Austin PCC Meeting. Robert Jenkins Manager, Marketing Rio Grande District. November 13, 2014

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1 Austin PCC Meeting Robert Jenkins Manager, Marketing Rio Grande District November 13, 2014

2 Agenda Intelligent Mail Package Barcode (IMPB ) Postage Price Changes for 2015 Holiday Shipping Season Anonymous Mail/Hazmat 2

3 Intelligent Mail Package Barcode What is it? The Intelligent Mail Package Barcode (IMpb) is the next generation tracking barcode and the critical bridge between physical packages and digital information required to enable world class service and tracking for our package products. Critical to 100% Package Visibility!! 3

4 IMpb Basic Requirements Unique IMpb tracking or Extra Services barcode Shipping Services File Version 1.6 or higher, populated correctly with required fields Version 1.7 or 2.0 preferred Destination delivery address and/or Delivery Point Validated (DPV) 11-Digit ZIP Code Destination ZIP+4 Code acceptable until January 25, 2015 Legacy tracking barcode and Shipping Services File formats acceptable until January 25,

5 Intelligent Mail Package Barcode What does it do for you? Supports 100% Package Visibility and World Class Service and Tracking A unique tracking barcode on every package Scans at key touch points, full end-to-end tracking Tracking built in for major shipping products First-Class Package Services Priority Mail Parcel Select, including Parcel Select Light Weight Standard Post Returns Rich digital information improves service and the customer experience 5

6 IMpb Benefits and Features Access to the best prices for package products End-to-End tracking information at no additional charge for Competitive Products Proactively manage expectations you and your customers know when to expect your packages to arrive Access to Priority Mail baked-in insurance up to: $50 for Retail and Commercial Base Pricing $100 for Commercial Plus customers Required for new products, services and features 6

7 IMpb Benefits and Features 3-digit service type codes identify product class and extra service combination Eliminates multiple barcodes on a package Supports 6-digit or 9-digit numeric Mailer IDs Destination routing information in the barcode facilitates automated sorting Channel-specific Application Identifiers (AI) Supports nesting packages to containers for greater visibility 7

8 IMpb Barcode Elements Overview What s represented in the barcode? *Note: Barcode is an art image only and is not to spec or scale. 8

9 IMpb Barcode Elements Overview Shorter, ½ barcode height allowed for smaller packages with approval *Note: Barcode is an art image only and is not to spec or scale. 9

10 IMpb Federal Register Final Rule New Standards to Enhance Package Visibility aka IMpb 2.0 Final Rule published December 18, 2013 Implementation Date January 27, 2014 Extended IMpb requirements to all Commercial Parcels and items with trackable Extra Services Competitive Products - January 27, 2014 Transition periods for customers shipping: Market Dominant Parcels until September 7, 2014 Merchandise Return Service until September 7, 2014 IMpb use with Certified Mail or Registered Mail until January 25, 2015 Business Reply Mail Parcels work in progress Destination Delivery Address and/or Delivery Point Validated 11-digit ZIP Code required in the electronic file January 25,

11 IMpb Federal Register Final Rule New Standards to Enhance Package Visibility Good news. Presort and destination entry discounts no longer tied to IMpb compliance Meter customers retain Commercial Base pricing until January 25, 2015 However, unique IMpb, Label 400 USPS Tracking, or special IMpb required for all parcels Exceptions requests entertained, submit to VP of Sales 11

12 Market Dominant Products Market Dominant Products First-Class Mail Standard Mail Bound Printed Matter (BPM) Media Mail Library Mail Periodicals 12

13 IMpb Commercial Adoption* Adoption Metrics for Market Dominant Products May 1-31, 2014 * Barcoded Volume Only Source: Product Tracking & Reporting 13

14 IMpb Commercial Compliance * Barcoded Volume Only Source: Product Tracking & Reporting 14

15 IMpb - Future Plans Expected expansion of non-compliance fee to include Market Dominant products Dependent on rule making process and PRC approval Mailers will be given an opportunity to comment 15

