MINUTES

MAILERS’ TECHNICAL ADVISORY COMMITTEE (MTAC) MEETING

                                           U.S. POSTAL SERVICE HEADQUARTERS

                                                        475 L'ENFANT PLAZA, SW, WASHINGTON, DC 20260

 

                                                                           May 17-18, 2006

                                        

 

WEDNESDAY, May 17

 

Welcoming Remarks

Susan Plonkey, Chair, Postal

Joyce McGarvy, Chair, Industry

 

Ms. Plonkey welcomed the MTAC members and guests.  She announced that the MTAC Members’ Room (4841) was formally dedicated

and that members are welcome to enjoy the facility, which has been furnished with photographs of historical significance to MTAC’s forty years of

service.

 

Ms. Plonkey introduced Lynn Smith, recently appointed Acting Vice President, Delivery and Retail.  She announced a new work group (# 103)

that has been established to address management of service performance reporting.  In the next few days members of the MTAC Leadership Group will

visit the Indianapolis facility that is testing the prototype Flat Sequencing System (FSS).

 

Ms. McGarvy added her welcome and announced that a new association had been approved for membership by the Executive Committee – the

National Association for Printing Leadership (NAPL).  Ben Cooper is the association executive and Don Landis is the new MTAC representative for NAPL.

 

Other new association executives:

 

Printing Industries of America                              Lizbeth Lyons

Edison Electric Institute                                      Becky Harsh

Association for Mail Electronic Enhancement       John Sexton

 

Other new MTAC representatives:

 

International Mailers’ Advisory Group (IMAG)        Karen Houk

Newsletter & Electronic Publishers Association    Helen Hoart

Mailing and Fulfillment Service Association          Steve Colella

American Business Media                                  Michael McShane

Parcel Shippers Association                               Wendy Smith

Association for Mail Electronic Enhancement       Pam Kalvaitis

Pharmaceutical Care Management Association    Tom Underkoffler

 

Legislative Update

Thomas G. Day, SVP

Government Relations

Please click here to view presentation

 

Mr. Day announced that both the House and Senate versions of the postal reform legislation had been approved.  In turn, a Conference Committee

will work out the differences between the House and Senate versions of the legislation.  The Conference Committee will produce a report; that single version

of the bill would then require approval by both the House and Senate.

 

Senate leaders have already named eight members (5 Republicans and 3 Democrats) to the committee.  House leaders have not named

conference members as of this date.  Although the conference has not been formally established, it has already been determined that Senator Collins

will chair.  Much of the work is done informally before actually appointing the committee members, a process that has already begun.  The minor differences

will be resolved first and the Postal Service has been a contributor to that process.  The more challenging issues will be addressed when the committee is

formally appointed, although even then most of the differences will have been informally resolved.  It appears that the process should be completed by June,

but if there are any delays the legislation may be deferred until the fall.

 

The major issue preventing agreement is financial relief in the form of the escrow requirement and funding the Military Service obligation. The Bush

Administration is the major player in that process – including White House Domestic Policy, White House Legislative Affairs, Office of Management and

Budget, Office of Personnel Management and the Treasury Department.  A recent revision to the scoring of the pending legislation should reduce the level

of concern in the administration.  The Congressional Budget Office scored S 662 as a $ 1.5 Billion impact to the federal budget in its first 10 years. 

$ 1.5 Billion in ten years is a relatively insignificant impact to the federal budget.

 

The legislation envisions a rate cap on major Postal Service products based on the CPI.  A key issue related to the rate cap is the rule for exigency;

or in other words under what circumstances might the rate cap be waived.  The Senate version has very strict – “unexpected and extraordinary” – language;

while the House version has a more relaxed – “reasonable and necessary”.  Some type of compromise language is likely needed to bridge the gap between

these two versions.

 

The pending legislation requires a recommendation for revisions to accounting rules made by the Secretary of Treasury, in consultation with the Postal

Service.  These recommendations would be sent to the Postal Regulator Commission for final approval. The Postal Service currently follows generally accepted

accounting practices (GAAP) as defined by the Federal Accounting Standards Board (FASB). 

