Acceptance and Induction: The Mailing Industry’s Digital Revolution IDEAlliance Print Distribution April 22, 2007 Debbie Cooper

Streamlined Mailing u Integration: USPS & Mailers u Focus is on Paperwork Reduction Interactive Mailing Visibility

Agenda Streamlined Mailing – An Easier and More Cost Effective Way to Conduct Business with the USPS u PostalOne! - A Database of Mailing Information u Surface Visibility – Scanning and Reporting of Pallets u FAST - Appointing System for USPS Dropshipments u E Drop Ship – Electronic Induction of Mail

Electronic Mailing Information Processing Scans Bundle/Pieces Tray/Sack Scans Mailer Enters Mail USPS Scans Shipment Customer/USPS Electronic Access Verification and Payment Prepare, Print & Package Mail ProactiveIntelligence Surface Visibility Tracks Shipment Make Appointment Reduce Paperwork Tomorrow’s Process Interactive Mailing Visibility

Streamlined Acceptance: The Basics Advantages: u Data updates through out the Supply Chain u Electronic updates available immediately to all u Common database u Automated postage payment –Mail Acceptance Dates –Acceptance and Verification Status –Shipment Verification Status Use electronic data to facilitate the verification, acceptance, postage payment, and induction of business mail.

u Electronic collaboration with all customers  Mailing plan & payment data based on the plan u Unique Identity of Containers & Pieces  Ability to identify components in processing cycle u Barcodes & In-Process Quality Assurance  Components tracking throughout processing cycle u Infrastructure to transmit & receive data throughout mailing lifecycle:  From customer to acceptance & payment  To induction & processing  Back to acceptance / verification  Ultimately back to the customer – QA Streamlined Acceptance: The Basics

Improve Service with Automated Processes Eliminate Hardcopy Paperwork Integrate Business Functions Offer Centralized Payment Options Provide Online Account Process Management – Postage accounting system for bulk business mail – Transmit electronic mailing information – View financial activity – Hardcopy check & centralized electronic payments – Plan & schedule mail induction – View mailing activity – Provide & receive mailing quality feedback Provide Online Account Process Management – Postage accounting system for bulk business mail – Transmit electronic mailing information – View financial activity – Hardcopy check & centralized electronic payments – Plan & schedule mail induction – View mailing activity – Provide & receive mailing quality feedback PostalOne! ® Mailing Information Customers Printers Benefits Streamlined Acceptance PostalOne! Electronic Collaboration

 Mail.dat File-based electronic exchange Sophisticated mailing schemas Transportation planning Drives automated plants  Web Services Form-based electronic exchange Platform independence Enables own corporate views  Web Wizard Postage Submit Postage statements online Manual data entry & send to BMEU Mail.dat Web Services Web Wizard Streamlined Acceptance PostalOne! Electronic Mailing Information

PostalOne! ® Customer 1. Mailer sends electronic information 1. Mailer sends electronic information 2. Mailer presents mail to USPS 3. USPS accepts, verifies & deducts postage 4. Data returned to mailer for online viewing 4. Data returned to mailer for online viewing Streamlined Acceptance Mail.dat / Web Services

PostalOne!® – Acceptance and Verification Advantages: u E-certification: Eliminates printing & shipping of USPS qualification reports  (up to 2,000 pages per mailing) u Electronic documentation: Streamlined, more efficient mail verification by DMU clerks u E-postage: Eliminates DMU keying of postage u Savings: Time, Money, Work Hours & Space Mail.Dat transmitted to USPS Mail Acceptance Units

Postage Payment  Book Weight Capture Process Electronic entry for DMU replaces PS Form 3629 Book Weight Reporting and Tolerance messages  Advertising Percentage Capture  Payment Process  Mail.dat usage

u Easier Postal Documentation Preparation  Improved reporting to customers  Improved data access for internal purposes & billing  Simpler audits u Faster Mail Acceptance, Verification & Induction  Faster delivery times for customers  Easier dropshipping procedures  Greater postal discounts to share with customers u Increased Control & Job Flexibility  Duration of Jobs  Merging of Jobs u Greater Quality Control Streamlined Acceptance Benefits

