1. ® Customer Supplier Agreements Presented by Pritha Mehra Vice President, Business Mail Entry Friday, October 17, 2008

2. 2 Intelligent Mail and Start-the-Clock  Service Measurement Review  Intelligent Mail Implementation  Start-the-Clock

3. 3 For Market-Dominant products:  First-Class single piece  First-Class presort  Periodicals  Standard mail (origin and destination entry)  Package Service (4 products combined ) ► Single piece parcel post ► Media mail ► Bound printed matter ► Library mail  Special services; and  Single piece international mail Service Measurement Review Reporting Requirements

4. 4 Essentials of Service Measurement:  Three data points required: ► “ Start-the-clock”; when the mail entered USPS network ► “Stop-the-clock”; when did USPS effect, or in some cases attempt, delivery ► Established Service Standard for comparison Service Measurement Review Reporting Requirements

5. 5 Service Measurement Approaches:  External Measurement (EXFC or EXFC-like)  Internal (only uses USPS captured data)  Hybrid (combination of internal and external) Service Measurement Review Reporting Requirements

6. 6 Hybrid Measurement:  Will leverage the implementation of Intelligent Mail in May 2009  Applies to: ► First-Class (Presort) ► Standard ► Periodicals  Supplements mail scans from internal Intelligent Mail system with externally collected data Service Measurement Review Reporting Requirements

7. 7 Intelligent Mail Implementation  Service Measurement Review  Intelligent Mail Implementation  Start-the-Clock

8. 8  Today ► The Intelligent Mail barcode  May 2009 ► Basic Option ► Full-Service Option  Full Service supports Hybrid Service Measurement approach Intelligent Mail Implementation

9. 9 Intelligent Mail Implementation Full Service Option Requirements for Full-Service Option:  Unique Intelligent Mail barcodes on letter and flat mailpieces  Unique Intelligent Mail Tray barcodes on tray and sack Intelligent Mail Tray Labels  Unique Intelligent Mail Container barcodes on Intelligent Mail Container Placards  Electronic documentation  Appointment scheduling using FAST (when required)

10. 10 6060 PRIMACY PKWY STE 201 MEMPHIS TN 38188 Address Change Service John Doe 6449 AMBERVIEW CV MEMPHIS TN 38141 - 8346 Unique IDs allow tracking of “nested” pieces as they are containerized Unique Container Barcode Unique Mailpiece Barcode Unique Tray Barcode Intelligent Mail Implementation Full Service Option

11. 11 Barcode ID with Optional Endorsement Line Service Type Mailer ID Serial Number Delivery Point ZIP Code Mailer ID Ex: “123456” USPS assigned Serial Number Ex: “200800001” Mailer assigned Service Type Ex: “700” for First-Class Mail Routing Code Ex: 6449 Amberview Ct., Memphis, TN 38141834649 Barcode ID Ex: “00” for Mixed AADC Unique Intelligent Mail Barcode on Letter and Flat Mailpieces Intelligent Mail Implementation Full Service Option

12. 12 Existing Legacy Label Transitional 10/24-digit Intelligent Mail Tray Label Future 24-digit Intelligent Mail Tray Label Unique Intelligent Mail Tray Barcodes on Tray and Sack Intelligent Mail Tray Labels Intelligent Mail Implementation Full Service Option

13. 13 Unique Intelligent Mail Tray Barcodes on Tray and Sack Intelligent Mail Tray Labels ZIP™ Code Ex: Memphis, TN “38141” Content Identification Number (CIN) 3-digits describing the tray Processing Code Ex: “1” for Automation Compatible Serial Number Serial Number Ex:“20080001 ” Mailer Assigned Mailer ID Ex: “123456” USPS Assigned Label Type Ex: “1” for 6-digit MID Intelligent Mail Implementation Full Service Option

14. 14  Two sizes are allowed: 8"x11" label and 4"x7" adhesive label  The 8”x11” allows for a specific mailer area  Labels must be affixed to the outside of the shrinkwrap or container 8" x 11" 4" x 7" MAILER/ACCEPTANCE UNIT AREA Unique Intelligent Mail Container Barcodes on Intelligent Mail Container Placards Intelligent Mail Implementation Full Service Option

15. 15 Unique Intelligent Mail Container Barcodes on Intelligent Mail Container Placards Application Identifier “99” Type Indicator “M” Mailer ID USPS Assigned, Ex: “123456” Serial Number Mailer Assigned, Ex: “200800000001” The former container label did not contain a barcode Intelligent Mail Implementation Full Service Option

16. 16  Electronic documentation methods available now ► Postal Wizard ► Mail.dat ► Wizard Web Services  Available in 2009 ► Postal Wizard ► Mail.dat ► Mail.XML Electronic Documentation Intelligent Mail Implementation Full Service Option

