2018 Mailers Conference
Registration is now open for the 2018 Mailer’s Conference. We will return to the beautiful Lodge at Old Kinderhook in Camdenton Missouri. Our golf event is October 17th at 12:00 p.m. The educational sessions are right out of the 2018 National Postal Forum. We will be offering classes (presented by the subject matter expert from the Forum.) This year we are honored to have two very special keynote speakers. Mr. Daniel Dejan from SAPPI Fine Paper will be presenting on Friday morning.
Ian Cross, the Director and Senior Lecturer at Bentley University will be conducting a three hour symposium on Academic Outreach. Academic Outreach is a new program that brings Direct Mail curriculum to Marketing and Graphic Arts programs.
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USPS Retire CAPS
June 11, 2018
USPS to Retire the Centralized Accounting Processing System (CAPS) – Effective April 1, 2019
The Postal Service has launched a new payment processing platform called Enterprise Payment System (EPS). EPS supports multiple payment options, including mobile check deposit, offers more reporting features, and allows customers to manage multiple USPS business functions under one account.
Eligible Products and Services include First-Class Mail®, Letters, Cards, and Flats, Priority Mail, First-Class Package Service, USPS Marketing Mail™, Letters, Flats, and Parcels, Parcel Select®, Media Mail®, Library Mail, Bound Printed Matter, Periodicals, International Products, Business Reply Mail (BRM), and Every Door Direct Mail (EDDM®), submitted via hard copy, eDoc (Mail.dat/Mail.XML), Postal Wizard or the Intelligent Mail® small business (IMsb) Tool, PO Box, Caller & Reserve Services (EPOBOL), and Address Quality Products (AEC, AECII and ACS™).
Products not currently supported include Electronic Verification System (eVS®), Parcel Return Service (PRS), PC Postage®, Scan Based Payment (SBP), Merchandise Return Service (MRS), Official Mail Accounting System (OMAS), Premium Forwarding Service Commercial (PFSC™), Share Mail®, and Intelligent Mail barcode Accounting (IMbA). Customers utilizing these products will be continue to be supported through CAPS.
Effective September 1, 2018, new payment accounts must be established through EPS. Effective April 1, 2019, eligible CAPS accounts must be migrated to EPS, although customers are encouraged to migrate sooner.
Mail Entry and Business Mailer Support is hosting a series of informational sessions on EPS and the migration process:
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- When: Occurs every Tuesday 1:00 PM to 2:00 PM EST
- Webex: https://uspsmeetings.webex.com/uspsmeetings/j.php?MTID=mb2fa637535b3d99a3c91879db494ff8f
- Call-in toll-free number (US): 1-855-860-7461
- Conference Code: 358 251 5082
For more information:
- Visit PostalPro Enterprise Payment System Page: https://postalpro.usps.com/eps
- For more EPS benefits and how to create an EPS account review the Enterprise Payment System Account Creation Fact Sheet: https://postalpro.usps.com/EPS/MigrationFactSheet
To sign-up today contact:
- Your local Business Mail Entry Unit (BMEU): https://ribbs.usps.gov/locators/find-bme.cfm
- PostalOne! Helpdesk
- Call: 1-800-522-9085
- Email: Postalone@usps.gov
Hartzler Introduces Bill to Honor Fallen Missouri Soldier
Bill to name Columbia Post Office after Specialist Sterling Wyatt
WASHINGTON, D.C. – Today Congresswoman Vicky Hartzler (MO-04) introduced H.R. 4960, which would honor the memory of Missouri-born Specialist Sterling William Wyatt by naming the downtown Columbia Post Office Building at 511 East Walnut Street in his name.
“Specialist Wyatt’s life exemplifies what is good about America and what we all should emulate — service above self,” said Congresswoman Hartzler. “Specialist Wyatt gave his life for his country and left an indelible mark on our hearts. His dedication to serving his community and country were a testament to his faith and family — especially his loving parents, Randy and Sherry. It is humbling to have the chance to memorialize Specialist Wyatt’s patriotism and courage by dedicating this facility – located in the heart of Columbia – to the life of service he led.”
