Postal Affairs Blog

The new Postmaster General Patrick Donahoe announced a new USPS® organizational structure on Friday, January 7, 2011. The goal is to have a flatter, leaner structure to be more efficient. Some of the changes include:

• Developing both market dominant and competitive products is now the responsibility of one office, the Vice President of Domestic Products. Where those products are sold–in retail, on-line, or in alternate spaces—become the responsibility of the Vice President of Channel Access.
• All customer interaction and support, whether for large corporations, small businesses, or individual consumers, will be the responsibility of the Vice President of Consumer and Industry Affairs. The Consumer Advocate remains a vital part of customer service and will report to this officer.
• The engineering technology and systems that keep mail moving and prepare the Postal Service for the future of mail, including Intelligent Mail®, will become an integral part of the Information Technology Department.
• All human resources functions will be led by the Chief Human Resources Officer, supported by the Vice Presidents of Labor Relations and Employee Resource Management.
• We will continue our leadership role in greening the Postal Service and the mailing industry with the creation of a Chief Sustainability Office, reporting to the Deputy Postmaster General. As we push to improve our profitability through cross-functional initiatives, a strategy team within the Finance Department will play a primary role in coordinating these efforts.

Donahoe also announced the closure of the Southeast Area Office. All previous Southeastern Districts will now report to the Southwest Area Office, with two exceptions: The Tennessee District will report to the Eastern Area and the Atlanta District will report to the Capital Metro Area.

The announcement also mentioned that some organizations will not continue under the officer structure that was announced, and that this information would be shared as appropriate. The announcement also indicated that a larger process of streamlining the organization is underway, including the closure of some Districts. The USPS plans to use Reduction in Force (RIF) and Voluntary Early Retirement (VER) processes as part of this initiative, which should begin by the end of the current fiscal quarter.

For an updated listing of the USPS officers, log on to the Postal Leadership area of the USPS web site, where an updated organization chart is also available.

Along with the announced price changes for the USPS competitive products (e.g. Express Mail, Priority Mail, Parcel Select, etc.), the USPS is also offering several pricing initiatives (Reply Rides Free and Saturation and High Density Standard Mail), all of which result in format changes to many postage statements. These postage statement changes are effective with the implementation of the new rates on January 2, 2011. However, since the information regarding the format of the revised postage statements was not published until just recently, the USPS has communicated plans to provide extensions until January 28, 2011 for mailers not able to produce the new format postage statements by January 2. This information was communicated in a notice published to members of the Major Mailers Association, the text of which is shown below:

The headquarters Business Mail Acceptance has developed the following plan for customers who will not be able to present the new postage statement on January 2, 2011:

- The field BMEUs will be notified to continue accepting the old postage statement from customers that cannot make the change by Jan 2nd, and continue to do so until Jan 28, 2011 if necessary. No exception request will be needed for customers who expect to be capable of producing the new postage statements by Jan 28th.

- The old postage statement covers existing products only and does not include new package products such as Critical Mail and Regional Rate Boxes. Any customer using products that are not included on the old postage statement must complete a hardcopy postage statement for those products until they are capable of producing the new mailing statement.

- The BMEU staff will maintain a questionnaire for each of the customers that continue to use the old statement with the primary purpose of ascertaining when the customer will be able to comply and produce the new postage statements.

- Customers that do not anticipate meeting the Jan 28th cutoff date for accepting the old postage statements will need to request an exception through the normal exception process and the local BMEU will assist with that process.

- No postage statement is created for eVS manifest mailers consequently no process change will be required unless an existing eVS customer is using a new product. Any eVS customer mailing one of the new products available after Jan 2 that cannot complete the new postage statement should work one on one with their Strategic Account Manager or Business Alliance Manager to ensure a seamless acceptance process.

Due to the short time frame, it is not expected that the USPS will publish this as an “official notice” so mailers should work with their local Business Mail Acceptance offices if they need to take advantage of the extension.

