FRONT PAGE
Future Pricing To Follow New Regulations
FY 2007 marked by record service and productivity, smaller than expected loss
The Postal Service Governors announced today future prices will be adjusted using new regulations issued by the Postal Regulatory Commission (PRC) on Oct. 29. Consistent with the Postal Accountability and Enhancement Act of 2006, future price increases will be capped at the rate of inflation for mailing services. (Mailing services include First-Class Mail, Standard Mail and Periodicals.)
The Governors had the option of filing one last rate case under the regulations used since 1971 but voted to proceed with the new pricing regulations.
“We thank the Postal Regulatory Commission for completing the new rules eight months ahead of the statutory deadline,” said Postmaster General John Potter. “This delivers one of the main goals of the new law for business mailers — a predictable price schedule.”
The new pricing regulations give the Postal Service added flexibility for shipping services. (Shipping services include bulk parcels and expedited package services such as Priority Mail and Express Mail.) “We intend to use this new flexibility to grow our competitive business,” said Potter, “offering volume discounts and contract pricing.”
“There are still many details to be worked out, but we look forward to partnering with the PRC and our customers to maximize the advantages of the new pricing rules,” Potter said.
Fiscal Year 2007 Results
The Postal Service also announced its financial results for fiscal year 2007, which ended Sept. 30. The Postal Service concluded the fiscal year with a $5.1 billion net loss, attributable to mandatory funding requirements in the Postal Act of 2006. The year-end loss is about $300 million less than projected earlier in the year.
“It’s important to note that we not only achieved our plan, which had to be adjusted to reflect the new law, but we overcame a slow start and did better than our mid-year projection,” said Potter. Without the financial impacts of the law, the Postal Service would have ended the year with net income of $1.6 billion.
Total revenue in FY 2007 was $74.9 billion and expenses totaled approximately $80 billion. Mail volume was 212 billion pieces.
The Postal Service recorded an eighth consecutive year of productivity growth in fiscal 2007. Total Factor Productivity, which measures the relationship between workload and resource usage, was up 1.7 percent over FY 2006. Productivity was aided by a reduction of 36 million work hours, which is equivalent to $1.2 billion.
Record On-Time Performance
National on-time performance scores for the delivery of First-Class Mail hit all-time highs in the fourth quarter of FY 2007 for all three categories the Postal Service tracks. National overnight performance was 96 percent on-time in the final quarter — a first for the last quarter and for two consecutive quarters.
National two-day and three-day performance also reached all-time highs of 94 percent and 93 percent respectively.
First-Class Mail performance is measured independently by IBM Global Business Services. The process measures First-Class Mail from the time it is deposited into a collection box until it is delivered to a home or business.
Looking Deeper Into Mail Stream
Passive tracking systems installed on Small Parcel Bundle Sorters
End-to-end visibility of the mail moved one step closer to becoming a reality for all types of mail.
The Postal Service successfully installed more than 200 passive en route tracking systems on the existing fleet of Small Parcel Bundle Sorter machines. A component of the Intelligent Mail and Address Quality mail visibility strategy, this system adds another opportunity for customers to track their packages.
These new en route scan events, and scans from the Automated Package Processing System, provide you enhanced tracking information for First-Class and Priority Mail packages.
Check it out for yourself at Track & Confirm at usps.com.
Sign Of Convenient Mailing Services
Approved Shipper program extends reach of mailing and shipping services
 Small businesses in growing numbers are participating in the Postal Service’s Approved Shipper program, which authorizes mailing and shipping stores to sell USPS products and services.
Approved shippers can sell postal products and services and hold prepaid or postage-affixed letters and packages for USPS collection. To participate, a store must meet a number of requirements, including compliance with aviation mail security and hazardous materials requirements. A shipper must also accept Click-N-Ship and other prepaid packages.
Both the Postal Service and approved shippers benefit from this program. It brings package mailing services closer to customers, who get choices and price options for their shipping needs.
So far this year, the number of approved shippers has more than doubled from the 2006 total. For more information about the Approved Shipper program, go to usps.com/alternateaccess.
Mailer Rating Now Deployed Nationally
Drop ship compliance will continue to be tracked and monitored
 With national deployment completed earlier this month, Mailer Rating is now activated at all Facility Access and Shipment Tracking (FAST) facilities where Surface Visibility (SV) is consistently used to track drop shipment arrivals.
Facilities are activated based on reaching an SV drop shipment compliance rate of 80 percent or higher for two consecutive weeks. Although the formal deployment has concluded, FAST will continue to track and monitor SV drop shipment compliance and activate or deactivate facilities as required according to data compliance.
