Standard Implementation Guidelines for Periodicals Co-Palletization Experiment

1. Standard Implementation Guidelines for Periodicals Co-Palletization Experiment MTAC Work Group Final Report May 7, 2003

2. Periodicals Co-Palletization Experiment Objectives of Work Group • Establish set of standardized implementation guidelines regarding: • Application Process • Postage Payment • Mail Preparation, Acceptance & Verification

3. Periodicals Co-Palletization Experiment Structure of Work Group • Bi-weekly telecons from February 11 to May 2, 2003 • Correspondence between telecons • Wide representation from mailing industry and USPS

4. Periodicals Co-Palletization Experiment Objectives of Experiment • Move mail from origin entry sacks to destination entry pallets • Encourage significant mail preparation changes for Periodicals to reduce processing costs

5. Periodicals Co-Palletization Experiment New Co-Palletization Discounts • $.007 per piece for addressed pieces on an ADC or SCF pallet entered at the destination ADC • $.010 per piece for addressed pieces on an SCF pallet entered at the destination SCF

6. Periodicals Co-Palletization Experiment Eligibility for New Discounts • Encourages combining bundles of different titles or editions on pallets by requiring the mail to: • Have otherwise been prepared in sacks (less than 250 lbs per ADC) • Be drop shipped to destination ADCs and SCFs

7. Periodicals Co-Palletization Experiment Implementation Overview • Sept 26, 2002 – Filed with the PRC • December 20, 2002 – PRC recommended the experimental classification • January 6, 2003 – Recommendation approved by the BOG • April 20, 2003 – Effective date

8. Periodicals Co-Palletization Experiment Facilitate Estimating Volumes • Mail is not required to be placed on the finest level pallet possible • E.g., an ADC pallet may contain more than 500 pounds to an SCF • Less than 250 pound pallets are OK • Not eligible for the current pallet discounts

9. Periodicals Co-Palletization Experiment Data Reporting Requirements • Complete electronic spreadsheet • Submit summarized data at the end of each postal month • Spreadsheet sent via email to CoPal@USPS.gov

10. Periodicals Co-Palletization Experiment Work Group Initiatives • Clarified application instructions • Established documentation requirements

11. Periodicals Co-Palletization Experiment Work Group Initiatives • Facilitate Additional Entry • Allow consolidators to file on behalf of publishers • Allow to file at the additional entry office

12. Periodicals Co-Palletization Experiment Work Group Initiatives • Postage Payment • Developed new postage statement, Form 3541-X • Modified PERMIT system

13. Periodicals Co-Palletization Experiment Work Group Initiatives • Postage Payment • Facilitate CAPS Participation • Waive the CAPS revenue minimum requirements for the experiment • Under exception, CAPS application must be submitted through consolidator

14. Periodicals Co-Palletization Experiment Work Group Initiatives • Acceptance and Verification • Developed standard operating procedures for acceptance and verification • Created communication document for use by consolidator when verification is split between sites • Conducted field training

15. Periodicals Co-Palletization Experiment Work Group Initiatives • On-Site Reviews • Four applications received • Two reviews conducted

16. Periodicals Co-Palletization Experiment Work Group Initiatives • Sunset Work Group • Continue to work one-on-one with applicants