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Package Payment and Visibility Mailers Technical Advisory Committee Meeting November 17 -19, 2009 Package Payment and Visibility Mailers Technical Advisory Committee Meeting November 17 -19, 2009

Package Payment and Visibility Agenda § Electronic Verification System (e. VS) Vicki Bosch Manager, Package Payment and Visibility Agenda § Electronic Verification System (e. VS) Vicki Bosch Manager, Business Mailer Support § Product Tracking System Update Juliaann Hess Manager, Product Information Requirements § Package Visibility Initiatives Jeffery Freeman Manager, Intelligent Mail Implementation 2

Package Payment e. VS® MTAC Update 3 Package Payment e. VS® MTAC Update 3

§ § Current Status of e. VS Customer Growth in e. VS Recent e. § § Current Status of e. VS Customer Growth in e. VS Recent e. VS changes Future planned changes 4

Current Status of e. VS Benefits of using e. VS § § Master permit Current Status of e. VS Benefits of using e. VS § § Master permit for payment Electronic files for postage payment Streamlined acceptance Elimination of paperwork (hard-copy manifests, postage statements, and PS Form 8125 s) § Online mailing data § Monthly reconciliation 5

Current Status of e. VS Available mail classes § Express Mail NEW – AUGUST Current Status of e. VS Available mail classes § Express Mail NEW – AUGUST 2009 § Priority Mail – Single Piece and all Flat-Rate Packaging § First-Class® – single piece and presorted § Parcel Select® – Destination Entry, BMC Presort, OBMC Presort, Nonpresort § Standard Mail® – regular and nonprofit (no CR-RT) § Bound Printed Matter – Presorted and Nonpresorted (no CR-RT) § Media Mail® – single piece and presorted § Library Mail – single piece and presorted 6

Current Status of e. VS supports Parcel Return Service (PRS) § PRS § Machinable Current Status of e. VS supports Parcel Return Service (PRS) § PRS § Machinable § Nonmachinable § RDU e. VS/PRS ABIILITY TO MANIFEST TO RDU – NOVEMBER 2009 § RBMC § Priority Mail § Single piece § All Flat rate packaging 7

Current Status of e. VS Mailer Identification Numbers (MIDs) § § Unique to e. Current Status of e. VS Mailer Identification Numbers (MIDs) § § Unique to e. VS Tied to payment in e. VS Package and File Uniqueness § § Package Identification Codes (PICs) must remain unique for 180 days Electronic File Numbers (EFNs) must remain unique for 180 days Manifest Files § § Transmitted through the Product Tracking System (PTS) File format § § § Flat file format for version 1. 4 OR EDI format Via secure file transmission mechanism § § AS 2 SFTP with PGP Note: We have some customers who are still using ftp for file transmissions, we will be moving all customers to secure file transmission 8

Current Status of e. VS Monthly Reconciliation § Postage Adjustment Factor (PAF) exceeding 1. Current Status of e. VS Monthly Reconciliation § Postage Adjustment Factor (PAF) exceeding 1. 5% per mail class § Un-manifested packages § DDU Mis-shipped packages § Manifest Errors per mail class 9

Customer Growth in e. VS Electronic Verification System FY Live mailers Total Pieces Total Customer Growth in e. VS Electronic Verification System FY Live mailers Total Pieces Total Postage 2005 3 12, 668, 666 $18, 154, 255. 43 2006 7 27, 333, 902 $43, 433, 768. 73 2007 7 84, 460, 882 $141, 123, 066. 28 2008 9 123, 217, 130 $232, 367, 165. 23 2009 39 319, 868, 572 $555, 106, 737. 47 10

Recent e. VS changes November 2008 Ø Postage Adjustment Factor separated by mail class Recent e. VS changes November 2008 Ø Postage Adjustment Factor separated by mail class March 2009 Ø Destination Entry Validation for BMC, SCF, and DDU Ø e. VS re-priced packages if they were planned to be deposited at the incorrect facility Ø Manifest Errors Ø Packages with invalid rate ingredients appear on the Manifest Error Report and are charged an average per piece charge based on the mail class Ø Packages appearing on this report can be resubmitted in new files to correct

