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Update on Co-Palletization and Co-Mailing May 17, 2006 Marc McCrery USPS Manager, Operational Requirements

Update on Co-Palletization and Co-Mailing May 17, 2006 Marc McCrery USPS Manager, Operational Requirements. Definitions. Co-palletization is when pure bundles of Periodicals or Standard Mail flats from different titles or versions are combined on destination pallets.

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Update on Co-Palletization and Co-Mailing May 17, 2006 Marc McCrery USPS Manager, Operational Requirements

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  1. Update on Co-Palletization and Co-Mailing May 17, 2006 Marc McCrery USPS Manager, Operational Requirements

  2. Definitions • Co-palletization is when pure bundles of Periodicals or Standard Mail flats from different titles or versions are combined on destination pallets. • Co-mailing (a.k.a. co-mingling, co-bundling, co-packaging) is when multiple versions or titles of Periodicals or Standard Mail flats are combined within presort destination bundles through an in-line or off-line production process.

  3. Co-Palletization – Customer Benefits • Reduce the number of containers prepared by customers • Move mail from sacks to pallets • Match preparation with shape-based postal processing • Eliminate residual mail • Improve drop ship penetration and discounts • Improve delivery consistency

  4. Co-Mailing – Customer Benefits • Decrease use of sacks • Prepare fewer bundles • Increase presort discounts for pieces moving to finer bundle level (e.g., from 5-D to CR-RT) • More opportunity for Periodicals with separate 5-Digit & 3-digit rates, co-pal discounts, and pallet discounts • Improve Palletization • Prepare finer level pallets (more SCF & 5-digit) and fewer pallets • Improve drop ship penetration and discounts • Improve delivery consistency • Moves toward shape-based processing environment • Consistent with future flats strategies (e.g. FSS)

  5. Co-Palletization and Co-Mailing of Mixed Classes • Provide further opportunities to consolidate flats mail streams where it makes sense for efficiency • Build on opportunities of Periodicals co-palletization experiment • Further reduce the number of containers prepared by customers • Move mail from sacks to pallets • Match preparation with shape-based postal processing • Increase presort, pallet, and dropship discounts • Move mail closer to destination

  6. 5D/L001 ADC SCF 3D Mixed-Class Co-Palletization Levels* CR FIRM 5D/Scheme 3D/Scheme ADC PER STD [Optional For Co-Pal] [Optional] [Optional For Co-Pal] *Slide represents co-mailing if bundles at each presort level are merged together.

  7. Co-Palletization and Co-Mailing of Mixed Classes • We have solicited the participation of mail service providers to help work through the implementation issues. • We have pulled in printers and transportation providers seriously interested in mixed-class co-palletization or co-mailing. • In cooperation with software vendors, volunteers are being asked to assist in the development of the necessary documentation. • We hope to pilot mixed class co-palletization and co-mailing by end of the calendar year.

  8. Questions???

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