# Presentation: 706041

***USPS Mailer Technology Study***

**MTAC ****February 5, 2004 **
**Jeffrey Freeman**
**Manager, Mail Technology Strategy**
**Intelligent Mail and Address Quality**

## Agenda	

- Purpose of Technology Study
- Study Overview
- Findings
- Closing

## Purpose of Technology Study

- To understand the mailing industry’s potential to print advanced barcodes
- Identify industry trends that increase likelihood of adoption

## Study Approach

- Mailer site visits
- Vendor interviews
- Mail preparer survey

## Survey Overview

- Target audience
- Commercial and non-profit mail preparers
- Questionnaire
- Covered demographics, key technology, information management, industry trends, benefits and challenges
- Interviews
- Over 5,000 candidates screened; Over 300 interviews completed

## Respondent Demographics

- 311 mail preparers participated
- Account Types represented fairly evenly
- Twelve industry segments represented

## Respondent Demographics

- All three shapes represented:                  letters, flats, and parcels
- Letter mail predominant shape
- 85% of respondents report that they prepare two or more shapes

## Findings – Perceived Benefits

- 83% of respondents identified one or more benefits in adopting an advanced barcode
- Customer demand for track and trace and                      customer relationship management are the top two benefits at 68% and 58%
- 35% identified inventory/job management as a potential benefit

## Findings – Potential Demand

- 54% of all locations already uniquely identify mailpieces and/or unit loads
- 42% of high volume locations use barcodes for production control/sortation
- Top three uses: sortation, job tracking and  customized insertion
- Preparers are experimenting with advanced barcodes

## Findings – Technology Factors

- Major technology factors to consider
- Printer type
- Printing resolution
- Barcode readers

## Findings – Technology

- The ability to print complex barcodes is dependent on technology and resolution
- 63% of locations print most barcodes and addresses at resolution of 300 dpi and higher

- Technology and Resolution at Preparer Locations

## Findings – Technology

- Use of inkjet printers
- 59% of locations use inkjet printers for the majority of their mail

- Note:  Six percent of respondents did not report a dominant printer type.

## Findings – Technology

- Use of continuous forms printers
- 25% of high volume locations use continuous  forms printers on the majority of mail
- Use of POSTNET
- High volume mail locations print POSTNET codes on the majority of letters (96%) and flats (79%)
- The current resolution for printing the POSTNET code could already support the printing of some advanced barcodes

## Findings – Technology

- Barcode readers
- 26% of locations use barcodes for production          control and/or sortation; 59% of these locations       use USPS barcodes for this purpose
- Mail preparers are twice as likely to use laser scanners than imagers to read barcodes

- *

## Findings – Technology

- Replacement patterns
- Half of respondents are replacing the majority of     their hardware & associated software over the         next 5 years
- 38% will be replacing the majority of their readers      in this same timeframe

## Findings – Other Factors

- Tradeoff in print resolution with            production  speed
- Process changes
- Interaction of ink with paper

## Closing

- There is a demand and interest in  uniquely identifying mail pieces and       unit loads
- Technology is available today to print advanced barcodes
- Further examination of the Study’s          findings and additional research is necessary