1. MTAC Meeting February 23, 2005 Integrated Mail Management

2. 2 Future Environment FAST Surface Visibility PostalOne! Integrated Mail Management An integrated approach to mail management brings operations and marketing data together on the dock.

3. Integrated Mail Management 3 Objectives The introduction of changes to our existing processes and new technologies will support the following objectives: Create visibility into surface transportation Drive efficiency into dock operations Reduce mailer wait times Optimize verification and accurate revenue capture

4. Integrated Mail Management 4 Approach Integrated Mail Management consists of system capabilities that enable information exchange between the USPS and mailers, decision support functions and process change. Process Change Decision Support Visibility Integrated Mail Management Bar code technology to track products MAIL.DAT and e8125 Information Pre-Notification and Content Detail Enhanced appointment scheduling Encourage desired behaviors Plan operations based on advanced notification Implement scanning process on dock Increase accountability Real time induction verification

5. Integrated Mail Management 5 Standardized Bar Coding Containers New Placarding system for internal USPS placards New USPS bar code will be added to mailer placards Permanent MTE ‘License Plate’ bar codes are affixed for Asset Tracking Handling Units New Enhanced Distribution Label Unique 24 Digit bar code Destination specific Trailers Permanent Trailer bar codes are affixed for tracking MAILER A standardized bar coding approach is critical to creating visibility. Process Change Decision Support Visibility Integrated Mail Management

6. 6 Creating Visibility Mailer Handling Units New 24 digit Enhanced Distribution Label (EDL) Mailer Containers (Surface Visibility) Add standardized USPS bar code to existing mailer placards MAIL.DAT  e8125 (PostalOne!) Links handling units to containers and containers to appointments Appointments (FAST) Scheduled time and facility Electronic manifests will link handling units and containers to scheduled appointments creating visibility. Process Change Decision Support Integrated Mail Management Visibility

7. Integrated Mail Management 7 Desired Behaviors Both USPS and mailer performance will be rated on a number of factors that will be used in the appointment scheduling process. Postal BehaviorMailer Behavior Content Detail Submission Pre-Notification Accuracy Induction Accuracy On Time Accuracy Adherence to Schedules Resource Planning Data Collection Compliance Meet Unload Target Times Continuously Improving Drop Ship Process Rating Process Change Visibility Integrated Mail Management Decision Support

8. Integrated Mail Management 8 Enhanced Appointment Scheduling The Facility Access and Shipment Tracking (FAST) system will improve upon the existing appointment scheduling process: Real time appointment confirmation via Web Services Integration with MAIL.dat for appointment scheduling Appointment availability based on mail shape and pre-sort Slot availability tied to facility capacity and mailer rating Integration with drop-ship product to eliminate re-directions Process Change Visibility Integrated Mail Management Decision Support

9. Integrated Mail Management 9 The objective of the rating process is to make larger numbers of appointment slots available to the highest performing mailers. Appointment Availability Mailer PerformanceRating Factors Content Detail Submission Method Low Performers High Performers Average Performers Pre- Notification Accuracy Induction Accuracy All Appointments Available Some Appointments Available Less Appointments Available On-Time Accuracy Mailers can begin making appointments 14 days in advance All appointment slots available 24 hours in advance Process Change Visibility Integrated Mail Management Decision Support

10. Integrated Mail Management 10 Dock Management Visibility information supports operational decision making Facilities have real- time view of container status on the dock Destination facilities receive advanced notifications of inbound trailer status These new capabilities enable improved dock efficiency and reduced wait times. Visibility Integrated Mail Management Decision Support Process Change

11. Integrated Mail Management 11 Dock Management Induction Advanced Notification of Appointment and Content Details Advanced Notification of Appointment and Content Details Verification of Postage Payment and Induction Location Verification of Postage Payment and Induction Location Sampling of Container Content Sampling of Container Content Irregularity Tracking (EMIR) Irregularity Tracking (EMIR) Dispatch Real Time Outbound Status Real Time Outbound Status Utilization Tracking Utilization Tracking Misrouting Checks Misrouting Checks 11 Decision Support Visibility Integrated Mail Management Process Change

12. Integrated Mail Management 12 Future Environment New capabilities enabled by Integrated Mail Management benefit everyone. Process Change Decision Support Visibility Integrated Mail Management Enhance Performance Encourage Desired Behavior Integrate Mailing Plans into Ops. Induct using e8125 and Scanning Capacity based Apt. Scheduling Track and Trace Revenue Assurance Real Time Decision Support Dock Management Increase Appointment Availability Reduce Wait Times Faster Unload Operations Improve Service Accountability for Performance CapabilitiesBenefits Shipment Visibility

13. Integrated Mail Management 13 Non-Surface Visibility Sites In the interim, non-surface visibility sites will:  Continue to use the TIMES system to record trailer arrival, unload time, load make-up and app’t #  Utilize process to track on-time appointments with delayed unload start times - Appointments that arrive at scheduled time will not be penalized for dock delays - Manual process will be implemented at non-SV sites; automated process at SV sites Process Change Decision Support Visibility Integrated Mail Management

14. 14 Mailer Readiness Mailers participating in Integrated Mail Management should ensure readiness by completing the following:  Register in PostalOne!  Review FAST Technical Guide  Transition to Enhanced Distribution Label -Access to ATLAS -Software changes -Printer compatibility  Apply USPS Bar Code to Placards -Obtain bar code specification from RIBBS -Prepare and test placards with new bar code Process Change Decision Support Visibility Integrated Mail Management