DRIVE Status Update (#20 Product Visibility) 02/16/2012

Transcription

1 DRIVE Status Update (#20 Product Visibility) 02/16/2012

2 Key Requests Issue: Growth in Full Service (FS) adoption is not sufficient to achieve business benefits Request: Finalize pricing approach to increase Full Service incentive Full Service rate schedule Basic automation rate schedule Request: Approve funding for upgrading MPE to print IMb Currently estimated at $8.6 million Scheduled for April IRC meeting Xxxxx-xx/Footer 1

3 Full Service Adoption Plan: A Plan for Every Mailer Postal Service will inform and support all mailers in transitioning from current use of POSTNET and Basic IMb to using Full Service IMb Sunset POSTNET by January 2013 Complete IMb Full Service adoption by January 2014 The Full Service Adoption Plan will include: Messaging & Communications Plan Customer Outreach & Support Support Activities to Implement Solutions Pricing & Regulatory Changes Monitoring & Review Process Xxxxx-xx/Footer 2

4 Growth in Full Service is not sufficient to achieve business benefits 60% 55% Full Service Adoption in FY % 45% 40% 35% 32.40% 37.60% 39.80% 42.10% 42.20% 30% 26.30% 25% 20% 15% FY10 FY11 Q1 FY11 Q2 FY11 Q3 FY11 Q4 FY12 (Nov Q1 2011) First Class Periodicals Standard Mail Total Xxxxx-xx/Footer 3

5 Intelligent Mail vs. Full Service Volume Growth 7,954 Xxxxx-xx/Footer 4

6 Number of Permits by Barcode Use Full Service IMb, 7,509 Use IMb, 86,071 POSTNET Only, 43,195 Total Permits mailing at automation rates: 136,775 Xxxxx-xx/Footer 5

7 POSTNET Only Mailers Outreach Strategy and Solutions 2,469 Customers Mailings Over 10,000 Pieces BMEU / C&IA Lead Mail Owners Mail Preparers Mail Service Providers Large Printers 40,726 Customers Mailings Up To 10,000 Pieces BMEU Lead Mail owners Mail preparers Local printers Small Business Tool Xxxxx-xx/Footer 6

8 Area Breakdown of POSTNET Only Permits Area Total Percent CAPITAL METRO 4, % EASTERN 7, % GREAT LAKES 6, % NORTHEAST 5, % PACIFIC 3, % SOUTHWEST 5, % WESTERN 7, % Total 41, % Xxxxx-xx/Footer 7

9 Sample Data on POSTNET Users Southwest Area: Alabama District Facility name Permit holder name Agent name ATMORE BMEU 5 FIRST UNITED METHODIST CHURCH FIRST UNITED METHODIST CHURCH ATMORE BMEU 5 WE CARE PROGRAM INC WE CARE PROGRAM INC AUBURN - BMEU 4 W. DON EDDINS AUBURN - BMEU 4 AUBURN UNIVERSITY AUBURN - BMEU 4 ALPHA TAU OMEGA AMERICAN SPEEDY PRINTERS AUBURN - BMEU 4 HOLY TRINITY EPISCOPAL CHURCH AUBURN - BMEU 4 LOACHAPOKA WATER AUTHORITY AUBURN - BMEU 4 LEE COUNTY HISTORICAL SOCIETY AMERICAN SPEEDY PRINTERS AUBURN - BMEU 4 AUBURN - BMEU 4 AUBURN - BMEU 4 RESCUE K INC. PARKWAY BAPTIST CHURCH TOWN OF NOTASULGA AUBURN - BMEU 4 LAKEVIEW BAPTIST CHURCH Xxxxx-xx/Footer 8

10 Full Service Adoption Plan: Steering Committee Mail Entry & Payment Technology Marty McGuire / Vicki Bosch Product Information Jeff Freeman / Steve Dearing Engineering Systems Scott Bombaugh Pricing Becky Dobbins / Scott Davis Domestic Products Steve Monteith / Tom Foti Consumer & Industry Affairs Sharon Owens/ Dale Kennedy Sales Corporate Communications Operations Angie Burns Roy Betts / Irene Lericos Krista Finazzo Xxxxx-xx/Footer 9

11 Mail Entry & Payment Technology Checkpoints Target Status Launch Small Business Tool Pilot (Beta) January 2012 Completed National Deployment of Small Business Tool July 2012 On Track Launch Vendor Workgroups to Simplify Full Service (IDEAlliance MSDG, MTAC) January 2012 Completed Conduct One-On-One Meetings with Vendors March On Track Make Software Changes to Simplify Full Service Conduct Intelligent Mail Workshops at BME (Education, On-boarding) July 2012 Jan2013 July Jan 2013 On Track On Track Direct Outreach to Large Mailers not Using Full Service July 2012 On Track Xxxxx-xx/Footer 10

