are you ready for this? 2013 industry changes and beyond!
DESCRIPTION
USPS Network Consolidation and Service Changes Mailpiece Design and Address Quality USPS Promotions – connect the physical mail with digital world and save! 2013 & Beyond – Full Service IMb®, E-induction, & Seamless AcceptanceTRANSCRIPT
ARE YOU READY FOR THIS? 2013 INDUSTRY CHANGES & BEYOND!
Alison Hall,
Director of Client Services –
Direct Mail Solutions
Steve Krejcik,
Director of Strategic Technical Business Development
June 18, 2013
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Alison HallAlison Hall, Director Client Services,Direct Mail SolutionsPitney Bowes Presort Services
Today’s Presenters
Steve KrejcikDirector of Strategic Technical Business DevelopmentPitney Bowes Presort Services
3June 18, 2013
Agenda
AGENDA
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USPS Network Consolidation and Service Changes
Mailpiece Design and Address Quality
USPS Promotions – connect the physical mail with digital world and save!
2013 & Beyond –Full Service IMb®,E-induction, & Seamless Acceptance
What? USPS is reducing cost structure by consolidating USPS processing
facilities
Why? 15.9 billion losses last year USPS
How? From 461 facilities in 2012 to 232 targeted in 2015 46 USPS processing centers consolidated in 2012 100 USPS processing centers targeted in 2013 March 28, 2013, USPS added an additional 53 USPS processing centers
to be accelerated and consolidated in 2013 from 2014 consolidation listing
USPS® Network Consolidation and Service Changes
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Phase I Winter 2013 Consolidations
About Tableau maps: www.tableausoftware.com/mapdata
6June 18, 2013
Click on the link for
Latest Mail Move Plan
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Mail Move Plan as of March 8, 2013
Consolidation sites scheduled for 2013
Site address, locale key, and the name of the activation (gaining) facility
Workload migration “target” dates
Mail shape effected (e.g. letters, flats, parcels/bundles)
Process step/entry level ( e.g. originating, destinating, and DPS)
Mail Move Plan File Includes:
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Service Standards
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Service Standards
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Service Standards
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Mailpiece Design & Address Quality
Making your mailings and data work harder and better!
Folded Self-Mailers
Design Elements
Top Addressing Issues
Address Quality Foundation
Effective January 5, 2013
Definition: A folded self-mailer is formed of two or more panels created when a single or multiple unbound sheets of paper are folded together and sealed to form a letter size mailpiece
Complete details are listed at www.pe.usps.gov in DMM section 201.3.14 and 201.3.15
Folded Self Mailers
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Dimension Height – 3.5” to 6” max (new) Length – 5” to 10.5” max (new)
Weight – up to 3oz (new)
Paper cover basis weight - Book grade (Text, Offset) Basic Folded Self-Mailer design 70lb (new) min for 1oz mailpiece; 80lb (new) over 1oz up to 3oz
Newsprint paper allowed on quarter-fold design only 55lb minimum paper, 1.5 inch tabs required (new)
Closure Methods Glue - minimum 3 spots required (new); 4 spots if over 1 oz (new) Tabs – minimum 2 1” tabs required (new); 3 tabs when over 1 oz and/or optional elements
incorporated
Critical Design Element Changes
Changes to Dimensions,
Weights, Paper
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Folding Panels defined Minimum number of panels when folded is two For bi-fold, fold no longer allowed at top (new)
Flaps Horizontal fold (new)
Must be at least 1.5” long Must end 1” or more from bottom edge
Vertical fold (new) Must be folded from lead edge At least 5” at longest point No closer than 1” to the trail edge
Basic Design Elements
Changes to Closure Methods, Folding,
and Flats
Additional Elements (new) Interior Attachments Loose Enclosures Die Cuts
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The quality of your address data directly affects the deliverability of your mail!
USPS® provides an extensive suite of Address Quality products and services; check out ribbs.usps.gov
USPS is committed to continuous address hygiene improvements to enhance the value of mail
Small efforts canbring big results!
