Spring 2003

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National Postal Forum
MAILING INDUSTRY TASK FORCE
Spring 2003
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Program

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

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Task Force Timeline

• Spring 2001

Fall 2001
Fall 2002
Spring 2002
Spring 2003
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Industry Interest

• 4,800 Reports Distributed
• Over 40,000 Hits on Webpage

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Collaboration Builds Strength
Transformation Plan

• Mailing Industry Task Force

Strong and Vital Industry
National Postal Forum
Product Redesign
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(No Transcript)
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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 and CEO Fala DM
  Group
• Michael Sherman, Vice Chairman
  Crosstown Traders, Inc.
• Judy Marks, President, Distribution Technology
  Lockheed Martin
• Hamilton Davison, President CEO
  Paramount Cards
• Dr. Jerry Swartz, Chairman of the Board Chief
  Scientist Symbol Technologies
• William L. Davis, Chairman, President CEO
  R. R. Donnelley
• Hugh Mahler, President and Owner
  Wolf Detroit Envelope Co.
• David Sable, President CEO
  Wunderman

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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

• More Control Over Mail
• Increased Response Rates
• Reduced Mailing Costs

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Improve Address QualityAccomplishments

• Improve COA Process
• Promoted Internet COA
• Conducted COA Focus Groups
• Improve Address Change Process
• Implement ACS Preprint Option
• Produced ACS CD ROM
• Conducted Training
• Addressing Hot Tips

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Improve Address QualityFuture Actions

• Conduct 2nd Test Mailing
• Test Commercial Databases
• Assess Focus Groups Results
• Develop Premium Forwarding Program
• Ensure Consideration of Industry Input on Federal
  Register Notice
• Support Process Improvements

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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 Mail Accomplishments

• Developed Industry/USPS Strategy
• Launched Confirm Service
• Deploying Wide Field of View Camera
• Established Privacy Principles

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Intelligent MailFuture Actions

• Support Intelligent Mail Strategy
• Assist USPS Analysis of Code Contents
• Support Development
• Mail Processing Infrastructure
• Bundle and Container Tracking Services
• Updated Equipment
• Support Communications Efforts
• Ensure Privacy Considerations

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Consumer Gateway Services

• Dr. Jerry SwartzChairman of the Board and Chief
  ScientistSymbol 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

• Integration of Intelligent Mail and Gateway
  Services
• Kiosk Program Designed
• Developed Line-of-Travel Carrier Services
• Implemented Online Shipping Service

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Consumer Gateway ServicesFuture Actions

• Support Integration with Intelligent Mail and
  Enhanced Package Services

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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
• Alignment

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Preparation and Entry OptimizationAccomplishment
s

• Designed Five-Digit Packaged Flats Scheme
• Implemented Flexible Minimums
• Initiated Enhanced Dropship Service
• Launched Periodicals Co-Palletization Pilot

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Preparation and Entry OptimizationFuture Actions

• Expand Co-Palletization
• Encourage Combined Letter Trays on Pallets
• Design Three-Digit Scheme for Flats

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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

• Constructed System-wide Database
• Completed First-Phase System-wide Modeling
• Initiated Planning for Second Phase

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Network OptimizationFuture Actions

• Support Phase II
• Continue Communications Effort to Policy Makers

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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

• Pricing Strategy Developed
• New Periodical Classification Filed
• Negotiated Rate Case Process Developed
• USPS/PRC Rate Summits Held
• NSA Filed

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Pricing StrategyFuture Actions

• Continued Collaboration
• Identification of NSA Candidates
• Support Market-based Pricing

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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

• PostalOne! Successfully Launched

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Enhanced Payment SystemsFuture Actions

• Support PostalOne! Implementation
• Continue to Supply Data Input

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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 Council Unify the Industry

• Established As Non-profit Corporation June 26,
  2002
• There Are Currently 17 CEO Members
• Mike Critelli, President Gary Mulloy, Secretary
  Treasurer
• Acxiom, ADVO, Capital One, Crosstown Traders,
  DST Output, Harte-Hanks, Lands End, 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

• Implemented Legislative Outreach Program in
  Support of CSRS Reform Legislation
• Supported Establishment of Presidential
  Commission and Pressed for Reform
• Developed Broad-based Public Relations Awareness
  Campaign to Promote the Value of the Mail Channel

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Implement an Industry CouncilFuture Actions

• Continue Awareness Campaign
• Continue Legislative Outreach

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All Available at www.usps.com
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National Postal Forum
MAILING INDUSTRY TASK FORCE
Spring 2003