1. Optimizing Parcel Preparation & Entry for Seamless Acceptance Final Presentation MTAC Work Group # 109 Industry Leader: Wendy Smith USPS Leader: Jim Cochrane

2. Optimizing Parcel Preparation & Entry for Seamless Acceptance Work Group Focus:  Approaches to optimize parcel preparation and entry.  Understand total combined costs to both the industry and the Postal Service in order to minimize end-to-end costs.  Fully leverage available workshare discounts as the processing and distribution network is rationalized.

3. Optimizing Parcel Preparation & Entry for Seamless Acceptance End-to-End industry costs to consider: Handling, staging (expanded dock areas) and sorting for any additional entry points.Handling, staging (expanded dock areas) and sorting for any additional entry points. TransportationTransportation  # of entry points  Palletization vs. Bedloads translates to ~40% reduction in utilization, thus more truck loads would be created. Increased transit time resulting from packages being held to build density needed for more entry points.Increased transit time resulting from packages being held to build density needed for more entry points.  May drive mailers to increased use of competitor alternatives. Worksharing discounts should be aligned with any additional entry points.Worksharing discounts should be aligned with any additional entry points.

4. Optimizing Parcel Preparation & Entry for Seamless Acceptance Clarified palletization and induction rules: Can double stack pallets up to four tiers and 84” when capped and strapped individually and together.Can double stack pallets up to four tiers and 84” when capped and strapped individually and together. –See DMM 705.8.3 and Quick Service Guide 705b for details. Single pallet and pallet box maximum height = 77”Single pallet and pallet box maximum height = 77” Due to varied plant capacity and layouts, individual BMC approval needed for:Due to varied plant capacity and layouts, individual BMC approval needed for: –Live unloads –<3/4 full drop & pick Speed lines usually available for 6 pallets or less Speed lines usually available for 6 pallets or less

5. Optimizing Parcel Preparation & Entry for Seamless Acceptance Clarified palletization and induction optimization: Remember: one FAST appointment per trailer, regardless of # of mailings on a given trailer.Remember: one FAST appointment per trailer, regardless of # of mailings on a given trailer. Unload sequence => use common sense:Unload sequence => use common sense: For multiple stops: –Sequence by sequence of drop; separate by drop sheet divider or shoring bar –Don’t double stack pallets going to different facilities Within a stop: –Use the Comment section in FAST to reference mixed load types (e.g. X sacks or pallets on tail; bedloaded in nose). –These comments help direct trailers to appropriately equipped dock (to off load via forklift or conveyer).

6. Optimizing Parcel Preparation & Entry for Seamless Acceptance Commingling Opportunities  Encourages lowest end-to-end costs.  Simplified standards for combining parcels.  Container minimums based on the combined weight across parcel categories. ―Proposed Matrix for Combined Mailings of Standard Mail and Package Service Parcels (DMM 705.6)

7. COMBINED MAILINGS OF STANDARD MAIL AND PACKAGE SERVICES PARCELS (705.6) COMBINED PREPARATION 5-digit/scheme¹BMC/ASFMixed BMC ENTRY (Required) OriginSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimumSacks - No minimum Pallets - 250-lb minimum DBMCSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-piece or 10-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum Combining Standard Mail and Package Services Machinable Parcels and NFMs 6 ounces or more Proposed

8. Combining Standard Mail and Package Services Irregular Parcels and NFMs 2 - 6 ounces (APPS Machinable) COMBINED PREPARATION 5-digit/scheme¹3-digitADCMixed ADC ENTRY (Required) OriginSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimum Sacks - No minimum Pallets - 250-lb minimum DBMCSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-piece or 10-lb minimumSacks - 10-piece or 20-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum COMBINED MAILINGS OF STANDARD MAIL AND PACKAGE SERVICES PARCELS (705.6)

9. Proposed Combining Standard Mail and Package Services Irregular Parcels and NFMs under 2 ounces (Non APPS Machinable) COMBINED PREPARATION 5-digit/scheme¹3-digitADCMixed ADC ENTRY (Required) OriginSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimum Sacks - No minimum Pallets - 250-lb minimum DBMCSacks - 15-piece or 30-lb minimumSacks - 10-piece or 20-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-piece or 10-lb minimumSacks - 10-piece or 20-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum COMBINED MAILINGS OF STANDARD MAIL AND PACKAGE SERVICES PARCELS (705.6)

10. COMBINED MAILINGS OF STANDARD MAIL PARCELS (445.5.3) Combining Machinable and Irregular Parcels and NFMs COMBINED PREPARATION 5-digit/schemeBMC/ASFMixed BMC ENTRY (Required) OriginSacks - 10-lb minimumN/A Pallets - 250-lb minimumN/A DBMCSacks - 10-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum Proposed

11. COMBINED MAILINGS OF STANDARD MAIL PARCELS (445.5.3) Combining Machinable Parcels and NFMs 6 ounces or more Proposed COMBINED PREPARATION 5-digit/schemeBMC/ASFMixed BMC ENTRY (Required) OriginSacks - 10-lb minimum Sacks - No minimum Pallets - 250-lb minimum DBMCSacks - 10-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum

12. COMBINED MAILINGS OF STANDARD MAIL PARCELS (445.5.3) Combining Irregular Parcels and NFMs under 6 ounces Proposed COMBINED PREPARATION 5-digit/scheme3-digitADCMixed ADC ENTRY (Required) OriginSacks - 10-lb minimum Sacks - No minimum Pallets - 250-lb minimum DBMCSacks - 10-lb minimum Pallets - 100-lb minimum DSCFSacks - 10-lb minimum Pallets - 100-lb minimum DDUSacks - No minimum Pallets - No minimum

13. Optimizing Parcel Preparation & Entry for Seamless Acceptance Commingling Opportunities Cont’d  Pilot to increase volume at the 5 digit level & DDU through refined commingling standards to determine critical mass. Contact: Joel Walker, Mailing Standards JOEL.X.WALKER@USPS.GOV202-268-7266

14. Optimizing Parcel Preparation & Entry for Seamless Acceptance Seamless Acceptance & Automation Continue to encourage eVS for seamless acceptance.Continue to encourage eVS for seamless acceptance. Required eVS participation date for Parcel Select postponed.Required eVS participation date for Parcel Select postponed. eVS requires a confirmation service or eVS barcodeeVS requires a confirmation service or eVS barcode ―Provides mailers and USPS with trackability capability. Eventual expansion to Standard Parcels.Eventual expansion to Standard Parcels.

15. Optimizing Parcel Preparation & Entry for Seamless Acceptance Seamless Acceptance & Automation Cont’d Joint WG #107 and #109 Effort Testing of smaller barcodes on Standard Parcels continues:  Current size = ¾” ;  Testing 5/8”, ½”, 3/8”;  Labels and Windows  Boxes and Jiffy Bags  HSIUs (High Speed Induction Units)  SSIUs (Singulator Induction Units)  APPS (Automated Package Processing System)  SPBS (Small Parcel & Bundle Sorters)

16. Optimizing Parcel Preparation & Entry for Seamless Acceptance Work Group #109 to be sunset; however, as the network continues to be rationalized and adjusted to support the requirements of service standards and performance measurement, the USPS and Industry will continue to collaborate on approaches at the early stages of contemplation so that the END result is beneficial to all.