17. 17 Visibility & Service Measurement Service Measurement Visibility Electronic Mailing Information & Payment Reconcile Electronic Documentation with physical mail pieces Record/Scan at Entry Induction Start-the-Clock Electronic Advance Notification Unique Barcodes Mail Preparation Scan In-Process

18. 18  Address Correction  Start-the-clock  Price in the Fall 2009 Intelligent Mail Implementation Full Service Option

19. 19 Start-the-Clock  Service Measurement Review  Intelligent Mail Implementation  Start-the-Clock

20. 20  Acceptance of business mail ► Entered at the BMEU ► Plant Verified Drop Shipment ► DMU Verified, Mailer Transported ► DMU Verified, USPS Transported Start-the-Clock

21. 21  Critical Acceptance Time: The latest time mail can be presented for verification for Day Zero processing  Critical Entry Time: The latest time mail can be presented to postal operations for Day Zero processing  Customer Supplier Agreements (CSA): The CSA is a standardized agreement between the USPS and mailer which confirms the origin-entry preparation requirements, the acceptance window, and schedule of transportation times for all origin entered mail classes Start-the-Clock

22. 22 ► Critical Acceptance Time (CAT) based upon the Critical Entry Time (CET) of the Plant for each class taking into consideration the time it takes to verify the mail load of the BME ► Start-the-Clock Day 0 applies to all mailings received prior to CAT ► Customer Supplier Agreements (CSA) for large mailers desiring to deposit their mail after posted CAT as they do additional sortation ► Determining deposit times/CATs throughout workday for large mailers through Customer Supplier Agreements BMEU Origin Entry Start-the-Clock Event Start-the-Clock

23. 23 Here’s an example for Mail Deposited at a BMEU: ► The hours of operation for BMEU are 8:00 am to 7:00 pm ► The Critical Acceptance Time for First-Class is 5:00 pm ► The mail arrives at 2:45 pm on October 16 ► The verification start time is 4:30 pm on Oct. 16 ► The verification complete time is 5:15 pm on Oct. 16 ► Mail passes verifications ► The Start-the-Clock Day 0 is Oct. 16 based upon the mail arrival time of 2:45 BMEU Origin Entry Start-the-Clock Event Start-the-Clock

24. 24 ► FAST appointment must be scheduled prior to CET for Day 0 processing ► On Time Arrival (met appointment time) » Start-the-Clock Day 0 is the Arrival Date ► Early Arrival » Start-the-Clock Day 0 is Arrival time or Unload start time, whichever is first ► Late Arrival » Start-the-Clock Day 0 based on Unload start time; unload start time must be prior to CET for Day 0 processing Plant Verified Drop Shipment Start-the-Clock Event Start-the-Clock

25. 25 Here’s an example for Drop-ship Mail Inducted at a Plant: ► The hours of operation for the Plant is 06:00 am to 24:00 ► The Critical Entry Time for Standard Mail is 16:00 pm ► The appointment time is 15:45 pm on Oct. 16 ► The mail arrives at 15:00 on Oct. 16 ► Mail is unloaded at 16:15 pm on Oct. 16 ► The Start-the-Clock Day-0 is Oct. 16 based upon the appointment time of 15:45 and the mail arrival prior to the appointment of 15:00 Plant Verified Drop Shipment Start-the-Clock Event Start-the-Clock

26. 26 DMU Verified, Mailer Transported Start-the-Clock Event ► Same as Plant Verified Drop Shipment ► FAST appointment must be scheduled prior to CET for Day processing ► On Time Arrival (met appointment time) » Start-the-Clock Day 0 is the Arrival Date ► Early Arrival » Start-the-Clock Day 0 is Arrival time or Unload start time, whichever is first ► Late Arrival » Start-the-Clock Day 0 based on Unload start time; unload start time must be prior to CET for Day 0 processing Start-the-Clock

27. 27 DMU Verified, USPS Transported Start-the-Clock Event ► Establish CSA for Origin Entered mail ► Critical Acceptance Time (CAT) for each trailer dispatch is based upon the Critical Entry Time (CET) of the processing facility ► The transportation time between the Detached Mail Unit and the Processing Facility, as well as mail verification time must be taken into account when determining CAT ► Additional Presort separations are agreed upon for mail to determine Start-the-Clock by dispatch ► Container readiness per the Start-the-Clock rules established in the CSA is validated by the DMU acceptance clerk Start-the-Clock

28. 28 Question Time

29. 29 Special Email Address Service.Webinars@usps.gov We want to hear from you. If you have additional questions about a subject, if you want to offer feedback and suggestions regarding the presentation, use this email account.

30. 30 Next Week Friday, October 24, 2008, at 11:00 a.m. Customer Supplier Agreements Presented by: Pritha Mehra Vice President, Business Mail Entry and Susan Plonkey Vice President, Business Customer Relations Have a good weekend!