1. Mail Acceptance and Induction Seamless Mailing with Intelligent Mail Barcodes Debbie A. Cooper Quebecor World Logistics

2. “Circle of Love” An Integrated Approach Electronic Mailing Information Electronic Centralized Payment Scan at Entry Induction Electronic Advance Notification Unique Barcodes Mail Preparation Electronic In-Process & Performance-Based Mail Verification

3. Seamless Acceptance: The Basics Advantages:  Data updates throughout the supply chain  Electronic updates available immediately to all  Common database  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

4. Seamless Acceptance: Requires IMB Full Service Requirements:  Submit electronic mail data:  PostalOne: mail.dat, Web Wizard or Web Services  Submit both edocumentation and postage  Uniquely identify each piece and assign IMB  Convey IMB at piece level to USPS (mail.dat or xml)  Uniquely identify each tray and pallet, assign IMB to tray and pallet and convey this information via mail.dat or xml  Appoint via FAST  Apply IMB to mail piece, trays and pallets

5.  Electronic collaboration with all customers  Mailing plan & payment data based on the plan  Unique Identity of Containers & Pieces (IMB)  Ability to identify components in processing cycle  Barcodes & In-Process Quality Assurance  Components tracking throughout processing cycle  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 Seamless Acceptance: Benefits

6. Primarily Electronic Payment Enterprise Payment System Paper Checks Local Accounts Different Payment Systems for Different Products Payment Mail Acceptance & Visibility Transformation Future Intelligent Mail Barcodes Mailpiece, Container Indentification Comprehensive Mailing Information Mail Preparation Mail Preparation Census PBV Fully Optimized Manual Automate Seamless Acceptance Focused Resource Allocation & Measurement Centralized Performance Measurement MERLIN (Sample-Based) Manual (Sample-Based) Optimized Verification (PBV) Begin to Align Resource Allocation Standardize Performance Measurement Verification Manual (Sample-Based) Unit Level Resource Allocation & Measurement End-to-End Service Measurement By Customer Point-to-Point Service Measurement Service Measurement No Required Service Measurement Pre-20022002 – 2007 POSTNET/PLANET Paper, Limited Electronic Mailing Information End-to-End Visibility Near Real Time Comprehensive Feedback Hardcopy Inconsistent No Customer Visibility Customer Experience Customer Experience Postnet Barcode Paper Mailing Information Paper Checks Electronic Payment Centralized Accounts Disparate Payment Systems Limited Electronic Mail Quality Feedback Limited Customer Visibility Mandate for Service Measurement (Market Dominant)

7. ID (2N)

8. New Intelligent Mail ® Container Barcode  Applied to a placard  Unique mail preparer ID  Unique pallet, container, APC, rolling stock Mail Preparation Intelligent Mail® Container Barcode 123456789101112131415161718192021 T ID 1N App IDMailer IDSerial Number 2N6N12 N

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

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

11. Surface Visibility: The Basics Advantages:  Database of mail profile: Induction to delivery  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 (IMB pallet), containers (trays: IMB tray), and individual piece (IMB piece)

12. 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 e8125 - 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

13. Container Detail Report  Provides detail accounting for all containers on the appointment  Identifies unscheduled containers  Provides induction conflict information  Provides mail induction and or mail preparation issues  Links to postage statement  Provides detail accounting for all containers on the appointment  Identifies unscheduled containers  Provides induction conflict information  Provides mail induction and or mail preparation issues  Links to postage statement Improved Visibility eDropShip Online Reports

14. Induction Tomorrow : Electronic Alerts and Access to Information Alerts provided for users to check drop shipment conflicts Selects Shipping Summary Reports Selects User Dashboard

15. 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

16. 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

17. Surface Visibility Scan Device

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

19.  Scan mailpieces, handling units, & containers with Intelligent Mail Barcode  Scan at induction points to start the clock  Scan during mail processing (interim data points)  Last scan (End Of Run) predicts delivery  Scan data (location, operation, time) compared to service benchmark establishes performance Determine service performance Processing Scans Induction Scans Automated Acceptance: Verification

20.  Manifest Quality  Presort Errors  Barcode Quality  Mailpiece Count  Address Quality Optimized Manual / MERLIN Verifications In-Process Barcode-Enabled Verifications Optimized Verification Model New

21. Seamless Induction and Acceptance Benefits  Rapid identification of mail quality concerns  Improved accuracy of mailing information  Improved barcode quality  Supplier management » Ability to trace preparation issues to specific suppliers  Electronic collaboration improves efficiencies and reduces costs  Consistent structured electronic verification approach  Tray scans and pallet scans will bring greater visibility & stakeholder accountability  Data will allow USPS to measure their service: delivery times as required by new postal law

22. Seamless Benefits Lowest Rates, Electronic Verification & Induction: Reduction of Paperwork  Visibility of mail  Tracking from induction to in home  Scans of all USPS processing and mail movement  Electronic Reporting of mail movement  Consistency of mail verification  Mail verified in line during processing (positive and negative) by sorting equipment vs DMU  Electronic feedback on mail quality  Data rich barcode  Enables collection of data on piece level: postage, remittance, orders, delivery  Combines multiple services (ACS, CONFIRM) in one barcode

23. Mail as a Key Communications Medium Decision Support  Traceable Mail  Identifiable Mail  Efficient Mail  Quality Mail  Responsive Mail  Predictable Mail  Reliable Mail  Accountable Mail Supplier Selection Finance Operations Marketing Messaging Technology Smarter Decisions with Intelligent Mail