Mailing Industry Task Force

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Mailing Industry Task Force

• 2001 2003
• Results and Achievement

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Program

• Task Force History
• Recommendations
• USPS / Industry Progress
• Questions and Answer

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Task Force Timeline
Fall 2001
Fall 2002
Spring 2002
Spring 2003
Fall 2003
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Collaboration Builds Strength
Transformation Plan
Mailing IndustryTask Force
Strong and Vital Industry
National Postal Forum
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Work Team Structure
72 Companies
146 IndustryParticipants
62 USPSParticipants
CV03-1347 (USPS) KCY 8/29/03 EP setup PC ppt
2000 USPS 40949-5
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Task Force Co-Chairs
Michael Critelli Chairman and Chief Executive
Officer Pitney Bowes John Nolan Deputy
Postmaster General United States Postal Service
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Steering Committee

• Charles Morgan, Company Leader
  Acxiom
• Gary M. Mulloy, Chairman CEO ADVO,
  Inc.
• Nigel Morris, President COO Capital
  One
• Jeff Jurick, President CEO Fala DM
  Group
• Michael Sherman, Vice Chairman
  Crosstown Traders, Inc.
• Judy Marks, President, Distribution Technology
  Lockheed Martin
• Hamilton Davison, President CEO
  Paramount Cards
• Richard Bravman, Interim Chairman of the Board
  CEO Symbol Technologies
• William L. Davis, Chairman, President CEO
  R. R. Donnelley
• Hugh Mahler, President Owner Wolf
  Detroit Envelope Co.
• David Sable, President CEO
  Wunderman

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Three Strategic Principles

• Make the mail channel more competitive
• Unify the mailing industry
• Respond to customer needs

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Task Force Themes

• Growing the Industry
• Collaboration between Industry and USPS
• Cost Savings Gained through Efficiencies
• Increased Ease of Use for Postal Services
• Quality Improvement Driven by Industry Feedback

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Improve Address Quality

• Charles MorganCompany LeaderAcxiom
• Charles BravoSr. Vice President, Intelligent
  Mail and Address QualityUnited States Postal
  Service

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Improve Address QualityStrategic Vision

• Improved Personalization of Mail
• Increased Response Rates
• Reduced Mailing Costs

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Improve Address QualityAccomplishments

• Improve accuracy of addresses
• Federal Register Notice for Move Update published
  in August
• Changes take effect with next rate case
• Push toward lowest cost and most accurate COA
  method
• Exploring alternatives to fee for internet-based
  COA
• Usage of internet-based COA growing

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Improve Address QualityAccomplishments

• Improve ease-of-use and quality of information in
  database
• Complete COA confirmation letter in late fall
• Coincide with new welcome kits
• Reduce costs and improve satisfaction through
  electronic ACS transactions
• Training for field employees underway
• Improve communications between sites
• Improve service for seasonal movers
• Developing Premium Remailing Program
• Rate case to be filed in February

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Intelligent Mail

• Michael CritelliChairman and CEOPitney Bowes
• Charles BravoSr. Vice President, Intelligent
  Mail and Address Quality
• United States Postal Service
• Thomas DayVice President, EngineeringUnited
  States Postal Service

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Intelligent Mail Definition
The use of standardized data-rich,
machine-readable barcodes to make each mailing
piece unique and trackable.
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Intelligent MailAccomplishments

• Progress with Confirm
• Number of subscribers expanding
• Bundle tracking pilot test
• Intelligent Mail Corporate Plan
• Uniquely identify mail
• Develop deploy enabling infrastructure
• Enhance address quality
• OneCode Vision

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Intelligent MailAccomplishments

• Infrastructure development
• Deploying Wide Field of View Cameras
• Approval of upgraded information networks
• Privacy Issues
• Communications
• Developing brochures and presentations
• Updating Confirm website
• Speaking at industry conferences

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Consumer Gateway Services

• Richard Bravman Interim Chairman of the Board
  and CEOSymbol Technologies
• Nick BarrancaVice President, Product
  DevelopmentUnited States Postal Service

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Consumer Gateway ServicesStrategic Vision

• Expand Access
• Move Simple Transactions
• Promote Ease of Use
• Enhance Revenue Opportunities
• Work with Customers