 

Among the key topics that might be revised would be the methodology for cost attribution and cost allocations.  Currently, USPS cost attribution stands

at approximately 58%.  In order to preclude cross-subsidization, all products and services must at least achieve cost coverage.  The remaining 42% of institutional

costs are covered through the markup on individual products and services.  USPS  agrees that any effective improvements to cost attribution should be implemented. 

The basic premise of effective cost attribution must remain as clearly demonstrated cost causality.  However, methodologies for cost allocation will always border on

arbitrary and can have dramatically different outcomes depending upon the methodology chosen.  Cost allocation methods could significantly increase the cost

coverage requirements for a number of products and services.

 

Another key topic is an idea that is already being suggested,  that the Postal Service revise its accounting treatment of retiree health care costs.  The Postal

Service currently utilizes the FASB rule for a multi-employer plan.  This accounting treatment was reviewed and concurred with the USPS external auditor.  A request

by GAO in 2003 caused an additional review, which again confirmed the multi-employer plan was appropriate.  It has been suggested that USPS should either change

to a single-employer rule, despite the opinion of the outside auditor, or might be compelled to do so through upcoming rule changes under consideration by FASB.  

 

Such a change to accounting rules would bring forward to the current fiscal year a liability of approximately $ 65 billion.  For some reason, it has been suggested

that this potential financial impact is the basis to forego the financial relief provided in HR 22 and S 662.  The argument being, it is more important to pass legislative reform,

even if it does resolve the issue of escrow payments or funding of the military service obligation.  Whether, forced to change accounting rules and / or faced with enactment

of legislation that does not return escrow payments and the military service obligation, the Postal Service would be placed in an untenable financial position.

 

Mr. Day commented on the current rate case, an 8.5% calculation based on internal analysis of financial requirements, versus the current legislation’s proposed

CPI cap method.  He compared the historical rate increases since 2002 which were developed without a CPI cap limitation.  The rate increases since 2003 amounted to

13.9% (5.4% implemented on 1/8/06 and 8.5% rate case that was just filed for implementation in the spring of 2007).  If a CPI Cap structure were in place during the same

period, the total rate increase would have been 15.8%.  Mailers would have paid roughly $1.6 billion more during that same period.  Any suggestion that pending legislation

will result in dramatically different results on average is shown to be wrong when actual increases are compared to CPI.

 

 

A question arose about another filing for a rate increase, beyond the one just approved by the Board of Governors.  Mr. Day noted that the Senate’s version does

allow the Postal Service to file another rate case within a year of the legislation being enacted.  While it cannot be guaranteed that another rate case would not be filed,

the facts point to no additional rate filings under current statute.  If the pending legislation is to be enacted, it must take place in 2006, thus the timeframe for an additional

rate filing would have to take place in 2007.  It should be noted that the most recently approved rate filing of 8.5% utilizes 2008 as the test year.  Thus the most recently

filed rate case envisions revenue requirements into 2008.  The single major caveat would be a change to the financial relief granted in HR 22 or S662.  If either escrow relief

or the return of the military service obligation to the Treasury is withdrawn from the final legislation enacted, then the revenue requirement in 2007 and 2008 would change

and potentially require an additional rate filing under current statute.  As always the final determination on such a decision would remain with the Board of Governors.

 

 

USPS Financial Update

Robert J. Pedersen

Acting Chief Financial Officer & EVP

Please click here to view presentation

 

Mr. Pedersen summarized the financial state of the Postal Service – that both revenue and volume are increasing, that expenses are also increasing

(exacerbated by inflationary pressures), and that year-to-date there is a small net gain after allowing for the escrow obligation.

 

Year-to-date, revenues are slightly over $37 billion, about 1% better than plan and 2.9% over the same period last year (SPLY).  Expenses are $35.6 billion,

 0.4% above plan and 4.2% above SPLY.  Therefore, net income is $1.57 billion,slightly better than plan but below SPLY.  The $1.5 billion escrow allocation reduced

the net gain after escrow allocation to $74 million.  Mr. Pedersen added that the escrow payment is an actual cash amount to be set aside at the end of the year, and

not a non-cash accrual.  Concerning expenses, the largest increase was in compensation and benefits ($817 billion, up 3.1%), but the largest percentage increases

were in transportation and fuel-related costs (11.7% and 18.1% respectively).  The transportation and fuel increases cause a trickle down effect on CPI and therefore

increased retirement benefits.

