USPS Technology Roadmap for Commercial Mailers. December 2011

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1 USPS Technology Roadmap for Commercial Mailers December

2 Agenda EXECUTIVE SUMMARY - CIO Mission - Payment and Acceptance - Product Information - Public Trust & Information Security INITIATIVE DETAILS 1

3 EXECUTIVE SUMMARY 2

4 EXECUTIVE SUMMARY CIO Mission CIO MISSION Leverage Technology to Drive Business Value Ellis Burgoyne, CIO United States Postal Service Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security 3

5 EXECUTIVE SUMMARY Payment & Acceptance Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Payment Mail Preparation Entry Strategy Allow customers to pay for multiple products and services through a central payment account, with self-service account management and expanded payment options -Provide a structured and dynamic environment for deploying product and service enhancements to customer-facing systems -Collaborate with Industry to make it easier for mailers to prepare Full Service, evs, and seamless ready mailings -Improve mailpiece design tools and offer tools to small businesses to prepare Full Service mailings and offer expanded access through simplified online and selfservice solutions Streamline and expand access for mail entry across channels to include retail, BMEU, and processing facilities, leveraging advances made in Intelligent Mail and electronic documentation Initiatives Centralized Accounts Scan-triggered payment Enterprise Payment System Structured Release Schedule Dynamic Pricing Template & Digital Workflows Streamline PAVE, Full Service, evs, Onboarding ABRM Tool and Small Business Tool einduction Business Mail Entry Unit (BMEU) Self-Service Retail Induction Acceptance & Verification Customer Support Automate acceptance and verification leveraging Intelligent Barcodes and electronic documentation Improve consistency and efficiency of customer support functions to improve customer experience Seamless Acceptance Electronic Verification System (evs) Automated & Centralized Support Functions 4

6 EXECUTIVE SUMMARY Timeline Payment & Acceptance Solutions FY12 FY13 FY14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Payment Enterprise Payment System Interim Solution - Centralization of Accounts & Permit Fee Exemption for Full Service Release / Deploy Enterprise Payment - Phase 1 Phase 1 Implementation Mail Preparation Phase 1 Resolve Known Issues w/ Tool ABRM Tool Pilot Phase 1 Begin National Rollout Phase 2 Major Enhancements Postal Wizard Enhancements Phase 1 Release Phase 1 Small Business Tool Phase 1 Pilot Phase 2 Development Release Phase 2 Phase 2 Pilot 5

7 EXECUTIVE SUMMARY Timeline Acceptance Solutions (cont.) FY12 FY13 FY14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Entry Develop and Design einduction Process einduction Phase 1 Release Phase 2 Release Phase 3 Release Phase 4 Release Pilot Begin Limited Rollout Deploy BMEU Self-Service BMEU Value Stream Mapping Development of Streamlined Entry at BMEUs Pilot Acceptance & Verification Seamless Acceptance DMU Value Stream Mapping Conduct Seamless Acceptance Proof of Concept Pilot Software Enhancements Begin Rollout Customer Support Automated & Centralized Support MDA Support Center Rollout 1/13 6

8 EXECUTIVE SUMMARY Product Information Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Package Visibility Strategy Provide customers with robust end-toend tracking events Initiatives Automated Package Processing System (APPS) Ring Scanners PASS Small Parcel and Bundle Sorter (SPBS) Enhanced Surface Visibility Retail service type barcodes Mail Visibility Provide customers with reliable, consistent, accurate, and timely information that meets the customers needs and enhances the value of mail Enhanced Diagnostics Standardize operations for all products Integrate existing visibility systems Reduce latency of visibility data to centralized repositories- more real time Create integrated piece-scan repositories with reporting and diagnostic capabilities Enhance visibility at delivery units and mailer facilities Leverage MPE to increase passive and assumed nested scanning, more calculated events Drive scan compliance for manual scanning procedures 7

9 EXECUTIVE SUMMARY Timeline Product Information Solutions FY12 FY13 FY14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Increased Customer Tracking Events by 2.4B additional customer tracking Barcode all Packages Implement Informed Visibility Phase I Launch Product Tracking System Phase I Install 30 PASS Units Prototype Phase I Next Generation Scanner Deployment Ring Scanner Deployment Phase II SV Deployment Complete APBS Deployment 6/12 6/12 3/13 Launch Product Tracking System - Phase II 1/14 11/12 8

