1. FLAT MAIL PREPARATION OPTIMIZATION WORK GROUP #81 MTAC Report February 5, 2004

2. 2 MAJOR TOPICS COVERED Simplified Mail Prep Proposal Co-Palletization for high editorial content Flats Palletization: testing of new methods APPS Issues: Address Block OEL Update Co-palletization, co-packaging of mixed classes

3. 3 SIMPLIFIED MAIL PREP PROPOSAL Presented by Mauro Licciardello, Gary Hegstead AFSM 100 higher processing throughput Sort plans were revised Image keying process reorganized Machine utilization maximized Remaining issue: adapt mail preparation

4. 4 SIMPLIFIED MAIL PREP PROPOSAL Mailers: prepare bundles with less strapping, no counterstacking, avoid shrinkwrapping, place on pallets in sequence specified by USPS USPS: bypass SPBS, put mail in tubs, conveyors directly to AFSM 100 Mailers save materials USPS reduces work hours Mail pieces need fewer handlings

5. 5 SIMPLIFIED MAIL PREP PROPOSAL Could revise packaging types and sizes as a future outgrowth of the concept Could fit in to future flats processing Mailer issues: material handling, pallet integrity, need for software to know sequences Concept has had preliminary testing Subgroup organized to carry out further tests

6. 6 CO-PALLETIZATION FOR HIGH EDITORIAL CONTENT Presented by Ashley Lyons Extension of earlier niche classification Will require PRC action Not a response but related to complaint case Aims at high weight, high editorial publications

7. 7 CO-PALLETIZATION FOR HIGH EDITORIAL CONTENT Original co-palletization results to date: 17 million pieces 350,000 sacks to 7,000 pallets 150 publications involved Beginning to attract new entrants

8. 8 CO-PALLETIZATION FOR HIGH EDITORIAL CONTENT New requirements expected to include: Copy weight: Minimum of 9 ounces Advertising content: 15% or less Meet the conditions of current co-palletization Discount will apply to editorial pounds

9. 9 FLATS PALLETIZATION: TESTING OF NEW METHODS Presented by Tony Dobush, Joe Schick Similar to first topic but based on current mail prep Outgrowth of prior Flats Containerization work group Recommendation: carrier route mail on bottom of pallet, other mail on top, separated by paper slip sheet Two printers to test in Indianapolis

10. 10 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 Seeking greater bundle integrity Contrast with first topic which seeks easier handling This is not contradictory because first topic involves bypass of SPBS and APPS Need for transparent strapping May need to define what is transparent

11. 11 APPS ISSUES: OEL UPDATE Revised proposal handed out Based on 30 character line length Includes definition of package types Includes markings for APPS readability Allows room for ACS codes USPS tests needed before final requirements definition

12. 12 CO-PALLETIZATION AND CO-PACKAGING OF MIXED CLASSES Presented by Cheryl Beller Issue: Mixed pallets would get Standard service Issue: drop ship appointments required Issue: need publisher acknowledgement Issue: need for ADC pallets –ADC packages need a home –Avoid splitting mailings Issue: need for drop shipping of pallets

13. 13 CO-PALLETIZATION AND CO-PACKAGING OF MIXED CLASSES Issue: Standard mail at ADC level –Already there are ADC sacks –Pallets are preferred to sacks –Trend is to move mail away from the BMC Relation to cost-based rates Next steps: survey of mailers

14. 14 OTHER ISSUES Revised rules on Periodicals firm bundles on pallets Three digit schemes being developed Five digit scheme issues continue to stabilize Full merging of non-AFSM 100 flats on pallets