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MTAC Update Mailing Industry Area Focus Group Meeting February 2015

MTAC Update Mailing Industry Area Focus Group Meeting February 2015

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MTAC UpdateMTAC Update

Mailing Industry Area Focus Group MeetingFebruary 2015

Slide 2

Postmaster General’sMailers Technical Advisory Committee

An association of associations Representatives of the industry – not companies Currently Over 50 Associations have an MTAC membership

• One Association Executive and up to Three Association Representatives per Association• Approximately175 Association Executives and Representatives

Focused on sharing information between the USPS and Mailing The Postmaster General’s Mailers’ Technical Advisory Committee (MTAC) is a venue for the United States Postal

Service (“Postal Service”) to share technical information with mailers, and to receive their advice and recommendations on matters concerning mail-related products and services, in order to enhance customer value and expand the use of these products and services for the mutual benefit of Mailing Industry stakeholders and the Postal Service.

2015 Focus Areas – defined by PMG

First-Class Mail Periodicals Standard Mail Package Services

Preparation and Entry Visibility/Service Performance and Address Quality Mail Piece Design and Product Development Payment and Acceptance

Slide 3

MTAC Executive Committee Members – Updated

Industry U. S. Postal Service

Christopher G. Lien -- Industry Chair (2014-2015)BCC Software585-341-3306Cell: [email protected]

Jim Nemec -- Postal ChairVice President, Consumer & Industry Affairs475 L'Enfant Plaza RM 4016Washington DC [email protected]

Erv Drewek-- Industry Vice Chair & Treasurer (2014-2015)Manager of Postal Affairs Graphic Communications, a Veritiv company5700 Darrow Road, Suite 110Hudson, OH, [email protected]

Judy de Torok -- Postal Co-Vice ChairManager, Industry Engagement & OutreachConsumer & Industry Affairs475 L'Enfant Plaza SW RM 4437Washington DC [email protected]

Phil Thompson -- Immediate Past Industry Chair (2012-2013)Manager of Postal OperationsQuad/Graphics IncN61 W23044 Harry's WaySussex WI [email protected]

Dale Kennedy -- Postal Co-Vice ChairManager, Business Customer Support & Service475 L'Enfant Plaza SW RM 4541Washington DC [email protected]

May Frantz -- Program ManagerManager, Industry Engagement StrategyConsumer & Industry Affairs475 L'Enfant Plaza SWWashington DC [email protected]

Slide 4

MTAC Industry Leadership (2014 to 2015)

Industry Leaders: Classes of Mail Industry Leaders: Focus AreasSharon Harrison / First-Class Mail / Major Mailers AssociationAT&T Services Inc: VP, Postal Strategy Finance3900 Channel DrWest Sacramento CA [email protected]

Angelo Anagnostopoulos / Payment / Edison Electric InstituteGrayHair Software Inc: VP Postal Affairs 124 Gaither Dr Ste 160Mt Laurel NJ [email protected]

John Medeiros / Package Services / Parcel Shippers AssociationDHL Global Mail: Director, Postal Affairs7415 Emerald Dunes Drive. Ste 600Orlando FL [email protected]

Lisa Bowes / Service Performance / Natl Alliance of Standard Mailers & LogisticsIntelisent: Manager, Account Services & Postal Affairs597 North Mountain RoadNewington CT [email protected]

Wanda Senne / Standard Mail / Natl Assn of Advertising DistributorsWorld Marketing:Vice President, Postal Affairs1961 S Cobb Industrial BlvdSmyrna GA [email protected]

Bob Schimek / Preparation & Entry (Operations) / IDEAllianceSatori Software: Senior Director - Postal Affairs1301 5th Ave Ste. 2200Seattle WA [email protected]

John Stark / Periodicals / IDEAllianceCondé Nast: Executive Director of Distribution Operations1166 Avenue of the Americas 19th FlNew York NY [email protected]

Steve Colella / Mailpiece Design & Product Development / Association of Marketing Service Providers (AMSP) The Calmark Group: VP- Postal Affairs6755 S. Sayre AveBedford Park, IL [email protected]

Slide 5

MTAC U.S. Postal Service Leadership - Updated

USPS Focus Area LeadersVisibility & Service Performance Measurement

Robert CintronVP, Product InformationU.S. Postal Service475 L'Enfant Plaza SWWashington DC 20260-5626(202) [email protected]

Payment and Acceptance

Pritha Mehra VP, Mail Entry & Payment Technology U.S. Postal Service 475 L'Enfant Plaza SWWashington DC 20260-0911 (202) 268-8049 [email protected]

Product Development

Gary Reblin VP, New Products and Innovation U.S. Postal Service 475 L'Enfant Plaza SWWashington DC 20260-1010 (202) 268-6078 [email protected]

Mail Preparation & Entry / Operations

Linda MaloneVP, Network Operations U.S. Postal Service 475 L'Enfant Plaza SW Washington DC 20260-7100 (202) 268-4305 [email protected]

Slide 6

MTAC Meetings: Policy

Meetings are quarterly and generally held at USPS Headquarters MTAC members are required to attend. Substitutes are not allowed.

