RMS Postal Workout Program. Workout #9 Mail Preparation & Distribution

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1 RMS Postal Workout Program Workout #9 Mail Preparation & Distribution

2 Postal Workout Introduction Workout Implementation You can view and listen to a exercise in your own timeframe The workout presentation can be paused, stopped, or backed up at any time You can do these exercises individually or in groups The slides are available as a.pdf that you can print for reference Each individual must fully complete the On-line Achievement Certification Quiz to complete the exercise Look for the KEY slide in every exercise Provides information on key postal elements that are affected by the exercise Postage Mailpiece Design Barcodes Displays examples of the impact 2

3 Postal Workout Introduction 1. RMS Introduction & Processes 2. Mail Classification 3. Processing Category Size & Shape A. Letter & Postcard B. Flat, NFM & Parcel 4. Addressing 5. Barcodes A. POSTNET, Planet Code, IMb Introduction B. Intelligent Mail Barcode, CRID/MID, Business Customer Gateway/PostalOne! 6. Postage and Payment Methods 7. Postal Software Data & List Processing 8. Reply & Return Mail 9. Mail Preparation & Distribution 10. ACS & Ancillary Service Endorsements 11. Canadian Post 12. International Mail (Optional) 3

4 Training Objective Mail Preparation Letter vs Flat Trays, Tubs, Bundles, Sacks & Pallets Postal Shipping Options Drop Shipment PMOD Co-Pal Commingling Triple Play Verification & Postage Payment PVDS DSMS Impact Postage 4

5 Preparation Differences Letter Mail Quantities per discount level Trays MM 1 foot 2 foot EMM Trays on Pallets Flat Mail Quantities per discount level Trays, Tubs, Bundles, Sacks Trays, Tubs, Bundles and Sacks on Pallets 5

6 Trays Handling Units Letter Size pieces use MM Trays for pieces up to 4-5/8" high EMM Trays for pieces over that Small Flats can also be put in EMM Trays Trays contain mailpieces for a specific sort level Carrier Route, 5-Digit, 3-Digit, etc. Trays must be labeled with the contents and destination Trays must be sleeved and strapped Trays are stacked on pallets 6

7 Tubs Handling Units Only First-Class Flats can be put in tubs They cannot be used for Standard Mail Tubs contain mailpieces for a specific sort level 5-Digit, 3-Digit, AADC, MAADC, Presort, Single Piece Tubs must be labeled with the contents and destination Tubs must be capped and strapped Tubs are stacked on pallets 7

8 Bundles & Sacks Handling Units Standard Mail Flats may be prepared in Bundles or Sacks Bundles & Sacks contain mailpieces for a specific sort level Carrier Route, 5-Digit, 3-Digit Bundles must be labeled with the contents and destination RMS uses the Additional Imaged information line (OEL) If the OEL is not printed, bundle stickers must be applied Additional labor costs Bundles must be shrinkwrapped or strapped Sacks must be tagged with the contents and destination Bundles & Sacks are stacked on pallets 8

9 Handling Unit Identification Production must be able to identify exactly which mailpieces go in a handling unit RMS uses several methods for tray/bundle separation Additional Imaged Information Line (OEL) Carrier Route Information **ECRWSS **C012 Package Type ** 5 DIGIT Bag/Bundle lines or Break/unit information P0001L 0000** 3-P01360 A or Tic or Break marks #, *, 9

10 Pallets - Containers Trays, Tubs, Bundles and Sacks are put on pallets for transportation Pallets must be capped and shrinkwrapped. Pallets are prepared based on the destination of the shipment NDC, SCF, DDU and Origin Entry Contain handling units (trays, tubs, sacks, bundles) of different sort levels Drop shipment discounts are based on the pallet destination 10

11 Trays on Pallets Each facility has requirements for the minimum and maximum number of trays per pallet Based on floor space, storage rack size * Two foot trays Minimum Trays Maximum Trays Facility Tray Size Tray Size MM* EMM MM* EMM Clinton Elk Grove Wisconsin Newark Twin Cities Seymour