10 EXECUTIVE SUMMARY Public Trust & Information Security Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Public Trust & Information Security supports all activities within the CIO organization Payment & Acceptance Strategy Protect customer information Initiatives Payment Card Industry Security Standards Audit Data masking of sensitive customer information Data Loss Prevention (DLP) Data at rest activities Product Information Promote ubiquitous customer access with innovative trusted solutions Monitor network integrity Threat elimination at business partner gateways Access validation Access control to systems and applications e-commerce & Digital Provide world class data security National Secure Trusted Identity in Cyberspace (NSTIC) Elimination of stale customer data Risk Management Framework Patch and Configuration management Retail & Operations Provide world class transaction security Fraud prevention efforts Security awareness education Credit card handling Document handling 9

11 EXECUTIVE SUMMARY Timeline Public Trust & Information Security FY12 FY13 FY14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Payment & Acceptance Payment Card Industry Security Standards Audit Data Masking of Sensitive Customer Info Qrtrly Audit Qrtrly Audit Qrtrly Audit Qrtrly Audit Qrtrly Audit Qrtrly Audit Complete Pilot Testing for Production Applications Qrtrly Audit Qrtrly Audit Qrtrly Audit Data Loss Prevention Data Loss Prevention (Ongoing) Data at Rest Activities Scans Data Elimination Product Information Monitor Network Integrity Firewall Rules Check Monitor Network Integrity (Ongoing) Threat Elimination at Business Partner Gateways Pilot Production Access Validation Access Validation (Ongoing) Access Control to Systems & Applications Access Control (Ongoing) 10

12 EXECUTIVE SUMMARY Timeline Public Trust & Information Security (cont.) FY12 FY13 FY14 e-commerce & Digital Nat l Secure Trusted Identity in Cyberspace (NSTIC) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Pilot Elimination of Stale Customer Data Data Elimination Risk Management Framework Patch & Configuration Mgmt Retail & Operations Pilot Production Patch & Configuration Mgmt (Ongoing) Fraud Prevention Efforts Fraud Prevention (Ongoing) Security Awareness Education Security Awareness Education (Ongoing w/ monthly Link articles) Credit Card Handling Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Qrtrly Scans Document Handling Pilot Operational 11

13 INITIATIVE DETAILS 12

14 Payment & Acceptance Product Information 13

15 Payment & Acceptance Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Payment Strategy Allow customers to pay for multiple products and services through a central payment account, with self-service account management and expanded payment options Initiatives Centralized Accounts Scan-triggered payments Enterprise Payment System 14

16 Payment Payment Mail Preparation Entry Acceptance & Verification Customer Support Centralized Accounts Change current CAPS management and processing to move all local trust accounts into CAPS CAPS database will continue to maintain the Permit Account number and Local Finance number in addition to the newly assigned centralized payment account number o Allows customers to use a permit imprint, metered, or pre-cancelled permit issued from one BMEU or DMU site for a mailing at any other BMEU or DMU site where Full Service pieces constitute 90% or more of the mailing o A Permit Imprint permit (the permit on which postage is paid) may be used at any PostalOne! acceptance site under the following conditions: o Eligible with First-Class, Standard, and Bound Printed Matter Full-Service mailings Does not apply to Periodicals o Applies to mailings where postage statements that have 90% or more Full-Service pieces o The 90% applies to single statements or the master statement (when there are multiple child statements) For single permit mailings, the statement must meet the 90% threshold For multiple permit mailings, the master statement must meet the 90% threshold Individual permits within the master statement do not have to meet the 90% threshold o Issuing office Permit Number and City / State or Company Imprint indicia may be printed in the indicia on the piece and entered at any location 15

17 Payment Payment Mail Preparation Entry Acceptance & Verification Customer Support Centralized Accounts (cont.) No annual presort fee as long as postage statements charged to permit remain at 90% or greater Full- Service pieces This applies to each postage statement charged to the permit o o o For multiple permit mailings, the master statement must meet the 90% threshold Individual permits within the master statement do not have to meet the 90% threshold to be included in Mail Anywhere Individual permits within the Master Statement that fall below the 90% threshold will have to pay the annual presort fee at the permit issuing office since the postage statement charged to their permit will be less than the 90% threshold. Scan-Triggered Payment Scan-based payment for postage due for merchandise return 16

