usps initiatives update

USPS Initiatives Update

October 2, 2014

2Proprietary and Confidential Information of Pitney Bowes Presort Services, Inc.

Today’s Speakers

Kara Nolan – Manager, Customer Support

• Currently, provides support to First Class Mail Operations. Has been with Pitney

Bowes Presort Services for 7 Years, working directly with national clients and

PBPS sites. Has proactively worked with clients to ensure client retention and

loyalty by ensuring expectations are exceeded.

Steve Krejcik – Director of Strategic Technical Business

Development

• Working in the mailing industry for 25 years, Steve was an Industry Co-chair for

the USPS Mailers Technical Advisory Committee (MTAC) for the implementation

of Intelligent Mail. Steve is currently Industry Co-Chair of the MTAC PostalOne!

Users Group and PostalOne! Reporting Sub-group. Active in many industry

associations Steve is President of the Association for Mail Electronic

Enhancement (AMEE) and First Vice President of the National Association of

Presort Mailers (NAPM).

Alison Hall – Director, Client Services Direct Mail Solutions

• With over 20 year’s industry experience, Alison spends her time working directly

with clients and internal teams to ensure excellent Client Relations, consistently

high Client Loyalty and Retention, and innovative Direct Mail Strategies to

support Direct Mail growth.

Agenda

AGENDAKara Nolan

COA/Move Update Errors

Steve Krejcik

ACS

Mailer Scorecard

Seamless Acceptance

Network Rationalization

Alison Hall

Non-Profit Mail

Proprietary and Confidential Information of Pitney Bowes Presort Services, Inc.


MOVE UPDATE

ERRORS



Current Move Update Standard

Invoicing performed when over 30% of Pieces with a COA

Logged in a mailing are found to be in error during

Performance-Based Verification

For all methods outside of NCOALink MPE, all addresses must

be updated within 95 days of the postage statement finalization

date

If a piece has an COA on file between 95 days and 18 months

of the postage statement date, and is not updated, it is subject

to a penalty

Postage is assessed – a charge of $.073/piece based on

the percentage of mailing over 30% found to be in error

Total Percentage Assessed =

% of COA Pieces Logged with COA Errors – 30%

Ex: 35% Pieces with COA Errors – 30% = 5% of Mailing Invoiced


Move Update Compliance

Transitioning to a Census Level Verification

• MERLIN PBV Move Update validation scores based off of samples of

all pieces in a mailing (FS & NFS) run across MERLIN

• Current invoice threshold: 30%

MERLIN Error % = Total Change of Address Errors

Total Pieces with a Change of Address Logged

• Census Move Update validation score will be based off of all IMb

pieces run across MPE that trigger a COA

• Proposed invoice threshold: 0.80%

Monthly COA Error % = Total Change of Address Errors

Total Pieces in Mailing


Move Update Compliance

New Implementation

Reporting is currently available on the Scorecard

Beginning in November 2014, Mailers with over 75% Full Service

Mail will be able to see their scores and assessments (For

Information Only) on the Scorecard

Beginning in April 2015, USPS will be verifying and assessing

penalties based on the census level verification process

Invoicing will be calculated for mailers exceeding the Move

Update threshold for a calendar month

There will be a fixed charge for pieces over the threshold.

Currently this charge is $.073.


PBPS Move Update Solution

Mailers can elect to have PBPS run mail through NCOALink MPE Solution

known as PBPS Move Update Solution

Work with your Customer Service Manager to set up specific jobs to run

under PBPS Move Update Solution

Present Mail under these specific jobs

PBPS will process the mail and it will be seamlessly routed to the new

address

Log into PBPS My Account to get the COA data

• Update your database

For more information and pricing,

contact your local Customer Service Manager or Sales Representative


ACS



New ACS™File Format

• Beginning January 25, 2015 all ACS fulfillments delivered through EPF will be

expanded and improved.

• Will include information never before provided.

• OneCode ACS, Traditional ACS, IMpb ACS, and those Full Service customers

that receive ACS via SingleSource will receive the new ACS file format version

1.0

• This change does NOT affect Full Service ACS provided through the Business

Customer Gateway

• A Conversion process will be available.

• A Sample File & Technical Guide is available NOW

https://ribbs.usps.gov/acs/newACSformat/ACSFileVersion1_Sample.zip

https://ribbs.usps.gov/acs/newACSformat/ACSFileVersion1_Sample.zip


Changes to The Single Source ACS File Format

• The change-of-address (COA) Move Effective Date will include the day,

and a COA "Made Available Date" that will tell you when the COA was

first available for processing the moving customer's mail.

• The address correction fee, if applicable, for each ACS record will be

included in the notice. Other fees or postage charges, such as Shipper

Paid Forwarding or Return postage will also be reported so you will know

the exact charges for each individual record.

