# Presentation: 675218

## MTAC Workgroup 114
Establish Service Standards and Measurement
Update – May 16, 2007

**MTAC Workgroup 114**
**Establish Service Standards and Measurement**
**Update – May 16, 2007**

## Main Workgroup 
4 Subgroups:
First-Class Mail  (includes FCM parcels)
Periodicals
Standard Mail (letters and flats, BPM flats)
Packages (Single piece Parcel Post, Bound Printed Matter parcels, Library Mail, Media Mail, Standard Mail parcels)

**Main Workgroup **
**4 Subgroups:**
**First-Class Mail****  (**includes FCM parcels)
**Periodicals**
**Standard Mail**** (**letters and flats, BPM flats)
**Packages**** (**Single piece Parcel Post, Bound Printed Matter parcels, Library Mail, Media Mail, Standard Mail parcels)

**Workgroup Structure**

## Workgroup formed Feb 2007
Meetings held to date – 14 total
Full workgroup = 2 
FCM subgroup = 2
Periodicals subgroup = 3
Standard Mail subgroup = 3
Packages subgroup = 4

**Workgroup formed Feb 2007**
**Meetings held to date – 14 total**
**Full workgroup = 2 **
**FCM subgroup = 2**
**Periodicals subgroup = 3**
**Standard Mail subgroup = 3**
**Packages subgroup = 4**

**Overview**

## Main Workgroup 
Jeffery Lewis, USPS Manager Pricing & Policy (202-268-4757, jeffery.w.lewis@usps.gov)
Kathy Siviter, President, PCSi (PostCom)    (703-237-1740, kathys@postalconsulting.com)

**Main Workgroup **
- Jeffery Lewis, USPS Manager Pricing & Policy (202-268-4757, jeffery.w.lewis@usps.gov)
- Kathy Siviter, President, PCSi (PostCom)    (703-237-1740, kathys@postalconsulting.com)

**Workgroup Co-Chairs**

## First-Class Mail  (includes FCM parcels)
Chris Oronzio, Manager, Processing Center Operations, USPS (phone, chris.r.oronzio@usps.gov)
Jody Berenblatt, Senior VP, Postal Strategy, Bank of America (646-366-4425, jody.berenblatt@ bankofamerica.com)
Periodicals
Jo Ann Miller, Mgr., Integration & Support, Global Business, USPS (202-268-3869, joann.m.miller@ usps.gov)
Dennis Farley, Senior Manager Distribution, ESPN The Magazine (212-515-1240, Dennis.Farley@espn3.com)

**First-Class Mail****  (**includes FCM parcels)
- Chris Oronzio, Manager, Processing Center Operations, USPS (phone, chris.r.oronzio@usps.gov)
- Jody Berenblatt, Senior VP, Postal Strategy, Bank of America (646-366-4425, jody.berenblatt@ bankofamerica.com)
**Periodicals**
- Jo Ann Miller,** **Mgr., Integration & Support, Global Business, USPS (202-268-3869, joann.m.miller@ usps.gov)
- Dennis Farley, Senior Manager Distribution, ESPN The Magazine (212-515-1240, Dennis.Farley@espn3.com)

**Subgroup Co-Chairs**

## Standard Mail (letters and flats, BPM flats)
Tom Foti, Manager, Integration and Planning, Product Development, USPS (202-268-7707, thomas.j.foti@usps.gov)
Kimberly Ryan, Director of Marketing Services, L. L. Bean (207-552-2512, kryan@llbean.com)
Wanda Senne, National Director of Postal Development, World Marketing (770-431-2591, wsenne@worldmarkinc.com)

**Standard Mail**** (**letters and flats, BPM flats)
- Tom Foti, Manager, Integration and Planning, Product Development, USPS (202-268-7707, thomas.j.foti@usps.gov)
- Kimberly Ryan, Director of Marketing Services, L. L. Bean (207-552-2512, kryan@llbean.com)
- Wanda Senne, National Director of Postal Development, World Marketing (770-431-2591, wsenne@worldmarkinc.com)

