The Use of Multiline Optical Character Readers for the Postal Service's Zip Plus 4 Program

GAO discussed the Postal Service's (USPS) changeover from its single-line optical character readers (OCR) to multiline readers for its Zip-Plus-4 Program. GAO found that: (1) the extent of savings each technology will produce is directly related to the Zip-Plus-4 usage level; (2) since Zip-Plus-4 use has been far less than USPS anticipated, it has decided that multiline OCR are needed to realize immediate savings; (3) although the performance level of converted multiline OCR is unknown, USPS plans to test the converted machines before purchasing any OCR; and (4) even with the change to a multiline technology, USPS plans to continue to urge businesses to address mail with Zip-Plus-4 codes because the codes will be necessary to further automate all mail processing operations. GAO also found that: (1) USPS has reduced its estimate of how many pieces of Zip-Plus-4 coded mail will be processed through fiscal year 1989; (2) the installation of a multiline technology could depress Zip-Plus-4 growth until USPS secures support from the mailing industry for its current strategy to maximize Zip-Plus-4 use; (3) USPS must work with and gain the cooperation of business mailers to enlarge the volume of machine-readable mail; and (4) mail that is not imprinted with a nine-digit bar code must eventually be processed in a more expensive manual processing system.