flats. Broker’s World Wide – International.

38. Package Services Examples – State Contracts Weight ServiceFedExDHL 1-PoundGround$3.22 - $3.42$2.75 - $2.98 5-Pound to ChicagoGround$4.34$3.93

39. Package Services Examples - USPS Price change examples CurrentProposed 1-Pound Parcel Post $3.95$4.55 5-Pound Parcel Post (Chicago to Los Angeles) $9.11$9.45 5-Pound Parcel Select DDU $1.51$1.67 5-pound Parcel Select DSCF $2.23$2.62

40. Timeline 2006 2007 May Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Governors Decision (March/April) Implementation (May/June) PRC Recommendation (Early March) Litigation (May through March 2007) Filing Date (May 3, 2006) 10 Months 1 Year

41. Resources  USPS.com/ratecase  DMM Advisory  Mailers Companion  Implementation Teams  Federal Register Proposed Rule dmmadvisory@usps.com usps.com/mailerscompanion gpoaccess.gov

42. Any Questions?