Spc. Wyatt was born and raised in Columbia. Early on in his life, he showed commitment to serving his community by being an active participant in his youth group and volunteering at church. Through his service and hard work, he was quite an accomplished young man: he earned the rank of Eagle Scout, a first-degree black belt in taekwondo, and certification as a Certified Nurse Attendant all before graduating from Rock Bridge High School in 2009.
Soon after graduating, he decided to continue his lifestyle of service by joining the U.S. Army. He was assigned to the 5th Battalion, 20th Infantry Regiment, 3rd Stryker Brigade Combat Team, 2nd Infantry Division at Joint Base Lewis-McCord, Washington and later deployed to serve his country in Afghanistan. Tragically, at the age of 21 years, Spc. Wyatt was killed on July 11, 2012 while on patrol in Kandahar, Afghanistan. His vehicle was attacked with an enemy improvised explosive device (IED).
“Our military men and women voluntarily sign on the dotted line, willing to pay the ultimate sacrifice for all Americans. We all owe them a debt of gratitude we’ll never be able to pay,” said Timothy Rich, Executive Director of Welcome Home, a homeless veterans organization in Columbia. Timothy watched Spc. Wyatt grow up, as Wyatt lived in the same neighborhood and participated in the same Boy Scout Troop as his son. After Sterling died, Timothy was one of several constituents who reached out to the Congresswoman’s office about naming the Columbia Post Office after him. “Those who fulfill that pledge and make that sacrifice – like Sterling Wyatt – deserve to be remembered and honored. We are deeply grateful for Congresswoman Hartzler’s effort to memorialize Sterling’s life for generations to come.”
Spc. Wyatt’s awards and decorations include the Medal of Valor, Bronze Star, National Defense Service Medal, Afghanistan Campaign Medal with campaign star, Global War on Terrorism Service Medal, Army Service Ribbon, Overseas Ribbon, NATO Medal, Certificate of Achievement, and Combat Infantryman Badge.
Congresswoman Hartzler chairs the Subcommittee on Oversight & Investigations on the House Armed Services Committee and represents Fort Leonard Wood and Whiteman Air Force Base in Missouri’s Fourth Congressional District.
Jacqueline Krage Strako Takes New Position
Acting Chief Customer and Marketing Officer/Executive Vice President – Jacqueline Krage Strako
The Postmaster General and Chief Executive Officer, Megan J. Brennan, announced internally that Jacqueline (Jakki) Krage Strako will be detailed to the position of Chief Customer and Marketing Officer and Executive Vice President, effective February 3. Here is an excerpt of the announcement:
In her new assignment, Jakki will be responsible for developing and executing strategies that align with customers so that we can more effectively meet their needs in an increasingly digital and rapidly evolving marketplace. She will drive our product development and marketing, industry engagement, as well as sales and customer care.
Jakki’s 28-year postal career has spanned operations, finance, budget, and industrial engineering. Throughout her career she has been a passionate advocate for the customer, and an effective leader, strategist, and problem solver. She brings a deep understanding of the organization, our customers, and the marketplace to this important role. She has been instrumental in managing and strengthening relationships with many of our largest customers and business partners, and in delivering excellent results for our organization.
Please join me in congratulating Jakki and offering her your continued support in her new assignment.
Competitive Product Price Change Approval
November 21, 2016
Competitive Product Price Change Approval
Friday November 18, the Postal Regulatory Commission (PRC) issued a decision regarding the Competitive Products Price Changes case. In the PRC’s orders, it approved the USPS to proceed with implementation of the January 2017 Price Changes as proposed in October 2016 for: Competitive Products.
For a copy of the PRC’s complete ruling, it can be found at: http://www.prc.gov/docs/97/97886/Order%20No.%203622.pdf.
Share Mail Workshop-in-a-box
Share Mail Workshop-in-a-Box
Like referral marketing, Share Mail is a Single-Piece First-Class Mail product that allows a business to send/distribute an offer or promotional information to its customers that can be forwarded to other individuals through the mail. This workshop covers required program elements, examples, pricing and payment options, and information on enrollment for the Share Mail program.
Please share this information with your members using the attached PCC workshop-in-a-box presentation. If you have any questions about this presentation, please email PCC@usps.gov.