18 Enterprise Payment Expand Payment Methods Across Channels Channels Payment Types Payment Features Online Mobile Retail BMEU APC/Kiosk Telephone IVR Agent Credit Card* Signature Debit* PIN Debit* Branded Prepaid Card** USPS Card** Cash, Check, Money Order (retail) Near Field / Smart Pay (mobile)** Bill Me Later* PayPal** Trust* ACH Debit* echeck** Incentive Enrollments NSAs Deferred Billing Payment Terms / Invoicing Loyalty Tracking Electronic Receipts *Current method available in one or more channels **Future method 17 17

19 Payment Payment Mail Preparation Entry Acceptance & Verification Customer Support Enterprise Payment Solution Online Account Creation & Management Online, self-service management of payment account 24X7 Account Access/Management Pay for multiple USPS products from single account Product/Payment profile where customers assign payment methods by product/service Electronic presentment and payment of invoices Payment Methods & Processing Standardized Payment Methods across Products and Services Processing for ACH Debit, ACH Credit, & Fedwire Infrastructure support for other emerging payment technologies Reporting Centralized Transaction History Loyalty Program Tracking System Implementation & Integration Through Phased Approach Business Mail/Shipping Services Express Mail Corporate Accounts PO Boxes AMS Products and Services 18

20 Mail Preparation Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Mail Preparation Strategy -Provide a structured and dynamic environment for deploying product and service enhancements to customer-facing systems -Collaborate with Industry to make it easier for mailers to prepare Full Service, evs, and seamless ready mailings -Improve mailpiece design tools and offer tools to small businesses to prepare Full Service mailings and offer expanded access through simplified online and self-service solutions Initiatives Structured Release Schedule Dynamic Pricing Template & Digital Workflows Streamline PAVE, Full Service, evs, Onboarding ABRM Tool and Small Business Tool 19

21 Mail Preparation Payment Mail Preparation Entry Acceptance & Verification Customer Support Structured Release Schedule Winter (Major) Spring (Minor) Summer (Major) Fall (Minor) Communications Announce Release Overview June 13, 2011 Nov 14, 2011 Specifications Publish Technical Specifications Jun 22, 2011 Nov 4, 2011 Dec 23, 2011 May 4, 2012 Publish Draft Postage Statements Jul 8, 2011 Dec 9, 2011 Publish Final Postage Statements w/o prices Nov 23, 2011 Feb 1, 2012 Apr 10, 2012 Jul 30, 2012 Publish Final Postage Statements w/ prices Dec 23, 2011 May 10, 2012 Release Notes Publish Draft Release Notes Initial Draft Aug 8, 2011 Nov 21, 2011 Jan 9, 2012 May 18, 2012 Publish Draft Release Notes Post-Requirements Sep 30, 2011 Jan 9, 2012 Mar 16, 2012 Jul 9, 2012 Publish Draft Release Notes Post-SIT Nov 23, 2011 Feb 1, 2012 Apr 10, 2012 Jul 30, 2012 Publish Final Release Notes Feb 3, 2012 Apr 13, 2012 Jul 6, 2012 Oct 26, 2012 Deployment Production / TEM Software Deployment Date Jan 8, 2012 Jun 10, 2012 Implementation Date Jan 22, 2012 April 1, 2012 Jun 24, 2012 Oct 14,

22 Mail Preparation Payment Mail Preparation Entry Acceptance & Verification Customer Support Task Team Title MTAC Task Team #11 Revising mail preparation parameter file releases and schedule to minimize costs and service impacts. Desired Results The work group will focus on the following: 1. Determine how to mitigate issues of implementing the revised schedule of the mail preparation parameter (Labeling Lists, Mail Direction File, City/State (5-digit ZIP Code scheme for automation letters) File, and Zone Matrix) across mail owners and mail service providers. 2. Recommend schedule and lead times for implementation, minimizing overall combined cost, and service impacts. 3. Review timelines for the implementation of the new release schedule and adjust as necessary. 4. The technical changes that need to be made by the mailing industry to implement the new schedule. 21

23 Mail Preparation Payment Mail Preparation Entry Acceptance & Verification Customer Support Dynamic Pricing Template Collaborate with the mailing industry to develop a dynamic pricing engine to move away from hardcopy postage statement architecture to an electronic receipt based system The price template will map to the existing Mail.dat and Mail.XML data structures and be accessible through XML files, CSV files and through web services calls with XML format Allow postal pricing to be easily consumed by mailers who adopt the platform without a software code change to calculate postage and generate receipts Include data structures with prices and incentives / adjustment rules that mailer and USPS systems can use with new prices and incentive introductions Enhanced Digital Workflows Enable uniform edoc file formats across letters, flats, and packages Improve mailing information via reports and electronic messaging Streamlined contract, NSA, and incentive processes. Automated enrollment of incentives Single sign-on and registration across business services 22