 

Mr. Pedersen reviewed volume for the first half of the year, noting that First-Class Mail was down 1.3%, a smaller decline than anticipated.  Standard Mail,

the largest volume component of the mail, increased only 1.5%, half of the expected increase.  However, Priority Mail and Express Mail volume surged well above

plan – 7% versus 2.4% and 3.9% versus 0.2%, respectively.  Packages increased 3.6% and Periodicals decreased 0.8%, both about in line with expectations. 

Recalling the dire predictions of volume declines for First-Class Mail in the late nineties, Mr. Pedersen pointed out that the decline has been much smaller than

predicted and, in fact, the decline rate has moved toward zero in the last few quarters.  Standard Mail has maintained a positive growth over the past several years.

 

Total volume of 109.2 billion pieces in the first half of Fiscal Year 2006 is 0.2% better than SPLY, and revenues were up 2.9%.  The Postal Service now

processes mail for 145.1 million delivery points, up 1.9 million vs. SPLY.  A healthy housing industry over the past decade has helped sustain robust growth in

delivery points.  Finally, he noted that total factor productivity is up .3% for the period,and output per work hour is up 1.2%, both versus SPLY.

 

During discussion, Mr. Pedersen explained that part of the rationale behind the “forever stamp” involves the elimination of certain high cost/low return

transactions, such as individuals who buy two-cent stamps after a rate increase.

 

 

Rate Case

Stephen Kearney, VP

Pricing and Classification

Please click here to view presentation

 

Mr. Kearney announced that the rate case was filed on May 3 and it contains over 4,000 individual rate elements.  The rationale for the

rates is that pricing should support growth and efficiency, and promote improved address quality.  This rate case focuses more on shape-based

pricing, and less on the traditional weight considerations.  It includes more incentive-based pricing plans to encourage mailers to redesign

their mailings to achieve greater efficiency.  There are also incentives to encourage address quality improvements.

 

Mr. Kearney began with First-Class Mail, which accounts for about half of Postal Service revenues.  There is an emphasis on shape-based,

rather than weight-based rates, partly because it was determined that certain large but lightweight pieces actually cost more to process than some

smaller, heavier pieces.   The focus was on aligning the rates with the actual costs of processing the various types of mail.  The proposed rates for

First-Class Mail are – single piece, $.42, postcard $.27 and $.20 per additional ounce.  The same principles apply to work share mail.  There is a

new business parcel category with three levels of sortation.  The relatively higher increases for parcels are based on bringing the costs of handling

in line with the rates.  There are some incentives to encourage mailers to reconfigure parcels as flats or single-piece First-Class Mail.

 

Priority Mail rates also have been calculated to reflect actual costs, especially for large, lightweight pieces.  There are lower rates for

some heavier items.  That is, the size and dimensions of a package have more impact on rates than just the weight.  Therefore, a large

lightweight package would be priced the same as if it contained a normally heavier content (a typical practice of most commercial carriers). 

As a consequence, some heavier packages may cost less under the new rates than they do under the present rates.  The dimension/weight

formula encourages mailers to consider changing the characteristics of a package to take advantage of lower rates. Our proposal includes

making the successful Flat-Rate Box experiment a permanent part of the Priority line-up.

 

Mr. Kearney noted that Express Mail rates would increase partly because of transportation/fuel costs, but the incremental increases

based on weight are less than the current rate formula. A noticeable change in Express Mail is the new 1-pound rate to fill the gap between

1/2 pound and 2 pounds. Currently, anything over a half-pound is charged the 2-pound price.

 

In Standard Mail, rates have been revised to reflect the changes in technology and operations during the past several years. 