12 Trays on Pallets Regional Mailings May request the USPS minimum of one tier per pallet Advantage: SCF discount for small volumes Disadvantage: Increase freight cost for the weight of the pallets 12

13 Handling Unit and Container Identification Full-Service option labels/tags/placards must be uniquely numbered RMS handles the uniqueness RMS uses our Mailer ID on the trays/pallets Unless client requests the use of their MID 13

14 Linkage - Mail.dat Preparation information contained in the Mail.dat data Pieces Tray Container or Pallet Pieces Tray 14 14

15 USPS In-Home Requested Delivery Dates USPS will only deliver according to their established service standards This means the Postal Service will ignore printed requests such as "Postmaster please delivery by or delivery requests printed on facing slips The Postal Service is measured and reports on their performance to service standards - when they receive and hold mail their performance standards rating inaccurately drops This does not mean that RRD will not target in-home dates. Clients can still request in-home dates and RRD will deliver to the USPS to meet in-home dates, just as we do today. For marketing and response purposes Clients may elect to continue printing requested in-home dates on the mailpiece 15

16 Detached Mail Unit and Plant Loading Detached Mail Unit (DMU) USPS on-site personnel Verify and accepts the mailing Finalizes postage - except for DSMS Plant Load Local (origin mail) and First-Class Mail Mail leaves the facility on a USPS designated vehicle It's in the mail 16

17 Postal Distribution Options for USPS mail induction 1. Local Entry / Origin Entry Mail is picked up from the RRD production facility by the USPS and entered at the local USPS processing center 2. Drop Ship Entry Depending on volume and timing, may also be trucked by RRD from the production facility to the local USPS location Mail is trucked at the clients expense from the RRD production facility or RRD consolidation center and delivered to a USPS processing center USPS Drop Ship processing centers NDC - Network Distribution Centers SCF - Sectional Center Facility DDU - Destination Delivery Unit Delivery Service Standards First-Class 1 to 5 days Standard Mail 2 to 9 days 17

18 Understanding Mail Flow Drop Shipment Manufacturing Facility USPS Local Entry Post Office Drop Shipment benefits - More precise in-home dates Reduced delivery times Overall postage reduction SCF NDC NDC USPS Drop Ship/Destination Entry Program offers savings on Standard Letters & Flats of: $ 0.033/pc for NDC entry $ 0.043/pc for SCF entry $ 0.052/pc for DDU entry Flat Mail only SCF DDU Residence 18

19 Destination Drop Shipments Must be listed on the contract that NDC, SCF, or DDU drop is desired Mail must be sorted and addressed for delivery within that destination Mailer freights the pieces to the USPS NDC, SCF, or DDU processing site USPS gives postage discounts per mailpiece Client pays the freight and handling for drop shipments per weight RRD Dynamail - determines most cost effective balance between postage discounts and freight RR Donnelley Logistics 19

20 Priority Mail Open and Distribute - PMOD PMOD is a service within Priority Mail that is used to bulk ship prepared mail portions to the destinating postal processing center to improve the delivery of Standard Mail Mail is produced and prepared per normal production Mail is put in normal trays/sacks with appropriate labels Mail trays/sacks are put in Priority Mail containers with specific barcoded container tags Priority Mail containers are shipped to the USPS destination USPS opens the containers and processes (distributes) the mail in the trays Postage is paid on BOTH - regular postage for the mailpieces AND the cost of the Priority Mail shipment 20

21 PMOD Best Fit Uses Can be Letter or Flat size mail Small volume drop shipment to the SCF or DDU Compare with freight costs from regular drop shipments Delivery to specific outlying areas ie: Hawaii & Alaska Delivery to the DDU for EDDM Additional labor costs from the facility Barcode PMOD container labels Labor to insert into PMOD containers Additional paperwork for postage payment 21

22 CoPalletization Co-Pal Tray Combines trays of mail from multiple orders and facilities to build tray density for the best drop shipment costs SCF pallets Not put into Co-Pal as they are already tray optimized NDC pallets Trays may be advanced to the SCF level Origin pallets Trays may be advanced to the SCF or NDC level Drop Shipment discounts are based on the pallet level 22

