MTAC USPS FLATS SYMPOSIUM REVIEW

1
Review
Mike Winn, R.R. Donnelley MTAC FSS Track
2
OBJECTIVE

• USPS Provided an Update on the Flats Strategy
• Engaged in an Exchange of Ideas Between the USPS
  and the Mailing Industry
• Open Discussion on Impacts and Issues as the
  Mailing Industry Prepares for the New World of
  Flats Processing
• Provided an Opportunity for Participants to Ask
  Questions and USPS to Capture Input

3
Symposium Logistics

• Symposium Took Place on May 17, 2007
• LEnfant Plaza Hotel Conference Center
• Attendance of 320
• Representation From All Stakeholders in The
  Mailing Industry
• Postal Regulatory Commission Representation
• Labor Organization Participation
• USPS Senior Leadership

4
Agenda Meeting Flow

• Opening Welcome
• Corporate Flat Strategy Briefing
• FSS Program Overview
• Four Panel Discussions Presented Jointly by USPS
  and Industry Representatives
• Addressing and Mailpiece Design
• Bundles / Containers
• Entry / Processing
• FSS - Pricing Implications
• Summary Conclusion
• Jim OBrien, Time Inc
• Summarized Issues Key Take-aways
• Discussed Next Steps

5
Summary of Key Issues

• Panel 1 Addressing and Mailpiece Design
• Timing / Implementation of Standard Address
  Placement and Address Orientation
• Overall Address Block Requirements
• Size of Intelligent Mail Barcode
• Address Construction
• Clear Space
• Overall Address Block Real Estate Requirement

6
Summary of Key Issues

• Panel 2 Bundles / Containers
• Future of Mail Prep FSS Zones vs. Non-FSS Zones
• Timing and Integration of FSS Zones
• Bundle Rates, Bundles Size and Firm Bundle
  Handling
• Transition of CR-RT Bundles to FSS Schemes
• Pallet Make-up and Bindery Challenges for
  Additional Mail-stream, or Prep Changes
• Labeling List Timing
• Co-mailing and Co-pallet Standard Flats and
  Periodical Rules

7
Summary of Key Issues

• Panel 3 Entry / Processing
• Critical Entry Times (CET) Specific Concern for
  Periodicals
• Number of Drop-ship Locations and Future of
  Drop-shipment Discounts
• Managing In-home Dates in FSS Environment
• Handling of Newspapers, High Density and Total
  Market Coverage (TMC)
• Impacts of Seamless Acceptance (Risk Based
  Verification Process)

8
Summary of Key Issues

• Panel 4 FSS - Pricing Implications
• Impact of Rate Case and the Future of Flat Volume
• FSS Alternative Rate Categories May be Necessary
  to Correspond to Processing Costs
• Migration of Flats to Letters (R2006-1)
• Future Rate Making Process (new legislation)

9
Follow-up Next Steps

• Symposium Presentations Information Posted on
  RIBBS at http//ribbs.usps.gov/mtac.html
• Set of Q As From Symposium Will be Posted in
  the Near Future
• MTAC FSS Track Will Continue to Focus Workgroups
  Around Key Issues, Embrace Industry Input and
  Provide Ongoing Communication
• Follow-up Flats Symposium Session at National
  Postal Forum in 2008

10
FSS Program Update
Cathy Moon USPS, FSS Project Office MTAC
Update August 2007
11
FSS Program Update

• Dulles FSS Pre-production Operation
• The Inplant Testing for the Dulles Pre-production
  Flats Sequencing System Has Been Extended
• Install and Integration in the Dulles Facility is
  Scheduled For Fall 2007
• Live Flat Mail Processing Will Begin Integration
  in December