POWERPOINT MASTER

1
USPS Mailer Technology Study
MTAC February 5, 2004 Jeffrey Freeman Manager,
Mail Technology Strategy Intelligent Mail and
Address Quality
2
Agenda

• Purpose of Technology Study
• Study Overview
• Findings
• Closing

3
Purpose of Technology Study

• To understand the mailing industrys potential to
  print advanced barcodes
• Identify industry trends that increase likelihood
  of adoption

4
Study Approach

• Mailer site visits
• Vendor interviews
• Mail preparer survey

5
Survey Overview

• Target audience
• Commercial and non-profit mail preparers
• Questionnaire
• Covered demographics, key technology, information
  management, industry trends, benefits and
  challenges
• Interviews
• Over 5,000 candidates screened Over 300
  interviews completed

6
Respondent Demographics

• 311 mail preparers participated
• Account Types represented fairly evenly
• Twelve industry segments represented

7
Respondent Demographics

• All three shapes represented
  letters, flats, and parcels
• Letter mail predominant shape
• 85 of respondents report that they prepare two
  or more shapes

8
Findings Perceived Benefits

• 83 of respondents identified one or more
  benefits in adopting an advanced barcode
• Customer demand for track and trace and
  customer relationship management are
  the top two benefits at 68 and 58
• 35 identified inventory/job management as a
  potential benefit

9
Findings Potential Demand

• 54 of all locations already uniquely identify
  mailpieces and/or unit loads
• 42 of high volume locations use barcodes for
  production control/sortation
• Top three uses sortation, job tracking and
  customized insertion
• Preparers are experimenting with advanced barcodes

10
Findings Technology Factors

• Major technology factors to consider
• Printer type
• Printing resolution
• Barcode readers

11
Findings Technology

• The ability to print complex barcodes is
  dependent on technology and resolution
• 63 of locations print most barcodes and
  addresses at resolution of 300 dpi and higher

Technology and Resolution at Preparer Locations
12
Findings Technology

• Use of inkjet printers
• 59 of locations use inkjet printers for the
  majority of their mail

Note Six percent of respondents did not report
a dominant printer type.
13
Findings Technology

• Use of continuous forms printers
• 25 of high volume locations use continuous
  forms printers on the majority of mail
• Use of POSTNET
• High volume mail locations print POSTNET codes on
  the majority of letters (96) and flats (79)
• The current resolution for printing the POSTNET
  code could already support the printing of some
  advanced barcodes

14
Findings Technology

• Barcode readers
• 26 of locations use barcodes for production
  control and/or sortation 59 of these
  locations use USPS barcodes for this
  purpose
• Mail preparers are twice as likely to use laser
  scanners than imagers to read barcodes

15
Findings Technology

• Replacement patterns
• Half of respondents are replacing the majority of
  their hardware associated software over the
  next 5 years
• 38 will be replacing the majority of their
  readers in this same timeframe

16
Findings Other Factors

• Tradeoff in print resolution with
  production speed
• Process changes
• Interaction of ink with paper

17
Closing

• There is a demand and interest in uniquely
  identifying mail pieces and unit loads
• Technology is available today to print advanced
  barcodes
• Further examination of the Studys
  findings and additional research is necessary