COMMUNICATIONS PLAN

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Intelligent
MAIL
in the U. S. Postal Service
Jeff Freeman Manager, Mail Technology
Strategy Intelligent Mail Address Quality
DOD Official Mail Managers August 24, 2004
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WHAT IS INTELLIGENT MAIL?

• Evolution in postal technology
• Helps business customers better manage their
  resources and reduce costs
• Provides real-time access to processing and
  delivery information

The use of one code to uniquely identify and
allow end-to-end visibility into the mail stream.
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WHY INTELLIGENT MAIL?

• Grow revenue through information
• Improve service performance and quality
• Improve revenue assurance
• Improve transparency
• Focus on security

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INTELLIGENT MAIL DEVELOPMENT
2001
2002
2003
2003
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MAILER BENEFITS

• Improves management of mailers business
  processes
• Simplifies use of postal services
• Frees up real estate on mail piece
• Supports accurate collection of postage
• Increases transparency (mail visibility)
• Enhances security while maintaining privacy

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INTELLIGENT MAIL COMPONENTS
Entry Scan
Electronic Manifest
Delivery Scan
In Process Scans
Planned Induction Date/Time
First Automated Scan
Delivery
Last Automated Scan
ActualInductionDate/Time
Start the Clock
Stop the Clock
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TRANSFORMATION STRATEGIES
Vision
Allow end-to-end visibility into the mailstream
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OneCode Vision

• Todays Mail Piece

Postage Information
Address Change Service Codes
Presorted First-Class Mail U.S. POSTAGE
PAID Washington, DC 20260 Permit No. 1
6060 PRIMACY PKWY STE 201MEMPHIS TN 38188-3333
ADDRESS SERVICE REQUESTED
BWNGKVN 9999 9920 0104 276
IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN
38141-8346
POSTNET Code for Sortation
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OneCode Vision

• Tomorrows Mail Piece

Presorted First-Class Mail U.S. POSTAGE
PAID Washington, DC 20260 Permit No. 1
6060 PRIMACY PKWY STE 201MEMPHIS TN 38188-3333
ADDRESS SERVICE REQUESTED
IRENE PAYNE 6449 AMBERVIEW CV MEMPHIS TN
38141-8346
One code per mail type that points to a suite
of services
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TRANSFORMATION STRATEGIES
Vision
Allow end-to-end visibility into the mailstream
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STRATEGY 1

• Mail Technology Study Results
• 4-State can be printed by most mailers
• Leverage information based on
• Indicia for meter and online
• Potentially replace PLANET with a 4-state Code
• Working with Mailers
• Characters 31 numerics

Height Modulated
2-D
E.g., Data Matrix, PDF 417
E.g., 4-State Barcode
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PARCELS

• Conversion to UCC/EAN Code 128 on Parcels
• Concatenated codes improve read rates
• Insured/ Delivery Confirmation/ Zip 1 Barcode

UCC/EAN Code 128
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UNIT LOADS

• Replace the current tray and sack labels with an
  Enhanced Distribution Label (EDL currently
  testing)
• Beginning use
• on USPS surface
• transportation
• Evaluating Radio Frequency ID for tracking of
  rolling stock and pallets

(EDL)
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TRANSFORMATION STRATEGIES
Vision
Allow end-to-end visibility into the mailstream
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STRATEGY 2

• End-to-End Use of Intelligent Mail Codes
• Coordinating with other USPS programs
• Leveraging engineering equipment to read codes
• Increasing wiring bandwidth in plants Phase 2 -
  Spring 04
• Replacing Handheld scanners Start deployment
  early 05

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TRANSFORMATION STRATEGIES
Vision
Allow end-to-end visibility into the mailstream
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ADDRESS QUALITY

• Services to improve mailing lists pre-mailing
• Delivery Point Validation
• NCOALink
• Address Information System Viewer
• Post-mailing services
• Address Change Service
• Quality address information from movers
• Movers Guide
• Movers Guide Online

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INTERNET CHANGE OF ADDRESS

• 4.5 Million ICOAs Processed Electronically
• January 2002 July 2004

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NEW INCENTIVES FOR INTERNET
Money-saving offers from leading retailers!
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NEW MOVERS GUIDE
Initiative to make COA more user-friendly
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ENHANCED CONFIRM SERVICE
First Intelligent Mail Product
Destination Confirm?
Origin Confirm?
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FINANCIAL APPLICATIONS

• Know when theCheck is in the Mail
• Dunning Notices/ Discontinued Service
• Manage Cash Flow
• Manage Staffing at Check Processing Centers
• Improve Customer Relations

Critical Component of Value Chain
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BENEFITS MAILERS EXPERIENCE TODAY

• Increased transparency (mail visibility)
• Enhanced security while maintaining privacy
• Improved management of mailers business
  processes
• Simplifies use of postal services
• Frees up real estate on mail piece
• Supports accurate collection of postage

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QA