24 Mail Preparation Payment Mail Preparation Entry Acceptance & Verification Customer Support Streamline PAVE, Full Service, evs, Onboarding Collaborate with software providers to improve the presort certification process leveraging Mail.dat, Mail.XML capabilities Improve the connectivity capabilities for mailers to conveniently transmit mailing information electronically to the Postal Service to replace the current hardcopy Postage Statement process Streamline test environment and simplify the Full Service and evs onboarding processing Promote Full Service, evs, and Seamless Ready mailings across small, medium and large mailers 23

25 Mail Preparation Payment Mail Preparation Entry Acceptance & Verification Customer Support Automated Business Reply Mail (ABRM) Tool Improve and automate the online tool used by customers to design business reply mailpieces BRM and Qualified Business Reply Mail (QBRM) customers and Official Mail Accounting System (OMAS) mailers will be able to open and renew their permit through the online tool Customers will be able to pay their maintenance fee through the online tool Online tool will conduct address validation, assign a ZIP+4 Code, and assign or validate a Mailer ID for a mail owner or mail service provider Small Business Tool Enhance Postal Wizard tool functionality to allow small mailers to prepare a Full-Service Postal Wizard mailing 24

26 Entry Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Entry Strategy Streamline and expand access for mail entry across channels to include Retail, BMEU, and Processing Facilities, leveraging advances made in Intelligent Mail and electronic documentation Initiatives einduction Business Mail Entry Unit (BMEU) Self-Service Retail Induction 25

27 Entry Payment Mail Preparation Entry Acceptance & Verification Customer Support einduction Provide mailers a digital process to induct mail into Postal Facilities, eliminating paper forms 8125/8017 o Eliminate the need for paper 8125s / 8017s and reduce manual verification processes at origin and induction o Leverage Intelligent Mail Container barcodes and electronic documentation to streamline the induction process o Utilize Surface Visibility capabilities to validate payment and induction point 26

28 Entry Payment Mail Preparation Entry Acceptance & Verification Customer Support FY11 Q1 Deploy einduction capability Begin pilot einduction (cont.) Collaboration with MTAC 138 FY12 Q3 Develop foundation for einduction invoicing for mis-shipped containers Allow BME Managers to override einduction system and manually release containers to SV Enable IMcb and Postal Registers via PostalOne! Wizard Create and Print PS 8125/8017 via einduction data to PostalOne! FY12 Q1 einduction system will support continuous mailers with an approved MID solution Mailers will have the ability to indicate shipments 100% einduction Add USPS transported containers to einduction FY13 Q2 einduction to Delivery Units einduction to support IMcb creation for Air Boxes Begin limited rollout FY13 Q3 Deploy 27

29 Entry Payment Mail Preparation Entry Acceptance & Verification Customer Support einduction (cont.) Industry Benefits Simplified, efficient, convenient acceptance and entry processes Reduction in off loading delays caused by manual reconciliation process Greater flexibility in load consolidation Containers accepted individually, not tied to entire appointment in the event of a discrepancy Container visibility USPS Benefits SOX reconciliation process moved from manual to automated PVDS verifications eliminated at origin for einduction containers Destination discounts validated through automated processes Reduced Costs associated with manual reconciliation Increased performance in offload process 28

30 Entry Payment Mail Preparation Entry Acceptance & Verification Customer Support BMEU Self-Service Solution Self-service terminals will allow mailers to induct mailings at BMEUs Allow entry of postage statements through self-service terminals Allow check in of statements submitted electronically Allow express processing of Full Service and Seamless mailings. 29

31 Acceptance & Verification Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Acceptance & Verification Strategy Automate acceptance and verification leveraging Intelligent Barcodes and electronic documentation Initiatives Seamless Acceptance Electronic Verification System (evs) 30

32 Acceptance & Verification Payment Mail Preparation Entry Acceptance & Verification Customer Support Seamless Acceptance Leverage Intelligent barcodes on mailpieces, handling units, and containers and electronic documentation to automate acceptance and verification processes Utilize sample scanning at induction and mail processing equipment scans to evaluate mail quality Focus verification automation efforts on critical verifications for initial deployment Was all mail paid for? Will barcodes read on USPS equipment? Was mail dropped at the right location? Report mail quality trends based on sampling and scanning data analysis 31

