Fall 2002 Overview
Collaborative Progress Towards Postal Transformation
In April 2002, the United States Postal Service delivered to Congress a Transformation Plan that described the steps and actions the Service would take to maintain its financial viability and fulfill its universal service mission. While the Plan called for a long-term restructuring of the current legislative and regulatory framework, it also set forth near-term strategies to grow the customer value of its products and services, to improve its organization efficiency, and to develop a performance-based culture. A number of the transformation strategies echoed and built upon recommendations made by the Mailing Industry Task Force in its October 2001 report, Seizing Opportunity.
The publishing of the Transformation Plan came as the Task Force was concluding its first six-month effort to develop programs and initiatives in support of its eight broad recommendations. The recommendations were to improve address quality, support intelligent mail, build a competitive postal pricing strategy, enhance postal payment systems, design consumer gateway services, create a CEO-level industry council, standardize mail preparation and optimize the postal network. While that period brought significant activity, progress has accelerated in the ensuing six months. Driven in part by the Postal Service’s commitment to its Transformation Plan, meaningful results have been generated in each of the Task Force’s recommended areas of focus.
“The good ideas developed in 2001,” said Task Force co-chairman Michael J. Critelli, the Chairman and CEO of Pitney Bowes, “have been able to move quickly from concept to reality because of the remarkable collaboration between the industry members and the Postal Service. These ideas will add quality to postal services and make the combined industry and Postal Service network more efficient. Individual consumers will find postal products of greater value and easier to access.”
“The mailing industry shares the understanding that a vital Postal Service providing universal communication and delivery service to the American people is critically important,” said Task Force co-chairman John M. Nolan, Deputy Postmaster General. “This has never been more evident than in the work of the Mailing Industry Task Force. We’ve shared knowledge, resources and effort, and made great strides to meet our objectives to better respond to customer needs, to make mail more competitive, and to help unify this industry.”
By this fall, more than 120 executives from 65 companies, along with 50 Postal Service Officers, executives and managers will have participated in at least one of more than 20 workgroups associated with the Task Force’s eight recommendations.
Among the achievements highlighted in the Task Force progress reports made available at the September 2002 National Postal Forum in Boston are programs and initiatives in the following areas:
Address Quality
A test sponsored by the Task Force has led to several recommendations that will improve how the Postal Service uses its address database to successfully forward mail, and how address correction information is solicited and captured. Other achievements include the publication of a Federal Register notice on Undeliverable-As-Addressed mail volume, the planned launch of the Postal Automated Redirection System, and preprinted address change service codes. “The Task Force members working on address quality improvement are driving a tremendous amount of change,” commented Acxiom Company Leader Charles Morgan. “We intend to keep the momentum going.”
Intelligent Mail
Several enhanced products and services either became available to the public this summer, or will be unveiled early this fall, including CONFIRM. Together, they form the first-phase building blocks for intelligent mail, that is, mailpieces which are uniquely trackable and traceable. “With the commitment to intelligent mail as a driver of the revenue-generation aspect of transformation,” said Task Force co-chairman Critelli, “the Postal Service has not only validated the Task Force’s analysis, it has taken a significant step towards more reliable and measurable service, better security, and improved data and performance.”
Preparation and Entry Standardization
The Postal Service, with the Task Force’s support, has developed several mail preparation initiatives in conjunction with the Mailers’ Technical Advisory Committee (MTAC) and USPS Product Redesign efforts.
The first group — a flexible minimum for five-digit bundles of AFSM-100 compatible Standard Mail flats, a three-digit container of value program, and enhanced drop-shipping, using Web-enabled labeling — will start to be implemented early this fall. “The foundation for optimization initiatives has been laid,” commented Bill Davis, Chairman and CEO of R.R. Donnelley. “Now we must begin the process of prioritizing what is to be done, and turning it into reality.”
Network Optimization
The Task Force has supported the Postal Service’s Network Integration and Alignment (NIA) project, which has a charter to create a flexible logistics network that reduces Postal Service and customers’ costs, increases overall operational effectiveness, and improves consistency of service. With the completion of its baseline network computer model, the Postal Service will test industry-suggested volume scenarios and plans to announce the initial results of its network modeling later this year.
Enhanced Payment
Task Force support for PostalOne! — the Web-based, scaleable technology platform for an enhanced Postal Service payment system — has helped move it from the conceptual to its initial deployment this fall. That rollout will take three years for completion, with new functions and components to be released every six months.
Consumer Gateway Services
The Task Force has supported development of gateway services to enhance ease of use, increase access, and leverage postal assets. They include kiosks, a Parcel SelectTM merchandise returns initiative and a carrier pick-up program. “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.”
Competitive Pricing Strategy
The first-phase development of a Postal Service corporate pricing plan was launched last spring. In September, targeted pricing initiatives for a negotiated service agreement and an experimental niche classification were approved by the Board of Governors and will be filed with the Postal Rate Commission. “With a corporate pricing plan in development,” said Steering Committee member Hamilton Davison, “we want to support initiatives directed towards the benefit of all consumers, from the large mailer to the individual.”
Industry Council
The Mailing Industry CEO Council was incorporated as a non-profit business league on June 26. Its founding board members — Michael Critelli, Gary M. Mulloy, William Davis, Hamilton Davison, Charles Morgan, Nigel Morris, David Sable, Michael Sherman and Dr. Jerome Swartz — were joined by Judy Marks, Thomas Ryder, Dave Dyer, Charles Schellhorn and Richard Hochhauser. The Council intends to be active in lobbying, promoting and advocating industry standards for the mail.
“Our work and support for postal transformation is already reaping dividends,” concluded Task Force co-chairman Michael Critelli. “Aligning the industry and the Postal Service around shared objectives is the best possible path this journey of change could follow.”