A PDF copy of the presentation with note pages is posted on RIBBS: CLICK HERE
A PowerPoint copy of the presentation and recorded webinar by the subject matter expert on Share Mail is posted on the PCC BlueShare site (Postal internal access only): CLICK HERE
The PCC workshop-in-a-box program gives PCCs the ability to provide educational information and material to their members.
U.S. Postal Service Reports Fiscal Year 2016 Results
November 15, 2016
U.S. Postal Service Reports Fiscal Year 2016 Results
- Net loss of $5.6 billion, driven by mandated retiree health benefits expenses
- Controllable income of $610 million
- Continued double-digit growth in revenue and volume in the Shipping and Packages business
- Enactment of postal reform legislation remains urgently needed
WASHINGTON–After accounting for a $5.8 billion retiree health benefit prefunding obligation, the U.S. Postal Service posted a net loss of approximately $5.6 billion for fiscal year 2016 (October 1, 2015 -September30, 2016), as compared to a $5.1 billion net loss for the year ended September 30, 2015.Excluding this prefunding obligation, the Postal Service would have recorded net income of approximately $200 million in 2016.
“To drive growth in revenue and better serve our customers, we continue to invest in the future of the Postal Service by leveraging technology, improving processes and adjusting our network,” said Postmaster General and CEO Megan J. Brennan. “In 2016, we invested $1.4 billion, an increase of $206 million over 2015, to fund some of our much-needed building improvements, vehicles, equipment and other capital projects.”
The Shipping and Packages business continued its strong performance with revenue growth of $2.4 billion, or 15.8 percent. This was offset by a decline in First-Class Mail revenue of $925 million, or 3.3 percent, due largely to the exigent surcharge expiration and continuing electronic migration. These two trends, together with steady standard or advertising mail revenues, and a slight increase in other revenues account for the $1.6 billion growth in operating revenue.
“The Postal Service continues to win e-commerce customers and grow our package delivery business. We deliver more e-commerce packages to the home than any other shipper because of our predictable service, enhanced visibility and competitive pricing,” said Brennan.
Overall, the Postal Service reported operating revenue of $70.4 billion for 2016, excluding a $1.1 billion change in accounting estimate recorded during the year. This equates to an increase of $1.6 billion, or 2.3 percent, over last year (See Selected 2016 Results of Operations table below). Revenue growth was achieved despite the April 2016 expiration of the exigent surcharge mandated by the Postal Regulatory Commission. As a result of this expiration, revenue for 2016 was lower by approximately $1 billion than what it otherwise would have been. Going forward, without the surcharge, the Postal Service expects its revenue to decline from what it otherwise would be by almost $2 billion per year.
Despite the positive trends in some aspects of its business, the net loss suffered by the Postal Service this year cannot be ignored. Even with continued proactive and aggressive management, such losses are likely to persist for the foreseeable future because of mandated costs such as an unaffordable retiree health benefits program that is not fully integrated with Medicare, and an ineffective pricing system.
“This is why legislative and regulatory reforms remain critical for us to meet the needs of the American public now and well into the future,” said Brennan.
Operating expenses increased in 2016 compared to last year. In addition to a $922 million increase in workers’ compensation expense, compensation and benefits expenses increased by approximately $1.2 billion and transportation costs increased by$413 million. The growth in labor and transportation costs is largely due to the increase in Shipping and Packages volumes, which are more labor-intensive to process and require greater transportation capacity than mail. Transportation expense also increased to significantly improve service levels in 2016.
Controllable income for 2016 was $610 million compared to $1.2 billion for last year. In the day-to-day operation of its business, the Postal Service focuses on controllable income, which takes into account the impact of operational expenses including compensation and benefits; but does not reflect factors such as the legally-mandated expense to prefund retiree health benefits or the change in accounting estimate noted above (see Controllable Income below for a full description).
