Tag: North America

US Postal Service high-speed sorters get smarter and faster

In a move to enhance mail sorting technology to better serve customers, the Postal Service Board of Governors today approved funding to purchase technology to postmark letters faster and sort them smarter. The 550 Advanced Facer Canceller System (AFCS) machines will replace existing sorters operating on 1980’s technology.

Today’s AFCS machine locates a stamp’s phosphorescent ink and uses it to position the letter for postmarking on the upper right corner of the envelope. It then sends the letter to one of seven bins for additional sorting. The new AFCS will be 15 percent faster, apply barcodes, and process broader-sized letters before sorting them to one of 12 destination bins. The additional bins will reduce downstream processing needs for about 20 percent of the mail. The new equipment, which is more energy efficient, will be deployed between May 2010 and July 2011.

During its meeting today, the Board also approved funding to purchase 400 computer systems to replace existing National Directory Support System (NDSS) and the Integrated Data System (IDS). The Postal Service’s 13,000 automated sorting machines process 212 billion letters, large envelopes (flats) and packages annually. Key to these operations is providing information to the machines to enable proper mail sorting and retrieving information from the machines about their operations.

The NDSS contains the nation’s 148 million addresses and downloads ZIP Code directories to more than 13,000 letter, flat and parcel sorting machines weekly. On a daily basis, the NDSS generates and downloads more than 25,000 programs to sort mail in the order of delivery.

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DHL teams up with Cincinnati Reds (U,S)

DHL has entered a new multi-year agreement with the Cincinnati Reds to become the team’s Official Express Delivery and Logistics Provider through the 2010 Major League Baseball(R) season.

Under the agreement, DHL will be the exclusive provider of domestic and international shipping services for the Cincinnati Reds. The deal provides for DHL in-stadium signage in the Reds’ and visitor’s bullpens, the DHL “First Ball Delivery” before 40 home games, DHL’s presenting sponsorship of the Reds’ three-game series versus the New York Mets, July 17-20, 2008, and sponsorship of the annual off-season event, Redsfest. Additional benefits include in-stadium hospitality and a discount ticket program for DHL employees and customers.

DHL’s primary air and ground hub in Wilmington, Ohio, is the country’s largest privately owned airport with a workforce of more than 9,000 DHL employees and contractors.

DHL is entering its fourth season as an official sponsor of Major League Baseball, serving as the Official Express Delivery and Logistics Provider of Major League Baseball and MLB.com. The new agreement with the Cincinnati Reds brings the total number of DHL team alliances for the season to seven, which includes sponsorship agreements with the Boston Red Sox, New York Mets, Atlanta Braves, San Francisco Giants, Los Angeles Dodgers and Cleveland Indians.

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USPS steps up efforts to gain greater share from rivals

The U.S. Postal Service is stepping up efforts to wrest a bigger share of the parcel delivery market from its private sector rivals. And this time around, it’s trying a new tactic. In years past, the federal agency has typically challenged its competitors—FedEx, UPS, and DHL—on the basis of service (for example, by adding tracking and tracing capabilities for express and parcel shipments). Now, it’s attacking on another front: pricing.

Beginning May 12, the USPS will offer volume discounts for its Express Mail, Priority Mail, Parcel Select, and Parcel Return services. Thanks to the Postal Accountability and Enhancement Act of 2006, the independent agency is able to change its pricing structure to reflect what it calls “industry standard” practices.

For instance, Express Mail will for the first time use zone-based pricing, and customers who establish corporate accounts or pay online will receive a 3-percent discount. Commercial shippers who meet quarterly volume commitments could knock as much as 7 percent more off their bills. Parcel Select will offer volume-based pricing incentives to large and medium-sized shippers, and Parcel Return will now be priced by weight, which the USPS says will significantly cut prices for lightweight packages.

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Survey results reveal businesses waiting on USPS before implementing Intelligent Mail Barcode System

A survey of more than 294 executives and IT managers in the high-volume mailing industry shows that 42 percent of respondents are waiting on the announcements regarding further mailing discounts from the United States Postal Service (USPS) before making major purchasing decisions on how to implement the new Intelligent Mail Barcode (IMB) system. The survey was conducted jointly by Pitney Bowes Group 1 Software and Mailing Systems Technology on March 18, 2008 as part of a webinar on the business impact of IMB.

Starting in May 2009, mailers will be required to use the Intelligent Mail Barcode to earn the greatest automation discounts on postage, according to the latest USPS proposal. This barcode will replace the current POSTNET and PLANET barcodes. IMB will have a tremendous impact on business operations depending on whether companies strive to meet the minimum Intelligent Mail requirements, or reach for maximum efficiency improvements by making the most of this mandate to add value to the mailstream.

The results of the survey show that companies are already thinking about migrating to the new Intelligent Mail Barcode, but they require more information and discount incentives to help guide the investments in the technology that will enable them to meet the new postal mandate in 2009.

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First Financial Bank chooses DHL as exclusive air and ground delivery provider

DHL announced today that it has been chosen by First Financial Bank, N.A. as its exclusive delivery services provider. First Financial will now leverage DHL’s U.S. express and ground delivery services for transporting loan, mortgage, and other financial materials to and from its banking centers and clients.

With assets of USD 3.4 billion, First Financial is the second-largest bank headquartered in the Greater Cincinnati area, operating 81 banking centers in Ohio, Kentucky, and Indiana. First Financial chose to consolidate all of its express delivery needs with DHL after a competitive review of the quality, service, and value offered by all major U.S. providers. First Financial was also attracted to DHL due to its strong network in the U.S. and in the region, which includes its primary air and ground hub based in Wilmington, Ohio.

DHL recently conducted customized training for First Financial associates on using the DHL web-based shipping products and began shipping immediately.

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