1. Seamless Acceptance
Pritha Mehra, USPS Manager, Marketing Technology & Channel Management

2. Agenda Seamless Acceptance Process
Seamless Acceptance Pilot & PSI Participation

3. Old World of Mail Acceptance
Verification based on sampling
Primarily manual record keeping, payment & verification
Limited information on mail arrival, quality, whereabouts
Paper documentation

4. Seamless Acceptance Benefits
Leverage technology to automate induction and verification
Decrease cycle time and reduce costs across mail supply chain
Leverage technology to improve efficiencies in mailing operations
Increase mailer flexibility
Provide near real-time feedback to promote mail quality
Provide near real-time visibility
Introduce accountability for all participants in mail supply chain
Foundation for Service Performance
Consistent mailer experience

5. Seamless Acceptance Process
PREPARE MAIL WITH UNIQUE BARCODES
CREATE ELECTRONIC DOCUMENTATION Y a r d
CUSTOMER/USPS ELECTRONIC ACCESS
COLLABORATION M g e e m e n t a n F a r
CENTRALIZED
ELECTRONIC PAYMENT & ELECTRONIC RECONCILIATION
VERIFY MAIL
IN-PROCESS

6. Seamless Acceptance Process Prepare Mail with Unique Barcodes
Mailer preparation
Mail prepared with unique barcodes
Unique Container Barcode
Unique Tray Barcode
Unique Mailpiece Barcode
6060 PRIMACY PKWY STE 201
MEMPHIS TN 38188
Address Change Service
John Doe
6449 AMBERVIEW CV
MEMPHIS TN
As Gary described, we have developed standardized barcodes for mailers to use on pieces, trays, pallets and other containers that are used to prepare and transport the mail.
Under this new vision mailers will be required to apply a unique barcode on every mailpiece.
They will apply a unique barcode on every tray that houses the mail pieces.
They will apply a unique barcode on every pallet that houses the trays.
This will allow us to scan and track every container and maipiece as it flows through USPS processing.

7. Seamless Acceptance Process Inside the Intelligent Mail Barcode (Mail Piece)
Type Indicator: used to identify preparer (USPS or external) and applicable barcode specification
Business Entity Identifier (BEI): USPS assigned 6 or 9 digit unique mailer identifier
Adjustable Field: a 3 digit field which is used for additional serial numbers or for the BEI (if 9 digit BEI is used)
Unique Serial Number: used to maintain uniqueness across pieces
Destination ZIP

8. Seamless Acceptance Process Create Electronic Documentation
Mailer interacts electronically with USPS
Electronic documentation with mailing details (barcodes)
Centralized electronic payment
Advance notification
6060 PRIMACY PKWY STE 201
MEMPHIS TN 38188
Address Change Service
John Doe
6449 AMBERVIEW CV
MEMPHIS TN
Mail.Dat
FAST
Appointment
PostalOne!
Payment
Web
Services
Web
Message
As mailers prepare their mailings with unique barcodes, they will provide this information to the Postal Service in electronic mailing documentation.
We have made changes to allow mailers to send us detailed information about their mailings electronically – directly to PostalOne!, which is our system of records in Business Mail Acceptance. We have developed solutions for all sizes of mailers that bring in mail through the Business Mail Acceptance channel. For large and medium volume mailers we have developed the Mail.dat and Web Services options so they can send us their detailed mailing information right from their production software to PostalOne! The Postage Statement Wizard is the solution for small volume mailers to use an online tool to enter their mailing information.
This electronic documentation is used to verify mail and receive payment.
We are enhancing the payment features to provide more robust financial reports for mailers to track their postage spending across all USPS products and services. We have created options for customers to pay electronically through a centralized account. Electronic balance notifications and online funding options are some the features that we are developing to make payment more convenient for our customers.
Once the mailers are ready to ship their mailings, they send a request for an appointment to schedule a drop off/pickup. This request is to the new appointment system called FAST (Facility Access and Shipment Tracking). This system is linked to PostalOne! so mailers can send their appointment requests along with all the other details about their mailing. FAST can be used today to make appointments for Standard Mail and Periodicals mail to schedule drop- offs. We are designing a solution to integrate First-Class mail and Packages.
Postage Statement
Wizard

9. Seamless Acceptance Process Create Electronic Documentation
The electronic documentation contains details about the mailing
Mail Preparation
Postage
Presort
Entry Location
Destination
Nesting Relationships
Pieces to Bundles
Pieces to Trays
Bundles to Pallets
Trays to Pallets
Mail Volumes
High
Mail.dat
Web Services
Low
Postage Statement Wizard
Postage Statements

10. CSM provides information about trays and pallets
Seamless Acceptance Process Create Electronic Documentation (Mail.dat example)
CSM provides information about trays and pallets
CQT and PQT provide additional tray, bundle details
PDR or ADIS (XML) provide piece detail information
Container Summary
(CSM)
Container Quantity
(CQT)
Mailers Provide
Mail Makeup
Address Information
Piece Counts
Logical Tray Counts
Pallet Counts
Entry Location & Schedule
Weight
Package Quantity
(PQT)
Piece Detail
(PDR)
ADIS

