Are You Ready for This?  2013 Industry Changes and Beyond!
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Are You Ready for This? 2013 Industry Changes and Beyond!

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USPS Network Consolidation and Service Changes ...

USPS Network Consolidation and Service Changes
Mailpiece Design and Address Quality
USPS Promotions – connect the physical mail with digital world and save!
2013 & Beyond – Full Service IMb®, E-induction, & Seamless Acceptance

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  • 50% decline in First-Class mail volumes projected 2010 – 2020 Open capacity – some facilities with 6 hour per day processing In 2012 USPS had 461 facilities. Targeting 232 in 2015 at end of Phase 2.
  • 50% decline in First-Class mail volumes projected 2010 – 2020 Open capacity – some facilities with 6 hour per day processing In 2012 USPS had 461 facilities. Targeting 232 in 2015 at end of Phase 2.
  • The Postal Service is adopting new rules for market-dominant service standards that will be implemented in two phases.The first phase will be from July 1, 2012, through January 31, 2014, The second phase will apply on February 1, 2014, and thereafter. Should subsequent events or changed circumstances so warrant, the Postal Service will be able to reconsider implementation of the second phase.The new rules do not revise the service standards for Standard Mail and Package Services pieces mailed within the contiguous forty-eight states. During the first phase, the overnight business rule for First-Class Mail, the overnight service standard will be applied only to intra-Sectional Center Facility (SCF) mail. It will no longer apply to any inter-SCF mail. Under the final version of the overnight business rule for First-Class Mail, the overnight service standard will not apply to mail that is entered anywhere other than the designated SCF, nor will it apply to mail that does not meet all of the preparation requirements for Presort mail. On February 1, 2014, when the second phase rule takes effect, the Critical Entry Time (CET) at the SCF will become 8 a.m., with a 12 p.m. exception that will be available only to intra-SCF Presort First-Class Mail that is sorted and containerized to the 5-digit ZIP Code or 5-digit scheme level.Under the current two-day business rule for First-Class Mail, a two-day service standard is applied to mail pieces for which the driving time between the applicable P&DC/F and ADC is twelve hours or less. In the first phase the two-day business rule will revise this metric to six hours. In the second phase the two-day business rule will be revised to six hours between the applicable P&DC/F and SCF. The current three-, four-, and five-day service standards for First-Class Mail will remain unchanged. All First-Class Mail that qualifies for a two-day service standard under the current two-day business rule, but does not qualify for a two-day standard under the new rule, will qualify for a three-day standard.Gone are days of overnight 2-3 expanded3+ expanded
  • How to know where the service standards are for you area.
  • The Postal Service is adopting new rules for market-dominant service standards that will be implemented in two phases.The first phase will be from July 1, 2012, through January 31, 2014, The second phase will apply on February 1, 2014, and thereafter. Should subsequent events or changed circumstances so warrant, the Postal Service will be able to reconsider implementation of the second phase.The new rules do not revise the service standards for Standard Mail and Package Services pieces mailed within the contiguous forty-eight states.
  • Optional elements added basis weight ranges from 80lb to 120lbbasis weight increases when piece weight is over 1ozNewsprint paper allowed on quarter-fold design only55lb minimum paper, 1.5 inch tabs required.
  • Additional elements defined.
  • Mailer Scorecard is the next generation of reports that both USPS and the mailing industry will use to make informed business decisions. In just one screenshot, we see that Mailer Scorecard displays robust information about the performance of either one, or several mailing locations in a vertical column format. The dashboard type view of data displays key metrics such as “Full Service Volume”, “Container MID’s Not In Error”, “% By/For Matching Not In Error”, “% Container Barcode Uniqueness Not In Error” and the corresponding performance to the right, and again, presented as site-specific data all at one time!In terms of trending performance, the data outputs are color coded. The intent is to show the user specific performance trends within the respective metric. Numbers displayed in green indicate that the metric value has improved by more than 5% from the previous month. Numbers displayed in yellow mean the value exceeds a threshold. And numbers displayed in red indicate a decline by more than 5% from the previous month. There are also graphs and trend charts showing performance across months.Mailer Scorecard has hyperlinks built in, so users can easily navigate to supporting detailed reports without having to go through the report prompting exercise to generate a different report.So moving forward, any customer submitting electronic documentation, not necessarily claiming full service, will have a scorecard. In order to submit electronic documentation, customers must have a customer registration ID assigned to their business location, also known as a CRID. The data displayed on Mailer Scorecard is generated by CRID.
