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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