FLAT MAIL PREPARATION OPTIMIZATION Issue #81 MTAC November 5, 2003

1. FLAT MAIL PREPARATION OPTIMIZATION Issue #81 MTAC November 5, 2003

2. 5 – Digit Package Scheme for Flats (L007) • Covers Standard Flats, Periodicals, & Bound Printed Matter Flats • Run multiple 5-digits on same AFSM 100 sort plan • Incoming secondary sortation • In effect since early 2003 • Experienced problems with newspapers & rigid items

3. 5 – Digit Package Scheme for Flats (L007) • Reinforced machinability criteria to mailers • Borderline AFSM 100 compatible items should not use scheme • Majority of issues have been resolved • Very few reported concerns recently • Preparing to expand concept to 3-digit scheme

4. 3 – Digit Package Scheme for Flats • L007 issues cleared up – ready to start • Covers Standard Flats, Periodicals, & Bound Printed Matter Flats • Run multiple 3-digits on same AFSM 100 sort plan • Incoming primary sortation • All within single ADC?

5. 3 – Digit Package Scheme for Flats • Increases bundle size • Decreases number of bundles • Reduces allied labor expenses associated with prepping flats (Operation 035) • LDC 17 is one of last major areas of opportunity to target

6. 3 – Digit Package Scheme for Flats • Notified field operations coordinators of intent • Scheduled on MOS agenda to introduce • Letter to MOSs prepared to begin data collection • Should have scheme combinations by next MTAC

7. Co-Palletization / Co-Packaging of Mixed Classes • Product Redesign initiative • Covers Standard flats, Periodicals, & Bound Printed Matter flats • Lukewarm industry reception to Co-Pal • Stronger support for Co-Packaging • Co-Packaging subgroup met to discuss initiative

8. Co-Palletization / Co-Packaging of Mixed Classes • Helps consolidate flat streams • Gets out of sacks and onto pallets • Allows for deeper penetration into system • Reduces number of containers used • Reduced bundle breakage from decreased sack usage

9. Co-Palletization / Co-Packaging of Mixed Classes • Concerns about acceptance and verification • Issues around minimum package size • Timing issue – will this take away time from cost based rates work? • Industry split on how to proceed

10. Co-Palletization / Co-Packaging of Mixed Classes • Operational concerns about Standard ADC pallets • Can all ADCs handle Std. pallets? • Periodicals and Std flats often processed in different facilities • How to give Std service, but process in Periodicals mailstream? • Uncertain status

11. Periodical Firm Bundles • Periodicals mailings prepared under M940 and M950 • 5% limit would not apply to non-CRRT Firm bundles • Only for Firm bundles claiming 5-digit or basic rate • Firm bundle is treated as CRRT mail • Firm bundle is not opened/processed on FSMs

12. Periodical Firm Bundles • Bottom line – If L001 container exists, put all Firm bundles for those zips in container • Idea newly introduced to workgroup • Being reviewed for reasonableness and practicality • Will have status update at next MTAC

13. APPS – Barcoded Labels • 5 new presort barcoded labels • Width modulated barcode on labels • Proposed rule issued August 18, 2003 • Final rule issued October 17, 2003 • Postal Bulletin – October 30, 2003 • Effective date for use – April 1, 2004

14. APPS – Optional Endorsement Lines • Subgroup formed to address concerns • Issues with maximum character length • Abbreviations may be necessary • Soliciting industry member for subgroup • Suggestions to be tested by Engineering • Proposed rule will be issued for comments

15. APPS – Address Visibility Requirement • Address block on top piece must be clear: • DMM M020 (Packages) 1.1 (Facing) – “Except as noted in 1.2, all pieces in a package must be “faced” (i.e., arranged with the addresses in the same read direction), with an address visible on the top piece”.

16. APPS – Packaging Guidelines • Do not use rubber bands • Do not use string • Strap before shrinkwrapping works best • Guidelines at this point • If intend to make requirements – will have supporting data, and will provide ample lead time • Will update at next MTAC