  • Let’s continue our analysis of the construct of Mailer Scorecard. Please take a moment to look at the data metrics listed in the left column and note that the presentation of data currently reflects values “NOT IN ERROR”. When USPS originally designed this area, we displayed “error data only”. Then, as Mailer Scorecard developed a bit more, we tried displaying data “not in error”. The mailing industry and our reporting subgroup provided feedback to USPS as to a preference in the reporting format, and we’ve recently learned that USPS may switch back once again to showing “error data only”. We may see this change in the July 2013 release.Now if I may direct your attention to the area of Mailer Scorecard underneath the Month / Year display please notice the macro tabs titled “Full Service Compliance”, “eInduction”, “Seamless”, “Manual Sampling”, Entry Point Verification”, and Mailer Profile”. These are known as “perspectives”. If a customer is participating in Full Service, or eInduction, or Seamless program(s), data will be populated within the respective macro tab. The next tab “Manual Sampling” displays data returned from USPS personnel recording verification results in a hand held scanner. These folks are verifying metrics such as the characteristics of the mailpiece, content eligibility for Standard Mail, etc. The tab titled “Entry Point Verification” displays data such as the number of full service containers, the amount of orphan handling units, locale key validation, etc. The “mailer profile” tab displays volume by CRID, volume by class of mail also by CRID, how many mail.dat or mail.xml jobs have been submitted per CRID, total discounts received, etc.At this point, Steve is going to take us on a deep dive into the Full Service perspective.
  • MargieThe last option I’ll talk about today is outsourcing to a presort bureau. Mail volumes can be given to a presort partner who can apply the Intelligent Mail Barcodes, commingle the volumes and induct the mail to the USPS. Benefits are:No capital investment and increased postage qualifications which can help lower your per piece cost.There’s reduced operational labor associated the entire barcode application process, because you aren’t applying the barcode in-house.Your presort partner is responsible for staying current with USPS rules and regulations. And the presort partner interfaces with the USPS with regard to Full Service requirements and mail acceptance. You can get piece level data from your presort partner to use as proof of mailing and implementation time is minimal, so you can start saving money today. Things to consider with a presort partner are:Is there a requirement to associate a specific piece back to multiple databases with Address Change Service? If so, you would want to consider applying the Full-Service barcode yourself instead of having a random Full Service barcode applied.You want to find out if the presort bureau has a quality program in place as well as whether or not the facility is secure.
  • 50% decline in First-Class mail volumes projected 2010 – 2020 Open capacity – some facilities with 6 hour per day processing In 2012 USPS had 461 facilities. Targeting 232 in 2015 at end of Phase 2.

Are You Ready for This?  2013 Industry Changes and Beyond! Are You Ready for This? 2013 Industry Changes and Beyond! Presentation Transcript

  • ARE YOU READYFOR THIS?2013 INDUSTRYCHANGES & BEYOND!Alison Hall,Director of Client Services –Direct Mail SolutionsSteve Krejcik,Director of Strategic TechnicalBusiness DevelopmentJune 18, 2013
  • HOUSEKEEPINGNOTES Submit questions during thepresentation by clicking on thequestions icon Steve & Alison will be answeringas many questions as possible atthe end of the presentation If you have any technicaldifficulties, please submit aquestion SAVE this link; you will be able toview this presentation again orrefer a colleague (archived for 12months) If you have any follow-upquestions, please email Cierra atcierra@rbpub.com2
  • Alison HallAlison Hall, Director Client Services,Direct Mail SolutionsPitney Bowes Presort ServicesToday’s PresentersSteve KrejcikDirector of Strategic Technical BusinessDevelopmentPitney Bowes Presort Services3June 18, 2013
  • AgendaAGENDA4 USPS NetworkConsolidation andService Changes Mailpiece Design andAddress Quality USPS Promotions –connect the physicalmail with digital worldand save! 2013 & Beyond –Full Service IMb®,E-induction, & SeamlessAcceptance
