® Great Lakes Area Focus Group January 28, 2016

® Mail Entry Program Overview Mailing Initiatives Data Driven Enterprise Capture Data Aggregated Over a Calendar Month Process Data Mailer Scorecard

® 6 eInduction 59% adoption Full Service 88% adoption (volume) Deploy SV to 88 new sites in Q3 Move Update Developing Proposed Rule Seamless 18% adoption SOX Approval Electronic Verification System 90% adoption Identified key performance metrics Mail Entry Program Overview

® SV Expansion Deployment Timeline Jan FebMar Apr 2016 New Site Deployment Begins (85 new sites) 2/8/16 New Site Deployment Ends 3/31/16 New sites processing all drop shipments with scanners 4/ FY16 Initiatives SV Expansion FAST updates SV status in the facility file 2/2016 Note: 85 entry points at processing facilities will remain non-SV

® 5 Which Document Is It In? Mail Entry Roadmap Mail Quality Reporting User Guide Guide to the Mailer Scorecard Guide to Seamless Acceptance Guide to Postage Assessment Guide to Intelligent Mail Guide to eInduction Data Retention PDF MicroStrategy Report Retirement User Guide MicroStrategy Tips and Tricks MicroStrategy Workarounds Electronic Mailing Information and Reports Guide ? ? ? ? Challenge: Finding Information Outdated Information Redundant Information

® Consolidated documentation on the Streamlined Mail Entry USPS currently reviewing/incorporating industry comments The Publication will be posted on RIBBS XXXXX. USPS currently reviewing/incorporating industry comments 6 Streamlined Mail Entry Publication The Domestic Mail Manual (DMM) contains all requirements for the preparation and entry of business mailings Publication: Policy contains the policies and processes for the verification of eligible business mailings using tools provided by Intelligent Mail’s programs USPS publishes two user guides to inform the mailing industry about available mail quality and visibility reporting Domestics Mail Manual Guide to Streamlined Mail for Letters and Flats Reporting Publication for Streamlined Mail Acceptance for Letters and Flats

® Publication Streamlined Mail Entry for Letters and Flats Streamlined Mail Entry Publication Updates:  Initial draft of document created and posted to RIBBS in November ryPublication.pdfhttps://ribbs.usps.gov/intelligentmail_guides/documents/tech_guides/StreamlinedMailEnt ryPublication.pdf  Industry feedback period extended to January 23 rd comments to Solicited feedback from UG3 (eInduction), UG5 (Move Update), UG10 (Full-Service, Seamless Acceptance)  USPS currently reviewing/incorporating industry comments 7

® Mailer Scorecard

® 9 Desired Results: Validate data quality across key reports and invoices Validate stability of systems to consistently meet establish SLAs Validate attribution of data to the correct parties USPS will share the approach for establishing thresholds for each program Scorecard / Assessment Update Task Team 23 Mailer Scorecard Readiness The Task Team 23 charter is to monitor the scorecard’s readiness. Readiness is determined through USPS and industry testing. After testing, recommendations are provided for each program (Full-Service, Move Update, Seamless Acceptance, eInduction) based on the readiness for the transition to trend based verifications

® Full-Service & eInduction Mailer Testing  USPS has been extensively testing Mailer Scorecard internally  Reaching out to select mailers to validate there are no additional issues  After validation, USPS will notify the industry that scorecard is ready for use  Any remaining open issues will be posted to RIBBS  Report any anomalies to the USPS Help Desk for investigation (800)

® eInduction Industry Testing Full Service Industry Testing Seamless Industry Testing Same data set for error count, drills, and postage assessment Pieces in Error vs Errors Missing Detailed Errors in Combined Mailing Mail Owner Scorecard – Missing Errors Rounding Errors over Threshold Same data set for error count, drills, and postage assessment Exclude barcode ID 93 from undocumented Multi-million piece metered mailings Postage statement cancellation Co-located DDU containers Payment error with multiple mailings Scorecard / Assessment Update Task Team 23 Please help by reporting anomalies to the USPS Help Desk for investigation:(800) Recent Mailer Scorecard Updates Updated Scorecards provide mailers with more resources and tools to errors and provide solution, which are currently available.