There are a number of changes in the new rate scheme, including incentives to increase drop ship mailing, more presort options, a

distinct price schedule for parcels (much like Parcel Post), and a new, hopefully short-lived “Not Flat-Machineable” rate.  The rate for

DDU letters has been eliminated, and there are differential prices for pieces with detached mailing labels.

 

Mr. Kearney explained that the new Periodicals rates were designed to encourage efficiency and simplicity (through containerization

and drop shipment).  There is a new “container charge” of $.85, but its impact is considerably reduced when mail is presented on pallets instead

of in multiple sacks.  Drop ship incentives have been enhanced, particularly for high editorial content periodicals. 

 

Finally, rates for package services have been designed to improve efficiency and to streamline product offerings. 

Retail Bound Printed Matter will be eliminated to simplify options for the retail customer, and there are incentives for DDU

and DSCF entry.  Barcodes will be required on all Parcel Select pieces.

 

Mr. Kearney described other features of the rate case that support improved address quality and reflect the modernized services

developed during the last few years.  Our proposal includes a low-cost One Code Address Change Service (ACS) option and will allow us to

electronically note the incorrect address on a letter, and then electronically send the corrected address to the mailer at a much lower cost

than today. A First-Class Mail mailer may receive two notices without charge (then $.05 per notice), and the Standard Mail mailer will pay $.02

for two notices (then $.15 for additional notices).  Electronic ACS notification for First-Class Mail has been substantially reduced, from $.21 per

notice to $.06 ($.25 for other classes), and manual paper notifications have been reduced from $.75 to $.50.  Certified Mail and paper Return

Receipt have increased slightly, but Express Mail and electronic return receipt have been reduced. 

 

Mr. Kearney commented that it will probably take about a year for the rate case to be implemented.  During discussion it was observed

that there are substantial differences in the impact of the rate case of Confirm customers, depending on the mailer’s use profile.  Asked about

rates for flats and periodicals, Mr. Kearney stated that there would probably be eligibility for rates similar to First-Class One Code if similar handling

technology was available.  He noted that the makeup and preparation rules were now under consideration, and should be published in the Federal

Register in the fall.  He anticipated no significant changes.

 

 

Update on Co-Palletization and Co-Mailing

Marc McCrery, Manager

Operational Requirements and Integration

Please click here to view presentation

 

Mr. McCrery defined flat mail co-palletization (bundles of Periodical or Standard Mail with different titles combined on a destination pallet)

and co-mailing (multiple titles/versions combined within presort destination bundles)  The purpose of co-palletization is to reduce the number of

containers, increase the use of pallets, eliminate residual mail, and provide greater discounts for drop shipment.  The benefits of co-mailing include

fewer sacks and bundles, increased presort discounts, refinement of the sort level on pallets and increased use of drop shipment.

 

Co-palletization and co-mailing of mixed classes increases the opportunity to consolidate the flats mail stream, reduce the number of

containers required, move mail from sacks to pallets, move toward shape-based processing, increase the number of discounts available to mailers,

and move mail closer to destination.  The Postal Service has invited mailers, printers and transportation providers to participate in a pilot test for

mixed-class co-palletization and co-mailing (Periodicals and Standard Mail flats), which should be completed by the fall.  Then regulations will be

published in the Federal Register and the service should be available during 2007.

 

 

MTAC Association Presentation

Derrick Miliner, Director Mail Management Policy

General Services Administration

Please click here to view presentation

 

Mr. Miliner described the scope of GSA’s responsibilities, which include Public Building Service, the Office of Government-wide Policy (OGP),

and two areas that will be combined under the title Federal Acquisitions Service (the current Federal Supply Service and Federal Technology Service).

 

His office, the OGP, advises federal agencies on mail management, as well as aircraft management, motor vehicle management administrative

policy and real property management.  That includes regulations, identification of best practices, support of collaboration among federal agencies, and

data management and performance measurement.  In the area of best practices, the OGP encourages sharing knowledge and the development of

innovative policies, practices and efficient processes.  To support these goals, two awards are made every other year at the biennial Federal Mail

Symposium (the next in spring 2007).  The Federal Mail Manager of the Year Award and the Federal Mail Center Excellence Award each carry a

cash stipend of $2,500.  Several federal groups meet during the Symposium – a Regulation Working Group, a Best Practices Working Group

(which decides on the two awards), and the Interagency Mail Policy Council (to which vendors, the public and others are invited). 

