Distribution: Item 457100, $3.70 Nature of America, Pacific Coral Reef Souvenir Sheet of 10Stamp distribution offices (SDOs) will receive approximately two-thirds of their standard automatic distribution quantities for a PSA sheet stamp. Distributions are rounded up to the nearest master carton size (2,000 souvenir sheets/20,000 stamps). Initial Supply to Post OfficesSDOs will make a subsequent automatic distribution to Post Offices for one-half of their standard automatic distribution quantities using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute this souvenir sheet to Post Offices before December 26, 2003. Philatelic RequirementSDOs will not receive a separate quantity of this souvenir sheet for their authorized philatelic centers. Philatelic centers must be supplied their quantities from the initial automatic distribution made to SDOs. Additional SupplyPost Offices requiring additional souvenir sheet must requisition Item 457100 from their designated SDO using PS Form 17. SDOs requiring additional souvenir sheets must order them from the appropriate accountable paper depository (APD) using PS Form 17. For fulfilling supplemental orders from SDOs, the San Francisco APD will receive 216,000 additional souvenir sheets; the Memphis, Chicago, and New York APDs will each receive 144,000 additional souvenir sheets; and the Denver APD will receive 72,000 additional souvenir sheets. Sales PolicyAll Post Offices must acquire and maintain a supply of each new commemorative stamp as long as customer demand exists, until inventory is depleted, or until the stamp is officially withdrawn from sale. If supplies run low, Post Offices must reorder additional quantities using their normal ordering procedures. The Pacific Coral Reef souvenir sheet may not be split and the stamps may not be sold individually. - Stamp Services,
CORRECTION U.S. Flag Definitive Stamp AnnouncementThe article "Stamp Announcement 03-29: U.S. Flag Definitive Stamp" in Postal Bulletin 22115 (11-13-03, pages 92-93) was incorrectly numbered out of sequence. The article is actually Stamp Announcement 03-32. - Stamp Services, STAMP ANNOUNCEMENT 03-34 Lunar New Year - Monkey Commemorative Stamp
The Postal ServiceTM will issue a 37-cent Lunar New Year - Monkey commemorative stamp (Item 455300) in a pressure-sensitive adhesive (PSA) pane of 20 on January 13, 2004, in San Francisco, California. The stamp, designed by Clarence Lee, Honolulu, Hawaii, goes on sale nationwide January 14, 2004. The Year of the Monkey is the twelfth stamp in the award-winning Lunar New Year series. The series began in 1992 with the issuance of the Year of the Rooster stamp, followed by stamps for Year of the Dog, Boar, Rat, Ox, Tiger, Hare, Dragon, Snake, Horse, and Ram. The monkey is the ninth of the twelve animals associated with the Chinese lunar calendar. The Year of the Monkey begins on January 22, 2004, and ends on February 8, 2005. Known for their excellent sense of humor, people born during the Year of the Monkey are said to be mischievous and sociable. With their keen intellect they can easily adapt to new situations. How to Order the First Day of Issue PostmarkCustomers have 30 days to obtain the first day of issue postmark by mail. They may purchase new stamps at their local Post OfficeTM, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. They should affix the stamps to envelopes of their choice, address the envelopes (to themselves or others), and place them in a larger envelope addressed to: LUNAR NEW YEAR MONKEY COMMEMORATIVE STAMP
After applying the first day of issue postmark, the Postal Service will return the envelopes through the mail. There is no charge for the postmark. All orders must be postmarked by February 12, 2004. How to Order First Day CoversStamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by telephoning 800-STAMP-24 or writing to: INFORMATION FULFILLMENT First day covers remain on sale for at least 1 year after the stamp's issuance. Philatelic ProductsThere are no philatelic products for this stamp issue. Distribution: Item 455300, 37-Cent Lunar New Year - Monkey Commemorative StampStamp distribution offices (SDOs) will receive one-half of their standard automatic distribution quantities for a pressure-sensitive adhesive (PSA) sheet stamp. Distributions are rounded up to the nearest master carton size (40,000 stamps). Initial Supply to Post OfficesSDOs will make a subsequent automatic distribution to Post Offices for one-half of their standard automatic distribution quantities using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute these stamps to Post Offices before January 8, 2004. Philatelic RequirementSDOs with authorized philatelic centers will receive an automatic distribution of these stamps in six positions for subsequent distribution to each philatelic window.
