DDU vs SCF vs NDC: what actually changes for your mail delivery

USPS eliminated destination NDC pricing for USPS Marketing Mail in July 2025. That means NDC is no longer a destination-entry discount tier mailers can place between origin entry and deeper SCF or DDU entry.

SCF and DDU entry options remain, but eligibility depends on the mail class, format, preparation, destination, and current USPS rules. The closer mail enters to its final destination, the fewer transportation and processing steps USPS may need to perform, but deeper entry also places more logistical responsibility on the mailer.

Here is what NDC, SCF, and DDU mean today and how each can affect postage, logistics, and delivery planning.

What DDU, SCF, and NDC mean in the USPS network

These terms describe different types of facilities within the USPS network. They also appear in discussions about where a mailer can enter prepared mail.

However, not every facility still represents a current destination-entry price, and not every mailpiece qualifies for every entry option.

Network Distribution Centers

Network Distribution Centers, or NDCs, are large USPS facilities historically used to process and distribute bulk mail across broad regions.

USPS previously offered destination NDC, or DNDC, prices for eligible USPS Marketing Mail. Those prices were eliminated in July 2025. Current USPS Marketing Mail standards list destination SCF and DDU entry options but no longer include DNDC as a destination-price tier.

NDCs and Regional Processing and Distribution Centers may still serve processing, verification, or other network functions. The removal of DNDC pricing does not mean every NDC facility immediately disappeared.

Sectional Center Facilities

A Sectional Center Facility, or SCF, processes mail for a group of ZIP Codes. Destination SCF entry places eligible mail closer to its delivery area, allowing it to bypass some upstream transportation and processing.

Current USPS rules also reference newer facility types as the network changes. Depending on the mailpiece, destination SCF entry may involve:

• A Destination Sectional Center Facility
• A Local Processing Center for letters or flats
• A Regional Processing and Distribution Center for parcels
• Another USPS-designated facility

Mail must meet preparation, destination, scheduling, verification, and volume requirements to qualify for the applicable destination SCF price.

Destination Delivery Units

A Destination Delivery Unit, or DDU, is a local postal facility that prepares mail for final delivery. Some mail may now be entered at a Sorting and Delivery Center, or S&DC, that performs a similar downstream function.

DDU entry places mail close to the recipients, but the DDU discount is not available for every mailpiece.

Under current USPS Marketing Mail entry standards, letter-size pieces are not eligible for a DDU discount. Eligible Enhanced Carrier Route flats and qualifying parcels may receive DDU pricing when they meet the preparation and entry requirements.

This distinction matters because “enter mail at a DDU” and “receive a DDU discount” do not always mean the same thing.

What changes between NDC, SCF, and DDU entry

The differences involve facility location, eligibility, mailer transportation, USPS processing, and available destination prices.

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The deepest available entry point is not automatically the most cost-efficient. Transportation, appointment scheduling, preparation, volume, and facility eligibility all affect the final decision.

How postage costs change with destination entry

Destination-entry prices reward eligible mailers for transporting prepared mail closer to the recipients. USPS performs fewer upstream transportation and processing steps, and the mailer may receive a lower postage price in return.

The relevant comparison for USPS Marketing Mail is now generally between no destination-entry price, DSCF pricing, and eligible DDU pricing.

No destination-entry price

Mail entered without a qualifying destination price leaves more transportation and processing to USPS. The mailer avoids coordinating separate destination drops but does not receive a destination-entry discount.

This may still be the most practical option for low-volume, geographically dispersed, or operationally complex campaigns.

DSCF entry

Destination SCF pricing may apply when eligible mail is deposited at the appropriate SCF, LPC, RPDC, or other USPS-designated facility and meets the applicable preparation requirements.

DSCF entry can balance postage savings with manageable logistics. Instead of coordinating drops across many local delivery facilities, a mailer can direct eligible mail to a smaller number of regional destinations.

DDU entry

Eligible DDU mail enters at the facility serving the final delivery area. Because the mailer or its logistics partner handles transportation to that facility, qualifying pieces may receive a deeper destination discount.

However, the discount must be evaluated against:

• Freight costs
• Number of required destinations
• Appointment scheduling
• Driver and unloading requirements
• Mail preparation
• Minimum-volume requirements
• Internal or vendor coordination
• Risk of missed appointments or redirected loads

DDU pricing may be attractive for concentrated, eligible volume. It may be less practical for a national campaign distributed across many delivery units.

The best option is the one that produces the lowest total landed cost, not simply the lowest postage line item.

How entry points affect delivery timing

Deeper destination entry can reduce the number of USPS transportation and processing steps remaining after the mail is accepted.

SCF entry may provide more predictable regional processing because the mail has already reached the destination service area. DDU entry places eligible mail even closer to final delivery.

However, no entry point automatically guarantees a delivery date. Timing still depends on:

• Mail class
• Format
• Preparation
• Production schedule
• Transportation to the entry facility
• Appointment availability
• Acceptance time
• USPS operating conditions
• Destination
• Seasonal mail volume

Avoid relying on universal delivery windows such as “one to two days” for DDU or “five to seven days” for NDC. Those estimates may not reflect the campaign, facility, or current network conditions.

