Acceptance and Induction: The Mailing Industry’s Digital Revolution IDEAlliance Print Distribution April 22, 2007 Debbie

1. Acceptance and Induction:The Mailing Industry’s Digital RevolutionIDEAlliance Print DistributionApril 22, 2007Debbie Cooper

2. Streamlined Mailing • Integration: USPS & Mailers • Focus is on • Paperwork Reduction • Interactive Mailing • Visibility

3. Agenda Streamlined Mailing – An Easier and More Cost Effective Way to Conduct Business with the USPS • PostalOne! - A Database of Mailing Information • Surface Visibility – Scanning and Reporting of Pallets • FAST - Appointing System for USPS Dropshipments • E Drop Ship – Electronic Induction of Mail

5. Verification and Payment Prepare, Print & Package Mail Electronic Mailing Information Proactive Intelligence Customer/USPS Electronic Access Processing Scans Bundle/Pieces Make Appointment USPS Scans Shipment Tray/Sack Scans Surface Visibility Tracks Shipment Mailer Enters Mail Tomorrow’s Process Visibility Interactive Mailing Reduce Paperwork

6. Streamlined Acceptance: The Basics Use electronic data to facilitate the verification, acceptance, postage payment, and induction of business mail. Advantages: • Data updates through out the Supply Chain • Electronic updates available immediately to all • Common database • Automated postage payment • Mail Acceptance Dates • Acceptance and Verification Status • Shipment Verification Status

7. Streamlined Acceptance:The Basics • Electronic collaboration with all customers • Mailing plan & payment data based on the plan • Unique Identity of Containers & Pieces • Ability to identify components in processing cycle • Barcodes & In-Process Quality Assurance • Components tracking throughout processing cycle • Infrastructure to transmit & receive data throughout mailing lifecycle: • From customer to acceptance & payment • To induction & processing • Back to acceptance / verification • Ultimately back to the customer – QA

8. Mailing Information Streamlined AcceptancePostalOne!Electronic Collaboration Eliminate Hardcopy Paperwork Customers Printers Improve Service with Automated Processes Benefits Offer Centralized Payment Options PostalOne!® Integrate Business Functions • Provide Online Account Process Management • Postage accounting system for bulk business mail • Transmit electronic mailing information • View financial activity • Hardcopy check & centralized electronic payments • Plan & schedule mail induction • View mailing activity • Provide & receive mailing quality feedback

9. Mail.dat • Web Services • Web Wizard Streamlined AcceptancePostalOne! Electronic Mailing Information • Mail.dat • File-based electronic exchange • Sophisticated mailing schemas • Transportation planning • Drives automated plants • Web Services • Form-based electronic exchange • Platform independence • Enables own corporate views • Web Wizard Postage Submit • Postage statements online • Manual data entry & send to BMEU

10. Streamlined AcceptanceMail.dat / Web Services 1. Mailer sends electronic information Customer 4. Data returned to mailer for online viewing PostalOne!® 3. USPS accepts, verifies & deducts postage 2. Mailer presents mail to USPS

11. PostalOne!® – Acceptance and Verification Mail.Dat transmitted to USPS Mail Acceptance Units Advantages: • E-certification: Eliminates printing & shipping of USPS qualification reports • (up to 2,000 pages per mailing) • Electronic documentation: Streamlined, more efficient mail verification by DMU clerks • E-postage: Eliminates DMU keying of postage • Savings: Time, Money, Work Hours & Space

12. Postage Payment • Book Weight Capture Process • Electronic entry for DMU replaces PS Form 3629 • Book Weight Reporting and Tolerance messages • Advertising Percentage Capture • Payment Process • Mail.dat usage

13. Streamlined Acceptance Benefits • Easier Postal Documentation Preparation • Improved reporting to customers • Improved data access for internal purposes & billing • Simpler audits • Faster Mail Acceptance, Verification & Induction • Faster delivery times for customers • Easier dropshipping procedures • Greater postal discounts to share with customers • Increased Control & Job Flexibility • Duration of Jobs • Merging of Jobs • Greater Quality Control