FAST PVDS 8125 at DMU Drop Shipment at Entry Point Tracking & Process Improvement Wash D C 200 FLTS lllIIIIllllIIII ABC Mailer Wash D C 200 FLTS lllIIIIllllIIII ABC Mailer NOT ! 8125s PS Form 8125 Some mailer capability USPS capability – internal Lack timely actionable information Appointment Scheduling Induction Today: Drop Shipment Mail Process Paper driven Non-actionable data Difficult to manage PS Form 8125 Paper driven Difficult to validate Expensive to resolve Predominantly manual data entry Lacks detail information Low use automated processes

FAST (Facility Access and Shipment Tracking) – The Basics Advantages: u Allows USPS to schedule resources u Common schedule available u Electronic updating u Common baseline for performance measurement Electronically notify the USPS the where, when and what of shipments.

Slot capacity Piece processing level capacity FAST Appointment Capacity Limitations

FAST Content Entry Screen Separate Contents Based On: Class Newspaper / Perishable Shape Available Access Based On Information Quality and Facility Capacity

FAST – Automating the Process Advantages : u System to system management of data u Free up personnel used to schedule manual web appointments u Electronic updates u Automated cancellations and reschedules u More accurate appointments – better rating u Receipt of close out data via XML – easier reporting FAST – Web Service FAST Messaging via XML

Surface Visibility: The Basics Advantages: u Database of mail profile: Induction to delivery u Window into USPS processing & delivery: Create timeline information that tracks mail –Shipment Arrival date –Unload/Induction date –Processing date –Mail Visibility data USPS scans all pallets (MTEL barcode), containers (24 Dgt EDL), and individual piece (4 State CB)

eDropShip Advantages:  Establishes data exchange (Mailers, Suppliers and USPS)  Automated induction scheduling and drop ship entry process Validates entry point discounts against Postage Statements: payment validation, appointment validation Container based entry point clearance document e eliminates current hardcopy 8125 Reporting of Container Detail Induction events: scans, receipts and conflicts - Automate pallet conflict/resolution processes  Provides eDropShip status information via web services  End to end vision on pallet level from scheduling through induction Mail.dat in PostalOne!, Web Services FAST Appointing & Unique Barcode on Pallets

Mailer A Mailer B Shipping Summary Report Shipping Summary Report Search Shipment Information at Job Level Presort documentation and Postage Statements Access to Information – Processes Linked

Appointment level report Job and Content related information – conflict warnings, load content, induction status Appointment specific information – scheduling and results Access to Information – Notification and Status

Surface Visibility Scan Device

Containers Received at Entry Point and Container Related Issues Access to Information – Detailed Visibility

u Increase mailer flexibility & accuracy of documentation u Decrease cycle time & reduce mail supply chain costs u Provide near real-time visibility for both customers & mailers u Provide alternate, convenient, integrated electronic payment options u Introduce accountability for all participants across the mail supply chain u Promote mail quality & efficiencies in mailing operations Streamlined Mailing Benefits

u Faster, better communication with financial teams u Support for postal audits u Quick snapshot analysis of impact of manufacturing methods on postal sortation (i.e., by mail segment) u Sharing of information via Web across teams (e.g., production team, finance team, fulfillment team, consumer marketing, etc) u All leading towards real time decision making, or, just-in-time choices for production & manufacturing decisions Streamlined Mailing Benefits

u Information on PostalOne! ® : u Information on transferring files: u Information on Web Services: u Information on Postage Statement Wizard: u Information on Mail.dat™: u Information on IDEAlliance: Additional Resources

A Brave New World Of Mailing Electronic Mailing Information Streamlined Acceptance FAST Surface Visibility No more paperwork Integrated Mailing Visibility

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