May 19, 2008

XTREME PERFORMANCE!

Potter delivers National Postal Forum keynote address

The theme of this year’s National Postal Forum — the largest gathering of the mailing industry — is “Xtreme Performance.”

“It’s been an ‘xtreme’ year of change since we met last year,” PMG Jack Potter said to the more than 3,000 attendees at today’s keynote address. “Some were expected — like our new Intelligent Mail Barcode, new flats sequencer and our environmental initiatives. Some were unexpected — like a barrel of oil at $125, gas close to $4 a gallon and a weak economy.

“Despite the challenging economy, one thing that hasn’t changed is America’s confidence in the mail,” Potter told the packed room. “We owe it to America, to our clients and to ourselves not to overreact to the situation at hand.”

Potter thanked Deputy Postmaster General Pat Donahoe and his team for their efforts to keep that confidence in the mail by maintaining our outstanding service and continuing to lower costs.

Mounting costs are an issue for every business today and the Postal Service is no different. Forum-goers got their first glimpse of one of the ways USPS is addressing costs — the new Flats Sequencing System (FSS). The FSS will revolutionize flat mail processing and quadruple productivity — it can sort up to 16,500 flats an hour in delivery point sequence. The FSS also will make us a more efficient organization — which is good for the environment.

“Going green makes sense — it’s the right thing for the air we breathe today,” Potter told the audience. “It’s also the right thing for future generations. American people expect it if you are in business today. As good corporate citizens, you have to be green.”

Potter acknowledged the mailing industry is doing some remarkable things. “There’s more and more recycled material going into the mail, and more and more mail is being recycled after it’s done its job,” Potter said. “And our free Express Mail and Priority Mail boxes are still the only ones in the industry with cradle-to-cradle certification. That means they’re not only recyclable, they’re designed to be environmentally friendly and renewable.”

Another thing the Postal Service is doing right is implementing the new Intelligent Mail Barcode. “Mail is most effective when it’s accurate and deliverable, transparent and predictable,” Potter told attendees. “And the way we’re going to get there is by changing the barcode. The new Intelligent Mail Barcode will help us compete with the Internet and offer new and better information.”

But the most “xtreme” challenge USPS is dealing with, according to Potter, is the new law. “We’ve only scratched the surface of the changes the new law will enable,” said Potter. “New service standards are in place for all classes of mail. We are working through the measurements systems today, and as far as financial transparency goes — we will be Sarbanes-Oxley compliant by 2010.”

Potter thanked the Postal Regulatory Commission for getting the pricing regulations out so quickly. “Customers got the benefit of the cap on prices in the May adjustment. And future pricing — with annual adjustments — will make our prices predictable for you and your clients,” he said.

“Our focus is to implement the law so that everyone benefits from improved service, transparency, predictable pricing, growth and efficiency through pricing incentives — in sum, an increase in the value of mail,” Potter said.

Potter saved the best for last, introducing attendees to the “real extreme” of the new law — shipping services. “Our May price changes reflect the added flexibility of the new law — online prices, volume pricing, zone-based pricing for Express Mail, lower scheduled pickup prices and weight-based Parcel Select DDU prices. We want to take advantage of our natural strengths and serve everyone, including traditional competitors like FedEx, UPS and DHL.”

“We need your input on the new law,” Potter told the mailers. “After all, it’s not my Postal Service, it’s your Postal Service. It belongs to America. And our focus is to implement the new law so that everyone benefits.”

Potter closed by presenting the Partnership For Progress Award to the Mailers Technical Advisory Committee, recognizing the group’s many contributions over the past year.

It’s About Meeting Your Needs, Potter Tells PCC Leadership Conference

With so much change going on in the mailing industry, Postal Customer Councils serve as an important avenue for communicating with customers and providing feedback to the Postal Service, Potter told the opening session of the PCC Leadership Conference.

“I’m a real supporter of the PCC and I believe that when it comes to the Postal Service, it’s about meeting your needs, and we know those needs change over time,” he told the conference, which kicked off the NPF yesterday in Anaheim. Potter said there is no more dynamic time in the mailing industry than now, and “we’re trying to get as much information out as possible because so much change is going on, but more importantly, we need to hear back from you.”

Potter said the Postal Service is working to make the PCC experience even more rewarding. “Thank you for all the time you spend with us,” he said. “I think we’re one of the most fortunate organizations in the world to have 100,000 very active customers who help make service get better and help keep mail affordable.”

Emphasizing how critical the PCC partnership is to USPS, Potter was joined at the opening session by Deputy Postmaster General and COO Patrick Donahoe, Chief Marketing Officer and Executive Vice President Anita Bizzotto and Susan Plonkey, vice president, Customer Service.

In addition, three longtime PCC advocates from the mailing community were recognized for their contributions: departing National PCC Advisory Committee members Kimberley Waltz and Harry Stephens, and “PCC Ambassador” Ruthie Ewers.

Also at the conference, PCC members learned about new PCC initiatives, including website and newsletter templates, focus groups, revised PCC resources guide and additional tools to build membership and enhance educational opportunities. Attendees were urged to share information from NPF symposiums, workshops and other sessions with businesses back home, making PCCs the place to go to get the latest and the best information on how to be successful in the mailing industry.

“You make mail real for people,” Donahoe told PCC Leadership Conference participants.