Chapter 2 Postal Operations

B. WEB BOX ACTIVITY TRACKING SYSTEM

The Web Box Activity Tracking System (WebBATS) is a Webenabled centralized application that improves the access, speed, and reliability of tracking Post Office box services. It also supports marketing to areas with high box vacancy rates. WebBATS provides a foundation for future expansion to include Internet access, which would allow the Postal Service to offer customers the convenience of reserving and renewing a Post Office box online. Future online rentals and renewals will be more cost effective than retail counter transactions.

5. Retail Alternative Access

The Postal Service continued communications efforts designed to build customer awareness of the many convenient alternate access options available to customers that need to purchase stamps and mail packages. Conducting postal business online or by self-service solutions helps control postal operating costs and greatly enhances customer convenience by expanding the times and locations that services are available.

A. USPS.COM

The Postal Service continued to use Internet technology to provide products and services that meet the varied needs of business and consumer customers. The Postal Service’s Web site, usps.com, is a vital business channel which broadens access to products, services, and information. In 2006 usps.com received 312 million visits, 15% more than 2005. Enhancements to online content and applications have driven growth by making it easier for customers to find products, services, and information.”

The Postal Store portion of usps.com was redesigned to combine online shipping supplies with the existing stamp and retail storefronts. The Web site is now more efficient for customers, with a 25% decrease in the time it takes for customers to find products and transact business.

The Postal Service enhanced its Web Tools application programming interfaces (APIs) so that Delivery Confirmation service is now electronically acceptable by APOs and FPOs. Enhancements were also made to the APIs for customs forms to make it easier to mail packages internationally.

B. AUTOMATED POSTAL CENTER

The Automated Postal Center (APC) is a convenient kiosk that provides customers with quick, easy, and convenient access to postal products and services that retail customers most frequently buy. The majority of the 2,500 APCs deployed in 2004 are available 24 hours a day, 7 days a week. APC transactions grew to 70.5 million and revenue increased 34% from last year. Retail sites with APCs have been able to reduce wait time in line and have slightly higher customer satisfaction scores. The Postal Service will maximize the usage of APCs by relocating them to the inner lobbies of Post Offices in the customers’ direct line of sight. An analysis of nonpostal sites is also being conducted to determine if there are opportunities outside of Post Offices. In 2007, the goal is to increase APC-eligible revenue by 12%.

D. STAMPS ON CONSIGNMENT

The Stamps on Consignment program offers First-Class Mail stamps in commercial venues such as ATMs and grocery, drug, and convenience stores. This program generates approximately 5% of the Postal Service’s


total retail revenue. It benefits retailers by creating customer traffic and is quick, easy, and convenient. Future plans include expansion of this service to other retailers who have not formerly considered making stamps available to their customers. This program has the potential to exceed $1 billion in revenue in 2007 and is the highest alternate access revenue channel.

E. POSTAGE TECHNOLOGY INITIATIVES AND SECURE ELECTRONIC SERVICES

Postage meters and PC Postage products provide an alternative access channel for all customers — from households to national accounts. These products make it more convenient for customers to mail with the Postal Service by integrating services such as insurance and Delivery Confirmation with postage payment and by making it easier to print shipping labels and account for postage paid. The number of choices for customers continued to increase with the introduction of new products and enhancements.

Enhancements to PC Postage include the introduction of two dedicated print devices available for purchase. PC Postage technology also continued to support enhancements to Web based services, such as eBay and Click-N-Ship. The popularity of PC Postage is evidenced by a more than 45% increase in revenue and a 17% increase in registered users. PC Postage represented more than 12% of all alternative retail access revenue. It is the second highest alternate access revenue channel.

New products continued to be approved for postage meters, including further integration of information-based indicia (IBI). IBI is a digital two-dimensional barcode that includes postage payment and other related service information. Continuing introduction of new products is important to provide the widest selection of options to customers that may be utilizing a postage meter that the Postal Service has scheduled for decertification.

The Postal Service launched the third phase of a market test of Customized Postage. Customized Postage utilizes PC Postage technology to allow customers to personalize postage by uploading a digital image that can be printed with IBI. This service is provided directly to customers by authorized companies. The third phase allows images which consist of notices or advertisements. This year customers bought 25 million personalized postage indicia.

F. CONTRACT POSTAL UNITS

Contract postal units (CPUs) provide another retail access location for customers. Typical CPU locations are supermarkets and drug stores. Many feature evening, weekend, and holiday hours. There are approximately 4,200 CPU locations with performance-based contracts making up 27.8% of this total. The convenience store industry is the fastest growing segment of the CPU program with more than 156 locations in operation. Contract Postal Unit Technology (CPUT) contains information on all CPU contracts and generates invoices for contract payments. Almost 800 CPUs use the RAMM-60 (Real-time Accounting Management and Metering) weighing and rating system to automate the selling of postal services. CPUs are the third highest alternate access revenue channel.