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MEMO TO MAILERS - AUGUST 2006 (text)
UNITED STATES POSTAL SERVICE
VOLUME 41 NUMBER 8
AUGUST 2006

WHAT'S INSIDE
TRANSPORTATION AGREEMENT
FAST COURSE
GRAND SHOE BOX
KEEPING POSTED
POSTAL NEWS BRIEFS

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MAKING IT E-EASY FOR HIGH-VOLUME SHIPPERS
With more than $8.4 billion in 2005 annual sales, Amazon.com knows a great electronic business solution when it sees one. That’s why one of the world’s biggest online retailers is now using the U.S. Postal Service’s Electronic Verification System (eVS) to manage and pay for its tens of thousands of packages shipped by USPS to Amazon customers each day.

eVS offers operational flexibility and value to high-volume package mailers and consolidators, allowing mailers to document and pay postage, including special service fees, electronically. Mailers simply record all of their package information into a file and transmit it to a Postal Service database, eliminating the need for any hardcopy documentation. eVS is designed to make it easy for high-volume package mailers to take advantage of destination entry rates. Mailers have control of their mailings from time of preparation to time of deposit at the entry Post Office — anywhere that works best for them.

“With eVS, high-volume customers such as Amazon.com are able to ship what they want, where they want and when they want,” says Susan Plonkey, vice president of Customer Service for the Postal Service. “We are making it quick, easy and convenient for even our largest customers to manage their shipping operations.”

By using eVS to enter parcels directly into the USPS network, Amazon.com can improve its transportation and fulfillment processes, ensuring its commitment to provide outstanding service to its customers. At the same time, USPS benefits from greater precision in accounting and postage payment. For both Amazon.com and USPS, eVS eliminates paper documentation, improves operational efficiency and increases the accuracy and richness of data.

“The Electronic Verification System is a great fit for Amazon.com," says Shawn Childs, director of Transportation Platform Design at Amazon.com. “We can ship parcels within our desired operational schedule and centralize our postage account management, without paperwork."

eVS eliminates paperwork by replacing hardcopy manifests, postage statements and adjustment worksheets with electronic documentation. Postage is electronically deducted from the mailer’s PostalOne! postage payment account. eVS mailers can view their manifests, postage statements and even the results of their postage samplings online. This helps mailers monitor the quality of their mail and take preventive measures to make sure discrepancies do not recur, avoiding possible costly postage adjustments.

“eVS delivers on the Postal Service promise to simplify business mail acceptance and create a seamless acceptance process,” says John Gullo, manager of Business Mailer Support for the Postal Service.

For more information on eVS, go to http://www.usps.com/postalone/evs.htm.

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UP, UPS AND AWAY
The Postal Service and UPS signed an agreement that expands the business relationship between the two companies. UPS will transport First-Class Mail and Priority Mail between 98 U.S. cities.Up to now, UPS provided USPS with mail transportation between 16 U.S. cities.

Postmaster General John E. Potter said, “It only makes sense for us to take advantage of the reach offered by UPS.The similarity of our operations will enhance our ability to provide the highest levels of service for our customers.”

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FAST CUSTOMER WEB-BASED TRAINING NOW AVAILABLE
Mailers now can access a Web-based training course to learn about the Facility Access and Shipment Tracking (FAST) system.

FAST provides a standardized process for the scheduling and management of all drop shipment appointments. Advance appointment notification at all Postal Service facilities enables improved operational efficiency, allowing USPS to manage drop shipments more effectively.

This Web-based course offers convenience and real-time access to FAST training and resources. The course provides self-paced visual exercises, and hands-on demonstrations provide the user an interactive training experience. Mailers who have tested the training are enthusiastic about its ease-of-use and accessibility.

FAST Web-based training can be accessed before or after login via FAST at https://fast.usps.com. On the Resources page, click “Reference Documents.” The course is organized so mailers get quick and easy access to desired information.

Participants can take the entire course or brush up on a single topic to learn more about information including:
-Facility profile and drop entry point information
-Drop shipment appointment creation and management
-Scheduler and corporate rating
-Reporting
-Available resources and reference materials

Mailers who drop ship but are not yet registered for FAST must obtain a FAST ID through PostalOne! at usps.com/postalone. Mailers who already have a PostalOne! account and need access to FAST must register by calling the PostalOne! Customer Care Center at 800-522-9085. Detailed instructions on FAST/PostalOne! registration are available on the Rapid Information Bulletin Board System (RIBBS) at http://www.ribbs.usps.gov. Only users with FAST scheduler IDs can make appointments at drop shipment facilities.

