Archive for January 27th, 2014

PRC Decision Threatens Financial Viability of Mailers | Multichannel Merchant

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In December 2013, the PRC announced that it would grant the United States Postal Service USPS request for an exigent postage increase of 4.3 percent Order No. 1926 in Docket R2013-11. The 4.3 percent exigent rate is scheduled to be implemented simultaneously with an inflation-based rate adjustment of 1.7 percent approved earlier by the PRC. Thus, mailers are facing a total price increase averaging 6.0 percent.

The PRC decision deals a serious financial blow to both commercial and nonprofit members. “The Commission’s decision, unless overturned by the court, will gut the only real protection that mailers have,” said Peggy Hudson, DMA’s senior vice president of government affairs. “The 6.0 percent postage increase — three times the rate of inflation — will not help the Postal Service shore up its financial base. It will simply drive mail from the system, which harms the financial viability of both the Postal Service and its business customers. It is a lose-lose proposition.”

Rather than filing separate appeals, DMA, along with the Alliance of Nonprofit Mailers ANM, American Catalog Mailers Association ACMA, MPA—Association of Magazine Media MPA, and other mailer entities, joined together to pursue a joint appeal on behalf of both commercial and nonprofit mailers.

In its appeal, DMA and its partners argue that the grounds upon which the PRC granted the USPS an exigent increase are faulty and self-contradictory. The Commission acknowledged that the USPS failed to distinguish properly losses caused by internet diversion from losses that were a result of the 2007-2009 recession. The finding is inconsistent with the Commission’s decision to impose a $2.8 billion above-inflation rate increase on mailers.

In a separate case, DMA, ANM, ACMA and MPA also filed jointly a motion to intervene in a “petition for review” i.e., appeal from agency decision that the USPS filed on December 20 in the U.S. Court of Appeal for the D.C. Circuit. The case is USPS v. Postal Regulatory Commission, No. 13-1308, in which the USPS challenges the PRC’s decision to impose restrictions on an inflation-recovery rate increase sought by the Postal Service.

via PRC Decision Threatens Financial Viability of Mailers | Multichannel Merchant.

Written by Lisa.Bowes

January 27th, 2014 at 11:41 pm

Posted in USPS

Intelligence Delayed, but Not Derailed | Office of Inspector General

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… In particular, we found the Postal Service had fallen short in developing a comprehensive plan for the continued development and use of IMb data. Notably, the Postal Service’s plans around the use of IMb data have grown considerably since its original vision of the program and it has not taken into account the needs of all mailers.

The Postal Service needs to upgrade its data storage capabilities and data systems to accommodate the growing use of IMbs and to support stakeholders’ needs.

The silver lining in this delay could be that it gives the Postal Service another year to develop a comprehensive IMb data plan that includes detailed input from all business users and identifies costs and milestones for the life of the IMb program. It also gives mailers more time to get ready, while letting those already in the Full-Service IMb program keep their modest discounts.

Share your thoughts on the Full-Service IMb and the delayed implementation date.

Do you think another year will make a difference in the readiness of mailers? Of the Postal Service’s systems? What incentives would you like to see to encourage smaller mailers to make the conversion to Full-Service IMb? If you are already Full-Service compliant, what value do you get from the program?

via Intelligence Delayed, but Not Derailed | Office of Inspector General.

Written by Lisa.Bowes

January 27th, 2014 at 11:27 am

Posted in USPS

Load Leveling – Call to Action – Comment to the Federal Register Notice

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The USPS has a page where Federal Register notices are posted, here
http://pe.usps.com/FederalRegisterNotices.asp
However, you won’t find the Federal Register notice pertaining to the Load Leveling plan there.

Go here to see the USPS plan:
https://www.federalregister.gov/articles/2014/01/03/2013-31442/service-standards-for-destination-sectional-center-facility-rate-standard-mail

“The Postal Service seeks public comment on proposed revisions to the service standards for Standard Mail that is eligible for Destination Sectional Center Facility (DSCF) rates. The revisions would change the service standard (a) from three days to four days for Standard Mail pieces that are eligible for a DSCF rate and that are properly accepted before the day zero Critical Entry Time on a Friday or Saturday, and (b) from four days to five days for DSCF Standard Mail properly accepted at the SCF in San Juan, Puerto Rico and destined to the United States Virgin Islands, and properly accepted DSCF Standard Mail destined to American Samoa.”

That’s right, raise rates – both CPI and Exigency rates – and cut service.

Here’s where the CALL TO ACTION comes in.  COMMENT!  Write up a couple of paragraphs on what you think of this USPS plan how it could affect your business, and how it will affect your companies’ future use of mail.  It is critical for everyone to speak up now.  Don’t wait until the last minute.

Comments must be received on or before February 3, 2014.

Written comments should be mailed to the Manager, Industry Engagement and Outreach, United States Postal Service, 475 L’Enfant Plaza SW., Room 4107, Washington, DC 20260-4107, or transmitted by email to industryfeedback@usps.com.

I suggest that you send a copy of your comments to the Postal Regulatory Commission Public Representative on this case:

Anne Siarnacki
901 New York Avenue, NW Suite 200
Washington, DC 20268

e-mail:  anne.siarnacki@prc.gov

Raising rates and cutting services is no way to grow a business. 

 

Written by Lisa.Bowes

January 27th, 2014 at 9:01 am

Posted in USPS