1. eInduction Overview 1 eDropship Post-Induction Process TBD MTAC Workgroup 138

2. eInduction Overview 2 Agenda  Introduction  Appointment and Content Association to eDoc  Post-Induction Validations  Postage Assessment and Reconciliation  Reports

3. eInduction Overview 3 eDropship Process Overview Introduction

4. eInduction Overview 4 Appointment and Content Association to eDoc  FAST sends scheduled appointment and appointment close-out information to SASP  Surface Visibility (SV) sends container scan data to SASP  Appointment and container scan data is associated to the mailer’s eDoc in SASP Appointment and Content Association to eDoc

5. eInduction Overview 5 Post-Induction Validations  Identify eDropship container errors in eDoc and physical entry during post-induction and post-finalization processing  Post-Induction Validations include: –Duplicate container barcodes –Content inducted at wrong location for discount claimed –Container not paid for –Extra Containers –Container Irregularities –Contents do not match appointment –Scheduled induction date does not match actual induction date  Loss of dropship discount will be assessed to the mailer if any validations fail Post-Induction Validations

6. eInduction Overview 6 Post-Induction Validations (cont’d)  Duplicate container barcodes –Two types of duplicate container barcodes: –1) In the eDoc: duplicate barcodes before finalization that are never corrected must be assessed How to identify: Validate IMcb’s in eDoc for barcode uniqueness Consequence: Loss of dropship discount –2) Duplicate barcodes that actually show up How to identify: e.g. two different pallets with the same label – within the eDoc or physical duplicate labels Physical presentation, can only do across appointment but can’t do within appointment Consequence: Loss of dropship discount Post-Induction Validations

7. eInduction Overview 7 Post-Induction Validations (cont’d)  Content Inducted at wrong location for discount claimed –How to identify: Comparison of the facility from the SV scan and the pallet/container from the eDoc –Consequence: If the container is inducted at the wrong facility, regardless of where the shipment is in the mailstream (i.e. NDC vs. SCF), the entire dropship discount will be forfeited Any cost to transport containers to the correct facility may be assessed During the transition period, if multiple locations are in the Mail Direction File, then the containers are allowed without discount forfeiture After the 90 day grace period, mailers can only drop off containers at the redirected facility Issue: How do we define whether a container is brought to the correct entry point? Is it the destination noted in the Mail.XML/Mail.DAT? Post-Induction Validations

8. eInduction Overview 8 Post-Induction Validations (cont’d)  Container not paid for –When pallet/container arrives at the dock but no payment has been made for that pallet/container –How to identify: IMcb exists in the mailer’s eDoc, but mailer’s eDoc is not finalized by the time of induction Valide IMcb and postage statement status –Consequence: Mailer is charged for the pallet/container, loss of dropship discount Issues: –How much is charged to the mailer? –What happens if paid for after induction? –What happens if it is decided to apply IMcb to something else? Should we assume that was the pallet/container that was actually inducted? Post-Induction Validations

9. eInduction Overview 9 Post-Induction Validations (cont’d)  Extra containers –Extra containers are those that are scanned but are not associated to any eDoc (paid or not paid for) –How to identify: Match scanned IMcb’s to one’s that exist in mailer’s eDoc –Consequence: During the transition period, any extra containers will be accepted, but will not be charged. Paper 8125 will be used to validate pallet/containers. After the transition period, extra containers will be charged. Issues: –How much will be charged for extra containers if not paid for? Post-Induction Validations

10. eInduction Overview 10 Post-Induction Validations (cont’d)  Container Irregularities –Container preparation errors (i.e. barcode quality, barcode existence, pallet preparation, etc.), and other irregularities are validated –How to identify: See next slide for container irregularities –Consequence: Any container irregularities will be assessed and charged to the mailer – loss of dropship discount Irregularities that just have a warning message will not have an assessment Issues: –How much will be charged for extra containers if not paid for? –Need to determine which irregularities will be charged? Post-Induction Validations

11. eInduction Overview 11 Post-Induction Validations (cont’d)  List of container irregularities: #IrregularityBusiness Definitions Resolution Req’d at Dest. 1No Form w/ Shipment Indicates the shipment arrived without the correct Form X 2 Missing Required Mailer Field on Form Indicates a missing required field (Class of Mail, Mail Processing Category, Number of Pallets, Entry Discounts Claimed, Entry Office). Entry Discount claim does not apply for 8017 X 3 Altered Required Fields on Form Indicates an alteration was made in a required field on the form (Class of Mail, Mail Processing Category, Number of Pallets, Entry Discounts Claimed, Entry Office, Origin Post Office, Signature of Verifying Employee, Round Stamp). Entry Discount claim does not apply for 8017 X 4Incorrect Class of Mail Indicates mail was categorized in the improper class on the form. X