Instructions to access the course are available on FAST and a job aid is available upon request to fast@usps.com. If you have any questions, send an e-mail to fast@usps.com or call the USPS help desk at 1-800-877-7435 and say “FAST.”

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USPS TO CONTINUE AS GLOBAL COUNCIL CHAIR
The Postal Service’s Director of International Postal Affairs, Michael Regan, will serve as chair of the Universal Postal Union’s (UPU) Postal Operations Council.

The UPU, a specialized agency of the United Nations, has 190 member countries. Its operations council oversees most aspects of the UPU, including technical, economic, commercial and operational areas.

“I’m looking forward to helping fulfill our commitment to the UPU. It’s an honor for the U.S. Postal Service and a sign of respect among the UPU membership that we have been named to chair the operations council,” said Regan, a 38-year USPS employee.

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POSTAL SERVICE, FEDEX EXPRESS AGREE ON NEW CONTRACT
The U.S. Postal Service and FedEx Express, a subsidiary of FedEx Corp., have agreed to a new contract for domestic air transportation of postal express shipments. The new agreement continues through September 2013 and supercedes the current contract, which was set to expire in August 2008.

In 2001 the Postal Service and FedEx Express signed a seven-year contract for airport-to-airport delivery of Priority Mail, Express Mail and First-Class Mail within the United States. The new contract replaces the final two years of that contract and adds five additional years of service.

“The new contract allows the Postal Service and FedEx to continue our successful business relationship,” said Postmaster General John E. Potter. “This relationship benefits postal customers by allowing us to maintain our high service standards while keeping costs affordable.”

“Reaching a new agreement a full two years ahead of schedule is proof positive of the excellent relationship that FedEx has developed with the U.S. Postal Service,” said David J. Bronczek, president and chief executive officer of FedEx Express. “We are proud of the trust the Postal Service has placed in us and their confidence in our fast, reliable and efficient service.”

The new agreement is worth approximately $1 billion a year for a minimum of seven years. FedEx Express will fly about 4 million pounds of U.S. mail every business day. The 2001 retail agreement giving FedEx the opportunity to place FedEx self-service collection boxes on postal property, is not affected by this announcement. That portion of the contract expires in 2009.

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A GRAND SHOE BOX
How quick, easy and convenient is it for customers to use the U.S. Postal Service’s Priority Mail Shoe Box? The “Grandshoebah” knows.

“It’s great for us. The new shoebox is just another way the Postal Service is responding to its customers’ needs,” says Phillip Dennis, who along with his mother, Linda Dennis, sells top-quality men’s footwear brands on eBay. Their McKinney, TX-based business is called Grandshoebah.

“The fact that I can order boxes online and that the postage can be deducted right from my PayPal account makes shipping very convenient,” says Phillip Dennis. “And free Delivery Confirmation makes us very attractive to buyers.”

The Priority Mail Shoe Box has been designed so that almost any size shoe box will slide right in. It’s durable and self-sealing and, as with all Priority Mail packaging, is available at no additional cost to Priority Mail shippers.

A co-branded box printed with the Postal Service and eBay logos is available for registered eBay users through the USPS Shipping Zone on eBay. Regular boxes are available at www.usps.com/shippingsupplies in packs of 10, or call 1-800-610-8734.

“As eBay entrepreneurs know, in the highly competitive direct-to-consumer market, the low cost and up-front pricing of Priority Mail gives shippers who use this product a way to provide more value to their customers,” says Anita Bizzotto, USPS Chief Marketing Officer and Executive Vice President.

One of the fastest growing segments of the retail apparel industry is shoes. The NPD Group, a retail industry tracker, predicts that sales in the $42 billion footwear segment will grow 5 percent this year, compared to a 2.8 percent to 3 percent growth in sales for the $181 billion apparel market as a whole. Athletic shoes alone account for about 40 percent of footwear sales.

“The Grandshoebah’s slogan is ‘a shoe on every foot,’ so I guess this makes it ‘a Priority Mail Shoe Box for every shoe,’” says Dennis.

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FYI
Postal operations are not subsidized by tax dollars. The Postal Service relies on the sale of postal products and service to cover operating costs.