Approved Industry experts can attend as guests Each association is permitted a maximum of three guests per year The Association Executive must formerly sponsor the guest The MTAC Executive Committee must approve all guests MTAC Leadership (Focus Area leaders, Executive Committee, and Ex

Officios) may sponsor a guest. However:• The guest should be an industry expert representing a part of the industry that is not

currently being represented by an existing MTAC Association

Becoming an MTAC Member: Check the MTAC Roster posted on ribbs.usps.gov Contact the Association Executive of an association to which your

employer belongs and find out how the association selects their representative for MTAC

Slide 7

MTAC Meetings: Typical Format

Tuesday Morning – MTAC Committee Meetings Face-to-face meetings at USPS Headquarters for some committees

Tuesday Afternoon MTAC General Session – Open General overview of USPS finances, operations, and other areas A 5 to 10 minute update on open workgroups, user groups, and task

teams. An evening reception typically follows the Tuesday meeting

Wednesday All Day Focus Group Meetings – Closed MTAC General Assembly (announcements; recognize new members) 75 minute discussions per Focus Group, led by USPS and industry

Focus Area Leaders MTAC Business Meeting for current MTAC industry members only

Thursday Morning – Workgroup Sessions & Meetings Face-to-face meetings at USPS Headquarters MTAC Leadership and Executive Committee meetings

Slide 8

Meeting Schedule for 2015: Election Year

February 17 – 19 PMG Megan Brennan Tuesday afternoon

May 20 Meeting held at the National Postal Forum in Anaheim, CA Special MTAC recognition and reception Compressed schedule with all classes meeting together for each one-

hour focus meeting (2:00 to 5:00) Vice-Chair candidates announced

August 11 – 13 MTAC 50th Anniversary Celebration Vice-chair (2016 – 2017) elections at the MTAC Business Meeting Nominations for MTAC Leadership (2016 – 2017) are opened

November 17 – 19 MTAC Leadership (2016 – 2017) elections at the MTAC Business

Meeting

Slide 9

Types of CommitteesGroup Type

Intended Function

Primary Sponsor / Oversight

Group Participants

Approval of Participants

Timeframe

User Group

Ongoing forum for USPS & users of a particular postal product or process.

MTAC Focus Area Leader (postal and/or industry)

Subject Matter Experts (both USPS and industry)

User Group Leaders

Open - No specific end date. Annual review of issue statement in August by the MTAC EC.

Work Group

Address defined issues, and provide recommendations

MTAC Focus Area Leader (postal and/or industry)

Primarily MTAC Members and industry experts

MTAC Focus Area Leader

Concludes when recommendations are submitted for consideration (per the issue statement)

Task Team

Quickly address very specific issue to achieve results in a strict, often urgent period of time.

MTAC Executive Committee (may also be delegated to Focus Area Leader if subject is specific to an Area)

Specifically selected by MTAC Leadership and Executive Committee

MTAC Executive Committee

Concludes when task or problem resolution is completed (per the issue statement)

Slide 10

Current User Groups

User Group 1 - PostalOne!, SASP, Intelligent Mail Weekly meetings

User Group 2 - eVS/Product Tracking System Monthly meetings

User Group 3 - FAST User Group Biweekly meetings

User Group 4 – Visibility (CONFIRM) Biweekly meetings

User Group 5 – Addressing Biweekly meetings

User Group 7 – MTEOR Quarterly, with the next meeting scheduled for April 14, 2015

User Group 8 – USPS Promotions Monthly meetings

User Group 9 – Labeling Lists and Data Distribution Biweekly meetings

Slide 11

Current Workgroups

New MTAC Workgroups Workgroup 167 – Solutions for Pieces Excluded from Service Measurement Workgroup 168 – FSS Multi-scheme Pallets Workgroup 169 – Refining Machinability Standards (Parcels, Flats, Letters)

• Two years of study for each mail piece type starting with parcels, then flats, and finally letters

Workgroups Concluded in February 138 – eInduction 162 – Multiple Periodicals in a Wrapper (Polywrap) 163 – Third Party Reporting and Invoicing 164 – Informed Visibility Data Provisioning Improvements 165 – Improve MDA Support Process

Workgroups scheduled to conclude by May 2015 meeting 143 – Seamless Acceptance 159 – Evaluation/Recommendation entering product at Hubs

• Pilot in progress; expected to conclude April 2015• Concluding April 2015

151 – Streamlined Weight and Ad Capture Process 166 – IMpb Compliance for Shipping Services File Timeliness

Slide 12

Current Task Teams

Task Team 22 – MTAC 50th Anniversary Event Planning (2015) Immediately after MTAC meetings or as needed

Task Team 23 – Readiness for Trend Based Verification Reports directly to the MTAC Executive Committee Launched January 23, 2015 Focus will be on four key industry concerns related to essential areas

such as seamless acceptance, eInduction, Move Update, and Full Service Intelligent Mail barcodes

