1. Reduce Postage Costs and Improve Delivery, Combined Mailing Solutions PCC Mailers Forum 2014 September 10 th, 2014 Deborah Damore Fairrington Transportation

2. Agenda Overview Plant Verified Drop Ship (PVDS) How does it work? What is Co-Pal & Co-Mail Benefits On-Boarding USPS fees and requirements Mixed Class Combined Mailing Combined Mailing Solutions

3.  Plant-verified drop shipment (PVDS) enables origin verification and postage payment for shipments to be drop shipped to destination.  Transported by mailer (or third party) at the mailer’s expense on the mailer’s own or contracted vehicle to destination USPS facilities for acceptance as mail at discounts.  Prepared for deposit at a destination entry price  DNDC, DSCF, DADC or DDU Plant Verified Drop Ship Combined Mailing Solutions

4.  Standard Mail, Bound Printed Matter, and Periodicals may be eligible for further discounts if the mail is entered closer to its destination.  Destination Network Distribution Center (DNDC)  Destination Area Distribution Center (DADC)  Destination Sectional Center Facility (DSCF)  Destination Delivery Unit (DDU)  The discount received depends on where the mail is entered. Postage Savings Combined Mailing Solutions

5. Shipment Flow Combined Mailing Solutions

6. Understanding Mail Flow Future Mailing Strategies: Co-Pal & Co-Mail

7. Co-palletization is the process of combining addressed, independently pre-sorted mailings from different sources into pallet-sized drop-shipments. Co-palletization can be completed in house, or through a third party partner. Co-palletization can be applied to Standard Letter Mail, Standard Flat Mail and Periodical Flat Mail. Future Mailing Strategies: Co-Pal & Co-Mail What is Co-Pal?

8. What are the benefits? Future Mailing Strategies: Co-Pal & Co-Mail Decrease postage trough co-palletization processing while increasing in-home management possibilities.  Maximize Postage Savings.  Improve on Delivery Service, SCF/NDC vs. Local.  No impact on content inside tray.  Pay actual postage for your mailing.  Opportunity to consolidate multi-cell mailings to hit USPS on the same pallet at the same time

9. Example of Co-Pal Savings Combined Mailing Solutions

10. On Boarding for Co-Pal Combined Mailing Solutions  Requires USPS authorization.  Requires mailers can prepare eDoc using mail.dat file with PostalOne.  Full Service mailings can still receive full service discounts in Co-Pal.  Standard Letter Co-Pal  Postage is paid at origin on current permit account using eDoc.  Postage is paid prior to pool processing at predetermined SCF/NDC entry levels.  Periodical Flat Co-Pal  Mailers open additional entry at Co-Pal site.  Postage is paid after pool completion under mailers pub number using eDoc.

11. Co-Mail is the process of combining and presorting two or more titles into a single mail-stream. This process lowers the per/piece postage rates due to improved level of presort for each title. It also creates deeper penetration into the postal system, facilitates more consistent and timely delivery, and allows mail pieces to arrive in better condition with less handling by the United States Postal Service. Combined Mailing Solutions What is Co-Mail?

12. Benefits of Co-Mail Combined Mailing Solutions  Piece presort postage savings along with destination entry discounts.  Mail entered deeper into the postal stream.  Reduced Postal handling, helps your mail arrive “in- home” in better condition.

13. OriginDrop ShipCo-Mail Quantity148,667 Carrier Route0% 37.52% Postage$57,777$52,607$42,054 Postage Saving$0$5,170$15,723 SCF0%26.88%88% Cost$3,135$12,084 Net Savings$2,034$3,639 Combined Mailing Solutions Example of Co-Mail Savings

14. Mailing Line 1 Mailing Line 2 Mailing Line 3 Before Co-Mailing Produced Separately Combined Mailing Solutions

15. Co-Mail Pieces are Presorted Together into the same Bundles onto the same Containers Bundles Contain Multiple Titles Combined Mailing Solutions

16. Basic Co-Mail Requirements Addressing restrictions Trim Size range within a co-mail cycle is restricted Limited range in variance between thinness to thickest in co-mail pool Polybag mailpieces are permissible (Might require testing) All participants together cannot exceed the number of available pockets Check with your Co-Mail vendor for the minimum and maximum requirements on height, width, and thickness Combined Mailing Solutions

17. Periodicals Future Mailing Strategies: Co-Pal & Co-Mail  Complete USPS Form PS-3510 for additional entry at Co-Pal site. For both classes make application for CAPS account  Submit PS-6002 Standard mail Mailing permits must be opened at the USPS site servicing the Co- Mailer  Complete USPS Form PS-3615 The below does not pertain to mail utilizing Mail Anywhere

18. Mixed Class Co-Mail Future Mailing Strategies: Co-Pal & Co-Mail Mixed Class Co-Mail allows mailers to combine Periodical and Standard mail flats within the same bundle and therefore on the same pallets. Co-mailing Periodical and Standard mail benefit mailers through:  Increased discounts  Fewer packages and sacks  Improved drop ship penetration Requirements:  Participants are required to present standardized electronic mailing documentation  Full Service is strongly suggested, but not required.  Mailers preparing combined mailings of Standard mail flats and Periodical flats are required to retain written notifications, signed and dated by each participating Periodical Publisher, disclosing the potential for pieces to receive deferred USPS handling.

19. Mixed Class Co-Mail, Prep Requirements Combined Mailing Solutions Entry DNDC, DSCF only DDU, DADC not permitted Bundle Minimums Pure Periodicals – 6 pc Pure Standard– 10 pc Mixed – 10 pc Firm bundle – follow existing standards Placards, Labels, OEL “MIX COMAIL” verbiage required Piece thickness 3/4” maximum thickness (Not oversized)

20. What you should know from your vendor Drop schedule – how often, how regular? Delivery data – number of days to in-home? SCF / NDC % – how well penetrating USPS destination network? Volume drives destination numbers. Security / disaster recovery / financial stability Quality Control processes? Combined Mailing Solutions

21. Resources Ribbs website: http://ribbs.usps.gov/http://ribbs.usps.gov/ Postal Explorer: http://pe.usps.com/http://pe.usps.com/ DMM :http://pe.usps.com/text/dmm300/dmm300_landing.htmhttp://pe.usps.com/text/dmm300/dmm300_landing.htm Combined mail federal register notice : http://pe.usps.com/FederalRegisterNotices.asphttp://pe.usps.com/FederalRegisterNotices.asp USPS forms: http://about.usps.com/forms/welcome.htmhttp://about.usps.com/forms/welcome.htm Combined Mailing Solutions

22. Any Questions? Combined Mailing Solutions