chapter 2
postal operations
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originally were deposited (such as the destination bulk mail center or DDU). Shipper benefits would include taking advantage of increased efficiency in their routes by dropping off and picking up parcels at the same time, and favorable rates due to Postal Service cost savings in transportation and mail processing.

     The Postal Service filed for a two year experimental rate classification for Parcel Return Services in May 2003. The new rates will include worksharing discounts that reflect savings from reduced transportation and handling costs. In August, the Postal Rate Commission approved the agreement reached by most of the interested parties. That resulting experiment was implemented in October 2003.

c. Click-N-Ship

     Since its introduction in May 2002, volume growth in the use of Click-N-Ship service has been continuous. In 2003, several new features were added to this online shipping application at www.usps.com. Customers can now save their credit card information online, making transactions even quicker. Additionally, an email ship notification feature was added that allows shippers to notify the intended recipients that their packages are in the mail.

d. Vairification of Delivery Services

     In 2003, nearly 500 million Piority Mail pieces of Priority Mail and packages had Delivery Confirmation or Signature Confirmation service. Package services using Delivery Confirmation and Signature Confirmation services increased from approximately 100 million packages to more than 300 million packages. The inclusion of Delivery Confirmation service in the Parcel Select rate in 2002 encouraged postal customers to use this value-added service.

     This increase in volume supports the Postal Service's commitment to improving customer satisfaction by providing fast, reliable information on the delivery of package services. The delivery information provided

the foundation for new service performance information. Shared service reports are also being expanded, giving both the Postal Service and shippers' information on delivery performance.

     A Bulk Proof of Delivery enhancement was launched in June 2003 for Signature Confirmation service and Express Mail manifest customers. This feature reduces customers’ delivery record handling times, provides easy access to information, and allows them to retain electronic records for indefinite periods.

     Also in 2003, Track and CONFIRM at www.usps.com was enhanced to provide an email notification feature, which allows customers to have delivery status information sent to them via e-mail for Delivery Confirmation, Express Mail, or Certified Mail services. Alternately, they can request that delivery information be sent to a third party. Options are available for both current information and future updates.

     As an added customer service feature, Certified Mail and Registered Mail services were included in the 800-222-1811 toll-free number for delivery status information.

     In September 2001, General Logistics Systems (GLS), a subsidiary of England’s Royal Mail, began delivery of items shipped via the Postal Service’s Global Express Mail (GEM) service in six countries initially and Global Air Parcel Post (GAPP) service in 22 countries in Western Europe. Proof of Delivery as well as the name of the person who signed for the package is available for GEM shipments, and the actual signature can be obtained upon request. Global Air Parcel Post volume for Western Europe is also being scanned, and tracking on this product will be offered to customers at a later date.

e. Performance Information Availability

     In 2003 product performance information began to be loaded into the new Enterprise Data Warehouse (EDW). The Product Performance EDW will significantly improve the information available to the Postal Service and its package mailers. The new EDW tool

Chapter 1 Compliance with Statutory Policies Introduction

Chapter 2 Postal Operations
  1. Public Perceptions, Customer Outreach, and Mailer Liaison
  2. Products and Services
  3. International Mail
  4. Mail Volume and Service Performance
  5. Mail Distribution
  6. Delivery Unit Operations
  7. Stamp Services
  8. Licensing Program
  9. Service and Market Development
  10. Retail Programs
  11. Pricing and Classification
  12. Technology
  13. Intelligent Mail
  14. Financial Management
Chapter 3 Financial Highlights

Chapter 4 2003 Performance Report and Preliminary 2005 Annual Performance Plan