  • What? USPS is reducing cost structure by consolidating USPS processingfacilitiesWhy? 15.9 billion losses last year USPSHow? From 461 facilities in 2012 to 232 targeted in 2015 46 USPS processing centers consolidated in 2012 100 USPS processing centers targeted in 2013 March 28, 2013, USPS added an additional 53 USPS processing centersto be accelerated and consolidated in 2013 from 2014 consolidation listingUSPS® Network Consolidation andService Changes5June 18, 2013
  • Phase I Winter 2013 Consolidations6June 18, 2013
  • Click on thelink forLatest MailMove Plan7June 18, 2013
  • Mail Move Plan as of March 8, 2013 Consolidation sites scheduled for 2013 Site address, locale key, and the nameof the activation (gaining) facility Workload migration ―target‖ dates Mail shape effected (e.g. letters, flats,parcels/bundles) Process step/entry level ( e.g.originating, destinating, and DPS)Mail Move Plan File Includes:8June 18, 2013
  • Service Standards9June 18, 2013
  • Service Standards10June 18, 2013
  • Service Standards11June 18, 2013
  • Mailpiece Design& Address QualityMaking your mailingsand data work harderand better!12 Folded Self-Mailers Design Elements Top Addressing Issues Address Quality Foundation
  •  Effective January 5, 2013 Definition: A folded self-mailer isformed of two or more panelscreated when a single or multipleunbound sheets of paper are foldedtogether and sealed to form a lettersize mailpiece Complete details are listed atwww.pe.usps.gov in DMM section201.3.14 and 201.3.15Folded Self Mailers13June 18, 2013
  • Dimension Height – 3.5‖ to 6‖ max (new) Length – 5‖ to 10.5‖ max (new)Weight – up to 3oz (new)Paper cover basis weight - Book grade (Text, Offset) Basic Folded Self-Mailer design 70lb (new) min for 1oz mailpiece; 80lb (new) over 1oz up to 3ozNewsprint paper allowed on quarter-fold design only 55lb minimum paper, 1.5 inch tabs required (new)Closure Methods Glue - minimum 3 spots required (new); 4 spots if over 1 oz (new) Tabs – minimum 2 1‖ tabs required (new); 3 tabs when over 1 oz and/or optional elementsincorporatedCritical Design Element Changes14June 18, 2013
  • Folding Panels defined Minimum number of panels when folded is two For bi-fold, fold no longer allowed at top (new)Flaps Horizontal fold (new) Must be at least 1.5‖ long Must end 1‖ or more from bottom edge Vertical fold (new) Must be folded from lead edge At least 5‖ at longest point No closer than 1‖ to the trail edgeBasic Design ElementsAdditional Elements (new) Interior Attachments Loose Enclosures Die Cuts15June 18, 2013
  • Resourceswww.ribbs.usps.gov16June 18, 2013
  • 17June 18, 2013
  •  The quality of your address data directly affects the deliverability ofyour mail! USPS® provides an extensive suite of Address Quality productsand services; check out ribbs.usps.gov USPS is committed to continuous address hygiene improvementsto enhance the value of mail Small efforts canbring big results!Address Quality18June 18, 2013
  • USPS® has determined that up to 23% of all mail containsaddressing errorsCommon errors:Addressee moved …...…………………………………….. 2.4%Directional/Suffix missing ..……………………….............. 6.0%Street name/Number incorrect/invalid ..………................ 5.9%ZIP Code™/City incorrect ………………………………. 4.8%Apt number/Rural Box number missing …...…………….. 4.5%Total 23.6%Address QualityUSPS—AEC and AEC II® User Guide, p. 319June 18, 2013
  •  Inconsistent filling of fields Missing gender indicator Trailing space after name or address Misspelled words/Improper abbreviations Missing or wrong street, directional, prefix, suffix City, state, or ZIP Code™ missing or in conflict Missing or incorrect secondary address information Incorrect company legal name or reference name Dual names Extraneous information in name fieldTop Addressing Issues20June 18, 2013
  • 4% UAA Volume2011/2012Cost over$1.3 BillionUndeliverable as Addressed (UAA) Mail21June 18, 2013
  • Address QualityFoundationJune 18, 2013StandardizeValidateUpdate22
  • USPSPromotions –Connect PhysicalMail w/ the DigitalWorld & Save!23Objective: Increase thelong-term value of mail Highlight new technologyand best practices Encourage and accelerateindustry innovation Increase relevancy andengagement with consumers New in July – Mayparticipate in multiplepromotions on the samepiece
  • Insight: Mail is Still Highly Valued80% look at their mail daily – as a valuablenews resource75% like to see what’s in the mail63% of mail is kept at least 2 daysSource: USPS 2011-2012 Mail Moment SurveyJune 18, 2013 24
