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First Mile, Last Mile

Being competitive in the ground shipping business

Editor’s note: The U.S. Postal Service is committed to being America’s shipper of choice. We offer competitive, affordable prices and nobody can match our reach — we deliver and pickup at every home and business in the nation. We’ve got a great shipping story to tell, and we’re using PCC Insider to spread the word. Each week through January, we’ll provide you with pricing and product information that explains the great value we offer in the marketplace. This is the first in our series focusing on our shipping services.

We’re at every door, every day. That’s our competitive advantage. And when it comes to our ground package services, consider this: Even our traditional competitors rely on our network to deliver thousands of packages to customers daily.

Our pricing for Parcel Select and Parcel Return Service will change Jan. 18. Other shippers also change their prices at the beginning of the year, so we’re being consistent with industry-wide practice. But it also provides a clear picture of the competitive, affordable prices offered by the Postal Service.

The average increase for all Ground Shipping services will be 5.9 percent. Even with this price change, USPS ground shipping continues to provide the best value in the marketplace by combining partner logistics providers with our unparalleled pickup and delivery capabilities. We continue to leverage our vast delivery network to provide the best in first-mile pickup service for Parcel Return Service and last-mile delivery of Parcel Select packages.

“Our daily presence at every household and business provides customers and merchants with the most convenient pickup and delivery of their packages,” says Jim Cochrane, vice president, Ground Shipping.

Parcel Select

Parcel Select service is designed for large- and medium-sized shippers who need an economical ground delivery service. Parcel Select combines parcel consolidator expertise and logistics with the vast delivery network of the Postal Service. Businesses can save money by sorting and entering — or using consolidator services to sort and enter — packages closer to their final delivery destination.

Three levels of entry — destination delivery unit, destination sectional center or facility, and destination bulk mail center — offer three pricing options featuring a high level of tracking visibility and service performance. The average price increase for Parcel Select will be 4.7 percent for destination delivery unit, 6.8 percent for destination sectional center or facility, and 9.1 percent for destination bulk mail center.

Parcel Return Service

Parcel Return Service was developed as a companion product for Parcel Select, for merchants who receive a large volume of returns and want to provide their customers with the convenience of a return solution, and for shipping consolidators or reverse logistics providers. Parcel Return Service features free package pickup and competitive rates with two pricing options - one for return delivery unit and the other for return bulk mail center. There will be no price increase for the return delivery unit and an average of 7.1 percent increase for the return bulk mail center.

USPS continues to provide price incentives and contract pricing for qualified commercial shippers. In addition to savings from not having to pay fuel, rural delivery and other surcharges, USPS Ground Shipping services are priced at the same or lower rates than comparable services available in the marketplace.

For more information on the new pricing, go to usps.com/prices.

Next week: Look for a PCC Insider Special Edition on Express Mail service, including information about new Commercial Plus pricing available next year.

Expansion Of Service Performance Measurement

Accountability in the marketplace

With the start of the new fiscal year, the Postal Service implemented an expansion of service performance measurement that includes all classes of mail. It's an exciting time for customers since Postal Service performance will be published every quarter at usps.com. Customers will be able to evaluate how long it takes for USPS to deliver different classes of mail from origin to destination.

“We're holding ourselves accountable in the marketplace — to all of our stakeholders — through service measurement,” says Tom Day, senior vice president, Intelligent Mail and Address Quality.

“We've always monitored, measured and evaluated our service performance,” says Day. “However, we did this primarily for diagnostic purposes and internal use.” One exception is the External First-Class — EXFC — measurement system, which has been in place for nearly two decades. EXFC is measured independently by an outside firm and reflects the average customer's experience with mail delivery time, from collection box or drop point to delivery point.

“This robust new measurement system is the cornerstone of public reporting on service measurement,” says Day. “We expanded the geographic coverage of EXFC so it could be used with new systems, based on the Intelligent Mail® barcode, to measure other classes of mail for public reporting. It made sense to take this approach for other reasons too. While it's important to measure, it's also important to keep costs low. Money has never been tighter, so we were cautious as we moved forward to include all classes of mail.” And he adds, “Don't forget that under the postal law, attributable costs are reflected in pricing for each class of mail.”

Now, the expanded measurement includes business customers' mail such as commercial (pre-sort) First-Class Mail, Standard Mail, Periodicals and Package Services. Also added are special services.

Day urges mailers to help USPS in its efforts to provide great service and keep costs low. “Mail preparation quality is more important than ever,” says Day. “I know that some of you use the Postal Service as your quality control team. You've relied on us to point out the mistakes so you could get them fixed before we accept the mail. Please ask your team or supplier to make sure your mail is prepared just right before it gets to us.”

He adds, “The better your mail preparation quality, the better the quality of the barcodes, the better readability, then the better and faster we can move your mail to your customers.”

Forward With FASTforward

Another great Move Update method

New Move Update requirements are almost here. FASTforward is one more option you can use to meet the standards. Beginning Nov. 23, addresses used to obtain First-Class Mail — and now Standard Mail — presorted, automation discounted rates must be updated within 95 days prior to the mailing by a Postal Service-approved method.

