Logical vs. Physical Entry Points (Postal Facilities)

Back in February 2011, we did an e-tip on "Direction and Re-direction of Mail". In that e-tip we discussed the definitions of the various types of postal facilities and talked about drop shipping mail to these facilities. But how exactly is a postal entry point identified, and how do mailers prepare their mail and postal documents for these entry points?

Preparation of Mail

The first step in identifying potential entry points is to examine the sortation, or preparation, of the mail. Essentially this means looking at the containers into which the mail is being sorted. Typically these would be trays, sacks, and pallets. Each of these containers is identified with a tag, which indicates the postal facility to which the mail inside the container is destined. These destinations are determined based on the ZIP code of the mail. The mail is then sorted based on postal preparation regulations in the Domestic Mail Manual (DMM) and is tagged with a destination based on these regulations and the USPS Labeling Lists. The destinations of these containers become the universe of potential entry points to which mailers may chose to transport the mail. These destinations would be considered the "logical" entry points.

Analysis of Mail with Software

Now that the universe of potential "logical" entry points is identified, it is time to analyze the mailing to determine which entry points make the most sense to use. In most cases, this analysis is driven by postage savings; meaning, the entry points with the most potential savings are the ones that will likely be used. However, there are instances where delivery time or consistency takes precedence over the postage savings - or at least need to be taken into consideration.

For the purposes of this e-tip, we will focus on postage savings-based analysis. This type of analysis is best performed by post-presort software, which can quickly calculate the postage at both the origin point and at the additional entry point to determine the gross postage savings. Often times, this analysis includes the costs of transportation and administration costs to get a picture of true net costs. When a savings-based analysis is performed, the software does not actually look at the "logical" entry points as described above, but rather uses what are called "physical" entry points. (The data for these physical entry points is found in the Facility Access and Tracking System (FAST) drop ship data files.) For example, the mailing may include pallets to Sectional Center Facilities (SCF's), but the analysis may determine that it makes more economic sense to instead drop ship these pallets to a Network Distribution Center (NDC).

By performing the entry analysis after the presort is complete, post-presort software can update the Mail.dat files to reflect the selected entry points that will be used. In other cases, particularly when delivery time or consistency is critical, these entry points may be defined during the presort process. In these cases, the entry points will appear in the Mail.dat file when it is imported into post-presort software.

Shipment of Mail

Once the drop ship analysis is complete and the entry points are finalized, it is time to generate the postal documents and present the mailing. In our February e-tip, we told you that, for a variety of reasons, the USPS often re-directs mail from its original intended destination facility to a different postal facility. Post-presort software can help mailers obtain this redirection information in a timely and efficient manner using the FAST redirection files. This helps insure that the 8125 clearance documents are completed with the most up-to-date, accurate data, and that the logistics providers have the most accurate delivery address information for their drivers.

What often causes confusion for mailers is the potential discrepancy between the ZIP code for the logical entry point vs. the ZIP code of the physical entry point. For example, pallets of mail prepared for SCF DV Daniels NJ would have the following data printed on the destination line of the pallet flag: "SCF DV Daniels NJ 070". In this case, the logical entry point ZIP code is 070 (from the SCF Labeling List), however, the ZIP code for the physical SCF facility is 07099 (from the FAST data). Another example is when SCF pallets are drop shipped to NDC facilities. Using the same example as above, but now let's say we've decided to drop ship this pallet to the NDC rather than the SCF. The logical entry point ZIP code for the NDC is 00102, but the ZIP code for physical New Jersey NDC facility is 07097. In both of these cases, the ZIP code on the pallet flag may not match the ZIP code shown for the entry point in the post-presort software, nor on the postal documents, such as the 8125 clearance document.

Additional confusion can be caused by incorrect data in the Mail.dat files. If the entry points are established during the presort process, the entry point information may not always be populated correctly in the Mail.dat files. Again, using the example from above, the Entry Point for Entry Discount field (CSM-1105) in the Mail.dat file should be populated using the Labeling List data (ZIP code 070 in this case), and the Entry Point for Entry Discount Facility Type field (CSM-1106) in the Mail.dat file should be populated with "S" for DSCF. However, the Entry Point-Actual/Delivery-Locale Key field (CSM-1167) and the Entry Point-Actual/Delivery-ZIP code field (CSM-1168) should be populated using the FAST drop ship data. Since the FAST data is updated constantly, this portion of the data is often outdated. Post-presort software is ideal for updating this information at the time of mailing.

Getting Help

If your company needs assistance in performing entry analysis for drop shipping mail, make sure to visit our Postal Concierge Service.

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