Service Performance Measurementusing

Intelligent Mail & Seamless Acceptance

Service Performance Measurement: The Approach

Prepare Mail with Unique BarcodesMailer provides Electronic Mailing InformationUse container, handling unit, and mailpiece scans of unique barcodes to verify induction, predict deliveryDetermine accurate Start-the-ClockDetermine accurate Stop-the-ClockCalculate service performance– By facility– By Origin-Destination (OD) pairs– By individual transportation components between OD pairs– By tray preparation (pre-sort) levels– By customer– By class

Data Quality & Statistics

StatisticsEnsure manifest accuracy by– Comparing container/handling unit manifest data to mailpiece

manifest– Comparing actual scans (container, handling unit, and mailpiece) to

manifest

Ensure “Start-the-Clock” accuracy by – Comparing & correlating PostalOne! TMS, Container, first USPS

tray, and first origin processed piece scans– Requiring origin processed piece scans at the expected induction

facility

Ensure quality mail preparation by – Measuring mailing scan rate to ensure barcode quality– Measuring pre-sort and address quality errors

Scans from mailers that do not have high quality manifest information will be excluded from service performance measurement.

Service Performance: A collaborative effort

Mailers apply unique Intelligent Mail® barcodes to individual mailpieces

Mailers apply the unique Intelligent Tray Barcode to the handling units (i.e. trays) they prepare

Mailers apply unique barcodes to containers (i.e. pallets)

Intelligent Mail® barcode

Enhanced Service Performance Measurement relies on recently developed unique barcodes.

Intelligent Container Barcode

Intelligent Tray barcode 10/24

Service Performance: USPS Scan Status

Letter Sorting Equipment enabled for reading Intelligent Mail Barcode

Flat Sorting Equipment enabled for reading Intelligent Mail barcode

Tray Handling System upgrades to read Intelligent Tray label

Surface Visibility for reading Container Barcodes

Existing Service Performance Systems

Confirm– Scan data is collected from processing equipment for 4CB and

Planet Code pieces

EXFC– Measures single piece First Class letter service performance

– Measures time from drop in collection box to receipt by customer

Several different systems are in place to provide service performance information

Service Performance: A collaborative effort

Electronic Manifest information via Mail.dat or Web Services provides details of the mailing – Container, Handling Unit (EDL) and Mailpiece, barcode detail

– Mailpiece to Handling Unit (EDL) mapping

– Handling Unit (EDL) to Container mapping

– Presort

– Drop Location

ADIS For Piece Level Information

Mailers provide electronic documentation of the unique barcodes applied to the containers, handling units, and pieces in their mailings.

Manifest Quality

Mail.dat files are submitted to PostalOne!

Piece manifest records are associated with specific tray manifest records (nesting) and compared for accuracy

Scans are compared to the mailer provided manifest to verify – bbPiece Count

– Preparation/Presort Quality

– Barcode Quality

– Address Quality

Scans from poorly manifested mailings are excluded from Service Performance Measurement

Seamless Acceptance verifies the quality of the prepared manifest

Start-the-Clock

Induction scans for containers serve to Start-the-Clock for all mailpieces contained in the electronic documentation for a mailing. Tray and initial mailpiece scans may serve as alternate Start-the-Clock options.

Container induction scans at the originating facility

Mailer Facility

Originating Facility

First mailpiece scan from a tray processed at the originating facility

PostalOne! TMS scans identify trays ready for induction

Air or Surface Transportation scans of Trays and Containers

Stop-the-Clock

Container scans as they are unloaded at delivery units can service as primary Stop-the-Clock event. Mailpiece and tray scans can supplement the container scans.

Container unload scans at the delivery unit

Bundle Scans at DUs

Destination Facility Delivery Unit

Delivery Point Sequencing

Trays are scanned as they are loaded onto containers for final delivery

Final piece scan before delivery

En-route Scans

Container Scans – Scanned as containers are inducted at USPS facilities

– Scanned as mailer prepared containers are transported between USPS facilities

Tray Scans– Scanned by tray handling systems as mailer prepared handling units

enter a facility

– Scanned as mailer prepared handling units are transported through the USPS network

– Scanned as mailer prepared handling units are associated to containers

Intelligent Mail® barcode – Scanned as mailpieces are processed on USPS equipment

Comprehensive service performance» By plant

» By class

» By customer

» By pre-sort level

Point-to-Point diagnostics

Barcoding & AddressingBarcoding & Addressing

6060 PRIMACY PKWY STE 201MEMPHIS TN 38188

Address Change Service

John Doe

6449 AMBERVIEW CVMEMPHIS TN 38141 - 8346

TransportationTransportation

Integrated ApproachIntegrated Approach

Mail Processing &

Delivery

Mail Processing &

Delivery

AcceptanceAcceptance

Service Performance

Measuring Service Performance

Mailing A

Mixed

AADC

3-Digit

5-Digit

“Start-the-clock”

1st scan

1st scan

1st scan

“Stop-the-clock”

Enhanced Service Performance Measurement uses container, handling unit and mailpiece scans along with mailer data to provide detailed performance insight.

Mailer Facility

Originating Facility

Destination Facility

Tray Types

Pilot Status

First class letters from pilot mailers

Measuring end-to-end service performance at the piece level and reporting by – Tray preparation level (e.g. 3-Digit or AADC)

– Transportation type (e.g. air or ground)

– Origin/Destination pairs

Utilize data filtering to capture high-quality information– Excluding pieces from poorly manifested or prepared mailings

– Using manifest date and scans of origin processed pieces to “start-the-clock” for the mailing

– Using only delivery point sequence scans to “stop-the-clock”

What can we measure? – Service Levels for each preparation

category (presort)» Filtered by OD pair, presort level,

mailer, mailing, seasonality» Service levels by customer» Service level by discrete USPS

network components

– Velocity through the transportation network and service performance factors:» Impact of specific modes of

transportation (e.g. commercial air, surface)

» Network service performance» Likelihood of late arrivals» Delivery window analysis

– Velocity through facilities

Service Performance MeasurementWhat we are analyzing

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

-2 -1.8 -1.5 -1.3 -1 -0.8 -0.5 -0.3 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2

Example: ZIP Analysis by Service Standard

Example: Tray Type Analysis by Service Standard

Example: Six Sigma Quality Analysis

Pilot Next Steps

Improve “Start-the-Clock”

Improve “Stop-the-Clock”

Data Integration

Pilot Expansion

– Include Flats, Standard and Periodicals Mail

– Bundle Scans at Delivery Units

Establish Tolerances

Validate Service Performance Model

Upcoming Intelligent Mail Systems

CLDS– Allows mailer to order tray labels with Intelligent Tray

Barcode from USPS

Surface Visibility– Continued expansion of Surface Visibility system into new

facilities and further into facilities

Seamless Acceptance– Verify manifest quality and determine postage assessments

Upgrades to Tray Handling Systems to read 24-digit barcodesPARS

Several new systems are being developed that rely on Intelligent Mail barcodes to provide new insight into mail

Timeline

Use Tray Scans in Service Performance Analysis: Qtr 3 07

Use Container Scans in Service Performance Analysis: Qtr3 3 07

Expansion of Intelligent Mail® Barcode to Flats: Q3 FY07

PARS Deployment: October 2007

IMB Read Deployment Completion: Complete

Surface Visibility DU: FY08

24 Digit Tray Label: FY08/09

IMB Mandate: FY 09

Seamless Acceptance: FY09

Incremental improvements are required from USPS and mailers before intelligent mail can be used to drive service performance