 

Mr. Miliner explained that his office is promoting the increased use of data in the management process. Mail is a vital part of the federal

business and there is an extensive program to disseminate information throughout the federal system – through policy advisories, an active list

serve of over 2,000 users from various agencies and the private sector, and through quarterly meetings of the Interagency Mail Policy Council

and the Federal Mail Executive Council.

 

The GSA is developing a web-based performance support system to coordinate the annual mail management report that large agencies

submit electronically or by mail.  Finally, there is a new study on undeliverable mail, a small but costly problem in the federal mail system. 

During discussion, Mr. Miliner explained that mail is processed differently in the 202-205 ZIP codes, in which it is still irradiated.  An off-site

facility opens all congressional mail, which may result in a delivery delay of two or three days.

 

 

Association Presentation

Thom Roylance, President-Elect

National Association of College and University Mail Services (NACUMS)

Please click here to view presentation

 

Mr. Roylance explained that university mail systems handle three types of mail – inter-campus mail (which does not enter the USPS

mail process), outbound and inbound mail.  Mail services are similar to those provided by the Postal Service and most operations are non-profit. 

Before the regional association began forming there was little information sharing among colleges and universities.  In 1978, some East Coast

institutions began talking about developing an association, and out of that a number of regional associations were created.  A list serve, College

and University Mail (CUNIMAIL), was begun at the University of Iowa and it expanded to over a thousand users.  From that base of mail

professionals the first national association was established, the National Association of College and University Mail Services (NACUMS). 

The Association was incorporated in 1995.

 

The goals and objectives of NACUMS include enhanced communications among members and with the mailing industry as a whole,

increased training and educational opportunities, support for the mail services profession (mentoring, providing a forum for professionals, and

supporting their efforts to improve mail services at their institutions). 

 

Mr. Roylance noted that there are a number of regional associations affiliated with NACUMS, which has been a member of MTAC since

NACUMS has a task force to improve addressing formats for colleges and universities, and it sponsors an annual industry benchmarking meeting

and an annual conference.  There are about 600 individual members representing over 350 institutions in nearly every state.

 

Mr. Roylance pointed out that colleges and university mailing services handle a substantial amount of mail annually – over 17 billion pieces

and $3.2 billion in revenue for the Postal Service.  In the future NACUMS will continue to expand its membership, enhance industry relationships,

and serve as an educational resource for the professional involved in college and university mail.  He added that there are specific issues that are

of concern to NACUM members.  One concern is that a Postal Service policy now defines some private apartment complexes as “dormitories,”

even though the students are tenants who live off campus.  That creates issues related to security and delivery.  Also, the Postal Service considers

a delivery completed when it is processed at the last Postal Service facility, even though the actual delivery to the institution may occur a day or so

later.  That complicates delivery confirmation, which is often a parent concern.  NACUMS is also interested in the impact the Internet has had on

college mail volumes, since students are avid users of text mail and e-mail, and most college catalogs, applications, grading reports and so on are

provided on web sites or through e-mail.  Finally, NACUMS continues to be involved in improving address quality and in promoting more effective

mail forwarding.

 

 

Review of First-Class Mail Summit Proceedings

Maynard Benjamin, President

Envelope Manufacturers Association

Please click here to view presentation

 

Mr. Benjamin explained that the focus of the First-Class Mail Summit was to address the issues of building First-Class Mail volume and value. 

There were twenty participants, none of whom were associated with the Postal Service.  Considering volume trends, the year 2005 was a pivot point,

when Standard Mail exceeded First-Class Mail volume.  Currently it takes three pieces of Standard Mail to contribute the same revenues as one

piece of First-Class Mail.  As that volume trend continues, the average per piece profitability of total mail volume will decrease.  One approach to

offsetting this situation is to look at how to increase the value of First-Class Mail.

