1. Optimizing Parcel Preparation & Entry for Seamless Acceptance MTAC Work Group # 109 Industry Leaders: Chris Finley & Wendy Smith USPS Leader: Jim Cochrane

2. Optimizing Parcel Preparation & Entry for Seamless Acceptance This workgroup is charged with identifying : Approaches to optimize parcel preparation and entry and understand total combined costs to both the industry and the Postal Service in order to minimize end-to-end costs and fully leverage available workshare discounts as the processing and distribution network is rationalized.

3. Optimizing Parcel Preparation & Entry for Seamless Acceptance February Face to Face Meeting  Industry presented one cost analysis scenario on the areas of impact associated with an expansion to RDCs.  There is greater sensitivity to cost than service (as long as service isn’t degradated). Time in transit affected by need to create density.Time in transit affected by need to create density. Sensitivity to palletizing and added stops.Sensitivity to palletizing and added stops. Reviewed commingling and co-mailing opportunities.Reviewed commingling and co-mailing opportunities.

4. Optimizing Parcel Preparation & Entry for Seamless Acceptance February Face to Face Meeting  Postal Service to research feasibility of parcel preparation and induction methods that are not tied specifically to the RDC locations and could reduce overall costs: –Continued acceptance of bed loads –Drop & Picks for <3/4 full trucks –Supplying / returning gaylords to mailers for re-use –Subgroup formed to examine palletization and induction rules. –De-averaging Zones 1 & 2 prices

5. Optimizing Parcel Preparation & Entry for Seamless Acceptance February Face to Face Meeting  eVS oImplementation Issues for August 1 Implementation –Leadership –Resources –Application and testing process –Testing criteria –Shared Accountability oTest smaller barcodes for Standard Parcels to expand opportunity for mailers to commingle Standard and Parcel Select packages. oeVS is also being covered by MTAC WG 107 as it relates to integration with FAST.

6. Optimizing Parcel Preparation & Entry for Seamless Acceptance Next Steps: The network realignment framework continues to be defined; WG completion is set for January ’08.The network realignment framework continues to be defined; WG completion is set for January ’08. Parcel preparation suggestions will be reviewed by USPS & communicated back to the Industry.Parcel preparation suggestions will be reviewed by USPS & communicated back to the Industry. Chart which package categories can be inducted at which facilities and with what minimums.Chart which package categories can be inducted at which facilities and with what minimums. Subgroup to review palletization and induction rules to kick off.Subgroup to review palletization and induction rules to kick off. Plan on monthly conference calls to monitor progress of all Work Group activities.Plan on monthly conference calls to monitor progress of all Work Group activities.