Big changes are coming to postal logistics, and smart mailers are getting ahead of them. Starting July 2025, the USPS will eliminate Destination Network Distribution Center (DNDC) discounts for Marketing Mail, Periodicals, and Bound Printed Matter, while also reducing incentives for other entry methods. What does this mean? The once-reliable DNDC entry strategy is being phased out in favor of more efficient and cost-effective Sectional Center Facility (SCF) entry options.
Understanding the Changes
Historically, mailers have leveraged NDC entry points to benefit from discounted rates, optimizing their logistics by entering mail closer to its final destination. With the upcoming elimination of NDC discounts, this approach will no longer yield the same cost benefits. Simultaneously, the reduction in SCF discounts, while still offering savings, underscores the need for mailers to reassess their entry strategies.
The shift aligns with USPS’s broader “Delivering for America” plan. The changes include:
- A new SCF pallet discount for First-Class Mail, mirroring what Marketing Mail already enjoys
- Elimination of NDC discounts, which pushes logistics decisions further downstream
- Enhanced opportunities through SCF entry for faster delivery and more predictable performance
- Mailers now choosing SCF and DDU entry can better integrate with USPS’s updated network and automation efforts
Why It Matters
This is more than just a rate adjustment, it’s a logistics reset. Mailers relying on DNDC discounts must now retool their operations. The shift away from NDC discounts places increased emphasis on SCF entry as a viable alternative. By focusing on SCF entry, mailers can continue to achieve postal savings and efficient delivery times. However, this transition requires careful planning and adaptation to new logistics frameworks.
The USPS is offering three paths forward:
- Mixed pallets (Origin Entry, no entry discount)
- DSCF entry (newly emphasized with ongoing discount potential)
- DDU entry (destination delivery unit, most localized)
What You Can Do
Prepare now by adjusting your entry strategies. Evaluate your volume, network, and transportation routes. Collaborate with logistics providers and software partners to implement SCF-based planning. This isn’t just about savings, it’s about stability, predictability, and delivering results.
- Evaluate Current Mailing Strategies: Assess how the elimination of NDC discounts impacts your existing logistics and identify areas for adjustment.
- Optimize SCF Entry: Develop plans to maximize the benefits of SCF entry, considering factors such as volume, destination, and timing.
- Collaborate with Logistics Partners: Engage with experienced logistics providers to navigate the transition smoothly and capitalize on new opportunities for efficiency and savings.
How We Can Help: Commingle with Confidence
You don’t have to navigate this shift alone. Our commingling services combine your mail with others to reach the critical volume thresholds that unlock deeper USPS discounts. Whether you’re mailing regionally or nationally, we optimize delivery routes, accelerate delivery times, and reduce postage costs without sacrificing quality or control.
With Midwest Direct, commingling isn’t just cost-effective, it’s seamless. Our advanced tracking, automated sortation, and expert USPS compliance support ensure your mail enters at the most efficient point in the network, like SCFs, so you stay ahead of the changes.
Need Help? Let’s Commingle for Success
Adapting to USPS’s new logistics model doesn’t have to be overwhelming, and you don’t have to go it alone. With our expert commingling services, we consolidate your mail with others to qualify for deeper SCF discounts, faster in-home delivery, and greater efficiency.
Whether you're navigating barcode requirements, facing tight deadlines, or simply want to cut postage costs, we handle the complexity so you don’t have to. Our technology, logistics network, and USPS expertise ensure your mail reaches its destination on time and budget.
Let’s Talk Today!
Have questions about commingling or entry strategies? Want to build a campaign that works smarter? We’re just a call or email away. Let’s partner on a solution that keeps your mail moving and your audience engaged.
