Parcel Shippers Association

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1 Parcel Shippers Association Kristin Seaver USPS Chief Information Officer, Executive Vice President Isaac Cronkhite Vice President Enterprise Analytics Date: January 26, 2016

2 USPS MISSION CONNECTING & INFORMING CITIZENS & COMMUNITIES HELPING BUSINESSES CONNECT & GROW SERVICE RELIABLE, CONVENIENT, AFFORDABLE, UNIVERSAL and SECURE 240 years of rendering postal services to all communities. 2

3 Service the Customer ACCEPT PROCESS TRANSPORT DELIVER IMpb - Improving Quality to Improve Customer Experience PTR - Improving System Capacity & Capability APV - Future of Package Entry Postal One Road Map - Foward Focus 3

4 Driving IMpb Quality Address Quality Shipping Services File Quality Barcode Quality % Dec 2016 ACTUAL TARGET: 89% % Dec 2016 ACTUAL TARGET: 91% % 1.09% 0.07% 0.65% Dec 2016 ACTUAL TARGET: 95% Measures percent of addresses with enough information to validate to the unique exact 11- digit DPV ZIP Code when matched against the AMS Database. Benefits: Operational efficiency (Dynamic Routing, Flexible Employees) Enables personalized features (My USPS, Expected Delivery Window) Avoids operational costs (Manual scheme lookup/pres Keying) Improves deliverability Measures percent of manifest records that pass key package level detail validations mitigating potential errors when processed in the PTR Database. Benefits: Supports timely postage payment and revenue assurance Enhances tracking and customer experience Provides digital awareness of packages that will be delivered by USPS Facilitates better workload planning Eliminates need for manual counts Enables better analytics, insights, decisions Measures percent of tracking numbers that pass key validations for format and uniqueness without errors or warnings when manifests are processed in the PTR Database and physically scanned. Benefits: Critical for visibility and the customer experience Creates the digital trail Supports payment and revenue assurance Facilitates operational efficiencies Foundational for current and future product offerings 4

5 IMpb Compliance Quality Metrics Timeline FEB 2016 PSA Meeting Discussed PSA Concerns on IMpb Quality APR 2016 SEP 2016 Work Group 178 Meetings OCT 2016 WG 178 Resolution Submitted NOV 2016 MTAC - Timeliness Feedback JUL 2017 IMpb Quality Metrics and Thresholds Effective Address (AQ) 89% Shipping Services File (MQ) 91% Barcode (BQ) 95% JAN 2017 IMpb Quality Assessments Deferred to July 2017 JUL 2017 WG 178 to Finalize Address (AQ) Threshold OCT 2015 IMpb Quality Metrics, Validations and Performance Shared w/industry MAR 2016 New MTAC Work Group 178 Formed to Simplify IMpb Quality Metrics and Determine Thresholds JAN 2018 New Quality Thresholds Address (AQ) TBD Shipping Services File (MQ) 94% Barcode (BQ) 98%

6 Improved Tracking System Capacity 37ms Internet Response (Increase +86%) a = Δv Δt 4 min. Extract Files Premium 1.4min. Out for Delivery Event (Increase +33%) 220 % increase in CPU cores 297 % Increase in SPECInt (Standard Performance Evaluation Corporation Integer Processing Power) 345 % increase in system memory Numerous system software upgrades 2X handling capability over 2015 volume

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8 PostalOne! Roadmap & Package Platform Improve the customer experience Resilient Service Oriented Highly Available Stable Unmet Needs/Issues Solutions Package Mailers Manifest charged at submission, updates limited, untimely processing Verification logic, offline processes Statistical sampling accuracy concerns Lack of detailed package level data Difficult to view summary mailing level Lack of visibility between evs/ptr System performance issues Letter/Flat Mailers MID/CRID/Account Management Postage Calculation System performance issues Package Mailers Create package platform using MicroServices Manifest ingest: Near Real Time Feedback Verification: Analytics/MPE Based Payment: Flexible, Self-Service Reports/Data: Timely & Actionable Create resilient new platform Letter/Flat Mailers Improve Account Management Use Unified Pricing Engine Implement Payment Modernization Address system performance issues

9 Questions Thank you for your business Thank you for your partnership 9