12 Engineering Systems Upgrade USPS software, hardware, and firmware to support POSTNET retirement and FS IMb automation requirements All tasks require solicitation or contracts Timeline for all SW / HW / Firmware upgrades Issue RFP 3/2/2012 Proposal due 3/23/2012 IRC Presentation 4/19/2012 Contract award 4/20/2012 Installation 8/20/ /20/2012 Tasks Impacted MPE Date Transport software IMAJ printer firmware POSTJET printer firmware Videojet printer procurement Videojet firmware with capable printers WFOV software to accommodate reading / reporting two IMb MLR-IS software (still investigating business need) DBCS, DIOSS, CIOSS CIOSS CIOSS DBCS-OSS, DIOSS B, CIOSS DBCS TBD TBD Xxxxx-xx/Footer 11

13 Pricing and Regulatory Checkpoints Target Status Submit proposed rule to retire POSTNET February 2012 On Track Submit advanced notice of proposed requirements for FS automation discounts February 2012 On Track Submit final rule to retire POSTNET April 2012 On Track Submit proposed rule to require FS for automation April 2012 On Track Retire POSTNET January 2013 On Track Increase difference between FS and Basic automation rates January 2013 On Track Implementation Complete for FS IMb Adoption January 2014 On Track Xxxxx-xx/Footer 12

14 Speaking Events Milestones Target Status Industry Meeting 1/31/2012 Completed PostCom Executive Session 2/7/2012 Completed PSA 2/14/2012 Completed MTAC 2/15/ 2012 Completed Great Lakes Periodicals Focus Group 2/22/2012 On Track Bay Valley and SF PCCs 2/23/2012 On Track NAAD 3/2/2012 On Track PostCom Webinar 3/15/2012 On Track Columbus PCC 3/22/2012 On Track National Postal Forum April On Track National PCC Day September 2012 On Track Xxxxx-xx/Footer 13

15 Full Service Adoption Plan: High Level Milestones (DRAFT) Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Initiation Identify stakeholders / steering committee Finalize strategy to engage stakeholders Messaging & Communications Plan 1 Kickoff Meeting 2 DRIVE ELT update Deliver internal communications Promote on usps.com, RIBBS Communications correspond to FRN Publication dates 5 6 Customer Outreach & Support Implement grassroots outreach strategy Engage external stakeholders Support Activities to Implement Solutions Upgrade HW/SW/Firmware Continue to innovate FS support tools Monitoring & Review Define KPIs to track FS adoption Establish regular status checks Pricing & Regulatory Changes Pricing & Regulatory Changes Increase incentives / add value Propose rule to retire POSTNET DRIVE ELT update (2/16) 8 Proposals Due Status Meetings 2 Adv. Notice of proposed FS reqts. 1 Kickoff Meeting (2/1) 5 NPF Conference 9 IRC presentation 3 Final rule to retire POSTNET 2 POSTCOM presentation (2/7) 6 National PCC Day 10 Contract award 4 Proposed rule to require FS for auto. 3 MTAC presentation (2/14) 7 Issue RFP 11 Launch installation Xxxxx-xx/Footer 5 14 Retire POSTNET Inc. difference b/w FS / Basic rates 5 6 Actual Completion Scheduled Completion

16 Key Requests Issue: Growth in Full Service (FS) adoption is not sufficient to achieve business benefits Request: Finalize pricing approach to increase Full Service incentive Full Service rate schedule Basic automation rate schedule Request: Approve funding for upgrading MPE to print IMb Currently estimated at $8.6 million Scheduled for April IRC meeting Xxxxx-xx/Footer 15

17 Appendix Xxxxx-xx/Footer 16

18 Communications Milestone Federal Register publishes proposed rule on POSTNET retirement USPS submits advance notice on Full Service requirements Federal Register publishes advance notice on Full service requirements Federal Register publishes final rule on POSTNET retirement Target March 2012 February 29, 2012 March 2012 May 2012 Corporate Communications Action Reactive Statement Link story Industry Alert Media interviews Social Media Outreach Link story Industry Alert Link Story Industry Alert Social Media Outreach National Postal Forum April 1-4, 2012 Trade media interviews for USPS spokespersons on FS IMb Xxxxx-xx/Footer 17

19 Consumer and Industry Affairs Milestone Target C&IA Action Federal Register publishes proposed rule on POSTNET retirement USPS submits advance notice on Full Service requirements Federal Register publishes advance notice on Full service requirements Federal Register publishes final rule on POSTNET retirement March 2012 February 29, 2012 March 2012 May 2012 BSN training to engage managed accounts Webinars w/ Field CICs Industry alerts BSN training to engage managed accounts Webinars w/ Field CICs Industry alerts TBD TBD National Postal Forum April 1-4, 2012 TBD Xxxxx-xx/Footer 18