Presentation Topics

1. Agenda Presentation Topics • January Release • BMA Channel Strategy • eDropship • Expanded Start-the-Clock • MTAC Workgroups

2. Support Mail.dat 11-1 Support for Mail.dat 11-1 beginning in January 2011 • Mail.dat 11-1 files may be used to enter or update postage statements with mailing dates after the January 2011 price change. • Mail.dat 11-1 files must have Postage Statement Mailing Date values on or after the January 2011 price change date. • Mail.dat 11-1 files will not be accepted before the January 2011 price change regardless of mailing date.

3. Special Topic – eDoc Submission prior to Price Change Price Change – eDoc File Submission Options • The mailing industry desires to submit Mail.dat and MailXML files before the price change for mailings to occur after the price change • Previously not supported by USPS (eDoc had to be cancelled/resubmitted after price change) • USPS will support two options • Option 1 – Manual (outside of PostalOne!) • Option 2 – Automated Postage Recalculation

4. Special Topic – eDoc Submission prior to Price Change Option 1: Manual Option • Use manual approach similar to the contingency plan when the PostalOne! system is unavailable • Records created outside of the PostalOne! system will be kept for the qualification report and the postage statement to support the prices paid (these records may be hardcopy or in an electronic format that the USPS employees may access) • No postage statement is entered in the PostalOne! system when mail is verified • The correct eDoc (Mail.dat or MailXML) must be submitted when mail is released after the price change • This option must be used if mailing contains new products/services or if mailer wants to use new file formats (MailXML 9.0 or Mail.dat 11-1)

5. Special Topic – eDoc Submission prior to Price Change Option 2: Automated Postage Recalculation • Mailers can submit eDoc in existing file formats (MailXML 8.1 and Mail.dat 9-1) for existing products/services • PostalOne! will calculate initial postage based upon current prices • PostalOne! will be modified to recalculate postage when finalization occurs at BMEU: • Pop-up window will appear during finalization indicating that postage recalculation necessary • Background process will map lines from current version of Postage Statement forms to the appropriate lines/sections on new version of Postage Statement forms and apply new prices for each line that is impacted by price change • Product/Services no longer supported will not be allowed to finalize after price change

6. Presentation Topics January Release BMA Channel Strategy eDropship Expanded Start-the-Clock MTAC Workgroups Agenda

7. BMA Channel Strategy • Business Mail Acceptance Vision • Provide mailers with an efficient, cost-effective, and streamlined business mail channel by: • Optimizing processes in the mail value chain by creating electronic interfaces and digitized work flows. • Promote centralized flexible electronic payment solutions. • Provide customers with 24x7 automated access to initiate, manage, and present business mailings. • Facilitate mailing acceptance, verification, and induction electronically upon entry and through the mail processing cycle. • Provide near real-time, integrated, centralized mailing status feedback and customer support.

8. BMA Channel Strategy Leverage channels based upon customer need • Online/Self Service • Electronic • Retail • BMEU/Induction Leaner, Smarter, Faster 8

9. BMA Channel Strategy Benefits • Reduce costs by removing duplicative processes, eliminating waste, and decreasing labor intensive procedures • Automated 24x7 customer access to initiate, manage and present mailings. • Increase mail manufacturing cycle time • Improve near real-time visibility • Provide alternate, convenient, integrated electronic payment options • Timely, accurate and consistent information regarding mailing design/preparation rules, processes and decisions • Improve accountability across mail supply chain • Timely Systemic instead of incident measurement of mailing quality • Stimulate product and services growth 9 9 9

10. Short-Term Initiatives BMA Channel Strategy • Simplify Full-Service verifications • eDropship • Start-the-Clock for All Mailings • Options for Small Business to Engage in Full-Service and Simplified Mailing Solutions

11. Presentation Topics January Release BMA Channel Strategy eDropship Expanded Start-the-Clock MTAC Workgroups Agenda

12. eDropship • Launch a Streamlined drop-ship process in 2011 • Migrate away from Paper 8125 process • Leverage Full Service Architecture • MTAC 138 sessions: Weekly meetings since 9/1/2010 • Detailed process discussions • Electronic Documentation • Pre/Post-Induction Validations, Induction Processes • Key industry concerns • Mixed Loads • Process at Non-SV facilities • Proof of delivery

13. eDropship Process Overview eDropship

14. Presentation Topics January Release BMA Channel Strategy eDropship Expanded Start-the-Clock MTAC Workgroups Agenda

15. The current process uses EMD scans for Start-the-Clock for the mail The EMD process needs to be replaced: EMD Scans often do not reflect accurately reflect when mail is tendered to the Postal Service The EMD process utilizes document scanning and not actual mail scanning Mail Owners are given inaccurate Start-the-Clock information Expanded Start-the-Clock

16. Start-the-Clock (STC) process Start-the-Clock only for Full-Service Mailings today Expand Start-the-Clock for non Full-Service Mailings Accountability and Transparency across Supply Chain Utilize existing systems and processes for Full-Service without mandating Full-Service rules and requirements Make Start-the-Clock available to owner and preparer Allow third-party data dissemination Use existing communication methods: Reports and Electronic Data Exchange Expanded Start-the-Clock

17. Induction Method: BMEU Start-the-Clock event Mailing Arrival Time as recorded in PostalOne! Start-the-Clock calculated for the Postage Statement Date Fields in Postage Statement Modified Available for all submission types Data available to Mail Owner and Mail Preparer Available through Postage Statements, Start-the-Clock reports and Mail.XML messaging Expanded Start-the-Clock

18. Induction Method: DMU Verified, Mailer Transported Start-the-Clock is calculated for the FAST appointment Start-the-Clock Event Appointment On-time: FAST Scheduled Appt Time Appointment Early: Earlier of Scheduled Appt Time or Unload Start Time Appointment Late: FAST Unload Start Time Data available to Scheduler from Appointment Data available to Mail Owner and Mail Preparer if containers are linked to appointments in eDoc Available through Start-the-Clock reports, Mail.XML messaging, FAST Appointment Close-out messages Expanded Start-the-Clock

19. Induction Method: DMU Verified, USPS Transported Electronic documentation, CSA, and unique container barcodes are required for Start-the-Clock calculation Start-the-Clock is calculated for the container Start-the-Clock Event Trip Time from CSA when the container release scan occurs before container ready time Trip Time from CSA when no container release scan is captured If container release scan is after the container ready time, Start-the-Clock is the next day Data available to Mail Owner and Mail Preparer Available through Start-the-Clock reports and Mail.XML messaging Expanded Start-the-Clock

20. Summary Replace inaccurate STC calculations with accurate data Utilize standard calculation and communication processes Federal Register Notice, Deploy in 2011 Deploy 2011 Expanded Start-the-Clock

21. Near-Term Initiatives BMA Channel Strategy • Results-based Automated Verification • Centralized Account Management • Integrated Customer Support and Feedback • Optimized Business Mail Acceptance Network

22. MTAC Workgroups • WG # 140 Enterprise Payment • WG # 139 Start-the-Clock for Business Mail • WG # 138 eDropship • WG # 137 Full Service Feedback • TT # 2 Streamline Business Mail Entry