• Development of strategic initiatives designed to improve the preparation and entry processes for non-lettersized flat mailpieces and packages.
• Completion of phase one computer modeling of the entire postal network.
• Testing of new consumer-friendly services and products designed to improve the change of address process and to facilitate the return of merchandise.
• Implementation of strategic pricing initiatives, including the first negotiated service agreement.
• Rollout of PostalOne! service, a Webbased technology-supported system that more effectively links customers' mailing information with the Postal Service's acceptance, verification, and payment systems.

     In addition, the Task Force industry CEOs created the Mailing Industry CEO Council, an independent, nonprofit business league dedicated to the promotion of mail and the mail channel. The Task Force — because of its Postal Service participation — has played no role in Council activities.

     Having achieved progress with implementing its original recommendations, the Task Force will be redirecting its efforts and moving forward in the coming months on a new strategic path. The focus will be on mail channel revenue growth and mail effectiveness. As before, the Task Force will reach out to the mailing industry for leadership and expertise that will support efforts to reach this revenue goal. The Task Force will continue its work in intelligent mail and address quality — two areas that offer great prospects for mail effectiveness and growth. The Task Force will first identify several initiatives and enhancements that have the most potential to drive mailing industry growth, then focus on how the industry and the Postal Service can best collaborate to realize that potential.

     The Intelligent Mail service and Address Quality organization formed a Mail Technology Strategy Council. The council includes representatives from the mailing industry, paper manufacturing, printing, packaging, and information technology industries. Council members provide independent advice on changes in technology that are likely to impact the mailing industry in the next decade. Members are asked to provide their thoughts on where technology is heading and how these trends might be used to enhance the mailing industry. The group held its first two meetings in 2003 and discussed developments in printing, barcoding, and radio frequency identification, and how they might impact the industry.

     The Postal Service operates two mail recovery centers (MRCs). They are located in St. Paul, MN, and Atlanta, GA. These facilities are responsible for the final disposition of undeliverable-as-addressed and nonreturnable mail. During 2003, they processed approximately 1.2 million parcels and 71.4 million letters. To better serve customers, the Postal Service uses MRCs as diagnostic tools to pinpoint specific problem areas that affect mail volumes received at our facilities. By communicating these problems to our mailers, they are able to improve their mail preparation and/or packaging. We work closely with mailer organizations to determine ways we can work together to provide better service and reduce operating costs. A direct result of this process was the Expanded Return Program, whereby undeliverable mail items found in company-identifiable packaging are returned in bulk, as postage due, to the 40 participating companies. Approximately 100,000 pieces were returned through this program during 2003. Additionally, the MRCs realized a substantial decrease in cycle times and processing workhours through Process Management efforts. The Mail Recovery Program, working closely with Operations,