® Trend Based Verifications Assessable Metrics 12 MID STID By/For Barcode Uniqueness Entry Facility Unlinked Copal Move Update Payment Undocumented Duplicate Misshipped Entry Point Discount ZoneUndocumented Delivery Point Nesting/ Sortation Postage Weight Mail Characteristic Barcode Quality Full ServiceeInductionSeamless AcceptanceMove Update Qualification for Full Service Discount Payment at container level Qualification for entry/zone discount claimed Payment received at piece level Qualification for rate claimed (class, presort, payment method) Compliance with address hygiene rules

® Trend-Based Verifications Monthly Process 13  Track quality across all mailings in a month  Mailer Scorecard Shows any verification errors Shows the postage due if a threshold is exceeded Updated during month Both eDoc Submitter and Mail Owner view  During month, review errors over threshold  11 th of the next month, assessment created when errors were over threshold(s) JANUARY 2015

® Full-Service

® MIDs in the IMcb, IMtb, & IMb™ as listed in the eDoc must be valid and assigned by the USPS® The STID in the IMb as listed in the eDoc must be valid and correct for the mail class and service level of the mailpiece By/For –The mail owner and preparer must be identified correctly in the eDoc for a mailing with more than 5000 pieces per day for a single mail owner Unique Barcodes in the IMcb, IMtb, & IMb as listed in the eDoc must be unique across all mailings from all mailers over the previous 45 days The Entry Facility for a container or handling unit as listed in the eDoc must match the entry facility from the Mail Direction File or the Facilities Database All trays/virtual sacks marked for co-palletization at origin must have corresponding eDoc linking to a pallet within 14 days Mailer ID Service Type ID By/For Barcode Uniqueness Entry Facility Unlinked Copal eDoc Verifications Description Full-Service Error Types Full-Service Update Verifications and Error Drill Downs

® Full-Service 16

® Full-Service Update By/For: 5000 Piece Exception  How it works: Regardless of mailing size, Mail Service Providers (MSPs) that provide mail volume to other MSPs are still required to meet the By/For requirement if the mail volume provided to the second MSP is part of a mailing over 5,000 pieces prepared by the first MSP  For example: ●A well-known bank (large volume mailer) plans to mail 10,000 pieces. The bank provides all 10,000 pieces to “MSP A”. “MSP A” mails 9,000 of the pieces and provides 1,000 pieces to “MSP B” for preparation ●The Mail Owner must be identified in the eDoc by “MSP A”. If “MSP B” is aware that the 1,000 pieces provided by “MSP A” were from a mailing over 5,000 pieces (large volume mailer), or if “MSP B” is aware that the “bank” generally mails more than 5,000 pieces in a mailing they are required to provide Mail Owner information for those 1,000 pieces  Exception: Mail owner information does not have to be provided when fewer than 5,000 pieces are in a mailing for a Mail Owner. For Nonprofit prices, a Mail Owner must be identified for every mailpiece claiming the Nonprofit rate

® July 2016 Full-Service Postage Assessments go into effect: Effective July 1, 2016 mailpieces (submitted in June 2016 mailing) exceeding the established thresholds will result in the removal of the full-service discount for all pieces in error In order to claim a full-service per piece discount these fields must be correctly populated in the eDoc Mailer Identification (MID) Service Type Identification (STID) By (mail preparer) and For (mail owner) fields Barcode Uniqueness Entry Facility Unlinked CoPal Verification is performed at the time the eDoc is processed in PostalOne! Full-service mailers should be reviewing their Mailer Scorecard in order to prepare for July 2016 assessments Questions? Contact: Brad L. at XXXXXXXXXXX or contact the PostalOne! Help Desk at Full-Service Update Postage Assessments

® Full-Service 1/31 Enhancements 19 FieldDescription # of Errors vs # of Pieces in Errors In some cases, the number of errors does not match the number of pieces/HUs/containers in error when it should. Those two values should always match for Unlinked Copal, MID, STID, and Entry Facility errors. Those two values may not match for by/for or barcode uniqueness when more than one error is logged on a piece/HU/container. Drill reports from the mailer scorecard will reflect the numb. The assessment amount will reflect the number of pieces/HUs/containers in errorer of errors. (3630) Detailed ErrorsDetailed full-service errors are missing in the detailed error report for all but one postage statements in a combined mailing. All errors are included in the mailer scorecard, errors by error type report, and job error type report. (3694) Detailed Errors - Mail Owner & Mail Owner Scorecard Mail owner information is missing in the detailed error report and full-service errors are missing on the Mail Owner scorecard when a mailing receives By/For Error 7110 and did not have any Mail Owner information on the mail.dat.mpa file. (3633) Mail Owner/Mail Preparer Scorecard Mail Owner/Mail Preparer scorecard is missing full-service errors for a mailing when the mailing was processed on multiple threads within SASP. These errors will be visible on the eDoc submitter scorecard. (3675) Postage AssessmentPostage assessment incorrectly counts partial errors over threshold. The system should only include full errors to determine how many errors exceeded the threshold and should be included in the postage assessment calculation. (3579) MID & STIDMail Owner scorecard does not include STID and MID errors when the mail owner is identified using a publication number. On the eDoc Submitter scorecard, the Mail Owner will not be displayed at the detailed error level for STID and MID errors when the mail owner was identified using a publication number. (3711)

