Visibility Strategy

September, 2006

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Visibility Today

CONFIRM provides piece level mail processing data that can be used for tracking for letters and flats218 CONFIRM subscribers with an average of 353 million pieces per monthEach piece receives an average of 2.4 scansLimited start-the-clock capabilitiesSome flats bypass processing equipmentNo container tracking data available

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Recent Visibility Advancements

Deployment of Surface Visibility

PostalOne! capability to support Large/Medium/Small customers

Deployment of FAST

Deployment of passive tray scanning capabilities

New unique barcodes for pieces and containers

Implementation of common customer identifier across visibility systems (Business Entity ID)

Recent technology improvements enable more robust visibility offerings than previously available.

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Scanning Systems

Surface Visibility: Tracking of handling units and containers via surface transportSurface-Air Support System (SASS): Tracking of handling units and containers via air transportPostalOne!: Handling Unit, Container & Piece electronic documentationPostalOne! Transportation Management System: Tray trackingCONFIRM: Letter and flat piece-level mail processing dataIBI-Track and Trace: Meter and internet postage piece trackingFAST: Advance NotificationIntegrated Dispatch and Receipt (IDR): Tray trackingMail Handling System (MHS): Tray tracking

USPS has deployed a number of systems that can provide visibility data.

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PostalOne! Expansion

PostalOne! provides a comprehensive approach to submit electronic documentation for all mail classes.

Mailer

via MAIL.DAT

via Web Services

PostalOne!

Postage Statement WizardParcels

Periodicals

First-Class

Standard

Provide makeup of mail by Handling Unit, Container, Piece

Enables nesting of visibility data

Provides advance notification that enables planning

First-Class Mail via Mail.dat Enabled in November

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Barcodes - Piece

PLANET Code13 digitsLimited to CONFIRM only

Three barcode types enable mailers to uniquely identify all letter and flat mailpieces.

Four State Customer Barcode (4CB)

31 digitsUsed for multiple services (CONFIRM, OneCode ACS, etc)

Information Based Indicia (IBI)256 bytes

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Barcodes - Container

New barcodes have also been created to enable unique identification of containers.

Enhanced Distribution Label (EDL)– Used on trays, sacks, and tubs– Uses BEI as customer identifier– Interim solution allows for both 10 and 24 digit label

Surface Visibility Mailer Placard Barcode– Used on pallets, APCs and other large containers– Uses BEI as customer identifier

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New Barcodes

Surface Visibility Mailer Placard Barcode: Pallets Enhanced Distribution Label (EDL): Trays Four State Customer Barcode (4CB): Pieces

USPS has recently release specifications for three new barcodes that enable unique identification.

Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

MTEL T IDContainer Level 1N

24Digit L sr T IDPiece Level 1N 1N

4STPiece Level

Barcode "type" indicator; used to identify a "large" or "small" mailerUsed to identy services requested by the customer (i.e. ACS, Confirm, PostalOne!; Confirm/ACS)Used to identify source "Business Entity"Adjustable fieldUsed to uniquely identify a container, tray,sack, or pieceUsed to route a tray,sack, or pieceIdentifies a source system used to create label

App ID Business Entity ID Adjust Field Unique Serial Number

Business Entity ID Adjust Field

2N 6N 3N 9N

Business Entity ID Adjust Field

Unique Serial No.3 or 5 digit N 3N 6N 3N 5N

ZIP CIN

Unique Serial No. Routing ZIP2N 3N 6N 3N 6N 0,5,9,11 digit N

T ID Spcl Srvs

Surface Visibility Mailer Placard

Enhanced Distribution Label

(EDL)

Four State Customer Barcode

(4CB)

21 Digits

24 Digits

31 Digits

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Business Entity Identifier

Initially, 20 BEIs will be granted per Customer Location

Obtain BEI by calling PostalOne! help desk initially, will automate in future

BEI can be 6 or 9 digits– 6-Digit BEIs provided to customers that require additional digits to

maintain unique serial IDs over 90 days

Will be used to identify a mailer in the Four State Barcode (4CB), Enhanced Distribution Label (EDL) and Mailer Placard barcodes

Used to determine who to disseminate Confirm and OneCode ACS data

Enhances existing USPS services and offerings and provides a foundation for additional services and offerings to customers of any size.

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Visibility Enabled – Air Transport

24 digit EDL first scanned by P1! TMS to associate to D&R tagD&R tag scanned on average 3 timesAir Transportation Supplier nesting of D&R to containers provides additional visibility

There are many visibility points that are available for containers transported via air.

Tender Scan

Possession Scan

Hub ScanDelivery

Scan

THS Scans

Receive Scan

Possession Scan

Delivery Scan

Load Scan

MAILER PLACARD

MAILER PLACARD

MAILER PLACARD

FEDEX/CAIR/THS Facility

MAILER PLACARD

MAILER PLACARD

MAILER PLACARD

Break ScanClose Scan

Build Scan

CAIR Scans

THS Scans

FedEx

Commercial Air

Receipt Scan

CONS Scan

FedEx Scans Mixed

Bypass

Transfer Scan

Non-Stop

Transfer

Tray Container Tray

Tray

P1! TMS Scan

D&R Tag Assignment

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Visibility Enabled – Surface Transport

Significant visibility also exists for surface transport.

