MTAC Workgroup 114

1

• MTAC Workgroup 114
• Establish Service Standards and Measurement
• Update May 16, 2007

2
Workgroup Structure

• Main Workgroup
• 4 Subgroups
• First-Class Mail (includes FCM parcels)
• Periodicals
• Standard Mail (letters and flats, BPM flats)
• Packages (Single piece Parcel Post, Bound Printed
  Matter parcels, Library Mail, Media Mail,
  Standard Mail parcels)

3
Overview

• Workgroup formed Feb 2007
• Meetings held to date 14 total
• Full workgroup 2
• FCM subgroup 2
• Periodicals subgroup 3
• Standard Mail subgroup 3
• Packages subgroup 4

4
Workgroup Co-Chairs

• Main Workgroup
• Jeffery Lewis, USPS Manager Pricing Policy
  (202-268-4757, jeffery.w.lewis_at_usps.gov)
• Kathy Siviter, President, PCSi (PostCom)
  (703-237-1740, kathys_at_postalconsulting.com)

5
Subgroup Co-Chairs

• First-Class Mail (includes FCM parcels)
• Chris Oronzio, Manager, Processing Center
  Operations, USPS (phone, chris.r.oronzio_at_usps.gov)
  
• Jody Berenblatt, Senior VP, Postal Strategy, Bank
  of America (646-366-4425, jody.berenblatt_at_
  bankofamerica.com)
• Periodicals
• Jo Ann Miller, Mgr., Integration Support,
  Global Business, USPS (202-268-3869,
  joann.m.miller_at_ usps.gov)
• Dennis Farley, Senior Manager Distribution, ESPN
  The Magazine (212-515-1240, Dennis.Farley_at_espn3.co
  m)

6
Subgroup Co-Chairs

• Standard Mail (letters and flats, BPM flats)
• Tom Foti, Manager, Integration and Planning,
  Product Development, USPS (202-268-7707,
  thomas.j.foti_at_usps.gov)
• Kimberly Ryan, Director of Marketing Services, L.
  L. Bean (207-552-2512, kryan_at_llbean.com)
• Wanda Senne, National Director of Postal
  Development, World Marketing (770-431-2591,
  wsenne_at_worldmarkinc.com)

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Subgroup Co-Chairs

• Packages (Single piece Parcel Post, Bound Printed
  Matter parcels, Library Mail, Media Mail,
  Standard Mail parcels)
• John Gullo, Manager, Product Development, Package
  Service, USPS (202-268-8057, john.f.gullo_at_usps.gov
  )
• Pete Grottini, Director, Postal Affairs,
  Bookspan/YES Solutions (717-795-1216,
  peter.grottini_at_ YESSolutions.com)

8
Overview

• Full workgroup participants 177
• First-Class Mail subgroup 41 (11 USPS, 5 PRC, 1
  GAO, 24 industry)
• Periodicals subgroup 42 (10 USPS, 5 PRC, 1
  GAO, 26 industry)
• Standard Mail subgroup 74 (17 USPS, 6 PRC, 1
  GAO, 50 industry)
• Packages subgroup 26 (6 USPS, 5 PRC, 1 GAO,
  14 industry)
• PRC very active participants (16 representatives)
• USPS and Industry commitment/support HIGH

9
Subgroup Progress to Date

• First-Class Mail
• Tentative agreement that existing standards, if
  achieved by USPS at acceptable level, will meet
  business needs
• Concerns about tail of the mail targets and
  measurement
• Reviewing some specific groups within the FCM
  product
• Remittance Mail
• International Mail
• Forwarded Mail

10
Subgroup Progress to Date

• Periodicals
• Tentative agreement that existing standards, if
  achieved by USPS at acceptable level, will meet
  business needs
• Subgroup has begun discussions on measurement
  evaluating Red Tag as interim service performance
  measurement system

11
Subgroup Progress to Date

• Standard Mail
• Origin-Entered Mail (est. 25 of Standard Mail
  volume) Tentative agreement to recommend a
  range of delivery days based upon existing
  standards (850,000 3-digit O/D pairs), if
  achieved by USPS at acceptable level, will meet
  business needs
• Drop-Ship Entered Mail (est. 75 of Standard Mail
  volume) Proposed matrix with a range of days,
  which recognizes drop ship entry facility type
  (DBMC, DSCF, DDU) and presort (carrier route vs.
  non-carrier route)
• Open Issues around service standards
• Seasonality (additional time during heavy fall
  mailing season?)

12
Subgroup Progress to Date

• Packages Mail
• Commercial Packages (Parcel Post, Library Mail,
  Media Mail) Tentative agreement that existing
  standards, if achieved by USPS at acceptable
  level, will meet businesses needs
• Standard Mail Packages (parcels) Industry
  evaluating Packages standards vs. Standard Mail
  (letters/flats) standards
• Retail Packages (retail Parcel Post) May be
  outside purview of MTAC workgroup (Consumer
  Advocate venue)
• Return Services (Merchandise Return Service/Bulk
  Parcel Return Service) being assessed as
  special services

13
Subgroup Progress to Date

• Open Issues on Service Standards (all subgroups)
• ZIPs outside the contiguous United States (the
  existing standards may not be achievable under
  current USPS logistics/network environment)
• Critical Entry Times (CETs) Significant changes
  to CETs effectively change service standards
• Forwarded Mail Subgroups analyzing process,
  USPS exploring how best to recognize forwarded
  mail in terms of service standards/expectations
• USPS Standards Review USPS now is conducting an
  internal review of its existing service
  standards, preliminary report due to workgroup
  early June

14
Other Service Standards Tasks

• Subgroups will be discussing setting service
  standards for a variety of Special Services
• Global workgroup recommendations on standards
• A formal, periodic review of service standards
  and measurement to include industry feedback
  (which can be triggered by significant changes
  such as network redesign, FSS, etc.)
• Enhancements to the USPS communication of service
  standards and accessibility of the information to
  mailers

15
Service Performance Measurement

• The work has only just begun
• Expect measurement needs to be diverse
• Intelligent Mail is not a viable solution for all
  mail streams (What fills in the gaps? What are
  the costs?)
• The law is not prescriptive on measurement
  systems and reporting requirements

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Time Line

• Workgroup completion date mid-Sept
• PRC consultation process begins May
• Per the law
• Dec 2007 to establish standards for all
  market-dominant products
• June 2008 for USPS to lay out plan to achieve
  standards
• No set time line for putting measurement into
  place (PRC/USPS to determine)

17
Questions?