MailPro
News for Mailing Professionals

FYI
A new Website — usps.com/
pricing —
provides an
overview of the
pricing changes
that went into
effect May 14.

FLAT-OUT EFFICIENT

FLATS SEQUENCING SYSTEM IS COMING

The Postal Service initiative that will take flats processing to the next level — using automation to sort large envelopes, magazines, catalogs and newspapers in the order in which they're delivered — is welcomed by mailers who recognize that USPS must pursue every opportunity to improve efficiency and reduce costs.

The Postal Service shared its vision for the future of flat mail at a “Flats Symposium” May 17 in Washington, DC. The meeting, jointly sponsored by the Mailers Technical Advisory Committee (MTAC) and USPS, brought together postal and industry representatives to discuss flats strategy and related issues, such as work-sharing, addressing and mailpiece design.

“I don't think anybody would argue against moving toward automation of flats,” says Dennis Farley, director of distribution for ESPN The Magazine, who was a panel participant at the symposium. “Automating flats, putting them in carrier sequence, getting the carriers out on the street earlier, it's all going to benefit mailers, mail preparers and our mutual customers. It benefits us all.”

FSS deployment in 2008
As it moves toward deployment of the sophisticated Flats Sequencing System (FSS) in 2008, the Postal Service is working closely with the mailing industry to make the most of this investment and achieve the lowest combined costs for handling flat mail.

“We need to work together,” says MTAC Industry Chair Joyce McGarvy, vice president of distribution for Crain Communications. “We need to figure out how to contain costs and keep postage rates down so people can mail and want to continue to mail.”

The FSS is a “good concept,” says McGarvy, but “there are always questions and concerns with change." The benefits of FSS "should be lower postage costs and more consistent delivery,” she says.

FSS is designed to bring the same efficiency to flats sorting as now exists for letter mail. Manually sorting flat mail is a labor-intensive process, and delivery is the largest cost for the Postal Service, accounting for more than 40 percent of salary and benefits. With about 2 million new addresses added each year, the delivery point sequencing of flat mail can help the Postal Service respond to its growing delivery network.

Working together to reduce costs
“The only way we can keep rates affordable and keep rates at or under the rate of inflation with the new law is to continue to apply technology and process in order to keep delivery costs down,” Deputy Postmaster General and Chief Operating Officer Patrick Donahoe told the symposium.

Donahoe says USPS plans to minimize the impact to the mailing industry as it moves toward flats sequencing. “It's important for us to work together so we can reduce costs, improve service, improve visibility and grow the product, making everybody successful going forward,” he says.

The FSS equipment is designed to sequence flat mail at a rate of approximately 16,500 pieces per hour. Scheduled to operate 17 hours a day, each machine will be capable of sequencing 280,500 pieces per day to more than 125,000 delivery addresses.

A pre-production machine will be installed at the Dulles, VA, mail processing facility this summer. An initial order of 100 FSS machines will be deployed to 33 postal facilities beginning in the summer of 2008.

“As an industry, we must work together to build a stronger future for all of us,” says Jody Berenblatt, senior vice president of postal strategy for Bank of America, a symposium participant. “Innovation can help mail remain a valued communications channel.”