November 17, 2006

This morning, I had the wonderful opportunity to record my first podcast with Gene DelPolito, the President of the Association for Postal Commerce. During the podcast, Gene and I talked about CASS™ Cycle L and the aggressive approach to UAA mail. I wrote about this before in some earlier blog entries as well as some published articles. However, I wanted to also use this blog entry to provide an update on what this cycle is about and some recent clarifications.

CASS Cycle L starts on August 1, 2007. However, the date that will probably be more applicable to mailers is May 1, 2007, which is the date that certified software should start arriving at the end users’ locations. The USPS^® requires the certified vendors to ship out our software 90 days before the implementation date, to make sure everyone has time to install, test, and begin using the software before the deadline.

What makes this next CASS cycle particularly contentious is that early May (specifically May 6) is when the Rate Case (R2006-1) is supposed to be implemented. This means that while you are worrying about bundles, containers, and sortation changes, you will also have to worry about losing ZIP + 4^® data for some addresses due to the changes in CASS Cycle L.

CASS Cycle L requires that the address be updated using LACS^Link™ data and that the primary address be confirmed using DPV™ data to verify that the address is truly deliverable by the USPS. Both of these add-on options are available today, but become required in order to retain the ZIP + 4 add-on code and the associated postage discounts that go along with the automation mail rates.

The USPS recently clarified some information about CASS Cycle L:

• DPV and LACS^Link data cannot be shipped outside the United States. However, the return codes and access to the data can be done from outside the US. For example, you could setup a Web page accessible from anywhere in the world that verifies delivery of an address.
• DPV and LACS^Link have a special stop processing function to prevent a nefarious user from reverse engineering the data and thereby constructing a mailing list. Today, this stop processing function only applies to the DPV and LACS^Link technology. With CASS Cycle L, it will apply to the entire address correction process.
• Data fulfillment is required on a bi-monthly basis, with the option of monthly fulfillment. Today, DPV and LACS^Link are on a monthly shipment schedule. The USPS is now saying that DPV and LACS^Link can be shipped bi-monthly (every 60 days) to coincide with the ZIP + 4 data schedule. Of course, if you want the most accurate data you will still want to receive your ZIP + 4, DPV, and LACS^Link data monthly.
• If the primary address cannot be DPV confirmed, the carrier route code can still be returned. This could open the possibility for carrier route discounts for 5-digit mail. However, the eLOT™ code (ascending or descending) is not going to be returned under the current CASS Cycle L rules. So, the true value of the carrier route code is questionable.
• Performance is still a major problem. Some vendors are now saying that it will take 3 to 4 times longer to process DPV and LACS^Link, particularly on mainframe implementations. Fortunately, Business Objects has designed proprietary caching technology and a unique one-pass approach to our solutions to yield a less than 2% performance impact. In fact, with 4 gigabytes or RAM, you may see no performance impact at all.

While CASS Cycle L may certainly represent an aggressive approach to UAA, it is really only the beginning. In the Rate Case (R2006-1), it is being proposed that effective July 2009, a correct and deliverable ZIP + 4 code will be required for all postal automation discounts. This implies that unless you have a ZIP + 4 code for your mail piece, you will have to mail it at a First-Class™ rate.

Fortunately, it’s still 2006, so you have time to correct your addresses now before you potentially lose automation discounts, or that very important customer that perhaps has not been receiving their mail due to address deficiencies. My advice is to consider implementing DPV and LACS^Link right now; don’t wait. Make sure you understand the quality of the addresses in your list now, while you still have time to make the changes.