• Intelligent Mail barcode data, when available, will be included for each

ACS notice provided.

• Know exactly when, how, and where the undeliverable mail piece that

generated the ACS notice was processed.


New ACS™File Format

For more information, go to:

https://ribbs.usps.gov/index.cfm?page=newACSformat


Secure Destruction

• Secure Destruction for First-Class Mail®

• National Launch date is November 18, 2014

• Mailers interested in the Secure Destruction program will

need to register.

• The required Secure Destruction Enrollment Form and EPF

Access forms will be available on the RIBBS ACS page at

https://ribbs.usps.gov/acs

https://ribbs.usps.gov/acs


Types of Records

• Health

• Financial

• Consumer

• Government

• Credit card

• Personal records that

would create liabilities

• Others – under market

study

Privacy Protected Information & Industry Sectors

Target Industry Sectors

• Banking

• Credit card companies

• Healthcare

• Phone & utility services

• Investment firms

• Government agencies and

contractors

• Legal services

Secure Destruction


Participation Requirements

Mailer must participate in Traditional ACS™, OneCode ACS®

or Full-Service ACS with an IM barcode to receive notice of

disposed mailpieces

Mail must bear Intelligent Mail® barcode containing a Secure

Destruction Service Type ID


Mailer Scorecard



Mail Quality Determination

Traditional Verification

Mail quality determined based on

a per mailing basis

Verification

All mailings submitted in an

entire calendar month are used

to determine quality as on an

aggregate basis

MAIL

QUALITY

MAIL

QUALITY


Accessing The Mailer Scorecard

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1. After logging into the

Business Customer

Gateway, select

Mailing Reports

2. Select Mailer Scorecard

3. Select either eDoc

Submitter or Mail

Owner


Mailer Scorecard

Mailer Profile, Electronic Verification, eInduction, Seamless

Results Aggregated Over 1 Month

Measured Against Established Thresholds


Full-Service Verification (eDoc only)

Error Type What is it? Threshold

Valid MID

Is the Mailer ID in the Intelligent Mail container barcode valid and registered with the Postal Service?

2%

Is the Mailer ID in the Intelligent Mail tray barcode valid and registered with the Postal Service?

2%

Is the Mailer ID in the Intelligent Mail barcode valid and registered with the Postal Service?

2%

Valid STIDIs the Service Type ID in the Intelligent Mail barcode valid and correct for the class and service level of the mailpiece?

2%

By/ForIs the mail owner and mail preparer identified in the eDoc and accurate?

5% *

Unique Barcode

Is the Intelligent Mail container barcode unique across all mailings from all mailers over the previous 45 days? 2%

Is the Intelligent Mail tray barcode unique across all mailings from all mailers over the previous 45 days?

2%

Is the Intelligent Mail barcode unique across all mailings from all

mailers over the previous 45 days?2%

Entry Facility

Is the entry facility a valid the Postal Service location? 2%

Unlinked Copal

Was a tray/virtual Sack marked for co-palletization at origin and no

electronic documentation is submitted with the tray/virtual sack on a pallet?

5%

* A custom by/for threshold may be set for a mailer who accepts more than 5% of volume from small mailers

presenting less than 5,000 pieces per day


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1. Volume Information

2. Full-Service Verifications:.

3. Move-Update Validation:

4. Entry Point Validations:

5. eDoc Nesting/Sortation

Validations:

Full-Service Tab Renamed

Electronic Verification Made up

of 5 components


Mailer Scorecard – Full-Service Verification

2. Full-Service Verifications:

These verifications compare

the eDoc against the full-

service preparation

requirements for full-service

mailings.

* Assessments due for over

threshold in January 2015!

1. Volume Information: Provides

the count of container, handling

units, and pieces that were

provided in eDoc and included in

the verification results on this

tab.

The Mailer Scorecard provides a dashboard view of the results of the

letter and flat mailing activity over a calendar month.


Mailer Scorecard – Move-Update

3. Move-Update Validation: This

validation will replace the MERLIN

Move-Update verification for

mailers providing more than 75% of

their volume as full-service.


Mailer Scorecard – eDoc Presort

4. Entry Point Validations: This

validation checks the correctness of

the Postal Service entry facility in

the doc for mailers providing more

than 75% of their volume as full-

service.

5. eDoc Nesting/Sortation

Validations: This validation checks

the presort in the eDoc against

labeling lists and presort rules for

mailers providing more than 75% of

their volume as full-service.


25

Mail Owner Scorecard

All “exceeds threshold” formatting ( yellow highlighting) has been removed from Mail Owner

Scorecard. The “View Thresholds” button has also been removed.

