will enable employees and customers to view detailed product performance information in 2004.

     The Postal Service launched the Residential Delivery Indicator (RDI) data product in time for the spring 2003 National Postal Forum. The RDI data product helps parcel shippers reduce shipping costs and improve operational efficiency by making informed decisions. RDI data product, in conjunction with Coding Accuracy Support System (CASS) software, will identify whether a delivery type is classified as residential or business which helps shippers avoid ancillary surcharges imposed by some delivery providers. Sales support material has been developed to promote further integration by merchants. Internet Web sites are being developed to promote the RDI toolkit to the Postal Service's larger customers.

     During 2003 there was tremendous emphasis directed at reducing costs that support Postal Service package service products. Examples of these cost-reduction efforts include:

• Effectively managing the expenses for package supplies of expedited package products resulting in significant reduction in total and unit costs.
• Coordinating actions to improve parcel barcode quality.
• Investigating, as part of an MTAC workgroup, the issues surrounding the machinability of items mailed in soft packaging.

     The Postal Service took a number of actions to improve ease-of-use and access to Postal Service package service products. At the close of 2003 work is nearly complete for a new program through which Express Mail Corporate Account customers can pay for

their postage by credit card. The new payment option is designed to enhance service and increase financial controls.

     Leveraging first-mile capabilities, there is significant activity to enhance the Postal Service's carrier collection program to help support the growth of the Click-N-Ship application, as well as the new Parcel Return Service which will be implemented in 2004. Various carrier collection alternatives are being analyzed and are expected to be tested in 2004.

     Finally, a prepaid packaging concept that predetermines price and sells the packaging item with postage pre-applied will enable new sales channels and improve the performance of existing postal marketing channels through simplified transactions. The prepaid Priority Mail flat rate envelope is expected to be introduced in early 2004.

     The Global Express Mail label was revised to show a consolidated barcode for customs, which facilitated Postal Service processing and accounting.

     The Postal Service redesigned its international Web site, www.usps.com/global, to make it easier for customers to understand how to send letters, flats, and packages internationally. The Web site is designed to make it easier to choose a service, calculate the postage, and even ship online. Some highlights of the revised site are:

• Rate Calculator - Once a service is chosen the Rate Calculator calculates the postage.
• Resource Center - The redesigned site provides a Resource Center which contains links to all the information needed such as international shipping instructions, forms, addressing, special services, customs, and ordering supplies.
• Click-N-Ship - There is a link to the landing page - Print Shipping Label - which provides access to the Click-N-Ship program that enables customers to print mailing labels and pay for Global Express Guaranteed™ and Global Express Mail