23 Co-Pal Process Plant produces NDC and Origin Pallets Co-Pal Process Re-palletizes Creates SCF Pallets of mixed orders going to the same destination v v. 23

24 RRD Co-Pal No Risk Program RRD Co-Pal offers clients additional postage savings for Standard Letter Size Mail over traditional drop ship savings... without affecting their service or current postage payment processes. Client orders that fit into the Co-Pal Opt-Out Parameters are automatically covered by the No Risk Program "No Risk" means the client will pay the lowest postage/freight of either direct Drop Shipment, Commingling or Co-Pal RRD Logistics Co-Pal will meet and often beat your client's overall postal costs compared to our drop ship rates or commingling rates. For example... if the analysis shows that Co-Pal was more expensive than our drop ship rates or commingling rates your client will be billed at the lower rate! 24

25 RRD Co-Pal No Risk Program RMS Co-Pal Parameters Standard & Nonprofit Letter Mail Released from the following Production Facilities: Chanhassen Clinton Elk Grove Green Bay Newark Seymour Order quantities - Approved RRD/RMS Lettershops Between 100,000 2,000,000 pieces Minimum pieces per string of 75,000 Mail routing will not be able to be changed once the order has been submitted and mail files run 25

26 Co-Pal and RMS Processes RMS Order Form Co-Pal is a Opt-out program RMS order forms are pre-populated as requesting Co-Pal Services Orders that DO NOT Apply for Co-Pal Commingling Orders First-Class Orders Flat Mailings Co-Pal Additional Information onse_marketing/marketing_programs_for_sales/rms_postal _info_lib/copal_offering.aspx 26

27 Co-Pal Savings Analysis Request Request an analysis through the Postal Mail Specialists in the manufacturing facilities Current mail.dat file Mail.dat files can be from their last campaign if mail file composition is similar to their current campaign or project If you are unsure where the work will occur your request direct to RRDL Print Pricing List the suspected manufacturing plant Need for estimate on freight costs List in if others need be sent a copy of the analysis Turn Times 48 hrs. 27

28 Commingling The process of merging multiple Letter size mailpieces into one mailstream May save postage May enhance distribution Commingle affects mailpiece postage by changing the sort level (3-digit, AADC, MAADC) within Mail Trays 28

29 Commingling RMS offers this through a Presort Bureau RMS program offers all inclusive price Price is for automation and presort/machinable barcoded pieces Pickup of mail at the facilities Commingling service charges Postage Freight for Drop Shipments Standard Mail pickup and drop shipment schedule Best fit are national mailings with less than 75,000 pieces 29

30 Commingle Procedures Requires internal processes Move Update CASS/DPV/LACS/Suite Link Outsourcing paperwork No mailsort or Mail.dat created Permit imprint indicia registered in the city and state that the mail will be physically commingled Separate Checklists for Commingle Mailpiece Design Commingle Information Requirements sheet Commingle Scheduling Grid Commingling Additional Information - onse_marketing/marketing_programs_for_sales/rms_postal _info_lib/commingling.aspx Commingling Check List onse_marketing/marketing_programs_for_sales/rms_postal _info_lib/rms_postal_checklists.aspx RMS Commingle Information Requirements Customer Name Order Number Primary Contact This contact is: RMS Facility Sales Client Contact Name Phone Number Presort Bureau Contact Name Phone Number Class of Mail Choose One Standard Nonprofit First-Class Commingle Level and Type Choose One X One-pass Traditional (not part of guaranteed rate program) FASTforward requested Permit Imprint Indicia Company Style: Choose only one X Exact name of company (As appears on USPS 3615): Precanceled Stamps Metered Postage Weight of Mailpiece: Quantity and Dates Total Quantity: First Pickup Date Last Pickup Date x Origin Style City, State Permit Number OR x Mailed from ZIP Code Permit Number X Cancellati on Mark X Metererd rate: ZIP Code: First Drop Date Last Drop Date Cancellation Permit Number Copy/Cell/String quantities, pickup dates, and drop dates are listed separately. Handling of Nonverifieds/Invalids from the CASS processing Mail at Full First-Class rates (no additional processi x Process through MLOCR (additional cost) LMLM Label application (additional cost) Rejects from MLOCR x Mail at Natural postage rates Do not mail destroy forms Do not mail bulk ship to client 30

