How to Work with Your Mail Preparer to Implement IMb™ Services

Agenda Your mailing practices IMb™ Services Company Decisions Your Mail Preparer The Project Plan 2

IMb™ Services A technology leap forward for the USPS® Significant undertaking by both the USPS and mailers Software and operational changes must be in tandem Decisions which affect participants within the supply chain Time and planning for implementation Good partnership with your mail preparers and vendors 3

Acquire Knowledge Postal Service®, Service Providers & Vendors Find out what they have to offer Determine potential fits Obtain details, details, details… Incorporate discovery into YOUR solution Customers & Internal Resources Assess current practices Document future expectations & constraints Training Attend IM™ sessions Step 1) Acquire Knowledge You must understand what Intelligent Mail means to your company Challenges – Opportunities – Expectations – Constraints - Commitments. Training” NPF hosting 4 full day Intelligent Mail University sessions: February 24 Addison IL, February 26 Los Angeles CA March 3 Atlanta GA March 5 New York NY 4 4

IMb™ Education RIBBS® – http://ribbs.usps.gov USPS® maintains the specific mailing requirements for IMb, technical documentation, etc. Review available materials Attend your local Postal Customer Council (PCC) meetings. Find a mailing association that can support some of your educational and information needs Look for ways to keep up with changing information. Stay involved! 5

Determine who … Owns the customer database Constructs the mailpiece Prints the mailpiece Prepares the mailing Presents the mail to the Postal Service® Receives directly or co-receives with service provider(s) data distributions from the Postal Service Uses in-house constructed and/or third party software 6

Understand Your Mailing Practices What you mail Invoices, notices, marketing mail, catalogs, packages, etc. Understand requirement impacts to letter, flat, automated, non-automated, all mail classes and categories evaluated. How is your mail produced? In-house, partially in-house, by service provider, etc. Printing, finishing, mail preparation and sorting 7

Understanding Your Addressing Practices Who you mail to Your own client list, purchased lists, etc. Different departments Different lists How you acquire, use and update the addresses you use on the mailings How you meet the USPS® Move Update requirement 8

IMb® Service Options Two service options Basic Full-Service Same mailpiece barcode design Full-Service has more complex data content within the barcode. Full-Service has additional benefits. 9

More data = more decisions IMb® Content 31 digits, 65 bars, 5 fields Barcode ID Ex: 50 for Mixed AADC Service Type Ex: 260 for First-Class Mail Mailer ID Ex: 123456 USPS assigned Routing Code Ex: 6449 Amberview Ct., Memphis, TN 38141-8346 38141834649 Serial Number Ex: 200800001 Mailer Assigned What makes this barcode so Intelligent? Well, let’s learn about the barcode’s 65 bars, 31 digits, and five fields. So you know, the following breakdown of the bars is only meant to provide a visual representation of the fields – the fields do not map directly to the barcode as shown. The first field is the Barcode ID. The second field is the Service Type Identifier. These codes will be different for Basic or Full-Service. The third field is the Mailer ID. The 4th field is the Serial Number. With the Basic Option mailers are not required to uniquely number the mailpieces – mailers may choose to populate the Serial Number field of the Intelligent Mail® Barcode with zeroes or any other number that is meaningful to the mailer. With the Full-Service Option mailers will be required to apply a unique Intelligent Mail® barcode on mailpieces and keep this number unique for a period of 45 days from the date of induction. The combination of the Mailer ID and the Serial Number determines uniqueness. The Intelligent Mail barcode’s final field is the Routing Code. This field may contain a 5-digit ZIP Code®, a 9-digit ZIP+4® code, or an 11-digit delivery point code. It serves as the POSTNET™ code’s replacement. . The POSTNET™ contains only Delivery Point information More data = more decisions 10 10

Basic versus Full-Service IMb™ barcode on mailpiece Required Required – unique IM tray barcode on labels Optional IM container barcode on placards Electronic Documentation Start-the-Clock NA Available Address Correction Let's review the differences between Basic and Full-Service: Basic Service requires an Intelligent Mail® barcode on the mailpieces. The barcode data does not need to be unique. The IM™ BC tray/sack labels, IM™ BC container labels and electronic documentation are required for the Full-Service option. When transitioning from Basic to Full-Service, each of these items may be implemented as the mailer is ready. The benefits of Start-the-Clock and address correction at no charge are available only with Full-Service. Start-the-Clock at no charge and automated address corrections at no charge are available if all electronic documentation requirements are met. 11 11

Full-Service Benefits Apply to Full-Service pieces only DO NOT apply to the portion of a mailing that: has only a 5-digit ZIP Code® or no ZIP Code in the Routing Code field. is prepared as machinable/presort.

