Last week representatives from the mailing industry met with USPS in Washington DC. Here’s a quick recap of some of the topics discussed:

• The biggest announcement, in my opinion, was they finally announced the end of POSTNET! Starting January 2013, an Intelligent Mail barcode (IMb) will be required to get automation discounts. They’ve pushed this back many times before, but I think they really mean it this time.
• And second biggest was their announcement that Full-Service IMb will be required for Automation discounts in January 2014. While they were pretty confident about this date, I don’t think they’ve thought this all the way through, and this date is likely to slip. But that doesn’t mean mailers shouldn’t get started on this now. The goal is to have 100% of automation mail tracked using IMb by 2014.
• “Did you hear the one about the unstamped letter? You wouldn’t get it.” — CFO Joe Corbett, budding comedian
• The mobile barcode incentive will be back this summer. First-Class and Standard mailers who include an approved mobile barcode on their pieces will get a 2% discount on their mail. To learn more about this incentive, including the new requirements for where the barcode goes, see the documentation on RIBBS.
• Postmaster General Pat Donahoe laid out his new business plan for USPS. In order to get out of the financial hole they’re in, USPS wants to:
  • Pull out of the government healthcare system and self-insure.
  • Re-align the postal network, including several thousand office closures, along with closing over half the sorting facilities. This could also include eliminating Saturday delivery, pending Congressional action. For a complete list of facilities they want to close, see the network realignment page. Mailers should still be able to drop their mail at their existing centers and still get the SCF discounts.
  • Encourage more employees to retire (almost half of the staff is currently eligible to retire).
  • Increase the cost of a First-Class stamp to $0.50.
  • Eliminate retirement pre-funding (this would also require Congressional action).
  • All together this could save USPS $20 billion by 2016, which would ensure they stay in the black.
• Donahoe said “We have to act on this now. Putting a couple of pieces together and holding your breath is not the solution. We will be in an untenable position in five to six years. It is hard to get the message across. Everyone can’t have their cake and eat it too. When you look at our outlook and do nothing, we look like Greece.” And it’s interesting to note, Congress doesn’t seem as ready to assist USPS as the EU has been ready to bail out Greece.
• The PMG also noted that his big dream is to have all “large” mailers using “seamless acceptance”. Basically seamless acceptance is Full-Service IMb on steroids – the USPS will just take their mail, then bill them the rates later. This assumes that those large mailers are preparing easy-to-process mail, and that the USPS will bill them accordingly. For “smaller” mailers, he envisions them dropping their mail off at their local post office window, not the current Business Mail Entry Unit (BMEU). They didn’t define what makes a mailer “large” or “small”.
• Productivity is up, but they can only cut so much. USPS will pay their employees first, suppliers second, but won’t be able to make the $11 billion payment to the government for health pre-funding this year.
• At some point they want to move to a single account/single permit world, rather than have each company register a permit at every drop location. But this system hasn’t been built yet, and won’t be until 2013 at the earliest.
• The MTAC meetings are getting restructured this year to encourage more participation and communication. This means I’ll be a little busier at the next MTAC.

So big changes are afoot! We should hear a lot more about the IMb changes between now and NPF.

barcodes · direct mail · events · Full-Service · Intelligent Mail · mail preparation · mobile barcodes · MTAC · National Postal Forum · NPF · POSTNET · prices · QR codes · USPS

Last week at MTAC, USPS announced the official “retirement” date for the POSTNET barcode. Starting January 2013, POSTNET will no longer qualify mailers for automation discounts. If you haven’t made the transition to IMb yet, check out the Intelligent Mail resources on our website to learn more.

Stay tuned for a recap of MTAC coming soon.

barcodes · direct mail · Intelligent Mail · mail piece design · mail preparation · mailing software · MTAC · POSTNET · prices · USPS

Have you started using the Intelligent Mail barcode yet? Some mailers think the IM barcode is too difficult, and have postponed their implementation. Fortunately, with a few easy steps and a little up-front work, you can upgrade your barcode from POSTNET with little trouble. Here are some tips to make the transition easier.

Building the Barcode Data

The biggest improvement with the Intelligent Mail barcode is the additional data it contains. While POSTNET only contains 11 digits of information, the IM barcode holds a whopping 31 digits — without using much more space. Here is a list of the new data fields, and where you can get this information:

• Barcode ID — This field identifies how the piece was sorted if you are printing an Optional Endorsement Line (OEL). This field is usually generated by your PAVE software.
• Service Type ID — This field tells USPS what services the mail piece is using. In addition to the mail class (First Class Mail, Standard Mail, etc), this field identifies pieces using OneCode Confirm and other additional services. This field is usually generated by your PAVE software.
• Mailer ID — This field tells USPS which mailer sent the piece. You can get a 9-digit Mailer ID for free from http://gateway.usps.com.
• Sequence Number — This field uniquely identifies each mail piece. Required only if you are using services like Onecode ACS, Confirm or Full-Service, this field can usually be left empty.
• Routing Code — This 11-digit code contains the ZIP +4 and Delivery Point information that was originally used in POSTNET barcodes. This field is usually generated by CASS software.

Encoding and Printing Fonts

Most mail printing programs, especially those included with mailing software, have Intelligent Mail encoding built in. This converts the 31 digits of the IM barcode into the 65 bars that make up the Intelligent Mail barcode. If you are using a program like Microsoft Word to print your addresses, you will need to apply the barcode font to the encoded digits. You can download several fonts for free from Satori’s Mailing Resources page. For proper scanning, use a 16-point size with these fonts.

Printing Tips and Tricks

Here are a few additional tips that can make printing the IM barcode a little easier:

• The IM barcode has 3 more “bars” than the POSTNET. Allow an additional 1/4″ width in your mail piece design to ensure the proper white space around the barcode.
• Use the IM barcode in the exact same place on all mail pieces to prevent any ink distribution problems caused by “floating” address lines. You can place the IM barcode at the top of your address block, or use it as a separate field to ensure it is located at the same place for each address.
• Always make sure you are using quality ink cartridges, and that the ink is flowing well. Keeping up with your printer’s maintenance will help, and if you are having difficulty with your print quality, contact your printer dealer or manufacturer.
• If your printer tends to deposit lots of ink for each of the bars, use Satori’s IM Light barcode font. This prevents “overspray” and ink bleeding, causing scanning problems for USPS.
• If you have a small envelope window or postcard, use Satori’s IM Narrow barcode font. This font is the smallest still within the USPS specifications, allowing for more mail piece design flexibility.
• When first starting to use the Intelligent Mail barcode, print 30-50 sample pieces and have your MDA (Mailpiece Design Analyst) or BMEU clerk scan them through MERLIN. This will catch any problems with your barcodes before you submit your first Intelligent Mail mailing.
• If you suspect that your barcode isn’t printing correctly, try printing a sample to laser or inkjet printer and compare it to the suspect mail piece. Improper setup of some high-speed addressing printers can result in skewed or incomplete barcode information. Talk with your printer vendor to ensure that your printer is properly configured.

For more information about Intelligent Mail or barcode printing, feel free to contact Satori Software, or download our free Essential Guide to Intelligent Mail.

barcodes · Intelligent Mail · mail piece design · POSTNET · printing · USPS