11. Automated Reconciliation
Seamless Acceptance Process Verify Mail In-Process & Electronic Reconciliation
Verify while mail is being processed
Scanning
Induction scan
Processing scans
Last scan predicts delivery
Reconcile scan data against manifests
Quality Feedback
Automated Reconciliation
As I described to you earlier, mailers will prepare their mailings with unique barcodes, and will submit electronic manifests that lists the barcodes that are used on each mailpiece, tray, or pallet.
Once the mail arrives at the Postal Service, we will scan the mailing upon induction. As pallets are scanned upon induction, we will have specific information on when the mail was accepted by the Postal Service.
As pallets, trays and pieces get scanned through the processing lifecycle, we will be able to trace the mail – and know exactly where the mail is and when it is expected to be delivered. We can count the pieces as they ride our processing equipment.
Scan data will be compared against the mailer’s electronic manifest to verify the electronic documentation submitted matches the physical mailing. Seamless Acceptance will create reports to display mail preparation verification results and will allow for an automated reconciliation process.
Mailers will receive immediate feedback on the quality of the mail. For example if we scanned a barcode that was not contained in the electronic manifest, this information would be immediately available to the mailer. As pieces are scanned, if the physical count as calculated from scanned pieces on processing equipment, does not match the electronic count, this information will be immediately available to the mailer.
So as you can see verification occurs while pieces are being processed, and not as a separate step. Mailers will have immediate information on their mail quality and on the whereabouts of their mail.
Processing
Scans
Induction Scans

12. Seamless Acceptance Process Verify Mail In-Process
Seamless Acceptance verifies
Manifest Quality
Mailpiece Count
Barcode Quality
Presort Errors
Address Validity
Address Hygiene

13. Seamless Acceptance Pilot
Seamless Acceptance Pilot underway
First-Class Letters
Over 250 mailings and 6 million mailpieces analyzed
Pilot Participants
PSI
ZipSort
Prudential

14. Seamless Acceptance Pilot PSI Participation
PSI has made operational changes
Apply Intelligent Mail Barcode
Apply Intelligent Tray Barcode on all trays in the pilot
Will apply Intelligent Pallet Barcodes
Scan trays on PostalOne! Transportation Management system
Create and send electronic documentation using Mail.dat
Create separate Seamless Acceptance mailings
Use Feedback to improve mail quality

15. Seamless Acceptance Pilot Manifest Quality
Seamless Acceptance validates piece & tray level documentation
PostalOne! validates electronic documentation for postage and qualification
Early pilot analysis improved piece and tray level manifests
Differing mailpiece counts
Pieces with no valid tray
Trays with no pieces
Incorrect mailpiece barcodes

16. Seamless Acceptance Pilot Barcode Quality
Piece scans are used to verify piece count in electronic documentation and barcode quality
Pilot results show over 98% of manifested mailpieces are scanned on USPS equipment
PSI has improved barcode quality which has produced consistent scan rates over 99%

17. Seamless Acceptance Pilot Presort Errors
Presort issues can be determined using a combination of manifest checks, tray scans and mailpiece scans
Presort Error Type
Example
Wrong Tray
Pieces destined for 201 are scanned with a tray destined for 801
Mislabeled Tray
A tray of pieces destined for 201 are scanned at 801 and there are no Intelligent Tray scans for a 201 tray
Sortation
Enough 5-Digit pieces destined for were found on the manifest to create a 5-Digit tray
Minimum Count
There were not at least 150 pieces destined for 201 to create a 3-Digit tray for 201
Label List
Pieces destined for 201, 202 and 203 were placed in a single Mixed-AADC tray but the labeling list only allows combination of 201 and 202.

18. Seamless Acceptance Pilot Presort Errors
Presort quality is excellent across all pilot participants
PSI presort accuracy is consistently well above 99%
Seamless acceptance results match MERLIN with 99% accuracy

19. Seamless Acceptance Pilot Address Validity
Seamless acceptance verifies delivery point using Delivery Point File
Identify generic delivery points
Identify invalid delivery points
PSI mail averages 2% POSTNETS not found in Delivery Point File

20. Seamless Acceptance Pilot Address Hygiene
Change of Address (COA) and Return Piece statistics are shared
Age of the COA records helps identify addresses that should have been updated
PSI uses results to improve address hygiene

21. Seamless Acceptance Pilot Address Validity
Electronic Feedback on Invalid Delivery Points and Undeliverable as Addressed (UAA)

22. Seamless Acceptance Pilot Verify Mail In-Process
PSI has seen improvements in mail preparation and visibility
Rapid identification of mail quality concerns
Substantially improved accuracy of electronic documentation
Improved Barcode Quality
Ability to trace preparation issues to a specific machine and specific customer
Electronic collaboration improves efficiencies and reduces costs
Consistent structured electronic verification approach
Tray Scans and Pallet scans will bring greater visibility & accountability

23. Seamless Acceptance Process Centralized Electronic Payment
Postage adjustments will be based on some basic principles
A mailing includes mail from a single facility within a 24-hour period
Adjustments are calculated for each mailing
Postage will be assessed on a monthly basis
Mailers can review status of each mailing as data is received
Statistical sampling used to establish tolerances for each assessment
Adjustments can be limited to specific mail within a mailing (i.e. by machine, by mail owner)
Mailers have an adjudication period to review and appeal

24. Seamless Acceptance Process Feedback Options
Online Reports
Summary manifest information
Summary verification results
Adjustment calculations
Data Files (push or pull)
Verification Results
Scheduled or On-Demand
Real Time Notifications
alerts
Exception Reports

25. Seamless Acceptance Process Next Steps
Production System will be designed based upon pilot learnings and results
Increase size of pilot mailings
Determine appropriate tolerances for each verification
Pilot postage assessment approach
Expand pilot to Standard Mail, Periodicals
Expand pilot to flats
Begin phased implementation in 2009

26. Seamless Acceptance Electronic Collaboration
Manifest & Payment
Advance Notification
Electronic
Collaboration
Induction
Reconciliation
Quality
Visibility & Performance
Automated Payment
Automated Reconciliation
Traceable Mail
Identifiable Mail
Efficient Mail
Quality Mail
Responsive Mail
Predictable Mail
Reliable Mail
Accountable Mail
Now I will walk you through a real-time feedback scenario that will be enabled when this technology is fully implemented.