  • 2013 Promotions SummaryName Registration Promotion Discount DescriptionProductSamples5/1 – 9/30 8/1-9/30 5% upfrontdiscountFor marketingparcels that containsamplesPicture Permit* 6/1 – 9/30 8/1-9/30 Up to 2 centsper pieceCustom permit indiciaEmergingTechnologies*6/15 – 9/30 8/1-9/30 2% upfrontdiscountAugmented Reality,Near FieldCommunicationsMobile Buy-It-Now9/15 – 12/31 11/1-12/31 2% upfrontdiscountIntegrated mobileshopping technology* Requires special approval prior to mailingJune 18, 2013 25
  • June 18, 2013 26
  • 2014 Promotions Ideas27June 18, 2013
  •  Email mobilebarcode@usps.gov Emerging Technology Mobil But-It-Now Product Samples picturepermit@usps.gov Picture Permit Documentation https://ribbs.usps.gov/index.cfm?page=mobilebarcode https://www.usps.com/business/promotions-and-incentives.htmUSPS Promotion Resources28June 18, 2013
  • 2013 andBeyond29 Full Service IMb e-Induction Seamless Acceptance
  •  USPS has announced that Full Service IMb will berequired to receive automation discounts after January26, 2014 How will USPS measure quality and what are theconsequences? Validations - Today and in 2014 New Validations - January 26, 2014 Postage Adjustments - July 27, 2014Full Service IMb30June 18, 2013
  • Full Service Verifications – Today and in 2014 Automation Verification – Existing Verifications Mailpiece preparation including dimensions, shape, weight, and flexibility Barcode quality Content Presort makeup Automation eligibility Existing Thresholds Apply Mailing Falls Below Thresholds Returned for Rework Additional Postage at the applicable rates in January Examples: Poor Barcode quality = % of pieces at Non-Automation Rates Poor Presort quality = % of pieces at FCM Single Piece Rates31June 18, 2013
  •  Full-Service Acceptance - Existing Verifications Documentation not submitted electronically Container placards are inside or covered by shrink-wrap No Intelligent Mail container barcodes on the container placards Initial Sample = 1 Container If in error, select additional 3 containers More than 2 total errors = Failure No Intelligent Mail tray barcodes on the tray/sack labels Initial Sample = 3 Handling Units If one or more in error, select additional 3 Handling Units More than 3 total errors = Failure No Intelligent Mail tray barcode on the mailpieces Initial Sample = 30 Mailpieces 4 or more in error = Failure Mailing Falls Below Thresholds Returned for Re-work Additional postage at the non-automated rates in JanuaryFull Service Verifications – Today & in 201432June 18, 2013
  •  Full-Service Electronic Verification - New Verifications Validation of the Information contained in eDoc Data is aggregated over a one-month period Displayed in the Mailer Scorecard by CRID Develop reasonable thresholds In the October release, PostalOne! will display the projected invoice fromfull-service electronic verification failures Removal of full-service and automation rate Only mailpieces with verification errors above the preliminary threshold Within 48 hours after the eDoc is processed the following occurs: Full-Service eDoc verification Check every container, handling unit and piece in electronicdocumentation and evaluate for specific errors Trend results are monitored for at least one monthFull Service New Validations January 26, 201433June 18, 2013
  • 34Full Service New Validations - January 26, 2014 All validations are performed by checking against values provided in the eDocValidation What is it?Mailer IDMailer ID provided in the IMb, IMtb, or IMcb is valid and registered with the USPSMailer ID systemService Type IDService Type ID provided in the IMb is valid, appropriate for the class of mail, andappropriate for the service level of the mailpieceBy/For Mail Owner and Mail Preparer are provided for each mailpieceUnique ContainerBarcodeIMcb is unique across all mailings from all eDoc submitters for the past 45 daysUnique TrayBarcodeIMtb is unique across all mailings from all eDoc submitters for the past 45 daysUnique Piece IMb is unique across all mailings from all eDoc submitters for the past 45 daysCo-PalletizationCo-palletization files are submitted within 14 days for trays/virtual sacks marked forco-palletization at originEntry Facility Entry facility provided in eDoc (Locale key or ZIP Code) is a valid USPS facilityScheduled ShipDateFor USPS Transported containers that do not receive scan at arrival to USPSfacility, scheduled ship date/time is within 48 hours of finalization date/time.June 18, 2013