Handling Unit to Container Nest Scan

Container Load Scan

Dock Depart

Origin Plant

Container Unload Scan

Container Stage Scan

Container Load Scan

HASP

Dock ArriveContainer

Unload ScanContainer Ready to Process Scan Dock Arrive

Destination Plant

Container Unload Scan

Tray Scan

Delivery Unit

Key Surface Visibility scan pointsTray to Container Scan at OriginContainer Load and Unload at Origin and DestinationTray to Container Scan at DestinationContainer Arrival at Delivery Unit (next phase)Each pallet receives, on average, one scan

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Visibility Uses

Respond to Customer Needs for Expanded Visibility

Seamless Acceptance

Network & Transportation Optimization

Start-the-Clock

Service Performance Measurement

Enhanced Products and Services: CONFIRM

Robust visibility enables new capabilities that benefit both mailers and USPS.

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Seamless Acceptance

Unique piece and container identifiers and accurate mailer documentation are critical to Seamless Acceptance.

Presort: Piece scan patterns have been used to verify presort of ZIP groupsMailpiece Count: Number of inducted pieces has been determined from piece scansShort Tray Validation: Actual piece counts by ZIP group from scan data have been used to verify mail makeupEvaluating the use of the following:– Accurate Barcode Verification: Read rate for mailing can be

compared to End-Of-Run (EOR) read rate for all mailings and eMIR reports for problem pieces

– Valid Barcode: POSTNET of piece documentation can be compared to the Delivery Point File (DPF Now) file to determine if valid POSTNET applied

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Start-the-Clock

Electronic documentation will link – Pieces to trays– Trays to pallets– Pallets to shipment

Plant LoadsTruck arrival and unload scans can be used to Start-the-Clock Pallet scans provide specific unload details (time and location of each pallet)Tray scans provide assurance that mail is being worked

Accurate electronic documentation and nesting information enables robust Start-the-Clock capabilities.

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Service Performance Measurement

Container and piece data can be combined to determine true end-to-end service performance.

Origin PlantOrigin Post OfficeDestination Post

OfficeDestination PlantOrigin Point Destination Point

Transfer 1 Transfer 1

Op 1 Op 2 Op 3 Op 1 Op 2 Op 3

Container Scans

Piece Scans

EXFC Data

Tray scans used to measure performance between plantsPiece scans used to measure performance within plants

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Enhanced Products and Services: CONFIRM

Single source/subscription for all visibility data

Piece and container scans combined in a single source for mailers

New subscriber levels will be defined

Customers will get scans based on program participation and subscriber level (i.e. Seamless Acceptance participants will get applicable scans)

The CONFIRM infrastructure will be leveraged to provide additional scan data to customers.

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Requirements for Visibility Data

Requirements for expanded visibility to include Pallet, Tray, Sack, Tub Scans– Advanced Notification– Electronic Documentation & Postage – Unique Barcodes on Handling Units and

Containers

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Requirements for Visibility Data

Advanced Notification– Induction Location– Induction Date and Time– Plant Load Mailing Indicator and Last Process

Location– Recurring (Frequency) or One-Time Mailing– Pre-sort of Handling Units (HU)– Average HU weight– Destination ZIP code of HUs– Number of Containers (Rolling Stock or Pallets)– Mail Shape

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Requirements for Visibility Data

Electronic Documentation & Payment– Manifest Mailers/List/MLOCR

» Tray– Unique Physical/Logical Tray Identification (unique)– Pre-sort– # of Mailpieces per Tray– ZIP Code Range(s)

» Piece Level – Processing Category– Batch/Itemized Manifest ID– Unique 4 CB barcode/POSTNET (for Seamless Acceptance

Only)» Container

– Number of Containers (Rolling Stock or Pallets)– Unique Surface Visibility Mailer Placard Barcode

» Unique Identifier for a Mailing

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Mailer Interest in Visibility Data

Mailers have shown significant interest in receiving visibility data.

USPS acceptance and delivery are the most important data elements.

Predicted delivery date and how well it was processed are less important to mailers.

Average Importance of Each Category of Data

2.88

3.40

3.17

2.76

3.53

2.89

3.58

2.59

3.67

3.44

2.97

0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00

Reply Mail

Original Mail

Was it redirected, replied to or returned?

How w ell w as it processed?

When w as it Delivered?

When w ill it be Delivered?

USPS Delivery

Enroute Tracking

USPS Acceptance

Consolidation

Where is it now ?

Cate

gory

of

Data

Average ImportanceThis data represents 12 interviews with mailers in various industries and does not show differences by shape.

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Information Needs

Raw data preferred to individual inquiries

Hold data elements for 90 days

Timeliness of data – Real Time, Near Real Time, Daily– Parcel mailers in real time where and when– First-class, standard mailers near real time where & when– Periodical mailers daily

Mailers have highly varied uses for the data– Provide better customer service through increased

information.– Actively manage the supply chain.– Optimize call center staffing to reduce labor costs.– Prevent or reduce fraudulent claims.– Improve marketing and fulfillment planning.

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Questions for Group

Visibility Scan Approach for Letters & Flats– Integration with Confirm– Raw Data– Unit Scans – Piece, Tray, Container– Frequency of dissemination– Data Elements to be included– Mail Class Distinction – First, Standard, Periodicals

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CONFIRM Scan Elements

Scan ID: sequential scan identifier

Scan Facility ID: 5 digit ID of the facility

Operation Code: 3 digit code of the operation

Scan Date/Time

Scan POSTNET: the POSTNET of the piece

Scan Tracking Code: the 4CB of PLANET code on the piece

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Transportation Visibility Scan Elements

ID Tag: the unique identifier on the container

Scan Facility ID: the identifier of the location at which the scan occurred

Scan Date/Time

Scan Type: the type of scan that was conducted (i.e. possession, delivery, unload, load, etc.)

Nested Info: the identifier if a parent or child record exists