Full-Service Option Benefits Class & Processing Category of Mail Start-the- Clock ACS® Full-Service Discounts First-Class Mail®   Automation Letters ü Automation Flats Automation Cards Standard Mail® Basic ECR Letters High-Density ECR Letters Saturation ECR Letters Basic ECR Flats x High-Density ECR Flats Saturation ECR Flats This table shows, by price categories, the availability of Full-Service features.  A checkmark in the ACS® column means that pieces of the mail category shown in the left column that are prepared in accordance with the Full-Service standards can receive Address Correction notifications at no extra charge.  An "x" means that if ACS® is available, the applicable ACS® prices apply.   A checkmark in the Price column means that pieces of the mail category in the left column that are prepared in accordance with the Full-Service standards are eligible for the applicable price differential in the Fall of 2009.  Those price differentials, which may vary by mail category, will be included in the prices expected to be announced in February 2009.      While "Start-the-Clock" applies to a mailing, a checkmark means that a Full-Service mailing with volume from the mail category in the left column would generate Start-the-Clock information that would be provided to the Mail Owner and Mail Preparer.  An "x" means that a mailing made up exclusively of this mail category is not eligible for the Full-Service Option. 13 13

Full-Service Option Benefits Class & Processing Category of Mail Start-the- Clock ACS® Full-Service Discounts Periodicals - Outside-County   Barcoded Letters ü Barcoded Machinable Flats Barcoded Nonmachinable Flats Carrier Route Basic Letters/Flats Carrier Route HD Letters/Flats Carrier Route Sat. Letters/Flats Periodicals - In-County Automation Letters Automation Flats Bound Printed Matter Barcoded Presort Flats - non-DDU Barcoded Presort Flats - DDU x Barcoded CR Flats This table from the previous slide to finish showing the Full-Service benefits (Start-the-Clock, Address Correction, and Fall 2009 Price) that are available for Periodicals and Bound Printed Matter. Address Correction information will not be available for Bound Printed Matter Presort Flats at DDU or Carrier Route. 14 14

Benefits Analysis Will price difference justify the investment to start using the IMb™ or to switch from Basic to Full-Service to see an improved Return-on-Investment? How often does your company currently update its address lists? Would you increase frequency because of Full-Service ACS™? What would Start-the-Clock data be used for? 15

Share Knowledge Work with your various mail preparers and vendors to exchange current knowledge about your business needs and impacts Ensure your vendors are aligned with the information about changing USPS® requirements and impacts Establish a communication plan with vendors to keep informed of mutual changes/impacts that impact your business 16

Construct a Plan Incorporate expectations & constraints Determine timeline Determine internal and external resource needs and allocate Determine procedural, operations and technical changes and opportunities Establish test criteria to ensure content and print quality Determine implementation sequence through applications and customers Incorporate tests & validate Construct a Plan Why Step 4; this could go first….but may then be the evaluation plan. The Implementation Plan foundation is prior Information Gathering and Evaluation. The items you include here will be critical to the success of your overall implementation. We can’t overstress interacting with internal and external resources and clients and testing. 17 17

Mail Preparers Ad Agency List Broker Printer Finisher (binding, inserting) Mail preparation (traying, present to USPS®) Mail sortation (commingle) Consolidator Transportation providers 18

Mail Preparer Services Determine responsibilities and liabilities for Physical mail production IMb™ on mailpieces Mail preparation IM™ tray and container labels Mail presentment Electronic documentation (eDoc) USPS® feedback Start-the-Clock ACS® data Mail data quality reports 19

In-House Portion How much will you be able to handle Database management for eDoc and uniqueness of data Mailer ID assignments IT and software updates Print capabilities Mailpieces, tray labels, container placards 20

Mail Preparer Readiness When is your preparer or printer planning to enter IM™ testing (Test Environment for Mailers)? 21

What is best for your company? IMb™ Basic or Full-Service option Basic replaces PLANET Code® and POSTNET™ No additional information is included Full-Service allows for: Free Start-the-Clock Free container visibility induction scans (where available) Full Service ACS™ First-Class Mail® unlimited Standard Mail® and Bound Printed Matter – free notices for 30 days Periodicals – free notices for 60 days Mail data quality reporting 22