Mailers are strongly encouraged to implement the new postage statements as soon as possible as it is very costly for the USPS to support both old and new postage statements.

On Friday 12/17/2010, the USPS announced they will be delaying the implementation of the eDoc penalties that could cost mailers additional money should their eDoc not be in full compliance with PostalOne! and Seamless Acceptance standards.  Here are the specific items that the USPS planned to be checking for in January:

• Invalid mail preparer/mail owner (“By/For”) information
• Errors in Customer/Supplier Agreements (CSA’s)
• Invalid Mailer IDs
• Invalid Service Type Identifiers
• Non-unique mailpiece, handling unit, or container barcodes

Read below the letter from Steve Kearney of the USPS to the Mailer’s Technical Advisory Committee:

Letter to MTAC from MTAC Co-Chair

Dear MTACers:

We are delaying Full-Service eDoc postage corrections, which we had planned to deploy on January 2, 2011, to give mailers more time to use information from a new report to help correct errors in their electronic documentation.

The new publication — PostalOne!® Full-Service Error report — allows eDoc submitters to review the quality of submissions, identify jobs with errors, and calculate the correct postage. This report also allows the eDoc submitter to request reconciliation of identified errors. 

We encourage mailers to take advantage of the reconciliation process and use the feedback to correct Full-Service eDoc issues.

In addition, enhancements to the MicroStrategy Mail Data Quality reports provide detailed information on piece counts and postage amounts for pieces that are not compliant with Full-Service requirements.

Mailers have begun using these two reports — MicroStrategy Mail Data Quality and Full-Service Error — to assess the quality of their eDoc. We are continuing to work through the MTAC 137 group to address mailers’ concerns.

Please be sure to utilize the MicroStrategy Mail Data Quality reports and the PostalOne! Full-Service Error reports. Also, tell us about any issues you have with the PostalOne! help desk, 800-522-9085.

Best regards,

Steve Kearney
MTAC Co-Chair
U.S. Postal Service

From the October 26, 2010 DMM Advisory:

Postmaster General John E. Potter to Retire

To Be Succeeded by Deputy Postmaster General Donahoe

WASHINGTON — After nearly 10 years as U.S. Postmaster General and CEO of the U.S. Postal Service, John E. Potter today announced that he will retire on Dec. 3, after 32 years of service.

The Governors of the Postal Service named Patrick R. Donahoe, currently Deputy Postmaster General and Chief Operating Officer, to succeed Potter.

A New York City native, Potter is credited with modernizing management, introducing long-term, strategic thinking necessary in a complex and changing marketplace, and transforming the Postal Service into a service-driven customer-focused and cost-sensitive organization.

Potter’s accomplishments include:

• Eliminating more than $20 billion in costs during the last 10 years, with cumulative savings of more than $50 billion.
• Building a leaner, more flexible workforce and increasing efficiency and productivity through technology and the expansion of automation in mail processing and delivery.
• Reducing career employment from 787,000 positions in 2001 to about 584,000 today through attrition, using strong and focused management practices.
• Leading the Postal Service and the nation through the anthrax terrorist attack following 9/11.
• Creating a 10-year action plan that is a blueprint for necessary operational, legislative and regulatory changes to the current business model to ensure a viable Postal Service for decades to come.

Potter expressed his pride in the performance of the men and women of the Postal Service, saying its accomplishments resulted from the thousands of employees who dedicated themselves to meeting customer needs in a rapidly changing technological and communications environment.

“I fully appreciate their support in maintaining the tradition of trust that dates back to Benjamin Franklin and the founding of our nation,” Potter said. “It is our people that define our organization and it is their dedication and sense of purpose that drives our business.”

Louis J. Giuliano, Board of Governors chair, noted Potter’s many accomplishments in thanking the Postmaster General for his years of service.

“You have been a steadying and far-sighted leader throughout a period of dynamic change in America’s use of the mail and during times of economic uncertainty,” Giuliano said. “The hallmark of your success was your ability to build respectful relationships with all stakeholders, customers and employees that built a trusted level of credibility. We unreservedly regard your tenure as one of great accomplishment.”