31 Commingling vs. CoPalletization Automated consolidation of mailpieces into a single mailstream Consolidation of mail trays onto single destination postal skids Commingling CoPalletization 31

32 Drop Ship, Co-Pal, Commingle - Guide Volume per string Distribution Selection Restrictions No in-home dates Less than 75,000 National Commingle No Job specific postage statement Drop ships 3 days a week Regional Drop Ship Regional Co Pal Tight production schedule 100,000 to 2,000,000 Over 2, 000,000 National CoPal Tight production schedule Regional Drop Ship National or Regional Drop Ship * Reminder Regional campaigns or large National campaigns should always be checked for Saturation and High Density Discounts you can Drop Ship or Co-Pal this type of mail no commingling 32

33 RRD Postal Triple Play Triple Play Postal Optimization Through a combination of services, resources and technology, we are able to drive different types of Postal Optimization Services/Processes and maximize postal savings opportunities with RR Donnelley s Postal Triple Play: 1. Direct Destination Drop Ship Entry: Mail files that already have high densities go directly to SCF locations at the maximum postal savings. 2. CoPalletization: RR Donnelley has developed technology and logistics centers which consolidate trays of mail with moderate density that would have been targeted for delivery to the Local Origin or NDC, and graduate these trays of mail into the next higher density to reduce postal cost. 3. Commingling: For all low density mail that remains, the final optimization/improvement is through commingling. RRD s commingling resource will improve low density mail to moderate or even high density, locking in the most advantageous postal rate. 33

34 RRD Postal Triple Play RRD s Postal Triple Play software and technology is the driver of this postal optimization strategy. It is a significant improvement over traditional postal sortation methods that take an all-or-nothing approach. RRD s Postal Triple Play manages the three-choice selection simultaneously to deliver the best postage and delivery method in one cycle. Clients save time, and most importantly, money. Live Example - $73,000 higher than a competitor mailer for about 4.8MM pieces With the Triple Play In total, RRD would be under the competition by $16,007, saving the client an estimated 2% on their total postal costs 34

35 Plant-Verified Drop Shipment Flow 5 Review 8125 Receive Mail Report Irregularities Mailer 1 Mailer submits a PVDS mailing PVDS Mailer / Consolidator Transports 4 Verify Mail Validate 8125 Collect Payment Resolve Discrepancies 2 USPS Relinquishes Custody of Mail 3 35

36 Drop Shipment Management System - DSMS The DSMS program enables authorized users to build consolidated loads of palletized plant-verified drop shipment (PVDS) mail from multiple jobs and mailing locations and to create consolidated Forms 8125-CD Mailings are verified during the production process at the mailer s plant by acceptance clerks at a detached mail unit (DMU). Mailings or mailing segments that are verified and cleared by the DMU clerk may be dispatched for storage at a DSMS consolidation location other than the production site prior to postage payment. Postage can be paid after the consolidation is complete Once postage is paid on the verified and cleared mailing(s), the DMU clerk electronically releases the mailing(s) for inclusion in PVDS shipments to destination postal facilities. 36

37 DSMS Mailer 5 Review 8125 Receive Mail Report Irregularities 1 Mailer submits mailing 4 DLS Transports Postal Clerk releases postage DSMS Verify Mail 2 USPS Relinquishes Custody of Mail 3 37

38 Postal Impact On average, postage accounts for 50% or more of the total mail package cost Postal costs can make a difference in Winning work or converting prospects to clients Retention of current clients and their orders Market competition - pulling clients and jobs away from competitors Work that is awarded under an RFP EVERY ORDER must be reviewed to confirm Lowest Postal Costs Best Delivery Service 38

