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?