Overproduction of stamps
 

"OFFICE OF INSPECTOR GENERAL UNITED STATES POSTAL SERVICE

Stamp Manufacturing and Inventory Management Audit Report

July 23, 2012

....

WHAT THE OIG FOUND:
The Postal Service's adoption of the Forever stamp has generally alleviated
concerns regarding over-production and destruction of definitive First-Class
Mail stamps. However, due to the unique nature of commemorative and special
issue stamps, production volumes require closer management scrutiny.
Specifically, we found the Postal Service overproduced 2 billion
commemorative and special issue stamps during calendar years 2009 and 2010,
resulting in $2 million of unnecessary manufacturing costs annually for
stamps that were later destroyed. This occurred because the Postal Service
did not develop and document an objective forecasting methodology and review
process to determine stamp stock demand. In addition, reduced visibility in
retail units hinders accurate forecasting and inventory management."

www.uspsoig.gov/foia_files/MS-AR-12-006.pdf

--
Victor Manta, PWO, AIJP

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Overproduction of stamps
 

This waste of stamps should be reduced in 2011 and future years as USPS
now releases virtually all first class one-ounce stamps in "Forever"
format. Customers don't want to buy 44-cent stamps and then add a penny
stamp to make up the latest first-class rate.

Bill

On 8/17/2012 7:19 AM, Victor Manta wrote:
"OFFICE OF INSPECTOR GENERAL UNITED STATES POSTAL SERVICE

Stamp Manufacturing and Inventory Management Audit Report

July 23, 2012

...

WHAT THE OIG FOUND:
The Postal Service's adoption of the Forever stamp has generally
alleviated concerns regarding over-production and destruction of
definitive First-Class Mail stamps. However, due to the unique nature of
commemorative and special issue stamps, production volumes require
closer management scrutiny. Specifically, we found the Postal Service
overproduced 2 billion commemorative and special issue stamps during
calendar years 2009 and 2010, resulting in $2 million of unnecessary
manufacturing costs annually for stamps that were later destroyed. This
occurred because the Postal Service did not develop and document an
objective forecasting methodology and review process to determine stamp
stock demand. In addition, reduced visibility in retail units hinders
accurate forecasting and inventory management."

www.uspsoig.gov/foia_files/MS-AR-12-006.pdf

Overproduction of stamps
 

On 8/17/2012 7:19 AM, Victor Manta wrote:
"OFFICE OF INSPECTOR GENERAL UNITED STATES POSTAL SERVICE

Stamp Manufacturing and Inventory Management Audit Report

July 23, 2012

...

WHAT THE OIG FOUND:
The Postal Service's adoption of the Forever stamp has generally
alleviated concerns regarding over-production and destruction of
definitive First-Class Mail stamps. However, due to the unique nature of
commemorative and special issue stamps, production volumes require
closer management scrutiny. Specifically, we found the Postal Service
overproduced 2 billion commemorative and special issue stamps during
calendar years 2009 and 2010, resulting in $2 million of unnecessary
manufacturing costs annually for stamps that were later destroyed. This
occurred because the Postal Service did not develop and document an
objective forecasting methodology and review process to determine stamp
stock demand. In addition, reduced visibility in retail units hinders
accurate forecasting and inventory management."

www.uspsoig.gov/foia_files/MS-AR-12-006.pdf


"Billns" wrote in message
...
This waste of stamps should be reduced in 2011 and future years as USPS
now releases virtually all first class one-ounce stamps in "Forever"
format. Customers don't want to buy 44-cent stamps and then add a penny
stamp to make up the latest first-class rate.

Even the miraculously looking "forever" solution doesn't solve the problem
of overproduction that is due to the causes identified by OIG: "... because
the Postal Service did not develop and document an objective forecasting
methodology and review process to determine stamp stock demand. In addition,
reduced visibility in retail units hinders accurate forecasting and
inventory management."

This should be the reason why the OIG recommends in the same Report:

"We recommend the vice president, Government Relations and Public Policy, in
coordination with the vice president, Supply Management:
1. Improve controls over stamp manufacturing, including documentation of
procedures to determine stamp stock requirements, and enhance the review and
approval process for stamp volume forecasting.
2. Produce commemorative and special issue stamps _in_limited_runs_
(emphasis added by VM) as part of a strategy to increase percentage sales of
each stamp issued.
3. Develop and implement a strategy that captures peak sales and unique
promotional opportunities of similar commemorative and special issue stamps
to increase the percentage of each new issue sold."

I think that the collectors who are aware of the problems brought by the
current overproduction of commemorative stamps can only agree with OIG's
reasonable proposals.

--
Victor Manta, PWO, AIJP

----------------------------------------------------------------------------
Philatelic Webmasters Organization: http://pwmo.org/
Art on Stamps: http://artonstamps.org/
Romania by Stamps: http://marci-postale.com/
Communism on Stamps: http://reds-on.postalstamps.biz/
Spanish North Africa: http://www.sna-on.postalstamps.biz/
----------------------------------------------------------------------------

Overproduction of stamps
 

This waste of stamps should be reduced in 2011 and future years as USPS
now releases virtually all first class one-ounce stamps in "Forever"
format. Customers don't want to buy 44-cent stamps and then add a penny
stamp to make up the latest first-class rate.

PAS #8 readying for take off SIR!

Much better idea would be just, say, 8 cmmemmoratives, plus 3 or 4
'end of year' holiday issues. Save a big hassle for the smaller post
offices. The 'cave mentality' keeps pushing the new issues and there's
not enough sales for them to handle it!

Overproduction of stamps
 

On Saturday, 18 August 2012 11:06:49 UTC-4, Sir F. A. Rien wrote:
This waste of stamps should be reduced in 2011 and future years as USPS

now releases virtually all first class one-ounce stamps in "Forever"

format. Customers don't want to buy 44-cent stamps and then add a penny

stamp to make up the latest first-class rate.



PAS #8 readying for take off SIR!



Much better idea would be just, say, 8 cmmemmoratives, plus 3 or 4

'end of year' holiday issues. Save a big hassle for the smaller post

offices. The 'cave mentality' keeps pushing the new issues and there's

not enough sales for them to handle it!

Interestingly, when I went to get Christmas stamps for my cards this year (last 2 weeks of Nov), my local Canada PO (in a pharmacy) was all sold out - but they had lots of the various defins.

I like the lady who works there . (One of a very few people who knows what an IRC is. She used to work for the REAL post office and is fully aware of collectors and their needs. She always tries to stock as much philatelic stock as possible. As for the part time teenagers who work the counter at night, I even worry about their ability to read and write - never mind give me a rate for a parcel to Tannu Tuva. LOL

Overproduction of stamps
 

On Thu, 13 Dec 2012 06:26:58 -0800 (PST), "Blair (TC)"
sharpened a crayon and wrote:

Interestingly, when I went to get Christmas stamps for my cards this year (last 2 weeks of Nov),
my local Canada PO (in a pharmacy) was all sold out - but they had lots of the various defins.

Small PO's have to order weeks in advance. If they don't sell, then
they're docked 'points' for returns. Hence they guess -=low=-. So:
Plan ahead - buy earlier than 'last minute'!