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GENERATE REVENUE

Parcel Return Service
Parcel Return Service (PRS) became permanent in April after a 2003 launch as a 2-year experiment. A 40 percent volume increase was realized as the number of returned parcels grew in conjunction with direct-to-consumer online and catalog sales. PRS is designed for highvolume shippers with annual return volumes of 50,000 or more parcels. Their customers get the convenience of preprinted, prepaid return labels and the ease of handing packages directly to a carrier. This worksharing program has been eagerly adopted by merchants to build customer loyalty. Growth is expected to continue in 2007 as more shippers leverage the Postal Service's everyday link between online and Main Street.

Premium Forwarding Service
Premium Forwarding Service (PFS), after just one year, enrolled more than 100,000 customers to receive their mail at a temporary location. More than $6 million has been generated, although the larger financial impact is the cost savings achieved by discontinuing informal, free mail forwarding arrangements. There are two peak periods — customers leaving cold weather climates for the warmer south and customers leaving sun-belt states during the warmest months. Completion of a PFS online customer application for recurring credit card billing is planned for early 2007.

Customized Postage
Customized Postage combines PC Postage information-based indicia with customer-provided digital images to produce postage used for payment of Express Mail, Priority Mail, and First-Class Mail. More than 21 million customized postage stamps have been issued to date. Providers establish their own fees and are responsible for image content, order fulfillment, customer service, and pricing. Customized Postage started with a one-year test ending in May. A second test followed to allow commercial images in addition to consumer images.

Enhanced Visibility
The 4-State Customer Barcode (4-CB), the next generation of barcode technology, was tested and formally launched at the National Postal Forum in April. In September customers began using two services offered for the first time with the new code. OneCode CONFIRM provides visibility through the mailstream for letters; OneCode ACS (address change service) is for First-Class Mail letters involving address corrections. The 4-CB will be extended to include flat mail in 2007. In 2009 the Postal Service expects to require the new barcode in order for customers to receive automation discounts.

Intelligent Mail Devices
Deployment of 300,000 Intelligent Mail Devices (IMDs), originally planned for earlier in 2006, was deferred until September due to a contract delay. The IMD includes signature capture capability — enabling enhancements to existing services — and provides information to customers sooner than with today's scanning. In plants the IMD is already being used to track mail containers, an essential element of surface visibility.