Additional SupplyPost Offices requiring additional stamps must requisition them from their designated SDO using PS Form 17. SDOs requiring additional stamps must order them from the appropriate accountable paper depository (APD) using PS Form 17. For fulfilling supplemental orders from SDOs, the San Francisco APD will receive 8,000,000 additional stamps; the New York APD will receive 4,000,000 additional stamps; the Memphis and Chicago APDs will each receive 2,000,000 additional stamps; and the Denver APD will receive 1,000,000 additional stamps. Sales PolicyAll Post Offices must acquire and maintain a supply of each new commemorative stamp as long as customer demand exists, until inventory is depleted, or until the stamp is officially withdrawn from sale. If supplies run low, Post Offices must reorder additional quantities using their normal ordering procedures. - Stamp Services, STAMP ANNOUNCEMENT 03-35 Love - Candy Hearts Special Stamp
The Postal ServiceTM will issue a 37-cent Love - Candy Hearts special stamp (Item 672800) in a pressure-sensitive adhesive (PSA) pane of 20 on January 14, 2004, in Revere, Massachusetts. The stamp features candy hearts, one pink and one yellow, with words and a heart symbol printed on them to spell out "I love you." These little tokens of affection, bearing short-and-to-the- point messages, have been a Valentine's Day tradition for more than a century. The stamp designed by Michael Osborne, San Francisco, California, goes on sale nationwide January 15, 2004. How to Order the First Day of Issue PostmarkCustomers have 30 days to obtain the first day of issue postmark by mail. They may purchase new stamps at their local Post OfficeTM, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. They should affix the stamps to envelopes of their choice, address the envelopes (to themselves or others), and place them in a larger envelope addressed to: LOVE CANDY HEARTS SPECIAL STAMP
After applying the first day of issue postmark, the Postal Service will return the envelopes through the mail. There is no charge for the postmark. All orders must be postmarked by February 13, 2004. How to Order First Day CoversStamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by telephoning 800-STAMP-24 or writing to: INFORMATION FULFILLMENT First day covers remain on sale for at least 1 year after the stamp's issuance. Philatelic ProductsThere is one philatelic product available for the Love - Candy Hearts, the Cancellation Keepsake. This philatelic product *(Item 672893) is priced at $8.15 and will be available while supplies last at Postal Stores, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. Distribution: Item 672800, $7.40 Love - Candy Hearts PSA Convertible Booklet of 20Stamp distribution offices (SDOs) will receive approximately one-half the standard automatic distribution quantity for a PSA booklet. Distributions are rounded up to the nearest master carton size (4,000 booklets). Initial Supply to Post OfficesSDOs will make a subsequent automatic distribution to Post Offices for one-half of their standard automatic booklet distribution quantity using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute these booklets to Post Offices before January 7, 2004. Philatelic RequirementSDOs will not receive a separate quantity of this special booklet for their authorized philatelic centers. Philatelic centers must be supplied their quantities from the initial automatic distribution made to SDOs. Additional SupplyPost Offices requiring additional stamps must requisition them from their designated SDO using PS Form 17. SDOs requiring additional booklets must order them from the appropriate accountable paper depository (APD) using PS Form 17. For fulfilling supplemental orders from SDOs, the Chicago, Memphis, and New York APDs will each receive 600,000 additional booklets; the San Francisco APD will receive 500,000 additional booklets; and the Denver APD will receive 256,000 additional booklets. Sales PolicyAll Post Offices must acquire and maintain a supply of each new special issue as long as customer demand exists, until inventory is depleted, or until the issue is officially withdrawn from sale. If supplies run low, Post Offices must reorder additional quantities using their normal ordering procedures. - Stamp Services, STAMP ANNOUNCEMENT 03-36 Paul Robeson Commemorative Stamp
The Postal ServiceTM will issue a 37-cent Paul Robeson commemorative stamp (Item 455400) in a pressure-sensitive adhesive (PSA) pane of 20 on January 20, 2004, in Princeton, New Jersey. The stamp, designed by Richard Sheaff, Scottsdale, Arizona, goes on sale nationwide January 21, 2004. The 27th stamp in the Black Heritage series commemorates Paul Leroy Robeson, who achieved worldwide renown as an actor, singer, athlete, and activist. Robeson is remembered not only for his prodigious talents as a performer, but also for his tireless and uncompromising commitment to civil rights and social justice.
