MTAC 114 Package Services Sub-Group

Service Standards for Market Dominant Products Package Services and Standard Mail Parcels Sub-group Update June 13, 2007 Full Workgroup Meeting

MTAC 114 Package Services Sub-Group

Co-chairs

  Tom Underkoffler, Medco Health Solutions, Inc.

John Gullo, USPS

1 Telecon Held Since May 15 Full Meeting

   June 1 Next Telecon – June 15, 9-10:30 ET Next Face to Face – July 15, 3:00 PM

MTAC 114 Package Services Sub-Group Mail Classes  Package Services – to be combined with Standard Parcels • All sub-classes  – Parcel Post, Bound Printed Matter, Media Mail, Library Mail Standard Mail (Parcels Only) Special Services • Merchandise Return Service (MRS), Bulk Parcel Return Service (BPRS), Delivery Confirmation (DC)

MTAC 114 Package Services Sub-Group Industry Data  Limited information provided • Bookspan, Cornerstone    Majority of Industry Participants Drop Ship Mail General Consensus • Existing Standards Met Industry Expectations For Drop Shipped Parcels • Concern Over Service Levels For Non-Drop Shipped Parcels Standard Mail Parcels • Have the Same Concerns Over Delivery Times as Package Services Mailers

MTAC 114 Package Services Sub-Group

USPS Data

   http://www.usps.com/serviceperformance/wel come.htm

Package Services • Retail – 48% • Parcel Select – 96% USPS Operations Looking at Numbers • How We Start the Clock • Do Standards Meet Current Network

MTAC 114 Package Services Sub-Group

Area Breakout

 Standard Mail Parcels & Package Services    • Wendy Smith, PCH & Tom Underkoffler, Medco Merchandise Return Services • Richard Porras, Newgistics Bulk Parcel Return Service • Aaron Horowitz, Cosmetique Delivery Confirmation • Jim Callow / Ken Richardson, OCA

MTAC 114 Package Services Sub-Group Draft Version of package service standards

Entry Point

Destination DDU DSCF DBMC* Origin Zone 1 Zone 2 Zone 3 Zone 4

Days to Delivery

1 2 3 3 4 5 6 Zone5 Zone 6 Zone 7 Zone 8 7 8 9 10 * The proposal would allow for a variation in the DBMC standards where the current service standard for a BMC is more than 3 days.

MTAC 114 Package Services Sub-Group DRAFT Proposals MRS  Service will be re-evaluated following revamping of MRS Delivery Confirmation  Scan Rate Service Standard – 99.1%  Inquiry Wait Time Service Standard – Web response 2 sec.

 Scan Data Processing Time – TBD Signature Required –  TBD BPRS  TBD

MTAC 114 Package Services Sub-Group

Next Steps

  Analysis of proposed vs current standards Possible ASF service standard   Review all final draft proposals at 6/15 meeting Finalize proposals at 7/15 face to face meeting