33 Acceptance & Verification Payment Mail Preparation Entry Acceptance & Verification Customer Support Seamless Acceptance Conduct Value Stream Mapping (VSM) at Five Different Mailing Environments IWCO Standard Letters Collaboration with MTAC 143 DST Continuous, First-Class Letters Arandell Standard Letters and Flats PBPS MLOCR, First-Class Letters QuadGraphics Standard and Periodicals Flats Proof-of-Concept for VSM mailers Design capabilities for automating acceptance and verification processes Finalize participation criteria Compare POC results against existing verifications Test process for sampling at induction and scanning results Pilot Begin Rollout 32

34 Acceptance & Verification Payment Mail Preparation Entry Acceptance & Verification Customer Support FY11 Q1 Conduct Value Stream Mapping at select DMUs Seamless Acceptance Develop Proof of Concept Develop reporting capability for Full Service sampling processes Develop capability to match sample data to edoc Enable Proof of Concept onboarding by CRID Initiate Proof of Concept Collaboration with MTAC 143 FY12 Q3 Auto finalization of Postage Statements FY12 Q3 FY13 Q3 Software enhancements based upon lessons learned from Proof of Concept and Pilot FY13 Q2 Begin Pilot FY13 Q3 Begin Rollout 33

35 Acceptance & Verification Payment Mail Preparation Entry Acceptance & Verification Customer Support Seamless Acceptance (cont.) Industry Benefits Continuous customer access to initiate, present, and manage mailings Longer mail production cycle Standardized acceptance and verification processes Timely notification of business mail quality issues USPS Benefits Efficient resource utilization/allocation Timely problem identification and corrective action Improved mail quality Improved operational efficiencies Improved Sarbanes-Oxley Act (SOX) compliance Performance-based measurement of mailing quality deficiencies Lower risk of mail quality deficiency assessments 34

36 Acceptance & Verification Payment Mail Preparation Entry Acceptance & Verification Customer Support Electronic Verification System (evs) Improve Reports and Notifications to Customers Carbon Footprint Report Adjustment Details Reports Presort Eligibility, Content Eligibility, Destination Entry Validation Extract File Reconciliation Extract, Package Level Detail Extract Improve evs Sampling Process Update sampling devices to make more intuitive Collect samples in more locations Training for samplers Improve Reconciliation Process Automate reconciliation processes Request reconciliations and refunds online Support Product Initiatives Accounts Payable International Mail Third Party Payment and View System and Performance Improvements 35

37 Customer Support Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Customer Support Strategy Improve consistency and efficiency of customer support functions to improve customer experience Initiatives Automated & Centralized Support Functions 36

38 Customer Support Payment Mail Preparation Entry Acceptance & Verification Customer Support Automated & Centralized Customer Support Current State Inconsistent responses for mailpiece design and preparation support for mailers Inconsistent workload across BME support staff Future State Automate & centralize support functions Promote self-service features and educate customers on self-service offerings Centralize helpdesk and route calls to agents that possess needed skill sets Call Distribution by Request Type 37

39 Customer Support Payment Mail Preparation Entry Acceptance & Verification Customer Support Automated & Centralized Customer Support Industry Benefits Automated 24x7 customer access to mailing support services Timely, accurate and consistent information regarding mailing design, preparation rules, processes, and decisions USPS Benefits Centralized information and status tracking Consistent and timely responses to customers Effective resource utilization of USPS support staff Centralized support channels relevant to customer support needs: how to instruction; education; general information or technical assistance regarding billing; quality reporting; and service issues Timely decision support information regarding mailing quality performance 38

40 Payment & Acceptance Product Information Public Trust & Information Security 39

41 Product Information Overview How does the market define 100% visibility? A barcode on every piece Capture information at every handling 10 or more tracking events per piece Scan performance is 99%+ Data transmission is 99.9% Data posts in near-real time System available 24/7/365 40

42 Product Information Building Blocks to Achieve Visibility Intelligent Mail and Package Barcodes Unique barcodes on all pieces, trays and containers Mail Processing and Other Equipment Successfully read barcodes Infrastructure Successfully moves data Systems Deploy actionable reporting & analytics to achieve benefits of increased visibility Real-time data availability All systems provide real-time data 41

