National Postal Policy Council

National Postal Policy CouncilNational Postal Policy Council

Celebrating our 25th Year

• NPPC promotes a continued and improved national postal system with quality service at an affordable price.

• NPPC views its mission as maintaining a trusted partnership with the USPS for the benefit of all Americans. This partnership between the USPS and NPPC seeks to drive continuous improvement.

• NPPC focuses primarily on its area of most expertise, First Class Mail, viewed as part of a healthy overall system.

• NPPC believes that a key element for the members' business success for the foreseeable future is a healthy national postal system.

• NPPC will continue to pursue its traditional mission of partnership and its operational focus. As to competitive or "non-traditional" new initiatives, individual member companies will take positions and actions appropriate to their business interests.

Mission Statement

2005 Estimated Mail Volume

•20 Billion Pieces

•$6 Billion in Postal Revenues

Circle the Earth 109 times!!!

If you placed all the mail pieces sent out last year by NPPC mailers...end to end…

Earth to Moon & back 6 times!!!

• A forum for addressing the system-wide and specific needs of first class mailers

• Work in a cooperative environment with other members and USPS

• Participate in the organized structure of committees, workgroups and plenary sessions

NPPC Approach to MTAC

• USPS to notify customers of future pending service standard changes

• USPS to publish EXFC scores on the web for public viewing

• Specifications document for a Business Mail Measurement System

NPPC-Supported MTAC Outcomes

Current NPPC MTAC Goals

•Progress in Workgroup 94 toward standardizing reporting for performance measurement

•Meeting the USPS goal of reducing UAA mail by 50%

•Working with other first-class mailers toward surface visibility to track containers through postal system

•Developing through Workgroup 100 -- seamless acceptance for MLOCR environment

• Regular reports from our MTAC Rep at Quarterly Meetings

• Forwarding materials and/or links to members

• Specific reports on topical issues to membership as a whole

Communicating About MTAC

Source: USPS Strategic Transformation Plan

NPPC Members

• Impacts of Substantial Rate Increases

• Predictability – depress volumes− Decreases substantially deepen and accelerate with

alternatives to postal system, such as online bill payment and presentment

• First class rates with and without postal reform− With reform – either bill – 10-year savings for large

individual, business mailers in the $100 of millions− Smaller mailers: proportionately

NPPC Recent Studies

Three Cases for Rate Increases

10.0% 10.0% 10.0%

14.7% 12.7%7.8%

0%

5%

10%

15%

20%

25%

Case 1 Case 2 Case 3

Rat

e In

crea

se

Inflation Dynamic Funding & Mortgage

Case 1: 10% inflation increase plus dynamic funding and 10-year mortgage less current payment

Case 2: 10% inflation increase plus dynamic funding and escrow mortgage less current payment

Case 3: 10% inflation increase plus dynamic funding and 40-year mortgage less current payment

Data - January, 2005

Credit Card Industry

(2,868)

(2,067)

(1,474)

-3,000

-2,000

-1,000

0

Case 1 Case 2 Case 3

Vo

lum

e C

han

ge

(Mil

lio

ns)

National Postal Policy CouncilNational Postal Policy Council