Move/ Update Rules and the Printer’s Role

2010 National Postal Forum

Nashville, April 11 - 14

Greylock AssociatesMichael Winn, President

Printers as “Mail Service Providers”

The State of the USPS -

Projected $7 billion loss for 2010! Volume continues to decline:

2006 – 212 billion 2007 - 210 billion 2008 - 201 billion 2009 - 177 billion 2010 - 166 billion (projected)

Cost containment efforts – overhead, facilities, etc Labor still approximately 80% of USPS cost!

What this is all about -

UAA Mail – “Undeliverable As Addressed” UAA Mail – a $1.9 billion expense!! US population is growing, and moving

Approximately 150 million delivery points/ 6 days Do you know how many moves occur each year?

The need is for automation in mail processing Reduce labor expense to process the mail New automation being deployed Example: Flats Sequencing System (FSS)

Automation is dumb! It needs standardization!

A Bit of Move/ Update History -

First-Class has required Move/ Update since 1997 Enforcement has been spotty

Rule expanded to Standard Mail (letters, flats, etc) Originally proposed several years ago via Federal Register Finalized in 2009 Implemented 1/4/10

What about Periodicals?

Changing Relationships (The “Old” Days”)

Mail Owner

Mail Service Provider(printer)

USPS

Hand off Hand off

The process was composed of three distinct components, with a “hand off” between each.

Changing Relationships (The “New” Days)”Challenges and “things to remember”

Customer

Mail Service Provider

USPS

You are the customer’s “agent”!

National Postal Forum

Postal Customer Councils

Focus Group Meetings

$

What to expect - enforcement

Plenty of questions to be resolved…. Locally – testing on MERLIN

“Input” to database in Memphis “Performance Based Verification” (PBV) Full Service IMB mailings?

Nationally - plenty of questions to be answered Sarbanes – Oxley? (“Revenue Assurance”) Office of the Inspector General (OIG)?

Penalties will be significant!

References

• USPS “Rapid Information Bulletin Board”• www.usps.gov/ribbs • Quick access to “all things Move/ Update”

• Postal Bulletins, Mail Pro, the DMM Advisory and other USPS publications

• Just about any industry association - PostCom, MFSA, DMA, etc

Thank You!!

Questions? Comments?

What is required to earn a certificate?

Attend five workshops of the Flats Track for Periodicals, Catalogs and Printers

How do I get my certificate?

Register for your certificate on the National Postal Forum Website before July 31, 2010

www.npf.org

Answer the three true/false questions for each of the five sessions you attended

Certificates will be mailed upon certification

Flats Track Certificate Program

The Questions for this Session -

1. Move/ Update simply means that the mail owner needs to keep the list current with the recipient's address. TRUE!

2. A printer, MSP, is ultimately responsible for the presentation of the mail. TRUE!

3. Move/ Update only applies to First-Class. FALSE!

APPENDIX