The stamp art is a detail of a circa 1943 photograph of Robeson. Although the photographer is unknown, an inscription by Robeson in the lower left corner of the print used by the Postal Service suggests that Montreal-based photographers Annette and Basil Zarov made the original photograph. How to Order the First Day of Issue PostmarkThis information is not available at the time of this printing. How to Order First Day CoversStamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by telephoning 800-STAMP-24 or writing to: INFORMATION FULFILLMENT First day covers remain on sale for at least 1 year after the stamp's issuance. Philatelic ProductsThere is one philatelic product available for the Paul Robeson stamp, the Cancellation Keepsake. This philatelic product (Item 455493) is priced at $8.15 and will be available while supplies last at Postal Stores, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. Distribution: Item 455400, 37-cent Black Heritage, Paul Robeson Commemorative StampStamp distribution offices (SDOs) will receive their full standard automatic distribution quantities for a PSA sheet stamp. Distributions are rounded up to the nearest master carton size (40,000 stamps). Initial Supply to Post OfficesSDOs will make a subsequent automatic distribution to Post Offices of a full standard automatic distribution quantity using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute stamps to Post Offices before January 15, 2004. Philatelic RequirementSDOs with authorized philatelic centers will receive an automatic distribution of these stamps in six positions for subsequent distribution to each philatelic window.
Additional SupplyPost Offices requiring additional stamps must requisition them from their designated SDO using PS Form 17. SDOs requiring additional stamps must order them from the appropriate accountable paper depository (APD) using PS Form 17. For fulfilling supplemental orders from SDOs, the Chicago, Memphis, and New York APDs will each receive 8,000,000 additional stamps; the San Francisco APD will receive 4,800,000 additional stamps; and the Denver APD will receive 1,600,000 additional stamps. For fulfilling supplemental orders from APDs, the Kansas City Stamp Services Center will receive 17,600,000 additional stamps. Sales PolicyAll Post Offices must acquire and maintain a supply of each new commemorative stamp as long as customer demand exists, until inventory is depleted, or until the stamp is officially withdrawn from sale. If supplies run low, Post Offices must reorder additional quantities using their normal ordering procedures. - Stamp Services, Pictorial Cancellations AnnouncementAs a community service, the Postal ServiceTM offers pictorial cancellations to commemorate local events celebrated in communities throughout the nation. A list of events for which pictorial cancellations are authorized appears below. If available, the sponsor of the pictorial cancellation appears in italics under the date. Also provided, as space permits, are illustrations of those cancellations that were reproducible and available at press time. People attending these local events may obtain the cancellation in person at the temporary Post OfficeTM station established there. Those who cannot attend the event, but who wish to obtain the cancellation, may submit a mail order request. Pictorial cancellations are available only for the dates indicated, and requests must be postmarked no later than 30 days following the requested pictorial cancellation date. All requests must include a stamped envelope or postcard bearing at least the minimum First-Class Mail® postage. Items submitted for cancellation may not include postage issued after the date of the requested cancellation. Such items will be returned unserviced. Customers wishing to obtain a cancellation should affix stamps to any envelope or postcard of their choice, address the envelope or postcard to themselves or others,insert a card of postcard thickness in envelopes for sturdiness, and tuck in the flap. Place the envelope or postcard in a larger envelope and address it to: PICTORIAL CANCELLATIONS, followed by the NAME OF THE STATION,ADDRESS, CITY, STATE, ZIP+4® CODE, exactly as listed below (using all capitals and no punctuation, except the hyphen in the ZIP+4 code). Customers can also send stamped envelopes and postcards without addresses for cancellation, as long as they supply a larger envelope with adequate postage and their return address. After applying the pictorial cancellation, the Postal Service returns the items (with or without addresses) under addressed protective cover.
