Farewell POSTNET Barcode

Saying goodbye can be a good thing. The Postal Service is now phasing out its old POSTNET barcode system, as it prepares to make its new Intelligent Mail barcode (IMb) tracking system standard across its network. The move was formally proposed in the Federal Register, after mailers were informed last month that automation letters and flats will need to be using the basic IMb system from January 2013 to qualify for discounts. From the following year, the requirement will be raised for mailers to be on the IMb “Full Service” system to secure mail discounts. The phase-out of POSTNET covers automation mail including Business Reply Mail letters that qualify for Qualified Business Reply Mail prices and Permit Reply Mail letters, and also applies to some parcels, though not those using the POSTNET code within address blocks, according to USPS. The IMb Full Service option offers mailers access to a greater level of visibility and discounts than the Basic option, but requires barcodes to be unique to each mailpiece.

Source: Post & Parcel

Major Catalogs Support USPS Cutbacks

As reported in earlier issues of Distribution Directions, the USPS said it planned to close or consolidated some 223 area mail processing facilities around the country as part of its efforts to cut $15 billion in operating costs by 2015. Some large catalog mailers applauded the move. "I commend the USPS for taking the dramatic and necessary steps, however painful, to align its cost structure with today's economic realities," says Terri Alpert, CEO of Stony Creek Brands, parent company of the Artisan Table and Uno Alla Volta catalogs. "I hope that this brave action results in a sustainable system that will be serving the needs of the American public for decades to come." Like many other catalogers, Stony Creek has cut back on mailings in recent years, reducing the total circulation of its two books from a high of 13 million annually to 9 million. Phyllis Mosca, president of Ulla Popken , a large size women's apparel catalog, also supports the cuts due to USPS overstaffing. The company mails out fewer than 10 million catalogs per year and is in the mail every month.

Source: Multichannel Merchant

USPS Financial Woes Continue

The Postal Service has issued their January 2012 financial report. Click here to view. Thanks to Jack Widener, American Business Media Postal Counsel representative, for the following summary. January is the fourth month of the USPS fiscal year that began in October. The Postal Service had a net loss of $1.3 billion in January. The $1.3 billion loss brings the total YTD loss to $4.5 billion. If the Retiree Health Benefit Fund prepayment to the federal government and the workman’s compensation adjustment are taken out they had a controllable operating loss of $147 million. The trends of revenue and volume loss continue with prepayments to the Federal government for retiree health benefits accounting for most of the loss. Work hours were down from last year, which they should be, since there are fewer workers. But they were above plan which may indicate it is becoming more difficult to reduce costs in this area with help being needed to reduce the number of employees.

Source: American Business Media

Increase in 2D Barcode Usage

2D barcode usage in print ads increased drastically in 2011. The proportion of print ads featuring a 2D code rose from less than 0.9% in January to more than 6% from September through December, before increasing again to 7% in January 2012. The largest jump occurred between July and August, when the proportion of print ads containing a 2D code rose from 3.6% to 5.3%. Overall, slightly more than 4% of print ads in 2011 included a 2D code. The dominant 2D code type used in print ads in 2011 was the QR code format, utilized in 87.8% of these ads.

Source: MarketingCharts