Product Update – Returns eVS User Group November 10, 2011 Dan Barrett Manager, New Business & Returns Background The traditional MRS label features several key elements that can result in slow, expensive processes. Traditional MRS Label For use in manual weighing/rating function Local permit opened where manual rating takes place No barcode! Addressed to a post office, not a customer address Background Customers have pointed to service delays, absence of tracking, and a need for Flat Rate pricing as past obstacles. “What I do not want to have happen is have the pieces weighed and rated up at a processing facility NDC… Time in transit really suffered for us…A Flat Rate would be music to my ears.” -- Customer “There was no barcode on the piece – that’s the number one reason we switched…we started getting calls at the call center and every one has a cost of $8 - $9.” --Customer Returns Game Plan 1. Maximize labels with IMpb 2. Improve scan performance 3. Simplify payment - scans and flat rates 4. Rebrand portfolio 5. Future – better align cost and value New Solutions for Returns 1. Create flexible label printing tools In September, we launched a new Cloud-hosted tool for label printing and distribution to round out our capabilities. Cloud Label Printing Tool • Consumer able to print label via merchant website • Merchant call center agent able to email label to consumer • Every label features IMpb used for tracking and payment • Requires minimal technology investment of the merchant • Quick install, easy start-up New Solutions for Returns 2. Market enhanced tracking Communicate improved tracking to customers - 100% scan rates, with focus on Acceptance scans for Returns. Enhanced Visibility • New technology to help customer apply barcodes • Visibility organization deploying new scan equip. • Megan Brennan sponsored contest to drive execution 100.00% 90.00% 75.92% 80.00% 76.84% 72.43% 58.25% 53.60% 70.00% 60.00% 42.74% 50.00% 40.00% 30.00% 76.00% 37.58% 38.50% 38.19% 40.59% 43.10% 42.61% 49.42% 51.78% 47.24% 44.90% 44.22% 55.95% 20.00% 10.00% 0.00% 423 to 429 430 to 556 7t o5 -1 53 14 to 5 -2 50 21 to 527 528 to 663 4t o6 -1 60 11 to 6617 18 to 624 625 to 71 72t o7 -8 79t o7 -1 75 16 to 7 7-2 23 2 -t o7 -29 730 to 85 • Tracking included in the price of product – no charge Package with an accept or pick up scan 2011 PRS Walgreens New Solutions for Returns 3. Streamline payment September marked the launch of a new, scan-based payment process with Flat Rates that minimize manual rating. Scan-Based Payment • Every label features IMpb with merchant MID • Scans in USPS network represent piece count based on unique PIC • Flat Rates afforded to the customer, validated via sampling • Eliminates delays in time-in-transit due to manual rating • Reduces error in charges to customer New Solutions for Returns 4. Rebrand the Portfolio In September, the Postal Service will Rebrand its Return products to better market to customers. Existing New Branded Solutions Priority Mail Return Service Ground Return Service First Class Package Return Svc. MRS Premier 2 – 3 Days Basic 1 lb.+ 3 – 7 Day Economy < 1 lb. 2 – 4 Day Current Service Varies by Product No Network or Service Changes • Still sold across USPS channels – retail, online, permit • However, establishes identity separate and distinct from MRS • Helps support USPS positioning as Returns provider of choice Work in Progress 5. Future State Capabilities Redirection/Disposal – capability to trap and dispose of low value goods near origin to avoid costs. Consumer Origin P.O. Origin SCF Partner • Avoids cost of 3 – 5 potential moves through USPS network • Model already exists with Parcel Return Service today • Combines PRS with disposal capabilities at reduced cost
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