**Subgroup Co-Chairs**

## Packages (Single piece Parcel Post, Bound Printed Matter parcels, Library Mail, Media Mail, Standard Mail parcels)
John Gullo, Manager, Product Development, Package Service, USPS (202-268-8057, john.f.gullo@usps.gov)
Pete Grottini, Director, Postal Affairs, Bookspan/YES Solutions (717-795-1216, peter.grottini@ YESSolutions.com)

**Packages**** (**Single piece Parcel Post, Bound Printed Matter parcels, Library Mail, Media Mail, Standard Mail parcels)
- John Gullo, Manager, Product Development, Package Service, USPS (202-268-8057, john.f.gullo@usps.gov)
- Pete Grottini, Director, Postal Affairs, Bookspan/YES Solutions (717-795-1216, peter.grottini@ YESSolutions.com)

**Subgroup Co-Chairs**

## Full workgroup participants = 177
First-Class Mail subgroup = 41 (11 USPS, 5 PRC, 1 GAO, 24 industry)
Periodicals subgroup =  42 (10 USPS, 5 PRC,    1 GAO, 26 industry)
Standard Mail subgroup =  74 (17 USPS, 6 PRC, 1 GAO, 50 industry)
Packages subgroup =  26 (6 USPS, 5 PRC, 1 GAO,  14 industry)
PRC very active participants (16 representatives)
USPS and Industry commitment/support = HIGH

**Full workgroup participants = 177**
**First-Class Mail subgroup = 41 ***(11 USPS, 5 PRC, 1 GAO, 24 industry)*
**Periodicals subgroup =  42 ***(10 USPS, 5 PRC,    1 GAO, 26 industry)*
**Standard Mail subgroup =  74 ***(17 USPS, 6 PRC, 1 GAO, 50 industry)*
**Packages subgroup =  26 ***(6 USPS, 5 PRC, 1 GAO,  14 industry)*
**PRC very active participants ***(16 representatives)*
**USPS and Industry commitment/support = HIGH**

**Overview**

## First-Class Mail
Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet business needs
Concerns about “tail of the mail” targets and measurement
Reviewing some specific groups within the FCM product:
Remittance Mail
International Mail
Forwarded Mail

**First-Class Mail**
- Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet business needs
- Concerns about “tail of the mail” targets and measurement
- Reviewing some specific groups within the FCM product:
- Remittance Mail
- International Mail
- Forwarded Mail

**Subgroup Progress to Date**

## Periodicals
Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet business needs
Subgroup has begun discussions on measurement; evaluating Red Tag as interim service performance measurement system

**Periodicals**
- Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet business needs
- Subgroup has begun discussions on measurement; evaluating Red Tag as interim service performance measurement system

**Subgroup Progress to Date**

## Standard Mail
Origin-Entered Mail (est. 25% of Standard Mail volume):  Tentative agreement to recommend a range of delivery days based upon existing standards (850,000+ 3-digit O/D pairs), if achieved by USPS at acceptable level, will meet business needs
Drop-Ship Entered Mail (est. 75% of Standard Mail volume):   Proposed matrix with a range of days, which recognizes drop ship entry facility type (DBMC, DSCF, DDU) and presort (carrier route vs. non-carrier route)
Open Issues around service standards
Seasonality (additional time during heavy fall mailing season?)

**Standard Mail**
- Origin-Entered Mail (est. 25% of Standard Mail volume):  Tentative agreement to recommend a range of delivery days based upon existing standards (850,000+ 3-digit O/D pairs), if achieved by USPS at acceptable level, will meet business needs
- Drop-Ship Entered Mail (est. 75% of Standard Mail volume):   Proposed matrix with a range of days, which recognizes drop ship entry facility type (DBMC, DSCF, DDU) and presort (carrier route vs. non-carrier route)
- Open Issues around service standards
- Seasonality (additional time during heavy fall mailing season?)