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INFO@USPS
SMALL BUSINESS TOOLS
Get new customers.
Meet customer demands.
Around town or around the world.
www.usps.com

SIMPLE FORMULAS
Use the mail to grow your business.
Order a Simple Formulas kit.
800-THE-USPS, ext. AD4433

SEND MAIL FROM YOUR PC
Send postcards, letters,
flyers, booklets or greeting cards.
www.usps.com/netpost

THE POSTAL STORE ONLINE
Open 24/7. Stamps.
Subscription services.
Digital scales.
www.usps.com/shop

SHIPPING INFORMATION
Express Mail, Priority Mail
and package support line.
800-222-1811

PRINT POSTAGE ONLINE
Your shipping label is just
a Click-N-Ship away.
www.usps.com/clicknship

CARRIER PICKUP
From your home or office
at no extra charge.
www.usps.com/pickup

ONLINE SHORTCUT
One-click access.
www.usps.com/smartbusiness

QUESTIONS?
800-ASK-USPS

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KEEPING POSTED
NEWS FROM AND FOR POSTAL CUSTOMER COUNCILS
www.usps.com/nationalpcc

National PCC Day 2006 just a few WEEKS away Excitement continues to build for the Sept. 20 National Postal Customer Council (PCC) Day event. More than 140 PCCs already have confirmed their participation, with more PCCs signing up on a daily basis. The goal is to have 100 percent PCC participation.

All U.S. Postal Service area vice presidents will participate at local PCC events, and USPS headquarters officers will play an active role at local PCC events across the country. Postmaster General and Chief Executive Officer John E. Potter will deliver his keynote address from the Arlington Convention Center in Arlington, TX. Deputy Postmaster General and Chief Operating Officer Patrick Donahoe will participate in the one-hour live satellite broadcast from Lambeau Field in Green Bay, WI, and Chief Marketing Officer and Executive Vice President Anita Bizzotto will join the broadcast from the historical Eden Roc Resort Hotel in Miami, FL.

The live satellite broadcast is scheduled to start at noon (ET). Coverage of the event will be available on the Postal Service Satellite Training Network channel 15, DISH Network channel 9612 and KU band satellite coordinates: AMC 3, Transponder 3, Horizontal Frequency 11760. If planning an event outside of a postal facility, please make sure all satellite downlink arrangements are in place to receive the live broadcast.

Don’t miss your opportunity to view this important mailing industry broadcast. For more information and to find the National PCC Day activities nearest to your location, go to usps.com/nationalpcc/rtf/PCCEventsWeb2006.rtf.

MIDDLE TENNESSEE 2006 EXPO
The Middle Tennessee PCC in Nashville, TN, hosted its 2006 Mailers Expo Aug. 3 at Vanderbilt University’s new student life center. This year’s Expo theme was Magic of the Mail … Don’t Let Your Dollars Disappear. The event drew more than 150 participants.

“This event was a great opportunity for the public to interact face to face with the Postal Service and printing and mailing vendors to learn more about marketing through the mail and how to get the most out of their postage and marketing dollars,” Industry Co-Chair Kelley Norcross said.

Educational sessions included mailpiece design, improving mailroom efficiency, the new 4-State Customer Barcode and the postage rate case. Special sessions were held for small businesses and non-profits wanting to generate more revenue through the mail.

EMCM GRADUATES IN WASHINGTON, DC
Nineteen government and industry professionals from the Washington, DC, area earned their Executive Mail Center Manager (EMCM) credentials after participating in training sessions sponsored by the Washington Metropolitan PCC. The Postal Service’s EMCM program, offered through local PCCs, provides mailing industry professionals an opportunity to develop their mail center management skills to manage more effectively, boost productivity and cut costs. If you would like more information about the EMCM program, please contact heidi.cherry@usps.gov.

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A SMARTER BARCODE
Get ready for the next generation in barcode technology.

The 4-State Customer Barcode, which will be launched in September, can hold up to three times as much information as codes used previously. It uses four distinct, vertical bar types, as the name implies, and allows for expanded tracking and sorting capability and greater visibility into the mailstream. It also makes it easier to request multiple special services, such as Address Change Service and Confirm. In addition, mailers get more space and less clutter on the front of mailpieces and the Postal Service leverages the efficiencies of barcode reading.

The 4-State Customer Barcode provides mailers with an alternative barcode that provides greater benefits by combining the functions of several barcodes into one.

Two services will be available with the launch of the barcode — OneCode Confirm,™ which provides mail tracking service for letter-size mail, and OneCode ACS™ for mailers of First-Class letter mail to receive address corrections. Many more products, classes and shapes will be accommodated in the future.