® Seamless Acceptance

® 21 Seamless Update Verifications and Error Drill Downs Census/MPE Verifications eDoc Verification Last 11, 9, or 5 digits of the IMb (the delivery point) do not exist as a delivery point in the USPS IMb was scanned and can not be found on any eDoc Piece was placed on a different tray or bundle than was included in the eDoc Delivery Point Undocumented Nesting / Sortation Description Postage Payment Method or Postage Affixed amount on piece different than included in the eDoc Piece weight is different than was included in the eDoc Piece was paid at Standard Mail price but the content should make it a First-Class piece OR piece is paid at a Non-Profit piece but the content should make it a Regular price piece Piece had a unscannable barcode and was included in a mailing that only had automated price pieces Postage Weight Mail Characteristic Barcode Quality Sampling Verification

® Seamless Acceptance 22

® 23 Seamless Update Undocumented Process Barcoded Pieces not in eDoc While in Seamless Parallel, mailers should adjust processed whenever possible to include all barcoded pieces in eDoc For any remaining barcoded pieces that can’t be included in the eDoc, the USPS and mailer will have a joint process to identify the reasons and piece count  Mailer: Provide reasons to USPS for why barcoded pieces could not be included in eDoc  Mailer: Create process to count barcoded pieces not in eDoc  USPS: Validate mailer process to identify barcoded pieces not in eDoc Review sample of physical mailpieces Observe process to count barcoded pieces not in eDoc Confirm mailer provided count is accurate Approve mailer transition to Seamless Acceptance Monthly, mailer must provide monthly count of barcoded pieces not in eDoc  Count of pieces by reason established during initial process validation Periodic audit of mailer process to count barcoded pieces not in eDoc

® 24 Seamless Update Undocumented Process In the event of a system outage near end of assessment period:  If there is a system outage around the 10th of the month and processing of data has not finalized- what is our process going to look like USPS has the ability to hold the assessment generation. Notification will be sent to the industry alerting them of the delay in assessments. Assessments will be generated once system processing is caught up

® Seamless Acceptance 1/3 Enhancements 25 FieldDescription Summary, Drills, Assessments Use the same data set for scorecard error counts, drills, and rolling postage assessment (3450) Nesting/Sortation (MPE) Do not update nesting/sortation (MPE) errors after the 10 th day of the next month (3578) Undocumented Exclude mailpiece scans with barcode ID 93 from undocumented when the MID and Serial Number were provided in eDoc (8237)

® Seamless Acceptance 1/31 Enhancements 26 FieldDescription UndocumentedPerformance issue causing delays when importing large (multi-million piece) mail.dat jobs may cause undocumented pieces to temporarily appear on the mailer scorecard. (8462/3610)

® eInduction

® 28

® eInduction 1/3 Enhancements 29 FieldDescription Shipping Summary Report Include the facility name in addition to the locale key (BNS 378) Add columns to display any post-induction assessable errors including misshipped, zone, EPD, payment, and duplicate (BNS 378) Postage Statement Cancellation Allow mailers to cancel a portion of a postage statement (8317) Handle container-level cancel and update submissions when sent in under the recommended time period (30 minutes) (8483) Zone Skip zone verification when the container is marked as “N” in the Accept Misshipped field, container was incorrectly accepted at a misshipped entry location, and the container does not include a Continuous MID (8513) Postage Assessment Correctly calculate zone and EPD postage when a non-DDU container is inducted at a site that is co-located with a DDU (8677) Correctly calculate payment postage due when multiple non-finalized sibling containers receive an unload scan at the same timestamp (HH24:MI:SS) (8687)

® eInduction 1/17 Enhancement 30 FieldDescription Payment Payment errors are logged incorrectly when a container is included on multiple mailings, one of which has a postage statement for the container that has been finalized

® What is Premier BMEU? Initiative to address mailer challenges and issues Provide one-stop, solution-oriented customer service Identify best mailing solutions through:  Consultation  Diagnostics  Research  Recommendations  Hands-on assistance 31 Premier Business Mail Entry Unit FY16 Initiatives Premier BMEU Premier BMEU Goal: “One-stop-shop delivering first-contact solutions”

® 32 Premier BMEU Phase 1 Sites Los Angeles Santa Ana Sacramento San Diego Tampa Omaha Tallahassee Las Vegas Pittsburgh Charlotte Columbus Des Moines Seattle Portland Salt Lake City Louisville Phoenix Denver Pontiac St. Louis Houston DallasCoppell Milwaukee St. Paul Kansas City Cleveland New York FY16 Initiatives Premier BMEU

® FY16 Initiatives Premier BMEU TrainingCertification Enhanced Operational Processes Sustainment Certification Process

® We our committed to make sure you are receiving outstanding service with your mailing experience  Customer Satisfaction Survey is sent via to the Mail Owner and/or Permit Holder upon finalization of a postage statement  The survey is only sent once per 30 days FY16 Initiatives Premier BMEU

®