Reduce Postage Costs and Improve Delivery, Combined Mailing Solutions

PCC Mailers Forum 2014

September 10th, 2014Deborah Damore

Fairrington Transportation

Agenda

Overview

• Plant Verified Drop Ship (PVDS)• How does it work?

• What is Co-Pal & Co-Mail• Benefits• On-Boarding• USPS fees and requirements

• Mixed Class Combined Mailing

Combined Mailing Solutions

Plant-verified drop shipment (PVDS) enables origin verification and postage payment for shipments to be drop shipped to destination.

Transported by mailer (or third party) at the mailer’s expense on the mailer’s own or contracted vehicle to destination USPS facilities for acceptance as mail at discounts.

Prepared for deposit at a destination entry price DNDC, DSCF, DADC or DDU

Plant Verified Drop Ship

Combined Mailing Solutions

Standard Mail, Bound Printed Matter, and Periodicals may be eligible for further discounts if the mail is entered closer to its destination.

Destination Network Distribution Center (DNDC) Destination Area Distribution Center (DADC) Destination Sectional Center Facility (DSCF) Destination Delivery Unit (DDU)

The discount received depends on where the mail is entered.

Postage Savings

Combined Mailing Solutions

Shipment Flow

Combined Mailing Solutions

Understanding Mail Flow

Future Mailing Strategies: Co-Pal & Co-Mail

Co-palletization is the process of combining addressed, independently pre-sorted mailings from different sources into pallet-sized drop-shipments.

Co-palletization can be completed in house, or through a third party partner.

Co-palletization can be applied to Standard Letter Mail, Standard Flat Mail and Periodical Flat Mail.

Future Mailing Strategies: Co-Pal & Co-Mail

What is Co-Pal?

What are the benefits?

Future Mailing Strategies: Co-Pal & Co-Mail

Decrease postage trough co-palletization processing while increasing in-home management possibilities.

Maximize Postage Savings. Improve on Delivery Service, SCF/NDC vs. Local. No impact on content inside tray. Pay actual postage for your mailing. Opportunity to consolidate multi-cell mailings to hit

USPS on the same pallet at the same time

Example of Co-Pal Savings

Combined Mailing Solutions

On Boarding for Co-Pal

Combined Mailing Solutions

Requires USPS authorization. Requires mailers can prepare eDoc using mail.dat file with PostalOne. Full Service mailings can still receive full service discounts in Co-Pal. Standard Letter Co-Pal

Postage is paid at origin on current permit account using eDoc. Postage is paid prior to pool processing at predetermined

SCF/NDC entry levels. Periodical Flat Co-Pal

Mailers open additional entry at Co-Pal site. Postage is paid after pool completion under mailers pub number

using eDoc.

Co-Mail is the process of combining and presorting two or more titles into a single mail-stream. This process lowers the per/piece postage rates due to improved level of presort for each title. It also creates deeper penetration into the postal system, facilitates more consistent and timely delivery, and allows mail pieces to arrive in better condition with less handling by the United States Postal Service.

Combined Mailing Solutions

What is Co-Mail?

Benefits of Co-Mail

Combined Mailing Solutions

Piece presort postage savings along with destination entry discounts.

Mail entered deeper into the postal stream. Reduced Postal handling, helps your mail arrive “in-

home” in better condition.

Origin Drop Ship Co-Mail

Quantity 148,667 148,667 148,667

Carrier Route 0% 0% 37.52%

Postage $57,777 $52,607 $42,054

Postage Saving $0 $5,170 $15,723

SCF 0% 26.88% 88%

Cost $3,135 $12,084

Net Savings $2,034 $3,639

Combined Mailing Solutions

Example of Co-Mail Savings

Mailing Line 1

Mailing Line 2

Mailing Line 3

Before Co-Mailing Produced Separately

Combined Mailing Solutions

GO HOKIESBEAT MIAMI

MAILER PLACARD

SCF ENTRY

Co-Mail Pieces are Presorted Together into the same Bundles onto the same Containers

Bundles Contain Multiple Titles

Combined Mailing Solutions

Basic Co-Mail Requirements• Addressing restrictions

• Trim Size range within a co-mail cycle is restricted

• Limited range in variance between thinness to thickest in co-mail pool

• Polybag mailpieces are permissible (Might require testing)

• All participants together cannot exceed the number of available pockets

• Check with your Co-Mail vendor for the minimum and maximum requirements on height, width, and thickness

Combined Mailing Solutions

Periodicals

Future Mailing Strategies: Co-Pal & Co-Mail

Complete USPS Form PS-3510 for additional entry at Co-Pal site.

For both classes make application for CAPS account Submit PS-6002

Standard mailMailing permits must be opened at the USPS site servicing the Co-

Mailer Complete USPS Form PS-3615

The below does not pertain to mail utilizing Mail Anywhere

Mixed Class Co-Mail

Future Mailing Strategies: Co-Pal & Co-Mail

Mixed Class Co-Mail allows mailers to combine Periodical and Standard mail flats within the same bundle and therefore on the same pallets. Co-mailing Periodical and Standard mail benefit mailers through:

Increased discounts Fewer packages and sacks Improved drop ship penetration

Requirements: Participants are required to present standardized electronic mailing

documentation Full Service is strongly suggested, but not required. Mailers preparing combined mailings of Standard mail flats and Periodical

flats are required to retain written notifications, signed and dated by each participating Periodical Publisher, disclosing the potential for pieces to receive deferred USPS handling.

Mixed Class Co-Mail, Prep Requirements

Combined Mailing Solutions

•Entry

• DNDC, DSCF only

• DDU, DADC not permitted

•Bundle Minimums

• Pure Periodicals – 6 pc

• Pure Standard– 10 pc

• Mixed – 10 pc

• Firm bundle – follow existing standards

•Placards, Labels, OEL

• “MIX COMAIL” verbiage required

•Piece thickness

• 3/4” maximum thickness (Not oversized)

What you should know from your vendor

•Drop schedule – how often, how regular?

•Delivery data – number of days to in-home?

•SCF / NDC % – how well penetrating USPS destination network? Volume drives destination numbers.

•Security / disaster recovery / financial stability

•Quality Control processes?

Combined Mailing Solutions

Resources

Ribbs website: http://ribbs.usps.gov/

Postal Explorer: http://pe.usps.com/

DMM :http://pe.usps.com/text/dmm300/dmm300_landing.htm

Combined mail federal register notice : http://pe.usps.com/FederalRegisterNotices.asp

USPS forms: http://about.usps.com/forms/welcome.htm

Combined Mailing Solutions

Any Questions?

Combined Mailing Solutions