Go to http://ribbs.usps.gov/OneCodeSOLUTION/ for more information.

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POSTAL NEWS BRIEFS
ENERGY CONSERVATION CONTRACTS
The Postal Service awarded 10 energy conservation contracts with an estimated value of $1.3 billion to six companies that will receive a percentage or “share” of the dollar savings attributable to the projects, in return for assuming all implementation costs.

These contracts, which were issued under the Postal Service’s Shared Energy Savings (SES) program, will help the Postal Service avoid an average of $11 million a year in energy costs over 10 years — or a total of $110 million.

Under the SES contracts, energy conservation measures are identified, financed and installed by the supplier. These measures can include use of renewable energy sources, such as wind power and geothermal heat pumps, combined heat and power, lighting retrofits and energy-efficient building controls.

Postal Service facilities nationwide will benefit from this contract, says Susan Brownell, vice president of Supply Management for the Postal Service. “Recognizing that the implementation of energy conservation measures can reduce costs significantly, the Postal Service established the Shared Energy Savings contracting mechanism not only to trim energy dollars, but also to improve energy efficiency.

This program also was designed to produce environmental benefits and improve facility conditions for employees and customers.”

The SES suppliers included in this award are BGA, Inc., Tampa, FL; Chevron Corporation, San Francisco, CA; ConEdison Solutions, White Plains, NY; Energy Services Group, Wayzata, MN; Honeywell, Inc., Saugus, MA; and Noresco, LLC., Westborough, MA.

NEW GLOBAL BUSINESS ORGANIZATION CREATED
Postmaster General John E. Potter has announced that a new Global Business organization will be created and that Paul Vogel, USPS vice president, Network Operations, has been named its first senior vice president and managing director.

“The new Global Business group will build on the successes of International Business VP Jim Wade, who retired Aug. 3,” said Potter. “Under Jim’s leadership, we built an environment that contributed to solid growth for our global package products,” Potter said, noting that International Business added $1.8 billion to USPS revenue last year.

Vogel will create and lead Global Business to manage USPS worldwide business.

It's focus will be on international business management, international financial and business analysis, global network strategy and technology, international relations, and international operations.

It will include the Postal Service’s five International Service Centers.

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ULTIMATE ONLINE TOOL FOR BUSINESS MAILERS
The new online Products, Services, and Publications (PS&P) guide from the Postal Service’s National Customer Support Center (NCSC) is the ultimate tool to determine which address quality products are right for your mailing operations.

“The PS&P is a single source for mailers to turn to when they need details about one of our many products and services,” says Jan Caldwell, manager of Address Management for the Postal Service. “In an effort to keep the information up to date, we have recently released ‘version 2’ of the PS&P and made it available online.”

You can find this interactive guide on the Rapid Information Bulletin Board System (RIBBS) at http://www.ribbs.usps.gov.

NCSC is the premier addressing resource center for business mailers. The center has a long-standing reputation for developing innovative products and services, as well as educating mailers about the significance of address quality. The many address quality tools available today through the NCSC can help business mailers resolve addressing problems and keep postage budgets in line.

Mailers who want to achieve total address quality can learn more about the many products and services used to standardize, validate and update address data as well as finding a large number of USPS brochures and publications through the PS&P. Check it out online — the new and improved PS&P.

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MEMO TO MAILERS
Volume 41 Number 8 Ilze Sella
Editorial ServicesDavid Ostroff
Designer

George Huelsman
Purchasing Specialist

John E. Potter
Postmaster General and CEO

Thomas G. Day
Senior Vice President, Government Relations

Jon Leonard
Acting Vice President, Public Affairs and Communications

MEMO TO MAILERS
is published by U.S. Postal Service
Public Affairs and Communications.
USPS eagle symbol and logotype are
registered marks of the
United States Postal Service.

© 2006 United States Postal Service. The following are among the many trademarks owned by the United States Postal Service: USPS®, U.S. Postal Service®, United States Postal Service®, Postal Service™, Post Office™, Priority Mail®, Express Mail®, Standard Mail™, First-Class Mail®, Registered Mail™, Certified Mail™, Delivery Confirmation™, Signature Confirmation™, ZIP Code™, Click-N-Ship®, NetPost® and The Postal Store®. This list is not a comprehensive list of all Postal Service marks.

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MEMO TO MAILERS
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MEMO TO MAILERS
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