FY 2016 Revenue and Volume by Service Category Compared to Last Year
The following presents revenue and volume by category for the years ended September 30, 2016, and 2015:
| Revenue | Volume | ||||||||||||||
| (revenue in $ millions; volume in millions of pieces) | 2016 | 2015 | 2016 | 2015 | |||||||||||
| Service Category | |||||||||||||||
| First-Class Mail | $ | 27,281 | $ | 28,206 | 60,922 | 62,353 | |||||||||
| Standard Mail | 17,982 | 17,992 | 80,885 | 80,030 | |||||||||||
| Shipping and Packages | 17,307 | 14,942 | 5,134 | 4,510 | |||||||||||
| International | 2,695 | 2,702 | 1,006 | 913 | |||||||||||
| Periodicals | 1,507 | 1,589 | 5,544 | 5,838 | |||||||||||
| Other | 3,596 | 3,359 | 450 | 391 | |||||||||||
| Total before change in accounting estimate | $ | 70,368 | $ | 68,790 | 153,941 | 154,035 | |||||||||
| Change in accounting estimate | 1,061 | — | — | — | |||||||||||
| Total revenue and volume | $ | 71,429 | $ | 68,790 | 153,941 | 154,035 | |||||||||
Selected FY 2016 Results of Operations and Change in Accounting Estimate
During the three months ended June 30, 2016, the Postal Service revised the estimation technique utilized to determine its Deferred revenue-prepaid postage liability for a series of postage stamps. The change resulted from new information regarding customers’ retention and usage habits of Forever Stamps, and enabled the Postal Service to update its estimate of usage and “breakage” (representing stamps that will never be used for mailing due to loss, damage or stamp collection).
As a result of this change in estimate, the Postal Service recorded a decrease in its Deferred revenue-prepaid postage liability as of June 30, 2016, which caused an increase in revenue and decrease in net loss of $1.1 billion for the three months ended June 30, 2016, and for the year ended September 30, 2016. This change in accounting estimate resulted in a non-cash adjustment that does not impact the Postal Service’s liquidity or access to cash and does not affect its controllable income.
This news release references operating revenue before the change in accounting estimate and operating revenue before the temporary exigent surcharge, which are not calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP).
The following reconciles these non-GAAP operating revenue calculations with GAAP net loss for the years ended September 30, 2016, and 2015:
| (results in $ millions) | 2016 | 2015 | |||||||
| Operating revenue | |||||||||
| Operating revenue before temporary exigent surcharge | $ | 69,232 | $ | 66,672 | |||||
| Temporary exigent surcharge* | 1,136 | 2,118 | |||||||
| Operating revenue after exigent surcharge before change in accounting estimate | $ | 70,368 | $ | 68,790 | |||||
| Change in accounting estimate | 1,061 | — | |||||||
| Total operating revenue | $ | 71,429 | $ | 68,790 | |||||
| Other revenue | 69 | 138 | |||||||
| Total revenue | $ | 71,498 | $ | 68,928 | |||||
| Operating expenses | $ | 76,899 | $ | 73,826 | |||||
| Other interest (income) expense, net | 190 | 162 | |||||||
| Total expenses | $ | 77,089 | $ | 73,988 | |||||
| Net loss | $ | (5,591 | ) | $ | (5,060 | ) | |||
| * The temporary exigent surcharge expired on April 10, 2016. | |||||||||
Controllable Income
This news release references controllable income, which is not calculated and presented in accordance with GAAP. Controllable income is a non-GAAP financial measure defined as net income (loss) adjusted for items outside of management’s control and non-recurring items. These adjustments include the mandated prefunding of retirement health benefits, actuarial revaluation of retirement liabilities, non-cash workers’ compensation adjustments and the change in accounting estimate.
The following reconciles GAAP net loss to controllable income and illustrates the income from ongoing business activities without the impact of non-controllable and non-recurring items for the years ended September 30, 2016, and 2015:
| (in $ millions) | 2016 | 2015 | |||||||
| Net loss | $ | (5,591 | ) | $ | (5,060 | ) | |||
| PSRHBF prefunding expense | 5,800 | 5,700 | |||||||
| Change in workers’ compensation liability due to fluctuations in discount rates | 1,026 | 809 | |||||||
| Other change in workers’ compensation liability1 | 188 | (502 | ) | ||||||
| Actuarial revaluation of retirement liability2 | 248 | 241 | |||||||
| Change in accounting estimate | (1,061 | ) | — | ||||||
| Controllable income | $ | 610 | $ | 1,188 | |||||
| 1 This is a net amount that includes changes in assumptions, as well as the valuation of new claims and revaluation of existing claims, less claim payments for the applicable periods. | |||||||||
| 2 Determined by OPM in 2015 to amortize the $3.6 billion unfunded FERS retirement obligation based on actuarial valuations and assumptions. The payments are to be made in equal installments over the next 30 years. | |||||||||
Complete financial results are available in the Form 10-K, available at http://about.usps.com/who-we-are/financials/welcome.htm.