Recent e. VS changes August 2009 Ø All e. VS postage statements will be Recent e. VS changes August 2009 Ø All e. VS postage statements will be set to a status of NAP on the dashboard in Postal. One! Ø Transaction ID will appear in CAPS when used in e. VS header record to allow for end-to-end reconciliation. Ø e. VS finance number will require customers to change the Post Office of Account ZIP Code in their file. Updated file format 1. 4 c is available on RIBBS and includes changes for Express Mail. Ø e. VS began validating the ZIP Code on all parcels; if the incorrect zone has been claimed in the file, a variance will result. Both zones will appear on the variance report. Ø Express Mail available in e. VS Ø Manifest Errors Ø Rejected headers will appear on the Manifest Error Report Ø Invalid PICs and invalid STCs no longer appear in the Manifest Error Report, but instead appear as warnings instead of errors in the Manifest Confirmation Report

Recent e. VS changes November 2009 Ø PRS fully integrated in e. VS Ø Recent e. VS changes November 2009 Ø PRS fully integrated in e. VS Ø Ø Ø New Rate ingredients must be used by PRS customers or records will filter to manifest errors report Reports available to e. VS customers are available to PRS customers All e. VS adjustments will apply to PRS; except mis-shipped Ø Destination rate validation for BMC, SCF and DDU implemented using the Mail Direction File Ø Ø Ø For 2 weeks, parcels that are not planned to ship to the appropriate facility will appear as warnings After Dec 1, all parcels entered at BMCs or SCFs will be re-priced for non-destination entry prices when planned to ship to the incorrect BMC or SCF facility At a later date (TBD), DDU validation will also result in re-priced parcels for non-destination entry rate prices Ø Patch to e. VS finance number should allow use of the new finance number. Customers will be contacted when we are ready to migrate them to use the new ZIP Code in the manifest file. Ø Updated variance report to include destination rate validation information and display file and sub file number.

Future Planned Changes January 2009 Ø Price Changes Ø Support new rate ingredients for Future Planned Changes January 2009 Ø Price Changes Ø Support new rate ingredients for Priority Mail and Express Mail. March 2009 Ø New Intelligent Mail Package Barcode will be supported Ø New file to support IMPB – version 1. 5 Ø Allow support for containerization Ø File format restructured; permit information will be in detail record Ø We will continue to support file version 1. 4

Product Tracking System (PTS) Update Product Tracking System (PTS) Update

Intelligent Mail® Package Barcode New Format Features § GS 1 -128 symbology § More Intelligent Mail® Package Barcode New Format Features § GS 1 -128 symbology § More flexible specification tolerances § Commercial, online, retail barcode constructs § 5 - or 9 -digit routing information required § AIs that associate barcode with payment § 3 digit Service Type Code for packages and Special Services § 9 -Digit Mailer ID and 6 -Digit* Mailer ID** § Unique serial number § Requires new electronic file – version 1. 5 * On an exception basis ** Unique mailer ID for packages different from mailer IDs used for letters and flats 16

Intelligent Mail® Package Barcode Elements – New Format * *Application Identifiers (AI): 92 - Intelligent Mail® Package Barcode Elements – New Format * *Application Identifiers (AI): 92 - Commercial with 9 -Digit Mailer ID 93 - Commercial with 6 -Digit Mailer ID 94 - Online 95 - Retail Must include AI in label number when tracking 17

Intelligent Mail® Package Barcode Customer Benefits § Better tracking data § Consistency among mail Intelligent Mail® Package Barcode Customer Benefits § Better tracking data § Consistency among mail classes and products § Enhanced service performance measurement § Adds value to products to meet customer needs and grow business § One barcode per package 18

Intelligent Mail® Package Barcode Outstanding Issues § Address Correction Service Identification • Barcode or Intelligent Mail® Package Barcode Outstanding Issues § Address Correction Service Identification • Barcode or indicator in file • Legacy DUNS Mailer IDs not compatible • Customer input needed • Workgroup volunteers solicited – Meetings to be scheduled 19