39 Postal Impact On average, postage accounts for 50% or more of the total mail package cost Total Mailpiece Volume Commingling Drop Ship Co-Pal Total Cost Total Cost Per Piece Total Cost Total Cost Per Piece Total Cost Total Cost Per Piece Total Cost Difference Between Top and Bottom Cost 90,024 $ 21, $ $ 22, $ $ 21, $ $ ,667 $ 23, $ $ 23, $ $ 22, $ $ ,474 $ 59, $ $ 53, $ $ 53, $ $ 6, ,919 $ 83, $ $ 76, $ $ 75, $ $ 7, ,024 $ 87, $ $ 84, $ $ 83, $ $ 4, ,036 $ 108, $ $ 103, $ $ 101, $ $ 6, ,963 $ 118, $ $ 114, $ $ 113, $ $ 5, ,049,115 $ 249, $ $ 221, $ $ 221, $ $ 27, ,159,986 $ 275, $ $ 254, $ $ 252, $ $ 22, ,270,093 $ 301, $ $ 274, $ $ 273, $ $ 27, ,460,035 $ 346, $ $ 315, $ $ 312, $ $ 34, ,516,787 $ 360, $ $ 320, $ $ 320, $ $ 40, ,113,546 $ 501, $ $ 444, $ $ 453, $ $ 57,

40 Training Summary Mail Preparation Letter vs Flat Trays, Tubs, Bundles & Pallets Postal Shipping Options Drop Shipment PMOD Co-Pal Commingling Triple Play Verification & Postage Payment PVDS DSMS Impact Postage 40

41 RMS Postal Workout Exercise RMS receives an order for 1mm pieces from Pillar Bank for a Cross Sell Program. They want to start offering an insurance product to their Retail Banking Customers The mailpiece is a #10 Closed Faced Mailer with a 3/1 pc Duplex Letter, Reply Card and BRE Assuming drop shipment, Mail files come in with 3 different imaging versions: - 700M piece control - 2 strings of 150M each as test panels 41

42 RMS Postal Workout Exercise What would you do next? 42

43 RMS Postal Workout Exercise You review the order requirements and drop shipment request Observing that the order fits into the RRD Co-Pal recommendations you open up a discussion with Pillar Bank on the benefits of Co-Pal Co-Pal offers them additional discounts versus direct drop shipment The Co-Pal No Risk" program, confirms Pillar Bank would pay the lesser of postage and freight combined between Drop Shipment, Commingling and Co-Pal 43

44 RMS Postal Workout Exercise Pillar Bank agrees to route the full order as Co-Pal Pillar receives additional postal discounts Saving them $ 7,000 total or $0.007/pc The bank will reinvest the postal savings into their next mail campaign Helps differentiate RRD from the competition since some competitors do not offer this type of a solution 44

45 RMS Postal Workout Exercise RMS receives an order for 1mm pieces from Kingston Animal Society for a KAS Member Event Alert The mailpiece has a 6 x 9" Closed Faced Outer Envelope with a 2/1 Imaged Letter, 4/4 Event Alert Notification Buckslip and 2/1 Bangtail BRE Mail files come in with 12 different imaging versions KAS has requested commingling due to the small run quantities in the versions but, is asking RRD to let them know the best postage and freight combination. 45

46 RMS Postal Workout Exercise What would you do next? 46

47 RMS Postal Workout Exercise You review the order requirements and postal request You discover that most of the imaging strings can be combined enhancing their ability to achieve greater mail saturation and additional postal discounts Since this is a Regional mailing you check the mailing for Saturation and High Density Discounts Request that this order is reviewed for the new RRD Postal Triple Play option You discuss the results of the 3 different postal optimization options with KAS 47

48 RMS Postal Workout Exercise KAS agrees to all of the postal optimization recommendations KAS receives better postal saturation with the combination of most of the order strings With better saturation, KAS now has mail that qualifies for Saturation & High Density discounts Saving KAS an additional $0.019/pc on Sat mail and $0.005/pc on HD versus 5-digit RRD Postal Triple Play analysis uncovered all-in, including postage, fees, freight, fuel surcharge 55% should be routed Drop Ship 35% should be routed Co-Pal 10% should be routed Commingling KAS receives better postal pricing over their original shipment method and saves $30,500 48

49 To Complete the RMS Postal Workout #9 Mail Preparation & Distribution Please access and complete the On-line Achievement Certification Quiz Thank You! 49

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