Donahoe, currently Deputy Postmaster General, will become the 73rd Postmaster General in December. Potter credits Donahoe and his entire service team with regularly exceeding demanding performance goals and setting new records for on-time delivery and operational efficiency.

Donahoe began his career as a clerk in Pittsburgh in 1975, and in 2001, became responsible for all facets of mail operations, including processing delivery, retail, engineering, transportation and facilities. He has served in a variety of senior management positions in operations and human resources before becoming Deputy Postmaster General in 2005.

Giuliano cited Donahoe’s outstanding performance as one of the main reasons the Board chose Donahoe to build on the Postal Service’s achievements and lead the organization through a changing business environment.

“Pat and Jack have been a very effective team,” Giuliano said. “We’re very sorry to see Jack leave, but we’re grateful for the significant contributions his transformative approach to our organization and the nation it serves. We wish him nothing but the best in the future.”

Donahoe said he appreciated the confidence of the governors in naming him the next Postmaster General.

“It’s been an honor to serve with Jack,” Donahoe said. “Our challenge going forward is to implement the ambitious plan now in place to assure the continued viability of the Postal Service in fulfilling its mission of providing reliable, self-supporting, universal mail service to our nation. While we are confronted by challenges, I am confident we will succeed.”

The Postal Service receives no tax dollars for operating expenses, and relies on the sale of products and services to fund its operations.

 Monica Lundquist

Postal Affairs Manager

Window Book, Inc.

617-395-4570

mlundquist@windowbook.com

Full-Service eDoc Verification and Assessment

The November 2010 PostalOne! release will introduce a process for the evaluation of eDoc for Intelligent Mail Full-Service mailings. The process will evaluate Full-Service eDoc for:

• Invalid Mailer ID
• Invalid Service Type ID
• Incorrect By/For information
• Incorrect Customer/Supplier Agreement (CSA) information
• Non-unique barcodes

On January 2, 2011, these errors will result in the loss of Full-Service discounts. Mailers should use the feedback to correct errors found during Full-Service verification prior to implementation of the Full-Service Discount Removal on January 2, 2011. Additional information can be found on RIBBS in the PostalOne! Release 25.0 release notes.

Full-Service Feedback Webinars:

The next USPS Full-Service Feedback webinar will be broadcast on Thursday, October 28 at 3 p.m. (EDT). This webinar explains the eDoc Verification process and Mail Data Quality reports. Log in information on the Webinars is posted on RIBBS^® under Intelligent Mail Latest News.

As always, if you have questions about this information, please feel free to contact me or anyone here at Window Book.

Wallace Vingelis

Director, Postal Industry Practice

Window Book, Inc.                

Phone:  (617) 395-4569

email:    wvingelis@windowbook.com

The Postal Regulatory Commission (PRC) just announced it has unanimously rejected the USPS request for an exigency rate increase. 

Woohoo!

Check out these links for full details:

http://www.prc.gov/prc-docs/Newsroom/PressReleases/R2010-4%20Press%20Release_1394.pdf

http://www.prc.gov/prc-docs/Newsroom/PressReleases/Chairman’s%20Statement%20R2010-4%20decision_1395.pdf

Wallace Vingelis

Director, Postal Industry Practice

Window Book, Inc.                

Phone:  (617) 395-4569

email:    wvingelis@windowbook.com

From the DMM Advisory on Friday:

September 17, 2010

DMM Advisory

Pricing — keeping you informed about the prices and mailing standards of the United States Postal Service

Published Federal Register Notices

The following two Federal Register notices were published today and are now posted on the Postal Explorer® website at pe.usps.com. We encourage you to check them out:

Intelligent Mail Package Barcode — This advanced notice of proposed rulemaking incorporates standards for the optional use of Intelligent Mail® package barcodes (IMpb) no later than January 2011; and requires the mandatory use of IMpb on all domestic packages beginning in January 2012. The IMpb will provide valuable piece-level package information. We’re looking forward to receiving and considering mailing industry feedback on the proposed timeline before publishing the final standards. Customers are encouraged to respond on or before September 27, 2010.