The following cancellations have been extended for 30 days.
December, 10 2003 Postal Service PARKER COUNTY CUTTING HORSE CAPITAL OF THE WORLD STATION POSTMASTER 104 WEST AVE POOLVILLE TX 76487-9998 Postal Service PARKER COUNTY CUTTING HORSE CAPITAL OF THE WORLD STATION POSTMASTER 191 MAIN ST WHITT TX 76490-9998
The following cancellations have been extended for 30 days.
November 6, 2003 Periodico La Semana LA SEMANA EL PIONERO DE LOS REGIONALES EN PR STATION POSTMASTER PICTORIAL CANCELLATION COORDINATOR 585 AVE FD ROOSEVELT STE 223 SAN JUAN PR 00936-9996 November 11, 2003 Oficina del Procurador del Veterano THE PURPLE HEART STATION POSTMASTER PICTORIAL CANCELLATIONS COORDINATOR CARIBBEAN DISTRICT 585 AVE FD ROOSEVELT STE 223 SAN JUAN PR 00936-9996 November 17, 2003 Postal Service STOP FAMILY VIOLENCE COLUMBUS STATION CANCELLATION REQUEST RETAIL 850 TWIN RIVERS DR COLUMBUS OH 43216-9653
The following cancellation has been extended for 60 days.
October 11, 2003 Mauna COOP 40 ANOS MAUNA COOP DE PUERTO RICO STATION POSTMASTER PICTORIAL CANCELLATION COORDINATOR 585 AVE FD ROOSEVELT STE 223 SAN JUAN PR 00936-9996
- Stamp Services,
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Post Office Changes |
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Old/ New |
Finance No. | ZIP Code | State | P.O. Name |
County/ Parish |
Station/Branch/Unit | Unit Type | Effective Date | Comments |
| Old | 40-0144 | 97322 | OR | Albany | Linn | Albany Detached Carrier Unit | Detached Carrier Unit | 07/01/2003 | Closing Albany Detached Carrier Unit. Carriers are being moved back to the main office. |
| New | 40-0144 | 97322 | OR | Albany | Linn | Main Office | Post Office | blank | |
| Old | 40-1872 | 97333 | OR | Corvallis | Benton | Corvallis Detached Carrier Unit | Detached Carrier Unit | 07/01/2003 | Closing Corvallis Detached Carrier Unit. Carriers are being moved to the main office. |
| New | 40-1872 | 97333 | OR | Corvallis | Benton | Main Office | Post Office | blank | |
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- Address Management, Intelligent Mail and Address Quality, 12-11-03 |
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NEW FORM
PS Form 5454, Highway Contract Route Enroute Box Change, was recently developed for postmasters and administrative officials to keep track of enroute boxes added to box contracts. When the supplier obtains 14 additional enroute boxes, the administrative official or postmaster sends this sheet to the contracting officer for processing and pay increase. The administrative official or postmaster usually attaches the form to the side of the supplier's mail case.
See page 19 of this Postal Bulletin for a copy of PS Form 5454. Additional hard copies are available from customer service district representatives. The form is also available on the Postal ServiceTM PolicyNet Web site; go to http://blue.usps.gov; click on More References, then Forms.