 

The Summit looked at the impact of electronic bill presentment and payment. Aside from the incentive to avoid paying for a stamp, consumers

are finding that some companies are actually charging a fee to send a check through the mail.  Even so the mailed bill (presentment) is still the norm. 

And even though about 64% of households have Internet access, most do not use it for business purposes.  There are issues of trust, safety and liability. 

Financial and managerial individuals are more likely to move to electronic commerce, while marketers and consumers are more reticent.  Nonetheless,

the Internet is a mature technology and its use will continue to increase slowly unless there is some impetus to move more rapidly into electronic

payments (e.g., a dramatic increase in postal rates).  The big question is how high those rates must be to create a significant change.

 

The Summit participants looked at a number of ways to increase the value of the mail.  The mail has the value of “touch” and research has

shown that the look and feel of a mail piece affects its perceived value to the recipient. About 65% of the cost of mailing is postage, so mailers may use

the remainder to enhance the end user value of the envelope – through use of color, personalization, and other effective marketing processes.  Mailers

also agree that the value of the mail can be increased by more flexibility in choosing mail services – allowing them to select and pay for only those

services that are advantageous – delivery time, forwarding, UAA information, use of Planet Code, variable pricing for distance mailed (since it costs

the same to send a letter around the corner as it does across the continent), etc. – so that providing a menu of services rather than a few bundled

services might reduce costs.  Innovations may also affect the volume trend – imaging documents for hard copy delivery only at the destination,

using invisible inks for bar codes and giving up the space reserved for bar codes, incorporating bar codes and other information in stamps or indicia,

allowing Postal Service customers to design their own stamps, etc.  The intelligent mail process can make a major positive impact on the value of the

mail, but there are also issues of privacy and security that mailers will consider.  Businesses are becoming more sensitive to the value of the material

inside the envelope, and are putting more marketing and other information on invoices and bills.  

 

Mr. Benjamin noted that the Postal Service has been a leader in enhancing the value of  the mail, especially through the increased use of

information-rich bar codes and extensive tracking and reporting services.  He added that there will be more summits in the future that will look more

closely at innovation and ways to create higher value for First-Class Mail.

 

During discussion, Mr. Benjamin observed that the new, larger bar codes would impact the current dimensions of the #10 envelope, which

will probably have to be redesigned in the near future.

 

 

                                               Service Measurement and Improvement:

 

 

Management of Service Performance Reporting (WG # 103)

(formerly referred to as Standardized Reporting of Service Performance)

Ellenor Kirkconnell and Jim Hess

 

Ms. Kirkconnell announced the formation of this new work group and invited interested MTAC members to contact her

at ellenor@nonprofitmailers.org.  The first meeting will be held on June 1 at USPS Headquarters and there will be a teleconference

capability for those unable to make the trip.  Mr. Hess announced that the Postal Service had put together a 5-6 person team to support

the work group.

 

Ms. Kirkconnell read the issue statement:  The mailing industry creates many different types of service data and service performance

reports.  The lack of credibility and absence of standardization often makes it difficult for the Postal Service to be responsive to these reports. 

The lack of actionable data on which service performance measures could be enacted is frustrating for both the mailers and the Postal Service. 

Thus, the desired results will be to develop a protocol using “industry gathered” delivery data to identify problems and perform diagnostics. 

Implied in the work group charter is that the data will be similarly formatted, presented in a timely fashion, and will allow the Postal Service to

take corrective action. 

 

There was a brief discussion on the similarity of the work group’s mission to that of Work Group 94, and Ms. McGarvy explained that

the latter work group’s mission turned out to be so broad as to dilute its effectiveness.  Therefore, this more narrowly defined mission should result

in a positive result.

 

 

                                             Seamless Acceptance and Induction:

 

 

Advance Notification Streamlined Verification New WG # 102)

John Sexton, Cindy Mallonee and Pritha Mehra

Please click here to view presentation

 

Mr. Sexton explained that the First-Class mailers had indicated an interest in the surface and air visibility available through the FAST system.  