Address Quality
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USPS® has determined that up to 23% of all mail contains addressing errors
Common errors:
Addressee moved …...…………………………………….. 2.4%
Directional/Suffix missing ..……………………….............. 6.0%
Street name/Number incorrect/invalid ..………................ 5.9%
ZIP Code™/City incorrect ……………………………….4.8%
Apt number/Rural Box number missing …...…………….. 4.5%
Total 23.6%
Address Quality
USPS—AEC and AEC II® User Guide, p. 3
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Inconsistent filling of fields
Missing gender indicator
Trailing space after name or address
Misspelled words/Improper abbreviations
Missing or wrong street, directional, prefix, suffix
City, state, or ZIP Code™ missing or in conflict
Missing or incorrect secondary address information
Incorrect company legal name or reference name
Dual names
Extraneous information in name field
Top Addressing Issues
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4% UAA Volume 2011/2012
Cost over$1.3 Billion
Undeliverable as Addressed (UAA) Mail
June 18, 2013
Address QualityFoundation
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StandardizeStandardize CASS Certified SoftwareCASS Certified SoftwareTMTM
ValidateValidate
LACSLink®LACSLink®
DPV®DPV®
SuiteLink®SuiteLink®
UpdateUpdateNCOALink®NCOALink®
ANKLink®ANKLink®
ACSACSTMTM
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USPS Promotions –
Connect Physical Mail w/ the Digital World & Save!
Objective: Increase the long-term value of mail
Highlight new technology and best practices
Encourage and accelerate industry innovation
Increase relevancy and engagement with consumers
New in July – May participate in multiple promotions on the same piece
Insight: Mail is Still Highly Valued
80% look at their mail daily – as a valuable news resource
75% like to see what’s in the mail
63% of mail is kept at least 2 days
Source: USPS 2011-2012 Mail Moment Survey
June 18, 2013 24
2013 Promotions Summary
Name Registration Promotion Discount Description
Product Samples
5/1 – 9/30 8/1-9/30 5% upfront discount
For marketing parcels that contain samples
Picture Permit* 6/1 – 9/30 8/1-9/30 Up to 2 cents per piece
Custom permit indicia
Emerging Technologies*
6/15 – 9/30 8/1-9/30 2% upfront discount
Augmented Reality, Near Field Communications
Mobile Buy-It-Now
9/15 – 12/31 11/1-12/31 2% upfront discount
Integrated mobile shopping technology
* Requires special approval prior to mailing
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2014 Promotions Ideas
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Email [email protected]
Emerging Technology Mobil But-It-Now Product Samples
[email protected] Picture Permit
Documentation https://ribbs.usps.gov/index.cfm?page=mobilebarcode https://www.usps.com/business/promotions-and-incentives.htm
USPS Promotion Resources
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2013 and Beyond
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Full Service IMb
e-Induction
Seamless Acceptance
USPS has announced that Full Service IMb will be required to receive automation discounts after January 26, 2014
How will USPS measure quality and what are the consequences?
Validations - Today and in 2014New Validations - January 26, 2014Postage Adjustments - July 27, 2014
Full Service IMb
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Full Service Verifications – Today and in 2014
Automation Verification – Existing Verifications Mailpiece preparation including dimensions, shape, weight, and flexibility Barcode quality Content Presort makeup Automation eligibility
Existing Thresholds Apply
Mailing Falls Below Thresholds Returned for Rework Additional Postage at the applicable rates in January Examples:
Poor Barcode quality = % of pieces at Non-Automation Rates
Poor Presort quality = % of pieces at FCM Single Piece Rates
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Full-Service Acceptance - Existing Verifications Documentation not submitted electronically
Container placards are inside or covered by shrink-wrap
No Intelligent Mail container barcodes on the container placards Initial Sample = 1 Container If in error, select additional 3 containers More than 2 total errors = Failure
No Intelligent Mail tray barcodes on the tray/sack labels Initial Sample = 3 Handling Units If one or more in error, select additional 3 Handling Units More than 3 total errors = Failure
No Intelligent Mail tray barcode on the mailpieces Initial Sample = 30 Mailpieces 4 or more in error = Failure
Mailing Falls Below Thresholds Returned for Re-work Additional postage at the non-automated rates in January
Full Service Verifications – Today & in 2014
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Full-Service Electronic Verification - New Verifications Validation of the Information contained in eDoc Data is aggregated over a one-month period Displayed in the Mailer Scorecard by CRID Develop reasonable thresholds In the October release, PostalOne! will display the projected invoice from
full-service electronic verification failures Removal of full-service and automation rate Only mailpieces with verification errors above the preliminary threshold
Within 48 hours after the eDoc is processed the following occurs: Full-Service eDoc verification
Check every container, handling unit and piece in electronic documentation and evaluate for specific errors
Trend results are monitored for at least one month
Full Service New Validations January 26, 2014
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Full Service New Validations - January 26, 2014 All validations are performed by checking against values provided in the eDoc
Validation What is it?