Things you need to know - MID What Mailer ID (MID) to use? Mail service provider or mail owner Where do you get an MID? Who needs to be indentified? Regardless of whose MID is in the IMb™, the mail owner must be identified in documentation. Important to understand when a service provider works through an agency and not directly with the mail owner. Need a Customer Registration ID (CRID) for each mail owner if not using their MID or mailing permit. 23

Things you need to know – UAA Mail Undeliverable-as-Addressed Mail Use the “free” ACS™ information from IMb™ to meet the Move Update requirement Incorporate changes into file within 30 days for Standard Mail® and Bound Printed Matter Incorporate changes into file within 60 days for Periodicals Clear understanding of how pieces are disposed is needed to understand which endorsement is needed on the piece 24

Things you need to know – UAA Mail When a mailpiece is printed with an ancillary service endorsement, the printed endorsement takes priority over the Service Type ID in the IMb™. Very important that envelopes are imaged correctly. 25

Decision Factors The costs and benefits of the IMb™ Basic option The costs and benefits of the IMb™ Full-Service option The costs and benefits of staying with POSTNET™ barcodes, at least for a while The costs and benefits of any postal services that you use or may want to use USPS® rules and standards governing what can be mailed at what rates and the consequences of errors 26

Company Decisions Whether you want to use Intelligent Mail® barcodes prior to May 2011 The type(s) of mail you want to send using Basic or Full-Service IMb™ Each application may be different How will the Full-Service uniqueness of data – 45 or more days – be managed How to begin a transition plan with your mail preparer 27

PROJECT TIMEFRAME – for complex mail owner environments The following is an example of timeframe milestones for USPS® requirement changes to be introduced into mailer company systems: This example supports: Mail owner with internal mail manufacturing facilities Large / complex IT systems Multiple vendor and internal stakeholders impacted Company business focus is not mail 28

MAIL OWNER - Project Schedule Timeline Example MAIL OWNER - PROJECT TIMELINE Evaluation Requirements & Funding Design Develop Pre-Production Testing Production & Factory Testing Introduction 1 2 3 4 5 6 7 8 9 10 11 12 Project Approved for Initial Evaluation Business Case Funding Submit Production & Factory Testing Mail Factory Introduction Project Close Solution Defined Design Complete Development Complete Unit / System / Integration Testing Quality & Factory Training Deploy-ment Review Factory Work Intake Require-ments Finalized Production Release Commit Defined Vendor Solution Integration Full-Scope Document from finalized USPS® and Vendor Requirements received, identifies Impact Assessment, creates Time & Cost estimates, Project receives authorization to proceed to next step. Team evaluates and baselines internal / Vendor Solution Approach, Freezes Requirement Changes and develops IT Technical Requirement & Architecture Solution. Time & Cost updated, submit Business Case, obtain authorization to proceed, obtain release commit, Document System & Feature Design, Support Vendor Product Integration, as needed. Detailed Design Finalized, Develop, Perform Pre-production Testing, User Acceptance, Quality and Factory Testing. Train Factory personnel. Install Code, User Certification Testing, Project Review / Close 29 29

Mail Preparer - Project Schedule Timeline Using the same format as mail owners, the following is an example of the timeframe milestones for introduction of production and/or system changes due to USPS® changes. This example supports: Mail preparers with internal mail manufacturing facilities Medium and large complex IT systems Multiple vendor and internal client impact 30

Mail Preparer - Project Schedule Timeline MAIL Preparer - PROJECT TIMELINE Evaluation Requirements & Funding Design Develop Assessment of need Gap List Created Solution Defined Requirements finalized Expenditure Approved Outside vendor integration Product defined & personnel allocated Product Developed Evaluation of project scope Capital Expenditure Defined Establish scope of project; personnel requirements; list of gaps for future processes versus current processes; outline define solution; estimate project costs with business case Finalize costs; prepare capital expenditure and submit for approval Allocate actual personal based on budget; design solution in detail with stakeholder input Develop solution and user interface; interface with outside vendor processes as required; continue stakeholder input for product solution 31 31

MAIL Preparer - PROJECT TIMELINE Production & Factory Testing Mail Preparer - Project Schedule Timeline MAIL Preparer - PROJECT TIMELINE Pre-Production Test Production & Factory Testing Implementation CAT Testing Production & Factory Testing Quality & Factory Training Deployment Review Mail Factory Introduction Project Close Evaluation & Review Pre-Production tests; user interface; system updates/changes as required; debug for production implementation; prepare training material. Prepare quality control requirements for production; finalize training requirements and guidelines; prepare training program and schedule Establish review period for factory; train factory employees; test certification; close project 32 32