C. Clint Bolte & Associates

The traditional spring cherry blossoms were only days away from engulfing our nation's capital when nearly 7,000 mailing aficionados gathered at the Washington Convention Center March 25-28 to attend the National Postal Forum. An unusual number of first timers representing publishers and corporations actually paying the postage bill joined their mailing service providers to attend a few of the more than 160 workshops (95 new topics), see the latest innovations from well over a hundred vendors in the trade show, and hear first hand how the first postal reform in three decades was being implemented.

Part of the legislative reform was the addition of the Postal Regulatory Commission (PRC) chaired by Dan G. Blair. The Commission is charged with setting the new guidelines of how future postal rates will be set in order to comply with the legislative mandate of an inflationary cap. Mr. Blair joined Postmaster General John E. Potter in the opening general session appealing to publishers to give constructive feedback on the proposed rate changes affecting the larger flats mailing in which all periodicals and catalogs fall.

The Mailing and Fulfillment Service Association's Leo Raymond reported the first class postal rate increase modified by the PRC to show first class letter increases up an average of 6.9% and standard mail up 9.3%. These will go into effect May 14. The bump for periodicals will be in the double digits (averaging 11.8%) and not be effective until July 15. This two-month delay is necessary to allow time for another PRC review after smaller publisher customers respond following their price shock plus the software vendors need time to include the revisions in their programs. This new periodic rate structure includes charges for single containers going outside county, which were recommended by the PRC to reflect these non-palletized cost drivers, as well as the traditional pieces and pounds costs. Details of the proposed rules and standards for periodicals are available at www.usps.com/ratecase. PMG Potter emphasized, "Dialogue is the key if we're going to successfully navigate new roads that have barely been mapped."

Potter gave three examples of redesigning mail products to take advantage of potential automation discounts; (1) medicine packed in bottles to switch to blister packs to mail as a flat rather than a package, (2) boxed greeting cards and checks if moved to a flat shape would save for the same reason, and (3) lighter, oversized envelopes and catalogs can be folded and mailed as letters.

He highlighted the new Flats Sequencing System (FSS). This new technology is hoped to bring a new level of efficiency in sorting flats as has been realized with letters. The pilot machine has been running in Indianapolis this past year. The first production model will go into the Dulles plant in Northern Virginia this summer. Over the next two years the USPS expects to roll out another 100 machines.

The Partners for Progress Award 2007 was given by Mr. Potter to Daniel Scapin, the President of RR Donnelley's Logistics Division, for their OneSite™ website. Utilizing the USPS' intelligent mail software, the Confirm Service™, every mailing client of RR Donnelley can trace the status of his or her mailing project(s) from entry until actual delivery through OneSite™.

Potter did not gloss over the "Do Not Mail" legislation that has popped up in over a dozen states. "We need to focus on the issues spurring these legislative initiatives. Mail that reaches a home where it's not welcome is not a good use of anybody's time or resources," remarked the Postmaster General.

The Postal Reform legislation must be implemented by June 2008. However, under the old law, the USPS can possibly ask for another rate increase by December 20, 2007. Both Blair and Potter said that it was too early to determine whether another rate increase would be requested under the old law provisions.