He stated that the first steps will be to determine that the system is able to integrate First-Class mailers.  The work group discussed that issue at its

first meeting and developed a proposal for consideration – to define capabilities of advance notification, streamlined acceptance and visibility for First-Class

Mail.  That became the mission statement, and the work group agreed that electronic advance notification would have to be created using current tools

(mail.dat, web services and postage statement wizard).  The infrastructure for including First-Class Mail must be developed.  The work group will look at

the current FAST capabilities, the MPTQM quality process, the possibilities related to business mail acceptance, the relationship to Confirm, and working

out the advance notification with mail service providers and mail owners.  The work group expects to issue a final report in September 2007.

 

 

Seamless Acceptance for MLOCR Environment (WG # 100)

Jay Gillotte/Pritha Mehra

Please click here to view presentation

 

Mr. Gillotte announced that the work group was looking at how to convert the current paper-driven reporting system to an electronic reporting process. 

In the early pilot program, two mailers are identifying changes that may be required to mail.dat and PostalOne!  One participant has been able to generate

electronic mail.dat reports.

 

In the next phase, there will be a proof of concept that the seamless acceptance and verification process is feasible, and in that phase the pilot program

will look at the business mail entry (BME) acceptance/verification process, the use of electronic documentation from mailers direct to the Postal Service, generation

of electronic postage statements from electronic reports, and a process to verify mail (including as many automated steps as possible).  The goal is simplified

acceptance/verification for MLOCRs.  The work group will address the areas most easily automated first – piece count, presort, automation capability and bar code

quality.  The more challenging areas include address accuracy, shape and weight considerations, accurate postage and dealing with non-automated mail.

 

Moving forward it looks as if the process will rely on the 4-state barcode (although other code combinations are possible), and there will be a number

of steps in the final testing process:  electronic mail documentation, mail entry and tests (MERLIN), reconciliation of mailer reports, and Postal Service scans

and MERLIN data analysis, verification of presort at the tray level, and ultimately transfer of the data to verify proper mail quantities for rate qualification.

 

The first pilot mailing began on May 4 and the analysis of that data and the development of criteria for the next pilot test phase is in process. 

Then the work group will look at the actual relationships – how the mail is handled, where it is tested and verified, and how postage adjustment will be made.

 

 

Streamline Acceptance/Verification of Periodicals (WG # 99)

Scott Lorenz/Pritha Mehra

Please click here to view presentation

 

Mr. Lorenz commented that the work group has agreed that mail.dat will be the primary tool for the acceptance/verification process.   It has

completed reviewing bookweight and ad percentage and work remaining is to examine the final, consolidated process to calculate and verify postage in

as short a time line as possible.

 

The work group has issued a document that defines and tracks the bookweight process, including the use of mail.dat, and has developed a

worksheet for DMU clerks that supports the use of the new electronic file created in the DMU.  It has determined how ad percent can be captured and

transmitted to the responsible end user in the process (the printer or PostalOne!). 

 

The work group continues to work on the reports, how to finalize ad percentage and how to get that information to the responsible end user. 

The next major step is to validate the process and conduct a pilot test.  Mr. Lorenz added that it is important to gain the confidence and cooperation

of the audit bureaus.

 

                                        

 


THURSDAY, May 18

 

Welcome/Messages

Don Harle , Vice Chair, Industry

Alixe Johnson, Vice Chair, Postal

 

Mr. Harle called the meeting to order and announced that, in the future, there would be a new procedure for posting minutes.  Within

a week of the meeting, the speakers PowerPoint presentations would be posted to the RIBBs web site.  Then the written, detailed minutes

would be posted as soon as available.  The highlights would not be provided for future meetings.

 

 

National Postal Forum (NPF) -- Orlando Results

Alixe Johnson

Please click here to view presentation

 

Ms. Johnson announced that the next Postal Forum would be held in Washington, DC on March 25-28.

 

She commented that the 2006 Postal Forum held in Orlando, April 2-5, was an outstanding success.  There were 2,510 paid registrants

(more than the goal of 2,500), and 6,580 individuals participated.  With a goal of 490 exhibit booth sales, 163 vendors reserved 556 booth slots. 

There were 138 workshops, more than ever before, 12 business tracks, and 11 certificate programs.  Next year there will be more certificate