“View

Thresholds”

Button

Removed

“Exceeds Threshold”

Formatting Removed


Mailer Scorecard Quality Trending


Full-Service Milestones

August 2014

New Scorecard Version

MOVE Update & eDoc Nesting

Sortation Reporting

October 2014

Full-Service Calculations

Visible/Review Only

November 2014

Expand Non-Profit Identification in

eDoc

January 2015

FS Postage Assessments Only

MOVE Update Calculations

Visible/Review Only

April 2015

MOVE Update Postage

Assessments


Mailer Scorecard Resources

• Located at

Ribbs.usps.gov

• Intelligent Mail

Guides &

Technical

Specifications

https://ribbs.usps.gov/index.cfm?


PREPARE MAILeDOC UPLOAD

AND USPS VALIDATIONS

SCAN CONTAINER

PLACARDINDUCT MAIL

REVIEW MAIL QUALITY REPORTS

eInduction

Scan-Based Paperless Entry at Dock

Replaces 8017’s and 8125’s

Use eDoc & scanners to accept container at entry

Automated decision making

Save time at origin and at entry by streamlining process


eInduction Validation Error Mailer

Contact Threshold

Egregious Threshold

What is it?

Payment 0.00% 0.00% Did the mailer submit an eDoc with the appropriate amount of payment?

Misshipped 1.05% 2.00% Did the mailer induct the container at the correct location per the eDoc?

Duplicate 0.17% 0.33% Did the mailer apply unique barcodes to each container within a 45-day period?

Zone 0.01% 0.02% Based on how far the container traveled relative to

the origin, did the mailer earn the zone discount claimed on the eDoc?


eInduction Milestones

October 2013

Deployed

30% of PVDS containers inducted through

eInduction

August 2014

New Reporting Functionality

September 2014

Pilot new functionality for facilities w/o

scanning capabilities

(Non-SV, DDUs)

Manual Postage Assessment against

Egregious Thresholds

Summer 2015

Automated Postage Assessment


eInduction Resources

• Located at

Ribbs.usps.gov

• Intelligent Mail

Guides &

Technical

Specifications



Seamless Acceptance



Seamless Acceptance

Seamless Process

Overview

1. Mailer submits eDoc

2. Statement auto-finalized

3. Capture sampling data

using handheld scanner

4. Capture data from Mail

Processing Equipment

(MPE) scanning

5. Compare data captured

to eDoc

6. Detailed Mail Quality

reporting


• Allows for preparation and payment flexibility

• Longer mail production cycle

• Standardized acceptance and verification

processes

• Improved feedback on business mail quality

issues

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Seamless Acceptance

Seamless Acceptance Benefits


Seamless Verifications

Verification What Question(s) Does This Verification Answer?

UndocumentedCan the pieces scanned on mail processing equipment or sampling be matched to eDoc? If not,

can we assume that the piece has not been paid for?

Delivery Point Is the delivery point contained in the IMb valid for the service level of the mailpiece?

Nesting/Sortation

(MPE)Were the mailpieces placed in a different tray or bundle than indicated in the eDoc?

Nesting/Sortation

(Sampling)

Were the mailpieces placed in a different tray or bundle than indicated in the eDoc? Or was the

tray/sack placed on a different container than indicated in the eDoc?

PostageDo the type of postage payment and the amount of postage affixed match the eDoc for the

mailpiece?

WeightIs the weight of the mailpiece different than the weight indicated in the eDoc? Is this difference

enough to cause a change in the amount of postage due?

Mail

Characteristic

Does the mailpiece match the same mail class and processing category as indicated in the

eDoc? Does the piece content qualify for nonprofit or Standard Mail rates (as appropriate)?

Barcode Quality Was a mailpiece sampled that didn’t have a scannable barcode in an automation mailing?


Seamless Thresholds

Error eDoc

Mail

Processing

Equipment

(MPE)

Sampling

Mailer

Contact

Threshold

Egregious

Threshold

Undocumented X X 0.5% 0.8%

Delivery Point X 2% 5%

Nesting/Sortation

(Mail Processing

Equipment (MPE))

X 1% 3%

Nesting/Sortation

(Sampling)X 3% 5%

Postage X 2% 5%

Weight X 3% 5%

Mail Characteristic X .1% 0.5%

Barcode Quality X N/A TBD


Mail Owner Scorecard

A new perspective for eInduction has been added to the Mail Owner Scorecard, including the #

Metrics, # Trending, % Metrics, and % Trending toggling functionality.