A listing of all USPS facilities activated for Mailer Rating is distributed weekly to mailers and FAST area and facility coordinators. To be included on this distribution list, send an e-mail to fast@usps.com. The status of Mailer Rating activation for each USPS facility is also shown on the Facility Profile pages in FAST.
FAST Mailer Rating offers the most efficient drop shipment customers a greater opportunity to schedule appointments. Mailer Rating provides an incentive for higher standards of performance by the mailing community when providing information for incoming shipments at a USPS facility. Mailers are rated based on the following drop shipment appointment components:
- Submission method/content detail
- On-time accuracy
- Content accuracy
- Pre-notification and irregularity deductions
To learn more about Mailer Rating rules, refer to the Mailer Rating presentation materials at https://fast.usps.com/fast. Without logging in, you can click on Resources and Reference documents. Mailer Rating Information presentations are available for download. Information on Mailer Rating also is included in the FAST Web Based Training and User Guide.
Mailer Rating applies to all Standard Mail and Package Services drop shipment appointments. Pure Periodicals and perishable appointments are not rated. Mailer Rating does not apply to DDUs.
Questions or concerns regarding Mailer Rating should be directed to fast@usps.com with “Mailer Rating” in the subject line.
WHAT'S UP
Need A Speaker?
Have you checked out the new enhanced PCC Speaker’s Bureau page? We created a new “search engine” area for Postal Service speakers. It’s easy to navigate. Just browse the list of general topics, then narrow down to a specific topic that would be of interest to your PCC. Can’t find what you’re looking for there? You now have access to industry speakers who are available to discuss a multitude of topics. It’s all a click away on the PCC website at: http://www.usps.com/nationalpcc/speakerlist.htm.
Find Available PO Boxes Online
Need a PO Box? Our new online “PO Boxes Available” locator makes finding just the right PO Box “Quick. Easy. Convenient.”
Go to usps.com and click on Locate a Post Office in the upper right-hand corner. A drop-down menu will ask, "What are you trying to locate?" You can choose the new option “PO Boxes Available” and search by either ZIP Code or address. You’ll receive a list of the closest Post Offices along with PO Box information for each office.
Information includes availability by box size and fees, as well as standard address, phone and fax numbers for each listed office. Click on More Info under each Post Office for more details, including PO Box lobby hours.
Quotable Quotes
“The major benefit to joining our local PCC and being informed through conferences and seminars has been that I am aware of the specific issues that affect me. I also have been able to develop the contacts that I need to communicate with the Post Office.” — Des Moines, IA, PCC member Tammy Bainbridge
SPOTLIGHT ON SUCCESS
It’s About The Value Of Membership, Says PCCAC Member
 How can you increase PCC membership? “PCCs must constantly communicate the value of membership by providing a forum to educate and inform members,” says PCC Advisory Committee member Tony Racioppo, who was honored as PCC Industry Member of the Year. “Whether through monthly meetings, newsletters or websites, the message must be clear — there’s value in being a part of your local PCC.”
As the industry co-chair and an active board member of the Greater New York PCC, Racioppo, president and CEO of SDS Global Logistics, has been committed to membership growth, new program initiatives and improvements in cash flows and financial reporting. The Greater New York PCC has more than 300 members representing 150 companies.
“Through our nine monthly breakfast meetings we provide members with useful information that they can take back to their office and use to enhance their performance and grow their business,” says Racioppo. “They have access to subject matter experts from the Postal Service who help educate and resolve issues. They also like being kept informed of any issues that might impact their mail.”
Racioppo says his company benefits from PCC membership through education seminars, networking and opportunities to meet with postal officials to work out issues and concerns his business might have with the various Post Offices it deals with throughout the Tri-State area.
“If you are responsible for the management of a mailroom and don’t participate or have someone on your staff participate in your local PCC, you are doing a disservice to your employer,” he says.
KEEPING POSTED
2008
- How’s your calendar look for next year? Remember, the 2008 National Postal Forum is May 18-21 in Anaheim, CA. Find more information on the NPF website at npf.org.
INFO@USPS
Your Links To Mailing Resources
U.S. Postal Service: usps.com
National PCC Network: usps.com/pcc
Rapid Information Bulletin Board System: ribbs.usps.gov
Questions? Comments? Send an e-mail to pccinsider@usps.gov
Sign up for PCC Insider at usps.com/pcc, select "PCC Insider Registration"
Back issues: PCC Insider online archive
| 
