MTAC Update Mailing Industry Area Focus Group Meeting Great Lakes Area February 2015

Slide 2 MTAC Executive Committee Members – Updated IndustryU. S. Postal Service Christopher G. Lien -- Industry Chair ( ) BCC Software Cell: Jim Nemec -- Postal Chair Vice President, Consumer & Industry Affairs 475 L'Enfant Plaza RM 4016 Washington DC Erv Drewek-- Industry Vice Chair & Treasurer ( ) Manager of Postal Affairs Graphic Communications, a Veritiv company 5700 Darrow Road, Suite 110 Hudson, OH, Judy de Torok -- Postal Co-Vice Chair Manager, Industry Engagement & Outreach Consumer & Industry Affairs 475 L'Enfant Plaza SW RM 4437 Washington DC Phil Thompson -- Immediate Past Industry Chair ( ) Manager of Postal Operations Quad/Graphics Inc N61 W23044 Harry's Way Sussex WI Dale Kennedy -- Postal Co-Vice Chair Manager, Business Customer Support & Service 475 L'Enfant Plaza SW RM 4541 Washington DC May Frantz – (New) Program Manager Manager, Industry Engagement Strategy Consumer & Industry Affairs 475 L'Enfant Plaza SW Washington DC

Slide 3 Meeting Schedule for 2015: Election Year February 17 – 19  PMG Megan Brennan Tuesday afternoon May 20  Meeting held at the National Postal Forum in Anaheim, CA  Special MTAC recognition and reception  Compressed schedule with all classes meeting together for each one- hour focus meeting  Vice-Chair candidates announced August 11 – 13  MTAC 50 th Anniversary Celebration  Vice-chair (2016 – 2017) elections at the MTAC Business Meeting  Nominations for MTAC Leadership (2016 – 2017) are opened November 17 – 19  MTAC Leadership (2016 – 2017) elections at the MTAC Business Meeting

Slide 4 Types of Committees Group Type Intended Function Primary Sponsor / Oversight Group Participants Approval of Participants Timeframe User Group Ongoing forum for USPS & users of a particular postal product or process. MTAC Focus Area Leader (postal and/or industry) Subject Matter Experts (both USPS and industry) User Group Leaders Open - No specific end date. Annual review of issue statement. Work Group Address defined issues, and provide recommendations MTAC Focus Area Leader (postal and/or industry) Primarily MTAC Members and industry experts MTAC Focus Area Leader Concludes when recommendations are submitted for consideration (per the issue statement) Task Team Quickly address very narrow issue, achieve results in a strict, often urgent period of time. MTAC Executive Committee (may also be delegated to Focus Area Leader if subject is specific to an Area) Selected by MTAC Leadership and Executive Committee MTAC Executive Committee Concludes when task or problem resolution is completed (per the issue statement)

Slide 5 Current User Groups User Group 1 - PostalOne!, SASP, Intelligent Mail  Weekly meetings User Group 2 - eVS/Product Tracking System  Monthly meetings User Group 3 - FAST User Group  Biweekly meetings User Group 4 – Visibility (CONFIRM)  Biweekly meetings User Group 5 – Addressing  Biweekly meetings User Group 7 – MTEOR  Quarterly, with the next meeting scheduled for April 14, 2015 User Group 8 – USPS Promotions  Monthly meetings User Group 9 – Labeling Lists and Data Distribution  Biweekly meetings

Slide 6 Current Workgroups New MTAC Workgroups  Workgroup 167 – Solutions for Pieces Excluded from Service Measurement  Workgroup 168 – FSS Multi-scheme Pallets  Workgroup TBD – Refining Machinability Standards (Parcels, Flats, Letters) Workgroups Concluding with a Final Report in February  138 – eInduction  162 – Multiple Periodicals in a Wrapper (Polywrap)  163 – Third Party Reporting and Invoicing  164 – Informed Visibility Data Provisioning Improvements  165 – Improve MDA Support Process  166 – IMpb Compliance for Shipping Services File Timeliness Workgroups still in progress  143 – Seamless Acceptance  159 – Evaluation/Recommendation entering product at Hubs Pilot in progress; expected to conclude April 2015 Concluding April 2015  151 – Streamlined Weight and Ad Capture Process

Slide 7 Current Task Teams Task Team 22 – MTAC 50th Anniversary Event Planning (2015)  Immediately after MTAC meetings or as needed Task Team 23 – Readiness for Trend Based Verification  Reports directly to the MTAC Executive Committee  Launched January 23, 2015  Focus will be on four key industry concerns related to essential areas such as seamless acceptance, eInduction, Move Update, and Full Service Intelligent Mail barcodes Validate Data Quality across Key Reports and Invoices Validate stability of systems via published metrics Validate data attribution methodology Transparency of thresholds used to determine compliance  Four USPS and four industry experts representing all classes of mail across the entire mail supply chain  Schedule concluding date is March 31, 2015

Slide 8 Recent and Planned MTAC Related Webinars Mail Prep And Entry Focus Session (February 5, 2015)  For MTAC members in preparation for MTAC Focus Meetings IMpb Requirements for January 2015 (January 7, 2015) Visibility on Mail in Delivery Units (January 9, 2015) Mail Entry Roadmap Webinar (December 1, 2014) Secure Destruction - A Primer for Mailers (November 13, 2014) IMpb Compliance (October 14, 2014) IMpb Impacts on Extra Services (October 2, 2014) Fall Mailing Season (August 18, 2014) Network Rationalization Phase II (August 15, 2014)

Slide 9 Topics Planned for February 2015 Meeting FSS sortation changes, pricing  Lack of sortation requirements relative to price increase Phase 2 Network Rationalization  CET Impact  Update on CSA changes for FCM including palletization  Overnight Service for FCM Mis-shipped containers and how to handle at non-SV sites New mailing standards for lithium batteries Bundle breakage update FAST appointment no-show rate update Industry demurrage costs related to NDC entry Mail Preparation and Entry

Slide 10 Topics Planned for February 2015 Meeting Full service IMb Invoicing  Still awaiting final recommendation and a clear explanation of invoice adjudication process for non-compliance Seamless Acceptance  Status update of the moratorium for Seamless Parallel Undocumented Pieces  “Bookending” process does not fully address the issue of what party is responsible for undocumented pieces Move Update/ACS/Residual ACS  Recent Federal Register Notice has caused more questions than answers Microstrategy Reports / Scorecards  Still waiting to hear when the data can be trusted and used Payment and Acceptance

Slide 11 Topics Planned for February 2015 Meeting Service Performance  Seeing delays in January service that need to be better understood Visibility  Service performance status for First-Class Mail  Informed Visibility Enhancements (container, bundle, piece) Addressing  Status on FPARS and association to UAA secure destruction  Status on single source ACS release  Simplification of the carrier provided UAA Reason Codes May consider making this an MTAC Workgroup Discuss concerns with the removal of ADVANCE and ePubwatch  Printing and affixing bundle slips is not a practical solution for many Addressing and Service Performance & Measurement

Slide 12 Topics Planned for February 2015 Meeting Earned Value Reporting / Data metrics Review of Business Rules for 2015 Promotions Status on single-piece rates April 26 price increase – spreadsheet requested  Industry is requesting a spreadsheet of rate adjustments as we have seen in the past in order to better understand the impact 2016 Promotions – What is being considered? All stamps to be Pressure Sensitive Stamps  Water activated formats to be discontinued due to overseas procurement of the paper Product Development

Questions? Interim MTAC Update 2015 status and inquiries should be directed to: Consumer & Industry Affairs / Industry Engagement & Outreach