1. SERVICE STANDARDS MTAC Work Group #114 February 21, 2007 Jeffrey C. Williamson Manager, Network Development & Support

2. AGENDA  Current Service Standards  Business Rules Used To Develop Standards  Volume Distribution Across Service Standards

3. CURRENT SERVICE STANDARDS  Service standards are officially defined as “A stated goal for service achievement for each mail class.”  Established between originating 3-digit ZIP Code and destinating 3-digit ZIP Code  850,950 O/D pairs  915 originating 3-digit ZIP Codes  Military ZIP Codes do not have originating standards  930 destinating ZIP Codes  Applied based on point of entry

4. SERVICE STANDARDS FOR MARKET DOMINANT PRODUCTS  First-Class Mail - 1 to 3 days  Periodicals – 1 to 7 days  Standard Mail – 3 to 10 days  Package Services – 1* to 9 days * Only for Parcel Select entered at DDU by 4PM the day before

5. BUSINESS RULES - FIRST-CLASS MAIL  Standards were realigned in 2001  Overnight includes a plants turnaround ZIP Codes and possibly mail to/from other facilities that are in close proximity.  Overnight standards were not changed in the 2001 realignment  2 day includes destinations that can be reached within 12 hours via surface transportation or significant volume with dependable and timely air transportation  3 day includes of all other destinations

6. FIRST-CLASS MAIL SERVICE STANDARDS (FROM ORIGIN 200)

7. VOLUME DISTRIBUTION – FIRST-CLASS MAIL *Note: this graph represents the volume of mail on the O/D pairs with the corresponding service standard, it does not represent actual service achievement.

8.  Periodicals and Standard Mail  Based on mileage from the origin  Zones – maximum distance (mi) 1 – 50 2 – 150 3 – 300 4 – 600 5 – 1,000 6 – 1,400 7 – 1,800 8 – Over 1,800  Package Services  Based on the Bulk Mail Center (BMC) network reach BUSINESS RULES - PERIODICALS, STANDARD MAIL & PACKAGE SERVICES

9. PERIODICAL SERVICE STANDARDS (FROM ORIGIN 200)

10. STANDARD MAIL SERVICE STANDARDS (FROM ORIGIN 200)

11. PACKAGE SERVICES SERVICE STANDARDS (FROM ORIGIN 200)

12. ~ 95% receives 1-3 day Standard VOLUME DISTRIBUTION – PERIODICALS *Note: this graph represents the volume of mail on the O/D pairs with the corresponding service standard, it does not represent actual service achievement.

13. VOLUME DISTRIBUTION – STANDARD MAIL ~ 80% receives 3-5 day Standard *Note: this graph represents the volume of mail on the O/D pairs with the corresponding service standard, it does not represent actual service achievement.

14. VOLUME DISTRIBUTION – PACKAGE SERVICES ~ 85% receives 2-4 day Standard *Note: this graph represents the volume of mail on the O/D pairs with the corresponding service standard, it does not represent actual service achievement.

15. VOLUME DISTRIBUTION ACROSS ALL MARKET DOMINANT PRODUCTS *Note: this graph represents the volume of mail on the O/D pairs with the corresponding service standard, it does not represent actual service achievement.

16. UPDATING SERVICE STANDARDS  Updated at the beginning of each fiscal quarter  Made when mail processing for a ZIP Code is moved from one facility to another  Takes on the service standards of the gaining facility

17. TO ACCESS SERVICE STANDARDS  Order a copy of the Quarterly Service Standard Directory  Fax request to 901-681-4542. Include your name and mailing address.