**Subgroup Progress to Date**

## Packages Mail
Commercial Packages (Parcel Post, Library Mail, Media Mail):  Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet businesses needs
Standard Mail Packages (parcels):  Industry evaluating Packages standards vs. Standard Mail (letters/flats) standards
Retail Packages (retail Parcel Post):   May be outside purview of MTAC workgroup (Consumer Advocate venue)
Return Services (Merchandise Return Service/Bulk Parcel Return Service):  being assessed as special services

**Packages Mail**
- Commercial Packages (Parcel Post, Library Mail, Media Mail):  Tentative agreement that existing standards, if achieved by USPS at acceptable level, will meet businesses needs
- Standard Mail Packages (parcels):  Industry evaluating Packages standards vs. Standard Mail (letters/flats) standards
- Retail Packages (retail Parcel Post):   May be outside purview of MTAC workgroup (Consumer Advocate venue)
- Return Services (Merchandise Return Service/Bulk Parcel Return Service):  being assessed as special services

**Subgroup Progress to Date**

## Open Issues on Service Standards (all subgroups)
ZIPs outside the contiguous United States (the existing standards may not be achievable under current USPS logistics/network environment)
Critical Entry Times (CETs) – Significant changes to CETs effectively change service standards
Forwarded Mail – Subgroups analyzing process, USPS exploring how best to recognize forwarded mail in terms of service standards/expectations
USPS Standards Review – USPS now is conducting an internal review of its existing service standards, preliminary report due to workgroup early June

**Open Issues on Service Standards (all subgroups)**
- ZIPs outside the contiguous United States (the existing standards may not be achievable under current USPS logistics/network environment)
- Critical Entry Times (CETs) – Significant changes to CETs effectively change service standards
- Forwarded Mail – Subgroups analyzing process, USPS exploring how best to recognize forwarded mail in terms of service standards/expectations
- USPS Standards Review – USPS now is conducting an internal review of its existing service standards, preliminary report due to workgroup early June

**Subgroup Progress to Date**

## Subgroups will be discussing setting service standards for a variety of Special Services
Global workgroup recommendations on standards:
A formal, periodic review of service standards and measurement to include industry feedback (which can be triggered by significant changes such as network redesign, FSS, etc.)
Enhancements to the USPS communication of service standards and accessibility of the information to mailers

- Subgroups will be discussing setting service standards for a variety of Special Services
- Global workgroup recommendations on standards:
- A formal, periodic review of service standards and measurement to include industry feedback (which can be triggered by significant changes such as network redesign, FSS, etc.)
- Enhancements to the USPS communication of service standards and accessibility of the information to mailers

**Other Service Standards Tasks**

## The work has only just begun...
Expect measurement needs to be diverse
Intelligent Mail is not a viable solution for all mail streams (What fills in the gaps? What are the costs?)
The law is not prescriptive on measurement systems and reporting requirements

**The work has only just begun...**
- Expect measurement needs to be diverse
- Intelligent Mail is not a viable solution for all mail streams (What fills in the gaps? What are the costs?)
- The law is not prescriptive on measurement systems and reporting requirements

**Service Performance Measurement**

## Workgroup completion date:   mid-Sept
PRC consultation process begins:     May
Per the law:
Dec 2007 to establish standards for all market-dominant products
June 2008 for USPS to lay out plan to achieve standards
No set time line for putting measurement into place (PRC/USPS to determine)

- Workgroup completion date:   mid-Sept
- PRC consultation process begins:     May
- Per the law:
- Dec 2007 to establish standards for all market-dominant products
- June 2008 for USPS to lay out plan to achieve standards
- No set time line for putting measurement into place (PRC/USPS to determine)

**Time Line**

## Questions?

**Questions?**