12. eInduction Overview 12 Post-Induction Validations (cont’d)  List of container irregularities (cont’d): #IrregularityBusiness Definitions Resolution Req’d at Dest. 5 Incorrect Processing Category Indicates mail category different from what was claimed (Letters, Flats, Automation Compatible, Machinable Parcels, Irregular Parcels, Nonmachinable Parcels) X 6 Container Counts do not Match Form Indicates if the shipment contained different count of containers than stated on the form X 7Incorrect Entry OfficeIndicates mail was dropped at the wrong facility X 8 Missing Origin Signature and/or Round Stamp Indicates if missing an origin signature and round stamp X 9 Mailings Not Separated by Destination Indicates different mailings were not separated by destination for multi-stop appointments. X 10Load UnsafeToppled pallets; not shrink wrapped properly X

13. eInduction Overview 13 Post-Induction Validations (cont’d)  List of container irregularities (cont’d): #IrregularityBusiness Definitions Resolution Req’d at Dest. 11Damaged MailIndicates if the shipment contains damaged mail. X 12Pallets Too TallIndicates pallets are stacked too tall X 13Broken PalletsIndicates if the shipment contained a broken pallet X 14Driver Refused to Assist Indicates if the driver refused to assist unloading shipment 15Vehicle Size Indicates the vehicle that arrived was the incorrect size for shipment/facility (rejection or mail integrity) 16Past in Home Dates Indicates that an appointment contains content that is past the in home delivery window 17Other Indicator for rejecting appointment or mail integrity that is not within the other categories. This option will require a user to input comments

14. eInduction Overview 14 Post-Induction Validations (cont’d)  Contents do not match appointment –Validates what happens when, for example, the mailer makes an appointment for periodical mail but standard mail actually arrives –How to identify: Validate pallet/container information in mailer’s eDoc to scan and content data from SV –Mail Content Information: Mail class, mail shape, and # of pallets (rolling or bedload units) –Consequence: Loss of dropship discount; no assessment for warning messages Issues: Which content info. do we use to log as errors? Which should just be warnings? Post-Induction Validations

15. eInduction Overview 15 Post-Induction Validations (cont’d)  Scheduled induction date does not match actual induction date –How to identify: Validate scheduled induction date from mailer’s eDoc to actual induction date from SV via FAST –Consequence: Loss of dropship discount Issues: –Issue with scheduled induction date – what date do you use? –Does consolidator update the date on every container to match scheduled induction date then if it changes? –What happens if mail is inducted 1 day late or 4-5 days late? Post-Induction Validations

16. eInduction Overview 16 Postage Assessment and Reconciliation  Postage assessment and reconciliation of charges are performed in PostalOne!  Different amounts of postage due are possible for each of the error conditions  Postage assessment will follow the same Full Service assessment Postage Assessment and Reconciliation

17. eInduction Overview 17 Postage Assessment and Reconciliation (cont’d)  Full Service Verification and Assessment –In the Nov. 2010 PostalOne! release, every container, handling unit, and piece will be evaluated for Full Service discount eligibility –The Full Service verification examines the detailed eDoc to evaluate that the data complies with Full Service requirements –Full Service mailings with eDoc errors found during this process will be charged additional postage based on the loss of the Full Service discount –Results from the eDoc verification process are made available in certain reports within 48 hours after the finalization of the postage statement Postage Assessment and Reconciliation

18. eInduction Overview 18 Postage Assessment and Reconciliation (cont’d) –An email notification for the Full-Service eDoc verification errors will be sent if an established threshold is exceeded: If the total amount of disqualified postage is greater than $150 and The number of compliant pieces is less than 70% –The email notification is sent to the mailer’s appropriate Verification Assessment Evaluator (VAE) The VAE is assigned by mailers for each CRID (business location) Postage Assessment and Reconciliation

19. eInduction Overview 19 All discount removal charges start with the ‘Unpaid’ status Charges reviewed and subsequently closed by USPS are updated to ‘Closed’ status – this is a final status What is the life cycle of an assessment charge? Charges left unattended will become ‘Overdue’ Charges reviewed by USPS will become ‘Reviewed – Require Payment’ if payments are still due Charges requested to be reviewed are updated to ‘Pending Review’ Unpaid Overdue Pending Review Reviewed – Required Payment Postage Assessment and Reconciliation

20. eInduction Overview 20 Postage Assessment and Reconciliation (cont’d)  Amount of postage due is determined in SASP, then gets sent to PostalOne! and displays all charges –The mailer can agree to or dispute any charges in a report, where request for review is made –Mailer can choose appropriate permit to charge the postage assessment  If mailers are delinquent in postage payment and accrue charges, no action will be taken Postage Assessment and Reconciliation

21. eInduction Overview 21 Postage Assessment and Reconciliation (cont’d)  Issues: –Do we treat all errors the same? –If so, how do identify who and how to charge for specific errors? –Should there be a charge when mail induction date differs from scheduled date? –For certain errors, do we give a lesser charge or does everyone lose the full discount? –Will we check for correct zone rate? –During the transition period, if paper 8125s are required, is any postage assessment suspended? –Co-palletization and co-mail assessment? –Assessment/reconciliation during transition period? –Logical containers?

22. eInduction Overview 22 Reports  Different reports will be available in PostalOne! for mailers to track pre- and post-induction errors in eDropship containers  Reports for warnings and charged errors may also be available in PostalOne! Issue: What are the specific reports made available to users? Reports