Mailer IDMailer ID provided in the IMb, IMtb, or IMcb is valid and registered with the USPS Mailer ID system
Service Type IDService Type ID provided in the IMb is valid, appropriate for the class of mail, and appropriate for the service level of the mailpiece
By/For Mail Owner and Mail Preparer are provided for each mailpiece
Unique ContainerBarcode
IMcb is unique across all mailings from all eDoc submitters for the past 45 days
Unique TrayBarcode
IMtb is unique across all mailings from all eDoc submitters for the past 45 days
Unique Piece IMb is unique across all mailings from all eDoc submitters for the past 45 days
Co-Palletization Co-palletization files are submitted within 14 days for trays/virtual sacks marked for co-palletization at origin
Entry Facility Entry facility provided in eDoc (Locale key or ZIP Code) is a valid USPS facility
Scheduled ShipDate
For USPS Transported containers that do not receive scan at arrival to USPS facility, scheduled ship date/time is within 48 hours of finalization date/time.
June 18, 2013
The Mailer Scorecard provides a dashboard view summarizing performance
Allows comparison across facilities
Conditional formatting provides a trending view across months
Drill reports provide a way to determine specific mail preparation errors
Available for any company that submits electronic documentation
Data grouped by eDoc submitter CRID
The Mailer Scorecard
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Go to Business Customer Gateway: https://gateway.usps.com
From menu on left, click on “Mailing Services” Click on “Mailing Reports (PostalOne!)” Click on “Mail Quality Reports” Click on “Shared Reports” Click on “Mailer Scorecard” Click on “Mailer Scorecard” again Select a month to review Click “Run Document”
How to Access The Mailer Scorecard
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Full Service Mailer Scorecard (Available today)
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USPS will establish and publish thresholds during the first six months of 2014 based on a statistical analysis of actual mailer quality.
Example thresholds can be found in the scorecard
Full Service Thresholds
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eDoc evaluation based on monthly average Not individual mailings
Postage adjustments occur if a particular error is over the threshold
Number of pieces in error times the difference between postage affixed and the presort rate
Example: 10,000 piece mailing with 11% error while threshold is 10% and postage claimed is $.36.
1,100 pieces in error X (.433-.36) = $80.30 Additional postage due
Full Service Postage Adjustments - July 27, 2014
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All postage assessments will be performed at the eDoc Submitter CRID level
Mailers will have 10 days to review the invoice and all mail preparation errors:
During this period of time, mailers can elect to dispute errors If contested, invoice will be placed in a dispute queue report made available
externally
Full Service Postage Adjustments - July 27, 2014 Invoice Generation Timeline
End of Invoicing Period
(Month End)Invoice
Generation
10 Days
Pay/Dispute Invoice
VAEVerification
Assessment Evaluator
10 Days
Update/Reject/Close DisputeBMS Reviewer
5 Days
Pay InvoiceVAE
3 Days
If unpaid, invoice will be marked as overdue
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In-House solution Control over the mail Added costs for capital and IT Complicated requirements USPS Risk
Full Service Implementation Options
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Presort Bureau No capital investment Improved postage rates due to increased qualifications Reduce operational labor Move Update compliant Current with USPS® rules & regulations Presort Bureau will interface with USPS
Automated mailing requirementsFull Service requirementsMail acceptance
Visibility with Intelligent Mail® You can start today
Full Service Implementation Options
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Intelligent Mail Services Email: [email protected]
Web: https://ribbs.usps.gov
Phone: 800-522-9085
Full Service & Intelligent Mail Resources
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eInduction
eInduction will streamline the induction of drop shipments and expedited plant load mailings
This optional program goes live later this year
Eliminates need for 8017 and 8125
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The eInduction Process
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Seamless Acceptance
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Seamless Acceptance - How it Will Work
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Seamless Acceptance
Verifications results on the Seamless Acceptance Scorecard & Dashboard/Reports Users will be able to access detailed information about mail quality
Verifications are performed on data from mail operations by comparing MPE scan data to the information submitted in eDoc for the following categories:
Barcode Scan Rate Undocumented Mail Presort
Entry Location Move Update Duplicates
Postage Affixed Presort Duplicates
Postage Payment Method
Content Piece Weight
Barcode Construct Undocumented Mail
Verifications are performed by comparing data collected through FS-IMD sampling to the information submitted in eDoc for the following categories:
Sampling Verifications
MPE Scan Verifications
Reporting
June 18, 2013
Alison HallAlison Hall, Director Client Services,Direct Mail SolutionsPitney Bowes Presort [email protected]
Questions?
Steve KrejcikDirector of Strategic Technical Business DevelopmentPitney Bowes Presort [email protected]
50June 18, 2013
www.pb.com/mailservices
THANK YOU.