Seamless Tab

Removed


Data obtained from

mail processing

equipment (MPE)

scans and/or eDoc

The Mailer Scorecard (Seamless Tab)

Sampling Compliance

Validations, which can

only be obtained by

sampling

The Seamless tab is

broken into 2 main

sections and types of

metrics, depending on

how the data is obtained:


Seamless Acceptance Challenges

Proficiency with data, computers and operations required

Culture change

• Verification

• Acceptance

• Appeals

Still fine tuning validations and policies:

• USPS good about working through issues as they

come up


Seamless Acceptance Milestones

March 2014

Seamless Acceptance

Deployed

Manual Postage Assessment

against Egregious Thresholds

August 2014

Enhanced Undocumented

Reporting

15% of Commercial

Volume on SA

November 2014

Expand Non-Profit Identification in

eDoc

January 2015

Postage Assessment Calculations

Visible/Review Only

April 2015

Automated Postage

Assessments


Postage Assessment (Invoicing) Overview


Mail Entry Road Map

Mail Entry Roadmap reviews Postal Service’s key initiatives

to streamline the acceptance, induction, and verification of

commercial mailings.

eDoc/Mail Quality Measured over a Calendar Month

Full-Service

eInduction

Seamless


Roadmap Location

Located at Ribbs.usps.gov

Mail Entry Roadmap




• Final phase of Network Rationalization will begin January 5, 2015

for the remaining 80 USPS locations.

• PBPS will continue to work with local plant operations on required

changes to support USPS processing and transportation changes.

• Please Note: USPS will provide overnight delivery only to those

pieces submitted to them by 8:00 AM, current local submission

times are approx. 8:00 PM.

• Example:

o Mail with local zip codes that qualify for 1 day service are picked up

throughout the day and submitted by PBPS on Tuesday evening Sept.

2nd, are currently delivered by the USPS on Wednesday Sept. 3rd

o With this change those same mail pieces will be delivered by the USPS

on Thursday September 4th.


Non-Profit Authorization Changeshttps://ribbs.usps.gov/intelligentmail_latestnews/documents/tech_guides/MailEntryRoadmap.pdf



History

The USPS offers a reduced postage rate for qualified and

approved nonprofit mailers

Approval is given by the USPS

Mail must meet USPS mail piece design requirements for

reduced postage rates

Validation of nonprofit status for mail service providers can be

done via eDoc with permit and/or manual proof of nonprofit

status presented at time of the mailing

No connection to Full Service Intelligent Mail Requirements with

By/For historically


By/For Refresher

Mail Owners must be identified in the Electronic Documentation

(eDoc) as part of the Full Service Intelligent Mail By/For

requirement

• EXCEPTION: For Profit Mail Owners under 5000 pieces in

the mailing do not have to be identified

• Nonprofit Mail Owners do not qualify for this exception and

ALL Nonprofit Mail Owners must be identified

Definition of Mail Owner

• A Mail Owner:

– Ultimately pays for the postage

– Approves the mail piece

– Benefits from the mail piece


Validation Process Today TODAY

• Currently, the USPS validates the Nonprofit Mailer through

the permit

• The mailer completes required USPS forms and requests

the USPS to set up a nonprofit permit

• The USPS verifies the mailer is an approved Nonprofit

Mailer and sets up the permit

• Mail Service Provider provides manual proof of Nonprofit

status for their clients when presenting the mailing


Validation Process Tomorrow

November 2014

• The USPS will validate the Nonprofit Mailer status through

MID, CRID, or PERMIT

• USPS will confirm nonprofit status through electronic

submission of USPS paperwork (eDoc) AND/OR manual

proof of approved nonprofit status

April 2015

• Validated through eDoc only

• No more manual validation!

PENALTY: Loss of nonprofit discounts! For more info:

https://ribbs.usps.gov/intelligentmail_latestnews/documents/tech_guides/MailEntryRoadmap.pdf


Mailer Responsibility

Mail Owner

• Confirm your MID, CRID, and permit are active and

validated with nonprofit status through your vendor partner

or USPS

• Update your vendor partner with your validated MID, CRID,

and permit if they are not validating for you

• PBPS Client Services is working with the USPS on behalf of

all Nonprofit clients to ensure valid information. PBPS

Client Services may contact you if there are discrepancies


Mailer Responsibility

Mail Service Provider

• Confirm your clients MID, CRID, and permit are active and

validated with nonprofit status through the USPS

• Validation Tool available through USPS

• Contact [email protected] for more details

on validation tool

• PBPS prefers validation through MIDs

• PBPS Client Services can help you identify best method for

updating PBPS records with nonprofit MIDs

– By client

– By IMB record as applied on the mail piece

– By file sent in advance of mailing with IMB records


Use this slide for a

Full-bleed image


JUST IN FROM USPS…

U.S. Postal Service to Maintain

Current Product and Service Prices

Oct. 1, 2014--The Governors of the U.S. Postal Service have

decided not to seek a price change for mail and shipping

products and services in January in part because of the

uncertainty regarding the exigent price increase. This means

that the current pricing of postal products and services will

remain in effect through the holiday season and early part of

2015. The Board will continue to evaluate pricing strategies

and will communicate about any potential price change filings in

early 2015. As always, the Postal Service will provide

customers advance notice of any price changes.


Questions

Every connection is a new opportunity®