PCC Alert: Making Changes: Marketing, DPMG Groups Re-aligned
Making Changes
Marketing, DPMG Groups Re-aligned
USPS is making changes within its Marketing and Deputy Postmaster General organizations to better serve customers.
“Although the entire organization is responsible for delivering excellent service and customer experiences, the following changes will sharpen our focus to more effectively reach and engage our customers, and bring their voices and rising expectations more prominently into our strategy development,” PMG Megan J. Brennan wrote in an Oct. 20 memo.
Highlights:
- Jim Cochrane, who previously served as chief marketing and sales officer, will now lead his organization as chief customer and marketing officer.
- Within this group, Cliff Rucker, who previously served as sales vice president, will become sales and customer relations senior vice president. He will continue to oversee Sales, while taking on added responsibility for the Business Service Network and Customer Care Centers.
- Steve Monteith, who previously served as executive director of product management for mailing products and shipping services, will now serve as marketing vice president. He will oversee Brand Marketing, Customer Engagement and Strategic Alignment, Customer and Market Insights, Industry Engagement, Product Management — Mailing Products and Services, Product Management — Shipping Products, and Stamp Services.
- The vice president position that oversees Consumer and Industry Affairs has been eliminated and the Consumer Advocate function will report to the chief customer and marketing officer. This is designed to elevate the voice of residential customers throughout the organization.
- The vice president position that oversees Global Business will also be eliminated and the organization is being modified to better align with core business units.
- Gary Reblin will continue to report to Cochrane as vice president overseeing Product Innovation.
Additionally, within the DPMG organization, DPMG Ron Stroman will continue to oversee Government Relations, Sustainability and Office of the Judicial Officer. He also will lead international efforts that involve public policy and oversee International Postal Affairs, a new function within his group.
The changes take effect Oct. 20.
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Please visit us on the USPS Industry Outreach website.
Thank you for your support of the United States Postal Service.
—Consumer and Industry Affairs
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PCC Alert: Postal Service Announces 2017 Shipping Prices
Postal Service Announces 2017 Shipping Prices
Pricing Unchanged for Priority Mail International, First-Class Package
International and Priority Mail Express International Service
WASHINGTON — The U.S. Postal Service today filed notice with the Postal Regulatory Commission (PRC) of price changes for Shipping Services products to take effect next year, following the end of the holiday mailing season. The filing does not include any price increase for First-Class Package International Service, Priority Mail Express International and Priority Mail International.
The Postal Service continues to provide excellent value and reliability for the shipping industry, along with convenient choices for consumers. The average Shipping Services price change is 3.9 percent, which results in an average shipping price of less than $5 per shipment across all shipping products.
The new prices, if approved, represent a modest price increase in Priority Mail by 3.9 percent and an average of 3.3 percent in Priority Mail Retail prices.
The Priority Mail Flat Rate Box and Priority Mail Flat Rate Envelope prices for these products are:
| Current | New | |
| Small flat-rate box | $6.80 | $7.15 |
| Medium flat-rate box | 13.45 | 13.60 |
| Large flat-rate box | 18.75 | 18.85 |
| Large APO/FPO flat-rate box | 16.75 | 17.35 |
| Regular flat-rate envelope | 6.45 | 6.65 |
| Legal flat-rate envelope | 6.45 | 6.95 |
| Padded flat-rate envelope | 6.80 | 7.20 |
The PRC will review the prices before they are scheduled to take effect Jan. 22, 2017. The complete Postal Service price filing with the new prices for all Shipping Services products can be found on the PRC site under the Daily Listings section: http://www.prc.gov/dockets/daily.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
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Please visit us on the USPS Industry Outreach website.
Thank you for your support of the United States Postal Service.
—Consumer and Industry Affairs
To subscribe or unsubscribe to PCC Alerts, please hit reply and send us your request.
Privacy Notice: For information regarding our privacy policies, visit www.usps.com/privacypolicy.