16 IMpb Compliance IMpb Compliance thresholds, only applicable to competitive at this time IMpb non-compliance fee 20 cents IMpb Compliance Thresholds Jan 2014 Sept 2014 Jan 2015 Unique trackable barcode IMpb or Legacy 98% 99% 99% IMpb Only Destination delivery address, 11-Digit DPV ZIP Code or ZIP + 4 Code in file 93% 95% 98% Destination Delivery Address or 11-Digit DPV Only Shipping Services file v1.6 or higher, including required data elements 90% 95% 97% 16

17 IMpb Federal Register Final Rule Alternate Ways to Meet Requirements Bound Printed Matter (BPM) Parcels may use Mail.dat in lieu of SSF Standard Mail Parcels Standard Mail Marketing Parcels and Non-Profit Standard Mail parcels will require a unique IMpb or a unique IMb Includes product samples Excludes Regular and Non-Profit Standard Mail product samples with simplified address or Detached Address Labels (DALs) Standard Mail parcels using unique an IMb may use either Mail.dat or Mail.XML in lieu of the SSF Standard Mail parcels presorted and containerized to 5-digit level may use an IMb IMbs must remain unique for 45 days 17

18 Recent Developments BRM Parcels USPS plans to publish a proposed rule requiring parcels using BRM to include an IMpb Expected publication within the next few weeks Expected implementation in January 2015 Mailers will be given an opportunity to comment 18

19 IMpb Resources Or 19

20 IMpb Resources 18/pdf/ pdf 20

21 Postage Price Change Price Change Summary Price increases capped by law at rate of inflation as measured by CPI-U Law allows for increases above the price cap when extraordinary or exceptional circumstances exist Known as exigent price increase Current Exigent Price Case Postal Service BOG voted September 24, 2013, to pursue small 1.6% price increase for market dominant products consistent with inflation/price cap Also voted to pursue a moderate exigent price increase of 4.3% acrossthe-board for market dominant products Included a 3-cent increase in the price of a Forever stamp to 49-cents 21

22 Postage Price Change Current Exigent Price Case (cont.) Postal Service filed proposed price changes on September 26, 2013, including exigent rate case with the PRC PRC approved requests on December 24, 2013, but limited duration of exigent pricing New prices were implemented on January 26, 2014 Postal Service petitioned the U.S. Court of Appeals for the District of Columbia Circuit to review PRC s order Statement on Exigent PRC ruled that exigent price increase is a surcharge to be collected only until Postal Service recovers $3.2 billion of incremental revenue Postal Service s position is PRC improperly and artificially truncated amount of relief to which it was entitled as a result of the Great Recession 22

23 Postage Price Change Priority Mail Price Change Postal Service filed notice with PRC to change Priority Mail prices on July 1, 2014 Included reduction in prices for Commercial Plus and Commercial Base Approved by PRC on August 15, 2014 Price change was effective September 7, 2014; included modest increase for Priority Mail prices at Post Offices and other retail outlets Priority Mail price change enables the Postal Service to move forward with new pricing strategy to capitalize on strong package growth In FY 2013, Priority Mail revenue reached $6.4 billion with a volume of 871 million pieces The pricing adjustments are part of a broader strategy to position the Postal Service for the future 23

24 Postage Price Change Plans for possible 2015 Price Increase USPS BOG will not seek an increase in mail and shipping product services this January, in part because of the uncertainty regarding the exigent price increase Uncertain at this time when the U.S. Court of Appeals for the District of Columbia Circuit will rule on the Postal Service s appeal of PRC s order Current rates will stay in effect through the holiday season and early part of 2015 BOG will continue to evaluate pricing strategies and will communicate any potential price change filings in early 2015 Postal Service will provide customers advance notice of any price changes 24