43 Package Visibility Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Package Visibility Strategy Provide customers with robust end-to-end tracking events Initiatives Automated Package Processing System (APPS) Ring Scanners PASS Small Parcel and Bundle Sorter (SPBS) Enhanced Surface Visibility Retail service type barcodes 42

44 Package Visibility Key Capabilities Provide customers with robust end-to-end tracking events Key Initiatives Automated Package Processing System (APPS) Ring Scanners PASS Small Parcel and Bundle Sorter (SPBS) Enhanced Surface Visibility Retail service type barcodes Replace Product Tracking System (PTS) Real-Time Scanners 43

45 Package Visibility Customer Value Proposition Generate revenue Track & Trace of shipments Improve e-shopping experience Reduce call center costs Simplify returns USPS Value Proposition Increase market competitiveness to generate revenue Enhances the ability to offer new products and services Improves service analytics Reduces labor costs workforce flexibility Allows for delivery efficiencies dynamic routing Captures workload by product Improves product costing models 44

46 Package Visibility Intelligent Barcodes on Packages (Projected End of 2012) Packages Class of Mail End of 2011 End of 2012 First-Class Mail 80% 90% Priority Mail 68% 90% Express Mail 100% 100% Standard Mail 68% NA Parcel Select Lightweight 100% Parcel Post 97% 99% Media and Library 70% 90% Bound Printed Matter 40% 90% Parcel Select 100% 100% International 100% 100% Total 75% 94% 45

47 Package Visibility Growth in Package Tracking Events Month FY 2008 FY 2009 FY 2010 FY 2011 % Increase 2011 vs 2010 October 423,420, ,905, ,843, ,023,302 12% November 457,732, ,881, ,005, ,763,992 27% December 571,672, ,448, ,125,977 1,234,188,834 29% January 463,482, ,523, ,150, ,493,730 24% February 441,733, ,993, ,564, ,035,783 24% March 466,853, ,140, ,637, ,718,304 26% April 477,365, ,220, ,787, ,021,005 29% May 457,415, ,314, ,360, ,923,441 35% June 445,811, ,659, ,649,675 1,024,999,726 37% July 455,832, ,481, ,026,459 1,020,057,199 39% August 463,452, ,522, ,070,654 1,104,810,266 46% September 459,159, ,930, ,374,468 1,146,420,394 49% YTD Total 5,583,932,146 6,289,023,824 9,032,596,971 11,876,455,976 30% Source EDW- all events by month 46

48 Package Visibility Real-Time Scanner Options Robust mobile scanner for high volume applications Open source, modular, hardware independent Considering hardened smart-phone for street to reduce cost Target high value routes first and redeploy IMDAS to extend life Extend service life of existing IMD Pair IMD to another cellular / GPS enabled device 47

49 Mail Visibility Payment & Acceptance Product Information e-commerce & Digital Retail & Operations Public Trust & Information Security Mail Visibility Strategy Provide customers with reliable, consistent, accurate, and timely information that meets the customers needs and enhances the value of mail Initiatives Enhanced Diagnostics Standardize operations for all products Integrate existing visibility systems Reduce latency of visibility data to centralized repositories- more real time Create integrated piece-scan repositories with reporting and diagnostic capabilities Enhance visibility at delivery units and mailer facilities Leverage MPE to increase passive and assumed nested scanning, more calculated events Drive scan compliance for manual scanning procedures 48

50 Mail Visibility Provide customers with reliable, consistent, accurate, and timely information that meets the customers needs and enhances the value of mail Key Capabilities Key Initiatives Standardize operations for all products Integrate existing visibility systems Reduce latency of visibility data to centralized repositories- more real time Create integrated piece-scan repositories with reporting and diagnostic capabilities Enhance visibility at delivery units and mailer facilities Leverage MPE to increase passive and assumed nested scanning, more calculated events Drive scan compliance for manual scanning procedures 49

51 Mail Visibility Customer Value Proposition Increase customer response rates Know when customers received fulfillment orders Predict payments Reduce collection calls Monitor performance of mail consolidators and logistics Improve business processes Reduce mailing cost USPS Value Proposition Enables forecasting Total transparency, measure all processes Capturing workload by product Improving product costing Reducing labor costs predict workload to take advantage of new workforce flexibility Incorporating transportation analytics Enhancing the ability to offer new products and services Allowing for delivery efficiencies dynamic routing Improving service analytics 50

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