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

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