Posts by Cost Revenue Rates Blog Host

Scanning the Horizon–Use of Intelligent Mail Barcodes to Measure Service Performance

on Dec 20, 2010 in Finances: Cost & Revenue | 1 comment

The Postal Accountability and Enhancement Act (PAEA) requires the Postal Service to measure service performance and report to the Postal Regulatory Commission (PRC). The PAEA directs that external measurement systems be used for evaluating the Postal Service’s mail delivery performance unless alternate systems have been approved by the PRC. The PRC reviews this data to ensure that delivery performance does not deteriorate under the current rate setting process and to assess customer satisfaction.

The Postal Service has approval to use a hybrid measurement system for bulk presorted First-Class^™ and Standard Mail^® relying on Intelligent Mail Barcode (IMb) scans to measure arrival at postal facilities (start the clock) and a network of external reporters who record delivery times. The PRC has expressed concern about the accuracy of start-the-clock recordings, noting that Postal Service’s start-the-clock event was based on the first read on mail processing equipment rather than on the documented arrival time. Given limited data availability, the PRC also expressed concern that the IMb service delivery performance measurement is not representative of all presort First-Class and Standard mail. They also recommended the Postal Service continue to work to correct service problems.

The Postal Service implemented full-service IMb mailer certification procedures to ensure that mailings meet appropriate business rules. However, this certification process is not mandatory.