- Surface Transportation CMC,
Supply Management, 12-11-03
Holiday outlook How much mail will be delivered between Thanksgiving and Christmas? Twenty billion pieces. Many Post OfficesTM will stay open late and will open Sundays to handle holiday mail. This year's busiest mailing day will be Monday, Dec. 15, with 850 million pieces of mail entering the system. The busiest delivery day will be 2 days later - Dec. 17. And since Christmas falls on a Thursday this year, expect Monday, Dec. 22, to be another very busy day.
Secret Santa-Promo Ends Soon- The "Secret Santa" promotion with eBay continues through Dec. 18. If you're one of the Post Offices displaying a poster about eBay's Secret Santa Gift Exchange, please remove it after that date. The posters invite customers to start or join a Secret Santa group at eBay and exchange gifts with family and friends. But most important: the posters encourage gift-givers to ship their holiday presents with the Postal ServiceTM - a featured shipper at eBay!
Here comes 2004- New Year POP coming- The New Year drive period begins Dec. 27 and continues through March 31. Point of purchase (POP) materials will emphasize Postal Service solutions for small businesses. Signage will feature alternate access, Click-N-ShipTM service, the three Priority Mail® bundles that were introduced during the Holiday drive period, and an additional fourth bundle - Priority Mail service with Signature ConfirmationTM service.
Don't look for queue panels in your POP kits. Think "standee." The Cat in the Hat introduced you to this stand-alone sign and you'll get another "standee" for the New Year drive period.
And here's something else that's new for 2004 - Retail drive periods will go monthly. The Spring drive period, for example, will begin April 1 and run through June 30. That means changing POP materials midweek, instead of Saturdays under previous drive period schedules.
Lobby makeovers- Phase III- Get the latest on the retail lobby makeovers at http://blue.usps.gov/corporate/realtime/index.html. A new phase begins in late December. Look for comments from the makeover team on progress so far and your suggestions for creating retail lobbies that sell, sell, sell!
Face to face- Adding Value and revenue- If you build it - a Business Solutions Center that allows customers to meet face to face with Postal Service representatives and learn how to grow their business through the mail - they will come. Two Business Solutions Centers are being pilot tested in two San Diego district Post Offices - Midway and Temecula. So far, the centers are generating 150 leads per month each.
The centers focus on helping small business customers identify and use USPS® products and services to acquire and retain customers, and on fulfillment. It's about adding value to customer visits and adding revenue to the Postal Service. A new center is planned to open in Spring 2004 in Northern Virginia.
Feedback Send comments and questions to:
WHATS IN STORE
US POSTAL SERVICE
1735 N LYNN ST RM 6042
ARLINGTON VA 22209-6057
This month's edition has information on the balloon rate.
The holiday season is upon us and customers are rushing to our Post OfficesTM and other access channels to mail holiday packages to their loved ones and friends. Undoubtedly, retail acceptance employees will encounter packages that will qualify for the balloon rate.
Forgetting to collect the balloon rate costs the Postal ServiceTM approximately $13 million a year on Priority Mail® packages alone. Similar revenue losses also exist for Parcel Post® balloon rate parcels as well as parcels subject to oversized and nonmachinable rates. We need your help in ensuring that we collect sufficient revenue to cover the additional transportation costs incurred for these packages.
• The balloon rate applies to Priority Mail and Parcel Post packages that measure more than 84 inches up to 108 inches in length + girth and weigh less than 15 pounds.
Note: For parcels, length is the measurement of the longest dimension and girth is the distance around the thickest part (perpendicular to the length).
• Watch the training video, "The Balloon Rate: A $13 million Opportunity" (Course Number 18201-06) to understand how the balloon rate is applied and how to handle negative customer reactions. (Contact your local retail manager or training manager if you did not receive the video.)
• Be on the lookout for packages that are bulky and relatively lightweight.
• For Parcel Post balloon rate packages, check to see whether the package is machinable or nonmachinable. Remember, for Parcel Post, there is an additional surcharge for parcels that are nonmachinable. In those instances both the balloon rate and nonmachinable surcharge must be collected.