  •  The Mailer Scorecard provides a dashboard view summarizingperformance Allows comparison across facilities Conditional formatting provides a trending view across months Drill reports provide a way to determine specific mail preparationerrors Available for any company that submits electronic documentation Data grouped by eDoc submitter CRIDThe Mailer Scorecard35June 18, 2013
  •  Go to Business Customer Gateway:https://gateway.usps.com From menu on left, click on ―Mailing Services‖ Click on ―Mailing Reports (PostalOne!)‖ Click on ―Mail Quality Reports‖ Click on ―Shared Reports‖ Click on ―Mailer Scorecard‖ Click on ―Mailer Scorecard‖ again Select a month to review Click ―Run Document‖How to Access The Mailer Scorecard36June 18, 2013
  • Mailer Scorecard User’s Guidehttps://ribbs.usps.gov37June 18, 2013
  • Full Service Mailer Scorecard(Available today)38June 18, 2013
  •  USPS will establish and publish thresholds during thefirst six months of 2014 based on a statistical analysisof actual mailer quality. Example thresholds can be found in the scorecardFull Service Thresholds39June 18, 2013
  •  eDoc evaluation based on monthly average Not individual mailings Postage adjustments occur if a particular error is over thethreshold Number of pieces in error times the difference betweenpostage affixed and the presort rate Example: 10,000 piece mailing with 11% error while threshold is10% and postage claimed is $.36. 1,100 pieces in error X (.433-.36) = $80.30 Additionalpostage dueFull Service Postage Adjustments - July 27, 201440June 18, 2013
  •  All postage assessments will be performed at the eDoc Submitter CRIDlevel Mailers will have 10 days to review the invoice and all mail preparationerrors: During this period of time, mailers can elect to dispute errors If contested, invoice will be placed in a dispute queue report made availableexternallyFull Service Postage Adjustments - July 27, 2014Invoice Generation TimelineEnd of InvoicingPeriod(Month End)InvoiceGeneration10 DaysPay/DisputeInvoiceVAEVerificationAssessment Evaluator10 DaysUpdate/Reject/Close DisputeBMS Reviewer5 DaysPay InvoiceVAE3 DaysIf unpaid, invoice will be markedas overdue41June 18, 2013
  •  In-House solution Control over the mail Added costs for capital and IT Complicated requirements USPS RiskFull Service Implementation Options42June 18, 2013
  •  Presort Bureau No capital investment Improved postage rates due to increased qualifications Reduce operational labor Move Update compliant Current with USPS® rules & regulations Presort Bureau will interface with USPS Automated mailing requirements Full Service requirements Mail acceptance Visibility with Intelligent Mail® You can start todayFull Service Implementation Options43June 18, 2013
  •  Intelligent Mail ServicesEmail: IntelligentMailSupport@USPS.GOVWeb: https://ribbs.usps.govPhone: 800-522-9085Full Service & Intelligent Mail Resources44June 18, 2013
  • eInduction eInduction will streamline the induction of dropshipments and expedited plant load mailings This optional program goes live later this year Eliminates need for 8017 and 812545June 18, 2013
  • The eInduction Process46June 18, 2013
  • Seamless Acceptance47June 18, 2013
  • Seamless Acceptance - How it Will Work48June 18, 2013
  • Seamless Acceptance Verifications results on the Seamless Acceptance Scorecard & Dashboard/Reports Users will be able to access detailed information about mail quality Verifications are performed on data from mail operations by comparing MPE scandata to the information submitted in eDoc for the following categories: Barcode Scan Rate Undocumented Mail Presort Entry Location Move Update Duplicates Postage Affixed Presort Duplicates Postage PaymentMethod Content Piece Weight Barcode Construct Undocumented Mail Verifications are performed by comparing data collected through FS-IMD sampling tothe information submitted in eDoc for the following categories:Sampling VerificationsMPE Scan VerificationsReportingJune 18, 2013
  • Alison HallAlison Hall, Director Client Services,Direct Mail SolutionsPitney Bowes Presort Servicesalison.hall@pbpresortservices.comQuestions?Steve KrejcikDirector of Strategic Technical Business DevelopmentPitney Bowes Presort Servicessteven.krejcik@pbpresortservices.com50June 18, 2013www.pb.com/mailservices
  • THANK YOU.