DPID

Australia Post has developed and will maintain a database of over 8.8 million deliverable addresses in Australia.

This database has been named by Australia Post the Postal Address File (PAF) and each address within it has been assigned a random, unique 8 digit number called a Delivery Point Identifier (DPID).

As part of the Future Post initiative, Australia Post has introduced the Address Matching Approval System (AMAS). This is an accreditation process to ensure customers have access to effective and reliable address matching software. AMAS approved software will match or correct address data against Australia Post's PAF and once an address is matched, a DPID is created.

This DPID information is then converted to a '4-state' barcode. It's name is derived from the fact that the code itself has four types of bars, each with distinct names, values and barcode symbology.

This barcode is to be printed above the address information on every piece of mail, enabling Australia Post to rapidly process and sort each piece down to postal delivery route.

It is available in 3 different lengths and customers can select the barcode structure that they require depending on the amount of customer information that they would like to include within it:

37 bars includes no customer information,
52 bars has 16 bars allocated for customer information,
67 bars has 31 bars allocated for customer information.

What is the definition of a "correct address":
Australia Post defines a correct address as:

"An address which can match with the Postal Address File (PAF) and apply the correct Delivery Point Identifier (DPID)."

Varying levels of complexity
The new Barcoded Mail system has introduced a number of discounts, and it has also introduced varying levels of complexity to the distribution process.

For example, whereas previously hand written or computer generated tags could be appended to mail bundles for lodgement, Australia Post now requires specific barcode information to be printed on tray labels. There are 142 tray label versions available, and these need to be assigned depending on the lodgement size and sort plan.

In addition, from October 4th 1999, Australia Post only accepts mail lodged in trays, so organisations are now unable to bag their own mail.

These changes have made it increasingly difficult to manage bulk mail lodgements in-house, which is an added incentive to outsource the entire production and mailing process to specialist outsourced service providers such as OTG Mastermail, whose core competencies include the management of complex mailings.

Less Postcodes and Sort Divisions
To lessen the incidence of residual mail, which is the most expensive lodgement component, Australia Post has introduced new requirements. Instead of a Direct Tray comprising 300 letters to a single postcode, it is now achieved with 300 barcoded letters to a "sort division".

A sort division represents a range of postcodes serviced by one of the new high speed barcode scanner sorters developed for Australia Post and mail needs to be separated into these divisions, prior to lodgement.

This new National Barcode Presort Plan (NBPP) provided an incentive for organisations to progress to barcoded mail by October 1999, although to their financial detriment not may in effect have. Whereas previously there were 2500 sort divisions made up of individual postcodes, there are now only 54 divisions. This reduction brings a number of advantages to those businesses willing to take the leap forward:

Barcoded mail items are sorted across a significantly reduced number of postcodes, resulting in a higher number of mail items across a lower number of sort divisions, maximising the likelihood of greater postage discounts.

As there are fewer sort divisions, there is quicker, more efficient mail preparation and a reduction in the amount of residual and full rate mail.

One to one targeted direct marketing is also better supported under the new National Barcode Presort Plan.

If you choose not to barcode your mail immediately, it continues to be processed according to the current 2500 sort plan. This plan provides for fewer mail pieces within each sort division and offers less opportunity to decrease postage costs. There is a clear financial advantage for changing to barcoded mail sooner, rather than later.

Fewer Letters Per Lodgement
To be eligible for postage discounts, Australia Post previously required either 1000 letters per postcode or 2500 letters per lodgement within the same size and weight range. From October 4th 1999, only 300

barcoded letters are required in order to be eligible for bulk lodgement discounts. This is a significant benefit, as it provides you with the flexibility to undertake targeted mailings for smaller segments of the marketplace more cost effectively. For non-barcoded mail, the same conditions apply.

For mailings going over 300 letters, a variety of different lodgement options can be applied, which are summarised in the following table. As you move down the table, the levels of discount given by Australia Post is reduced.

The New 75/25 Rule
Australia Post has established "mixed lodgement" guidelines to provide some flexibility in the lodgement of both barcoded and non-barcoded mail together in the one lodgement.

Beginning October 4th 1999, a threshold of up to 25% of your lodgement can be non-barcoded and still receive the lower barcode residual discount.

Australia Post will gradually decrease this threshold until July 2002. From that point in time onwards all of your mail must be barcoded to receive the full postage discount. The schedule for this program is as follows:

DATE	BARCODED REQUIREMENT	NON-BARCODED REQUIREMENT
October 1999	75% Barcoded	25% Non-Barcoded
July 2000	80% Barcoded	20% Non-Barcoded
July 2001	90% Barcoded	10% Non-Barcoded
July 2002	100% Barcoded	Nil Non-Barcoded

As a part of OTG Mastermail's Barcoded Mail service, we can parse your data against the PAF to append the DPID and verify whether your lodgement will meet the current 75/25 criteria.

Depending on the outcome of the reductions to the 75/25 rule, OTG Mastermail will work with you to ensure the best method required, to maximise your prospects of meeting the required 75% threshold, so that you are eligible for the greatest postage discount. For example, if 30% of the mail items within your lodgement were non-barcoded, OTG Mastermail will remove some of these items to reduce the proportion to 25%. This will make possible most of your lodgement meeting the 75/25 criteria, with only 5% having to be processed as non-barcoded residual mail.

	SAME POSTCODE	SAME SORT DIVISION	VARIOUS POSTCODES OR SORT DIVISIONS
Barcode Direct Tray		Mail lodged within Barcode Direct Trays receives the greatest postage discount. To be eligible, Australia Post requires a minimum of 300 barcoded letters. or 4kgs, addressed to the same sort division.
Non-Barcoded Direct Tray	To qualify for the Postcode Direct Tray price, Australia Post requires a minimum of 300 non-barcoded letters, or 4kgs, addressed to the same postcode.
Barcoded Overflow Trays		In the event where where a client has more than 300 barcoded letters addressed to the same sort division, these can be lodged within an overflow tray, charged at the same rate as the Barcode Direct Trays. A maximum of one overflow tray applies for each sort division per lodgement.
Non-Barcoded Overflow Trays	In the event where a client has more than 300 non-barcoded letters addressed to the same postcode, these can be lodged within an overflow tray, charged at the same rate as the Postcode Direct Tray. A maximum of one overflow tray applies for each postcode per lodgement.
Non-Barcoded Letter Direct Bundles	If there are insufficient letters for a Postcode Direct Tray, non-barcoded letters can be sorted into the same postcode and lodged in bundles. Depending on size and weight, quantities permitted in each bundle vary from 10-20 letters.
Barcoded and Non-Barcoded Residue Trays			Barcoded or Non-Barcoded letters which cannot be collated in sufficient numbers for the postcode or barcode sort division, need to be process as residual mail. Residual mail attracts the lowest discount rates from Australia Post. If there are fewer than 2000 residual pieces per lodgement, no sorting is required. However, if there are more than 200 residual pieces they need to be sorted across 8 destinations.