14. 8125s Wash D C 200 FLTS lllIIIIllllIIII ABC Mailer Wash D C 200 FLTS lllIIIIllllIIII ABC Mailer Induction Today: Drop Shipment Mail Process Appointment Scheduling PVDS 8125 at DMU • Paper driven • Non-actionable data • Difficult to manage • Predominantly manual data entry • Lacks detail information • Low use automated processes • Paper driven • Difficult to validate • Expensive to resolve • Some mailer capability • USPS capability – internal • Lack timely actionable information PS Form8125 PS Form8125 PS Form8125 NOT ! Drop Shipment at Entry Point Tracking & Process Improvement FAST

15. FAST (Facility Access and Shipment Tracking) – The Basics Electronically notify the USPS the where, when and what of shipments. Advantages: • Allows USPS to schedule resources • Common schedule available • Electronic updating • Common baseline for performance measurement

16. FAST Appointment Capacity Limitations Slot capacity Piece processing level capacity

17. FAST Content Entry Screen • Separate Contents Based On: • Class • Newspaper / Perishable • Shape • Available Access Based On • Information Quality and Facility • Capacity

18. FAST – Automating the Process FAST – Web Service FAST Messaging via XML Advantages: • System to system management of data • Free up personnel used to schedule manual web appointments • Electronic updates • Automated cancellations and reschedules • More accurate appointments – better rating • Receipt of close out data via XML – easier reporting

19. Surface Visibility: The Basics USPS scans all pallets (MTEL barcode), containers (24 Dgt EDL), and individual piece (4 State CB) Advantages: • Database of mail profile: Induction to delivery • Window into USPS processing & delivery: Create timeline information that tracks mail • Shipment Arrival date • Unload/Induction date • Processing date • Mail Visibility data

20. eDropShip Mail.dat in PostalOne!, Web Services FAST Appointing & Unique Barcode on Pallets Advantages: • Establishes data exchange (Mailers, Suppliers and USPS) • Automated induction scheduling and drop ship entry process • Validates entry point discounts against Postage Statements: payment validation, appointment validation • Container based entry point clearance document e8125 - eliminates current hardcopy 8125 • Reporting of Container Detail Induction events: scans, receipts and conflicts - Automate pallet conflict/resolution processes • Provides eDropShip status information via web services • End to end vision on pallet level from scheduling through induction

23. Mailer A Shipping Summary Report Mailer B Mailer B Access to Information – Processes Linked Presort documentation and Postage Statements Shipment Information at Job Level Shipping Summary Report Search

24. Access to Information –Notification and Status Appointment level report Appointment specific information – scheduling and results Job and Content related information – conflict warnings, load content, induction status

25. Surface Visibility Scan Device

26. Access to Information – Detailed Visibility Containers Received at Entry Point and Container Related Issues

27. Streamlined Mailing Benefits • Increase mailer flexibility & accuracy of documentation • Decrease cycle time & reduce mail supply chain costs • Provide near real-time visibility for both customers & mailers • Provide alternate, convenient, integrated electronic payment options • Introduce accountability for all participants across the mail supply chain • Promote mail quality & efficiencies in mailing operations

28. Streamlined Mailing Benefits • Faster, better communication with financial teams • Support for postal audits • Quick snapshot analysis of impact of manufacturing methods on postal sortation (i.e., by mail segment) • Sharing of information via Web across teams (e.g., production team, finance team, fulfillment team, consumer marketing, etc) • All leading towards real time decision making, or, just-in-time choices for production & manufacturing decisions

30. Additional Resources • Information on PostalOne!®:www.usps.com/postalone/howto.htm • Information on transferring files: www.usps.com/postalone/guides.htm • Information on Web Services: https://cat.uspspostalone.com/WizardXML/ • Information on Postage Statement Wizard: www.usps.com/forms/postagewizard.htm • Information on Mail.dat™: www.usps.com/postalone/guides.htm • Information on IDEAlliance: www.idealliance.org

31. A Brave New World Of Mailing No more paperwork FAST Surface Visibility Integrated Mailing Streamlined Acceptance Electronic Mailing Information Visibility

32. Questions ?