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Consumer Gateway ServicesAccomplishments

• Regenerated Merchandise Returns program
• Parcel Return Service to be launched in October
• Progress made with Click-n-Ship
• Automated kiosks moving forward
• Explored enhancements to labels and scanning

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Preparation and Entry Optimization

• William L. DavisChairman and CEOR.R. Donnelley
• John RappSenior Vice President,
  OperationsUnited States Postal Service

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Preparation and Entry OptimizationPrinciples of
Standardization

• Value of Differentiation
• Predictability
• Shape-based Processing
• Industry Alignment

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Preparation and Entry OptimizationAccomplishment
s

• USPS released corporate flats strategy
• Five-digit flats scheme
• Procedures for fletters
• Standardization of procedures
• Periodicals palletization
• Development of new flat container
• Development of three-digit scheme
• Flats summit
• View strategy at ribbs.usps.gov

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Preparation and Entry OptimizationAccomplishment
s

• Progress made on node-based presort
• Implemented several initiatives
• Combined Standard Mail trays on pallets - May
  2003
• Enhanced drop ship October 2002
• Changes to reduce residual mail October 2002
• Cost-based preparation modeling February 2003

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Network Optimization

• William L. DavisChairman and CEOR.R. Donnelley
• John RappSenior Vice President,
  OperationsUnited States Postal Service

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Network OptimizationNetwork Vision

• Embrace Network Integration Alignment
• Create a Flexible Logistics Network
• Reduce Costs
• Increase Operational Effectiveness
• Improve Consistency of Service

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Network OptimizationAccomplishments

• Completed phase I scenario
• Developing phase II approach

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Pricing Strategy

• Gary MulloyChairman and CEOADVO
• Stephen KearneyVice President, Pricing and
  ClassificationUnited States Postal Service

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Pricing StrategyStrategic Vision

• Growing the Industry
• Simplicity
• Customization
• Encourage Cost-Efficient Behaviors

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Pricing StrategyAccomplishments

• Achieve rate stability
• Progress with pricing enhancements
• Launched first NSA
• PRC proposed rules in August
• Transformation of DMM
• Published DMM 100 in Spanish
• Launched DMM 200

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Pricing StrategyAccomplishments

• Initiated experimental rate cases
• Customized market mail
• Parcel Return Service
• Implemented pricing incentive for periodicals

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Enhanced Payment Systems

• Gary MulloyChairman and CEOADVO
• Robert PedersenVice President, Treasurer
• United States Postal Service

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Enhanced Payment SystemsStrategic Principles

• Stimulus for Volume Growth
• Ease of Use
• Flexibility
• Competitiveness

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Enhanced Payment SystemsAccomplishments

• Introducing new capabilities and expanding
  payment options
• Providing faster and more accurate methods
• PostalOne! provides single view of customer
• Integrating Permit accounts
• Plan developed to migrate CAPS

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Implement an Industry Council

• Michael CritelliChairman and CEOPitney Bowes
• Gary MulloyChairman and CEO ADVO

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Implement an Industry CouncilUnify the Industry

• Promote Mail
• Support Change
• Create Industry-only Entity

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Implement an Industry CouncilUnify the Industry

• Established As Non-profit Corporation June 26,
  2002
• Currently 16 CEO Members
• Mike Critelli, President Gary Mulloy, Secretary
  Treasurer
• Acxiom, ADVO, Capital One, Crosstown Traders,
  DST Output, Harte-Hanks, Lockheed Martin
  Distribution Technologies, Pitney Bowes,
  Paramount Cards, Readers Digest Association, R.
  R. Donnelley, Symbol Technologies, Wunderman New
  York, Hearst Magazines, FedEx Corp. and Time Inc.

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Implement an Industry CouncilAccomplishments

• Developed coordinated messages and strategies
• Promoted need for CSRS legislative reform
• Supported Presidents Commission
• Represent industry on public policy issues
• Privacy
• Mail security

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All Available at www.usps.com
CV03-1347 (USPS) KCY 8/29/03 EP setup PC ppt
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Going Forward

• Reassess strategic direction
• Focus on revenue growth
• Continue USPS/industry cooperation

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Mailing Industry Task Force

• 2001 2003
• Results and Achievement