FASTforward enables mailers to update the customer's address with change-of-address information directly on mailpieces prior to mailing. It's a USPS-licensed technology for MultiLine Optical Character Reader (MLOCR) and Remote Video Encoding users.

FASTforward is very similar to NCOA^Link — both are done before the mailing. The major difference is that NCOA^Link processing allows you to update your list electronically, while FASTforward prints the new address directly on your mailpiece. When a match occurs, the mailpiece is readdressed on the fly by the MLOCR system and the mailpiece is sent directly to your customer's new address. This speeds the delivery of your mailpiece and reduces unnecessary postal processing.

FASTforward has permanent change-of-address information from the previous 13 months. If a match is found, the correct address and barcode is sprayed on the mailpiece. If the mailer does not apply the updated information to the database, after 13 months any First-Class Mail that continues to be sent to the customer at an old address ends up being returned to sender and any Standard Mail is treated as waste. This is why it's also important for mailers to update their mailing list as soon as possible.

But how can you update your database using FASTforward?

The answer is to start using a neat feature of FASTforward called FASTforward Move Update Notification. This service provides an electronic record that contains the name, old address and new address of any mailpiece that was corrected by FASTforward during processing and made available to you electronically the next day. In addition, this update notification service can advise you when your customer may have moved and did not leave a forwarding address, or closed their PO Box without providing a new mailing address. By using this service, a mailer will be informed of these cases.

To learn more about FASTforward licensing and certification, contact the licensing department at the National Customer Support Center at 800-589-5766 or visit our website at http://ribbs.usps.gov/files/fastforward.

WHAT'S UP

Ready For Holiday Mailing?

It’s that time again. The holiday mailing season is here, especially for international and mail to overseas military destinations. When mailing holiday gifts, faraway family and friends can be as close as a personal computer.

“Going online with usps.com makes international shipping easy,” says Paul Vogel, senior vice president and managing director of Global Business. “Online customers can use a simplified customs and address label form combined into one. There are guidelines to take customers through any special requirements for foreign destinations. You also get savings on postage when you ship online at usps.com.”

Check out the holiday website at usps.com for mailing deadlines, packaging tips and other information. And don't forget you can print postage, labels and customs forms online 24/7 using Click-N-Ship service at usps.com/clicknship.

Carrier Pickup Includes Returns

Here’s a convenient solution for the big shipping days ahead. The Carrier Pickup program now includes Merchandise Return Service (MRS) and Parcel Return Service (PRS) packages. This expansion meets the needs of merchants and shippers, as well as consumers, who value the convenience of using the Postal Service. Customers can request a pickup for the next scheduled delivery day at usps.com/pickup for MRS and PRS packages, as well as expedited — Express Mail and Priority Mail — and international packages.

We Know When To Hold ’Em

Express Mail packages can be held at Post Offices for pickup, giving customers both the peace of mind of secure delivery and the convenience of picking up their packages when it best fits their schedules. And now, customers can choose Express Mail Hold For Pickup service through Click-N-Ship on usps.com, in addition to Post Offices and Automated Postal Centers. Hold For Pickup provides additional security for shippers who may not want expensive products or heavyweight goods left at home addresses. It’s also great for businesses sending critical repair parts for field technicians to pick up, with travelers who need to send documents and valuable items ahead to their destination, and with families sending care packages to students away at school.

FYI…

Need to launch a PCC newsletter or website? Templates along with the PCC Graphics Guide now are available for your use at http://www/usps.com/nationalpcc/resources.htm.

SPOTLIGHT ON SUCCESS

Keeping The Focus on Growth

Increasing membership is not a problem for the Greater Portland, OR, PCC. “By providing members what they want, our PCC has successfully achieved strong increases in membership,” says Industry Chair Tracey Dunlap, who also is industry co-chair of the national PCC Advisory Committee.

“We provide monthly industry enrichment sessions, monthly networking opportunities and quarterly educational forums,” says Dunlap, procurement manager for Epiq Systems in Beaverton, OR. “Every program focuses on helping our members grow professionally and personally. Corporate sponsorships have increased by the recognition members and companies receive through their involvement, and our strong schedule of programs adds value to their memberships.” The council’s annual Pinnacle Awards recognize companies for their involvement and support of the PCC and its programs.

Dunlap says PCCs shouldn’t underestimate the power of the “lighter side” of things. “With any professional organization, it’s important to create a fun and inclusive atmosphere,” she says. “We strive to make every event entertaining as well as enriching. Through laughter and education our members have developed stronger relationships.”

Dunlap says one of the greatest successes for the Greater Portland PCC has been the “Lunch and Learn” meeting series, which was launched earlier this year. The topic of the first session was pricing changes. The PCC set a goal of 50 participants — 125 mailers registered to attend, far exceeding expectations. “This was a great problem to have,” she says, “and we quickly moved to a larger venue to accommodate our members.”

Members of the Greater Portland PCC are dedicated to broadening their education and knowledge within the mailing industry, she says, and it doesn’t hurt that they have a good time while they’re doing it.

KEEPING POSTED

2009

• The 2009 National Postal Forum will be held May 17-20 in Washington, DC. Check the NPF website at npf.org for more information.

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"

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