25 Holiday Shipping Season Delivery of Packages Seven Days a Week Postal Service will be delivering packages seven days a week in major cities and high volume areas starting November 17 through Christmas Day During the holidays, no carrier makes more deliveries to more places than the Postal Service, and this year, we re raising the bar with enhanced tracking and Sunday delivery, said Postmaster General Patrick Donahoe Demand for package service has grown as online retailers ship more products to their customers In response to expected double-digit package volume growth, likely in the range of 450 to 470 million packages Equates to roughly 12% growth over same period last year 25

26 Holiday Shipping Season 2014 Christmas Shipping Deadlines Dec. 2 First-Class Mail International/Priority Mail International Dec. 10 Priority Mail Express International Dec. 15 Standard Post Dec. 17 Global Express Guaranteed Dec. 20 First-Class Mail/Priority Mail (domestic) Dec. 23 Priority Mail Express (domestic) Skip the Lines and Ship Online Visit usps.com - the Postal Service s web site will help make mailing and shipping easier Click-N-Ship and other online services allow customer to print shipping labels, order free Priority Mail boxes, purchase postage, and even request free next day Package Pickup 26

27 Anonymous Mail Anonymous Mail Any mailpiece that weighs more than 13 ounces, bears only postage stamps as postage and has not been accepted by an employee at a retail service counter. 27

28 Anonymous Mail Anonymous Mail Entry Points Letter Collection Box Lobby Drop Self Service Kiosk Collected On Letter Carrier s Route 28

29 HAZMAT What Happens? Anonymous Mail is returned to the sender If no return address, the addressee is contacted If addressee can t be reached, it is turned over to the Postal Inspection Service (Law Enforcement) 29

30 Anonymous Mail Return Labels LABEL DDD2 LABEL 127 NO FLY STICKER 30

31 Anonymous Mail Anonymous Mail Label DDD1 31

32 Anonymous Mail Placement Of Label DDD1 32

33 Anonymous Mail Placement Of Label DDD1 33

34 Anonymous Mail Anonymous Mail Sample 34

35 Anonymous Mail Anonymous Mail Sample 35

36 Anonymous Mail Anonymous Mail Sample 36

37 Identifiable Mail Identifiable Mail Mail bearing electronic postage such as: Postage Validation Imprint Meter Strip PC Postage Click N Ship estamps Self Service Kiosk (SSK) Permit Imprint Official Mail 37

38 Identifiable Mail Identifiable Mail Sample 38

39 Identifiable Mail Identifiable Mail Sample 39

40 HAZMAT HAZMAT Definition Any article or substance designated by the U.S. Department of Transportation as being capable of posing an unreasonable risk to health, safety, and property during transportation. 40

41 HAZMAT Common Items Classified as Hazardous Materials 41

42 HAZMAT HAZMAT Question Does this item contain anything liquid, fragile, perishable or potentially hazardous, such as lithium batteries or perfume*? * Mandatory after Jan 2,

43 HAZMAT HAZMAT D.O.T. Labels Dept of Transportation requires the use of specific labels to indicate a parcel contains a hazardous material so it can be handled safely in transportation. Diamond-shaped DOT labels indicate that the item contains a regulated, or relative large quantity of, a hazardous material that the Postal Service does not allow in most cases. 43

44 HAZMAT HAZMAT D.O.T. Labels 44

45 HAZMAT HAZMAT Guide 45

46 HAZMAT HAZMAT Re-Used Packaging 46

47 HAZMAT HAZMAT Re-Used Packaging DMM b A container improperly identified by contents is non-mailable. 47

48 HAZMAT Re-Used Packaging Return Label 48

49 HAZMAT A harmless-looking box 49

50 HAZMAT Inside was a 4-ft alligator that chewed his way out. 50

51 HAZMAT This box should be monitored 51

52 HAZMAT For Monitors 52

53 HAZMAT This generator was shipped filled with gas. The gas leaked out during processing. 53

54 HAZMAT This bayonet punctured the box during processing Get the point? 54

55 Suspicious Mail 55

56 56

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