Intelligent Mail® Package Barcode First Success – Click-N-Ship 94 Online Application Identifier 055 Three Intelligent Mail® Package Barcode First Success – Click-N-Ship 94 Online Application Identifier 055 Three digit Service Type Code 20

Proposed Implementation Timeline When Milestone May 2008 Introduce new Intelligent Mail® Package Barcode w/ Proposed Implementation Timeline When Milestone May 2008 Introduce new Intelligent Mail® Package Barcode w/ Enhanced Service Type Code May 2008 – June 2010 Systems Development Cycle January 2010 Publish Intelligent Mail® Package Barcode Advance Notice March 2010 June 2010 November 2010 June 2011 Publish Intelligent Mail® Package Barcode Federal Register Notice Publish Intelligent Mail® Package Barcode Final Rule All Postal Systems Ready for Intelligent Mail® Package Barcode Required for Commercial and Online Customers 21

Visibility Enhancements New Out-for-Delivery Event and More! 22 Visibility Enhancements New Out-for-Delivery Event and More! 22

Product Tracking System Update Label Precertification Program § Implemented June 2009 § Eliminates requirement Product Tracking System Update Label Precertification Program § Implemented June 2009 § Eliminates requirement to submit Confirmation Services/e. VS labels for certification before shipping § Supports ease of use § For consolidators and vendors § Transmit manifest data using same parent (master) mailer ID for all child mailer IDs § Certify software once § Manage ongoing quality with data – Manually keyed labels less than 1. 5 percent – No duplicate label numbers 23

Product Tracking System Update Key Enhancements § September 2008 § Intelligent Mail Package Barcode Product Tracking System Update Key Enhancements § September 2008 § Intelligent Mail Package Barcode Phase 1 changes implemented for PTS § August 2009 § Out-for-Delivery Events § Express Mail in e. VS § September 2009 § Intelligent Mail Package Barcode Phase 2 changes implemented for PTS – Version 1. 5 file format § Integrated Carrier Pick-Up Form § October 2009 § Track and Confirm goes Mobile! § November 2009 § Upgrade mainframe processing capacity § January 4, 2010 § Price change for Shipping Services products § March 28, 2010 § International visibility enhancements 24

USPS Product Visibility Initiatives USPS Product Visibility Initiatives

Product Visibility § Goal is to provide “End-to-End” visibility desired by shippers § Target Product Visibility § Goal is to provide “End-to-End” visibility desired by shippers § Target scans of key value to customers § Leverage existing equipment investments 26

In The Beginning… § Limited to events captured at Delivery § March 1999 - In The Beginning… § Limited to events captured at Delivery § March 1999 - Delivery Confirmation service § July 2000 - Electronic signature capture § Expanded barcoded labels and visibility to Registered Mail, Certified Mail, Insured Mail, Return Receipt for Merchandise in addition to Express Mail & Confirmation Services § 312, 577 Handheld scanners currently provide delivery status events § Delivered, Attempted, Return to Sender, etc. 27

Building the Capability § Enabling Mail Processing Equipment to Provide Scans Equipment BMC/NDC sorters Building the Capability § Enabling Mail Processing Equipment to Provide Scans Equipment BMC/NDC sorters Number Activated 21 2003 PDC Package Sorters APPS SPBS 74 230 2005 PDC Flat sorters AFSM 100 UFSM 1000 Overhead scanners 538 230 28 2006 2008 28

Leverage the Infrastructure § Implement policies and additional investments to provide value added scans Leverage the Infrastructure § Implement policies and additional investments to provide value added scans July 2009 Implemented “Arrival at Unit” scanning for all trackable products Scanning has improved from 67% to 89% FY 2010 Deploy additional passive scan equipment to support en route scanning 29

Moving Forward § Deploy additional passive scan equipment to capture manually processed pieces § Moving Forward § Deploy additional passive scan equipment to capture manually processed pieces § 109 processing facilities § Up to 5000 delivery offices § Monitor new scans to drive performance to world class levels § Arrival at Unit § Origin en route § Explore extending visibility to transportation network using nesting capabilities on existing scanning equipment 30

Package Payment and Visibility 31 31 Package Payment and Visibility 31 31