For a time-sensitive campaign, work backward from the desired in-home window and account for production, transportation, acceptance, and USPS processing. The entry point is one part of that plan.

Why USPS eliminated NDC entry discounts

USPS removed DNDC destination-entry pricing as part of broader changes to its processing and transportation network.

The change became effective in July 2025. Since then, mailers that previously relied on DNDC pricing have needed to evaluate other options, including:

• Entering without a destination discount
• Using DSCF entry for eligible mail
• Using DDU entry when the mailpiece qualifies
• Working with a logistics partner that can consolidate volume
• Producing mail closer to recipients
• Using presort and entry-point optimization

The change did not create a simple choice between SCF and DDU for every campaign. Eligibility varies by format and preparation, and some mailpieces cannot receive a DDU discount.

How to choose the right USPS entry point

The right entry strategy depends on your recipients, format, mail class, volume, campaign timing, and logistical capabilities.

Consider where recipients live

Concentrated geography can make deeper destination entry easier to manage. If much of the eligible mail is addressed to a small number of service areas, the transportation savings may justify SCF or DDU drops.

A dispersed national audience can require many destinations. In that situation, DSCF entry or automated network routing may offer a more practical balance than coordinating individual DDU drops.

Confirm format and mail-class eligibility

Do not assume every letter, postcard, flat, or parcel qualifies for the same destination prices.

For USPS Marketing Mail:

• Eligible letters may qualify for DSCF pricing.
• Letter-size mailpieces are not eligible for a DDU discount.
• Eligible Enhanced Carrier Route flats may qualify for DDU pricing.
• Qualifying parcels may receive DDU pricing when they meet the preparation requirements.

First-Class Mail uses a different commercial pricing structure. It should not be evaluated using the same DNDC, DSCF, and DDU comparison applied to USPS Marketing Mail. Certain First-Class flats may qualify for an SCF pallet discount, but there is not a universal DDU price for First-Class letters.

Check the current Domestic Mail Manual and USPS price list for the specific mail class and format.

Evaluate volume and frequency

Destination-entry mailings must meet USPS volume and preparation requirements. Transportation costs also become easier to distribute across larger, recurring mailings.

Low or sporadic volume may not support the same entry strategy as a large national program. Consolidation or commingling can sometimes help smaller mailers access destination-entry opportunities through a logistics provider.

Define the required in-home window

Tight campaign timing may make deeper entry valuable, but the closest facility is not always the most practical option.

Compare the desired arrival window with production time, freight scheduling, entry appointments, and USPS processing. Use the entry strategy that supports the campaign without creating excessive transportation cost or operational risk.

How to improve entry-point economics

Entry strategy works best when address data, volume planning, campaign timing, and logistics are coordinated.

Clean address data before production

Incorrect or incomplete addresses create waste regardless of entry point.

Use address verification and other list-hygiene processes to:

• Standardize addresses
• Identify missing secondary information
• Remove duplicate records
• Apply change-of-address processing
• Review potential deliverability issues
• Maintain suppression rules

Address verification does not confirm recipient identity, prove current occupancy, or guarantee delivery. It can help identify preventable problems before printing and postage costs are incurred.

Plan volume around the entry strategy

Combining eligible volume may make a destination drop more practical. Review campaign calendars and production schedules to identify opportunities to consolidate mail without compromising timing or relevance.

Do not combine campaigns solely to reach a volume threshold if doing so creates late or poorly timed mail.

Match entry depth to the campaign

Not every campaign needs the deepest available entry point.

A broad awareness campaign with a flexible delivery window may not justify complex DDU logistics. A time-sensitive, geographically concentrated campaign may benefit more from deeper entry.

Use total cost and delivery requirements to make the decision.

Use current facility data

USPS facility roles and labeling lists change as the network evolves. A location that accepted a particular type of entry previously may not play the same role today.

Use current USPS labeling lists, the Drop Shipment Product, and the Facility Access and Shipment Tracking system when planning destination entries. USPS may also redirect mail because of facility restrictions, network changes, emergencies, or seasonal conditions.

How automation and distributed production change the economics

Distributed production places print capacity closer to recipient populations. This can reduce the distance between production and the appropriate USPS entry point.

Automation can then evaluate:

• Recipient geography
• Mail format
• Mail class
• Production capacity
• USPS entry eligibility
• Presort opportunities
• Delivery requirements
• Transportation costs

Lob’s Postal IQ uses campaign and destination information to determine an efficient USPS entry path before production begins. Its entry planning and presort capabilities help teams access available discounts and reduce manual postal coordination.

The nationwide Print Delivery Network supports distributed production, allowing mail to be printed closer to its destination when appropriate.

This approach can reduce the need for teams to coordinate separate printers, transportation providers, and USPS entry appointments for each campaign.

Turn entry-point strategy into a delivery advantage with Lob

NDC is no longer a destination-pricing tier for USPS Marketing Mail. DSCF and eligible DDU entry remain available, but the right choice depends on the mailpiece and the total cost of reaching the appropriate facility.

Lob combines distributed production, Postal IQ routing, presort preparation, postal logistics, and delivery visibility in one workflow. Book a demo to see how Lob can help optimize production and USPS entry across your direct mail program.