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I am a USPS automation clerk and have been for over a decade. All of us full timers in that section can reasonably be termed experts.
Far from being handled start to finish by a machine, standard mail does indeed involve a great deal of employee input. The "presort" part of "presort standard" is largely meaningless. For example, a very large amount of standard mail enters our facility "presorted" by the first three digits of the ZIP code, and often comes to us bundled into groups of address blocks. The mailers get a discount for doing so, but there's no real point to it; we have to unbundle it anyway to prepare it for our DPS operation.
The DPS operation- standing for "delivery point sequence"- is a two-pass operation at its end, but there are many steps involved before it gets to that final run. First, the mail gets sorted, by the tray, into in-house into groups corresponding to specific geographical areas. From there, it gets sorted on a DBCS machine to various other operations: computerized forwarding system (CFS), postal automated redirect system (PARS), and other methods. Each method has steps specific to the handling of the individual mailpieces.
I should note that "pure" three-digit labeled trays go directly from the dock (manual unloading of trucks), to desleeving (manual removal of the cardboard sleeve over the tray), to the DBCS, to the tray sorter, then to the final DPS operation.
All too often (particularly when local nonprofits are involved), standard mail doesn't have a barcode on the address, so it must be sent through the combined input/output subsystem (CIOSS), the actual address being read by a machine, and a two-bit (black/white) image of the piece being sent to a remote site where the information is coded by employees sitting at computer terminals. The resulting information is then sent back to our plant, where the coded information is translated into the barcode that's supposed to be there. One decision I personally have to routinely make is whether to send the mail to dispatch ("dear occupant" mail), or whether to send it to the ISS (input subsystem) operation on the CIOSS.
Once the mailpiece finally gets into the stream, it is sorted on a delivery barcode sorter (DBCS) into further groups, which then get two-passed through the DPS operation on those same machines. This sorts the mail into the delivery order for specific carriers on specific routes. All this, and please believe me when I say this, is a labor-intensive, time-consuming process involving a large number of steps that have to be executed correctly, in order, by us automation clerks. All too often, mailpieces don't immediately conform to the standards applied by the machinery, and have to be rerouted in-house to a flat sorter machine, or to manual letters (which is all handled by hand by manual clerks).
Virtually all first-class mail follows the exact same procedures, and requires the exact same handling, as presort standard mail. In-house, the only difference is the operation number we put into the machine, and the sortplan we load into the machine when we run the mail. In fact, first class mail gets an extra step- it gets sent through the automated facer/canceler/sorters (AFCS), which read the handwritten addresses, attempt to resolve them, and pass it off to a DBCS running a sortplan that can deal with the "new" barcodes on those mailpieces (this also involves sending an image to a remote site for address resolution, when necessary).
Basically, where I work, the "presort" part of "presort standard" only means, "this mail is only for the 490/491 zip codes". "Presort" doesn't really mean anything other than that, and it's not nearly as convenient for us employees as many seem to think it is. Even with presorted standard mailings, Michigan still gets mail destined for Florida, and this is likely also true in every postal distribution center.
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