Express Mail Open and Distribute and Priority Mail Open and Distribute — We are proposing to revise the service commitment for Express Mail Open and Distribute as a guaranteed end of day product to reflect the way it is processed. We are also proposing to add a minimum five-pound weight requirement for Express Mail® Open and Distribute and Priority Mail® Open and Distribute sacks so that they won’t be mistaken for empty sacks and delayed in handling. Customers are encouraged to respond on or before October 18, 2010.

The Domestic Mail Manual (DMM) is available on Postal Explorer (pe.usps.com). To subscribe to the DMM Advisory, send an e-mail to dmmadvisory@usps.com. Simply indicate “subscribe” in the subject line.

The following was published in the DMM Advisory today:

September DMM Update

Postal Explorer® (pe.usps.com) is your source for up-to-date mailing standards. The Domestic Mail Manual is fully searchable on Postal Explorer and features fly-out menus, cross-reference links, and an extensive subject index. Today we updated our mailing standards to capture the following changes:

Alternative Addressing Format Options
We revised 507.1.0 and 602.3.0 to permit the use of certificates of mailing, Confirm service, Delivery Confirmation, and special handling extra services when using an alternative address format.

Contents of Periodicals Mail
We revised 707.3.0 to incorporate “content” changes to the standards governing pages, supplements, products and product samples, and mailpiece design.

New Endorsement for Returned Mailpieces
We revised Exhibit 507.1.4.1 to add a new endorsement, “Returned to Sender, Item Contains Nonmailable Contents,” for mailpieces that are returned due to contents that are nonmailable.

Commercial Flats Clarification
We revised 301.1.0 to update commercial flats text with minor editorial updates, and to rearrange the DMM reference text for better flow.

Clarification of Standards for Parcel Select
We revised 453.3.0 to remove standards for loyalty and growth rebates. We also revised 602.1.5.3 to note that all Parcel Select pieces must have a return address.

Delivery Address Visibility in Window Envelopes
We revised 202.2.1 and 302.2.1 to add a reference to current standards that require the delivery address to be completely visible within a window envelope, when used.

New Font Size Option for Optional Endorsement Lines
We revised 708.7.2 to provide a new font size option for mailers applying an optional endorsement line (OEL) to their mailpieces that do not bear a traditional Address Change Service (ACS) participant code.

Confirmation Services to the Northern Mariana Islands—ZIP Code 96952
We revised 503.9.2.4 and 503.10.2.3 to eliminate the Northern Mariana Islands (ZIP Code 96952) from the tables of ineligible ZIP Codes to receive Delivery Confirmation and Signature Confirmation services.

Our next scheduled DMM update is October 4.

Today’s DMM Advisory issued the following update:

IMb™ Services Update

FAST^® Release 15.0.0 will deploy on November 7, 2010. Updated FAST 15.0.0 Release Notes are available at http://ribbs.usps.gov/fast/documents/tech_guides/FASTRelease/. The key features of this release are:

• Users now have the capability to choose to receive emails for stand-alone content association.
• The FAST Web Services messaging will be updated to account for previous error messages.

The Domestic Mail Manual (DMM) is available on Postal Explorer (pe.usps.com). To subscribe to the DMM Advisory, send an e-mail to dmmadvisory@usps.com. Simply indicate “subscribe” in the subject line.

With the recent publication of our latest white paper - ”Intelligent Mail Full-Service:  Critical Steps to Understanding and Implementing” – we want to hear from you. 

Take this opportunity to comment, question, disagree – whatever you want – but do it here.  Reply to this blog post.  Let us know how we did. 

Wallace Vingelis

Director, Postal Industry Practice

Window Book, Inc.                

Phone:  (617) 395-4569

email:    wvingelis@windowbook.com