• Validate Data Quality across Key Reports and Invoices• Validate stability of systems via published metrics • Validate data attribution methodology• Transparency of thresholds used to determine compliance

Four USPS and four industry experts representing all classes of mail across the entire mail supply chain

Schedule concluding date of March 31, 2015 will be extended

Slide 13

Recent and Planned MTAC Related Webinars

Mail Prep And Entry Focus Session (February 5, 2015) For MTAC members in preparation for MTAC Focus Meetings

USPS Proposed Pricing Overview (February 3, 2015)

IMpb Requirements for January 2015 (January 7, 2015)

Visibility on Mail in Delivery Units (January 9, 2015)

Mail Entry Roadmap Webinar (December 1, 2014)

Secure Destruction - A Primer for Mailers (November 13, 2014)

IMpb Compliance (October 14, 2014)

IMpb Impacts on Extra Services (October 2, 2014)

Fall Mailing Season (August 18, 2014)

Network Rationalization Phase II (August 15, 2014)

Slide 14

Topics Discussed at the February 2015 Meeting

FSS sortation changes and proposed pricing impact Unintended consequences of pricing proposal for FSS mail for HD

and HD+ are prompting an immediate review by MTAC Leadership

Lack of visibility that mail entered at the Hub would get DSCF discounts Mailers need something documented that clearly shows the DSCF

eligibility for mail entered at Hubs, such as updating the DMM

New mailing standards for lithium batteries Final notice posted with a March 2, 2015 required date

Adhesive Tray Labels to Improve Container Scans Considering using adhesive labels versus tag stock Could enable automated label application and reduce costs

Mail Preparation and Entry

Slide 15

Topics Discussed at the February 2015 Meeting

86% of all mail is Full Service IMb Compliant

Mail Entry Roadmap updated on RIBBS Many proposed dates have been moved out including Full Service

electronic verification and Seamless now proposed for July 2015

New Move Update compliance extended Won’t occur until the next price change Less than 0.5% of the 5,805 eDoc submitters (75% FS IMb) are

below the 0.8% threshold proposed for census-based Move Update

Container Scans are Missing USPS believes the Original Container Indicator (OCI) reported in

eDoc is not getting scanned with physical containers likely due to container “jackpotting”

• Copalletization of smaller pallets resulting in missed OCI scans

Payment and Acceptance

Slide 16

Full Service IMb by Mail Class

Slide 17

January 2015 Full-Service Compliance Scores

Full-Service Verifications

Threshold National % in Error

STID -Piece 2% 0.17% MID - Container 2% 0.01% MID - Handling Unit 2% 0.65% MID - Piece 2% 0.03% Barcode Uniqueness - Container

2% 1.04%

Barcode Uniqueness - Handling Unit

2% 0.29%

Barcode Uniqueness - Piece

2% 2.47%

Entry Facility - Container

5% 0.00%

Entry Facility - Handling Unit

5% 0.00%

By/For - Piece 5% 7.84% OCI 5% TBD

BME/BMS contacting all mailers over a full-service threshold

Working with mailers to explain full-service requirements and help understand and resolve the issues

BMS working with mailers who need customized by/for threshold

Slide 18

Topics Discussed at the February 2015 Meeting

Service Performance Service delays since January 5, 2015 are being addressed and

industry should see improvements soon

Visibility Looking into bundle scans using IMb as well as facing slips

Addressing Simplification of the carrier provided UAA Reason Codes

• MTAC Workgroup is being prepared and should be announced soon

Manual Address Correction – Considering Optional Looking into possibly making Periodical manual address corrections

optional and may make this an MTAC Workgroup

Addressing and Service Performance & Measurement

Slide 19

Topics Discussed at the February 2015 Meeting

Reviewed Results of the 2014 Promotions

Reviewed Business Rules for 2015 Promotions

All stamps to be Pressure Sensitive Stamps Water activated formats to be discontinued due to overseas

procurement of the paper

Certificate of Mailing Proposal Proposal to transition away from a round-dated mailing receipt to an

IMpb approach that leverages scanned data• Federal Register Notice posted 2/5/2015 has an April 26, 2015 effective date.

However, USPS stated an implementation date of July 26, 2015 at MTAC.

Industry (especially First-Class financial and insurance mailers) expressed significant concerns regarding this aggressive timeline

An MTAC Workgroup is being formed to quickly identify the concerns and present a proposed phased approach

Product Development

Slide 20

Promotions by the numbers…

2014 Promotions Results

FY 2014 Promotions (7 promotions) generated:

7.8B mailpieces

$1.8B in revenue

1,487 participating customers

Over $48M in discounts received by participating customers

=

Slide 21

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Questions?Questions?

Interim MTAC Update 2015 status and inquiries should be directed to:

Consumer & Industry Affairs / Industry Engagement & Outreach

Email: [email protected].