• on Jan 27th, 2014 in Mail Processing & Transportation | 3 comments

    It’s back to the future for the requirement that all letter and flat automation mailings be Full-Service Intelligent Mail barcode (IMb) compliant to obtain discounts. Mailers were expecting implementation this week of the Full-Service requirement, but the U.S. Postal Service pushed back the date until 2015 because the Postal Regulatory Commission ruled that the mandate constituted a price increase that would have busted the inflation-based price cap.

    Many mailers welcomed the delay, as few felt the entire industry – the Postal Service included – was ready for full-service, which included the requirement that barcodes keep their unique sequence of numbers for at least 45 days before the barcode sequence is used again. A number of large mailers have been Full-Service IMb compliant for months and have taken advantage of the benefits of IMbs, including tracking of service performance, identifying bottlenecks, and coordinating follow-up marketing efforts. But many mid-sized and smaller mailers were not ready for the added requirements, which include electronic submission of postage statements and use of unique IMbs on trays and containers. And concerns were growing that the Postal Service’s systems are not yet capable of handling the expected increase in IMb data.

    The Office of Inspector General raised similar concerns in a fall audit report. In particular, we found the Postal Service had fallen short in developing a comprehensive plan for the continued development and use of IMb data. Notably, the Postal Service’s plans around the use of IMb data have grown considerably since its original vision of the program and it has not taken into account the needs of all mailers. The Postal Service needs to upgrade its data storage capabilities and data systems to accommodate the growing use of IMbs and to support stakeholders’ needs.

    The silver lining in this delay could be that it gives the Postal Service another year to develop a comprehensive IMb data plan that includes detailed input from all business users and identifies costs and milestones for the life of the IMb program. It also gives mailers more time to get ready, while letting those already in the Full-Service IMb program keep their modest discounts.

    • Share your thoughts on the Full-Service IMb and the delayed implementation date.
    • Do you think another year will make a difference in the readiness of mailers? Of the Postal Service’s systems?
    • What incentives would you like to see to encourage smaller mailers to make the conversion to Full-Service IMb?
    • If you are already Full-Service compliant, what value do you get from the program? 
  • on Sep 24th, 2012 in Delivery & Collection | 3 comments
    The U.S. Postal Service recently reported that its third quarter delivery service performance results marked “all-time record service performance” across all mail categories. In particular, the Postal Service had significant improvement in delivery performance for its commercial mail products in First Class and Standard Mail. Periodicals’ on-time performance topped 80 percent for the first time since 2010, a major improvement over the 46 percent score from earlier this year. The improved service performance in the third quarter occurred while the Postal Service was in the process of consolidating 46 facilities, which some mailers feared would affect service. But initial reports suggest service has not been overtly disrupted by the consolidations, although the real test could come during the fall and holiday mailing seasons. The Postal Service recently completed this first phase of its network rationalization plan, and is now on a break from consolidation until 2013 after the election season. Postal officials have attributed the improvement in service performance to diagnostic tools that show “pinch points” and help managers to act on that information to reduce cycle times. The Intelligent Mail Barcode full-service data, which identifies many potential problems, is also helping and employees are doing outstanding work often under difficult circumstances. It will be important for the Postal Service to maintain strong service performance as volumes pick up during the fall mailing season and election mail is added to the mix. Further, the second phase of consolidations could begin in February 2013 and could have an impact on service. Finally, mailers report that they are not solely concerned with service scores but that the Postal Service delivers the mail as promised. What has been your experience with service over the past few months? Have you been affected by the consolidations? Are you concerned about phase two of the network consolidation plan?