Recommendation Recap

“Postal transformation should, by necessity, reach out to consumer gateway services and the related revenue generation opportunities,” observed Jerry Swartz, Chairman and Chief Scientist of Symbol Technologies. “These services will be a creative way to leverage the tremendous potential of the Postal Service’s capabilities in meeting customer needs.”

“We need to continue exploring methods which can expand Postal Service offerings to consumers
in targeted market segments,” added Nick Barranca, Vice President, Product Development for the Postal Service. “Going forward, we must remain committed to analyzing the returns on these investments.”

Transaction Ease of Use

• The Task Force recommended expanding consumer access and services through kiosks and self-service technologies. A contract to design and develop automated kiosks for stamps, information-based indicia (IBI) printed postage, and other services will be awarded in the beginning of 2003. Current plans call for 20,000 kiosks to be rolled out beginning in fall 2003.

• The Task Force sought to determine ways to expand Postal Service offerings to the front doors of consumers and to Small Office/Home Office (SOHO) businesses and rural areas. In the past, the Postal Service had explored a rural carrier Mobile Postal Unit pilot test, equipping USPS trucks with wireless connections and hand-held mobile devices. The Task Force will review past data and, with the Postal Service, consider updating and reinstituting this test.

• The Task Force is encouraging prepaid packaging for consumers. The USPS will work toward development of a prepaid box for consumer ease-of-use.

• The Task Force requested that the Postal Service determine the feasibility of electronic cash-on-delivery (COD) and credit/debit card payment methods as part of trusted postal carrier transactions at the front door, using next-generation mobile and wireless devices with payment and biometric security. The Task Force now recommends that informal market research be conducted to determine interest. Limited pilot tests could also be conducted with preferred customers in niche marketplaces.

Getting Mail into the System

• The Task Force will support the proposed implementation of a Parcel Select™ Merchandise Return Service. Parcel Select is designed for business-to-residential shippers who deposit packages closer to their destination. Through this service, the USPS could also offer merchandise returns to the same shippers. These savings may be passed on from shippers and merchants to consumers. If approved, implementation could be as early as spring 2003.

• The Task Force requested a feasibility study of a postal carrier pick-up program for items such as prescriptions and store-to-store video returns, partnering with U.S. retailers. A pilot test, beginning this fall, will have carriers providing services via line-of-travel, concentrating in a local five-digit ZIP Code retail area.

Getting Mail Delivered

• The Task Force recommendation for “automated mail pick-up” services is already being piloted at three locations. The Task Force is recommending that a business case be developed which explores strategic partnerships with major retailers and at locations that coincide with common consumer
destinations frequently visited and are accessible 24 hours a day and seven days a week. The Task Force also explored integrating merchandise returns and carrier notification of package pick-up into the automated mail pickup system. The Task Force will continue to study the feasibility of integrating the system with other third-party retail channels for added consumer convenience.

• The Task Force has assigned the concept of Personal Intelligent Mail to both the Intelligent Mail and Consumer Gateway Services committees for evaluation. PiM would be aligned with CONFIRM and enabled by a barcode, for tracking mail sent and received by consumers and business mailers. Committee members are putting together a team of industry partners to conduct a study of the product and concept for technical feasibility. A major mailing house and a digital postage provider have expressed potential interest in participating. USPS is sponsoring focus groups to gauge interest.

Leveraging Postal Service Assets

• Exploration of integrated broadband Internet access for “road warriors” via wireless LAN infrastructure at post offices nationwide remains under discussion. The Postal Service is entering a discovery phase on WLAN infrastructure and will work closely with Task Force members.

• The Task Force suggested finding a third-party partner to serve as an Internet Applications Service Provider to enable Web portal applications for print-to-Web transactions and online returns. Members have since provided postal executives with background information and material on one type of consumer-centric print-to-Web solution, which will be processed and reviewed by USPS.

• The Task Force has explored integrating Delivery Confirmation barcodes from outbound package shipments, into return labels to further automate returns processing, and to capture additional scans for better track and trace visibility. Currently, it has not been possible to use the same barcode for both delivery and returns. However, the current process will still support visibility of packages as they travel through the system.

• To continue to develop, assess and implement consumer gateway service concepts, using as prioritization principles their potential for cost reduction and revenue growth.