• Make sure your unit has a measuring tape. Parcel measuring tapes can be ordered through the Postal Products Unlimited catalog on eBuy at http://ebuy.usps.gov/jsp/co/Login.jsp. (Item 65873, Model Number N1025156, $1.94 + shipping)
Effective December 11, 2003, Postal Operations Manual (POM), Chapter 5, is revised to reflect current practices in the administration of mail transportation contracts.
Most of the changes involve simply replacing the terms contractor and contractors with the terms supplier and suppliers, respectively, throughout Subchapters 52 (Air Transportation Service), 53 (Highway Contract Service), and 55 (Water Route Service). The more substantial revisions are shown below.
We will incorporate these revisions into the printed version of POM 10 and also into the online version of the POM, which is accessible at the Postal ServiceTM PolicyNet Web site; go to http://blue.usps.gov; click on More References, then Manuals.
Postal Operations Manual (POM)
* * * * *
5 Mail Transportation
* * * * *
53 Highway Contract Service
* * * * *
532 Types of Service
* * * * *
532.2 Regular
[Revise text to read as follows:]
Generally, Regular highway transportation contracts are competitively awarded. Contracts are normally awarded for a term of 4 years and are renewable by mutual agreement. An indemnity clause makes the Postal Service liable for the indemnity payment in the event the contract is terminated (for other than default) by the Postal Service before its scheduled expiration date.
* * * * *
536 Certification and Payment
* * * * *
536.2 Omitted Service Deductions
[Revise text to read as follows:]
The contracting officer, by considering circumstances and past records, must decide whether deductions should be made for service omitted. Deductions are not made for omitted service caused by catastrophes or acts of God. If deductions are warranted, the contracting officer prepares orders on PS Form 7440, Contract Route Service Order, as follows: "Deduct $__ for service not performed as shown below. Such amount to be deducted from the supplier's pay for HCR transportation pay cycle __." List service omitted and dates.
* * * * *
55 Water Route Service
* * * * *
556 Certification and Payment
* * * * *
556.2 Omitted Service Deductions
[Revise text to read as follows:]
The contracting officer, by considering circumstances, and the terms of the contract, must decide whether deductions should be made for service omitted. If deductions are warranted, the contracting officer prepares orders on PS Form 7440, Contract Route Service Order. Such amounts will be deducted from the supplier's pay.
* * * * *
- Surface Transportation CMC,
Supply Management, 12-11-03
HANDBOOK P-5 REVISION
Effective December 11, 2003, Handbook P-5, Highway Contract Routes - Box Delivery Service, is revised to allow Supply Management to continue to pay Transportation Highway Contracts every 28 days, but the term for the 28-day cycle will now be highway contract route transportation pay cycle (HCR-TPC) instead of accounting period (AP).
We will incorporate these revisions into the next printed edition of Handbook P-5 and also into the online version of the handbook, which is accessible at the Postal Service PolicyNet Web site; go to http://blue.usps.gov; click on More References, then HBKs.
Handbook P-5, Highway Contract Routes - Box Delivery Service
1 General Contract Administration
* * * * *
13 Responsibilities
* * * * *
134 Administrative Officials
* * * * *
134.2 Supervisory Responsibilities
* * * * *
134.25 Exceptional Service
[Revise text of 134.25 to read as follows:]
Certify, on the last day of the highway contract route transportation pay cycle (HCR-TPC), all detours and additional service on PS Form 5429, Certification of Exceptional Contract Service Performed. Submit copies to the Accounting Service Center, PO Box 80191, St. Louis, MO 63180-9191, to the appropriate district manager, to the respective local distribution networks office in the area, and to the supplier. Document all omitted service and submit it to the local distribution networks office in the area no later than the close of the HCR-TPC in which the service was omitted.
* * * * *
Appendix A: Abbreviations and Acronyms Used in
Highway Transportation Box Delivery
Service
[Delete the entry "AP Accounting Period" from the alphabetical list of abbreviations and acronyms and insert the following entry:]
HCR-TPC Highway contract route transportation pay cycle
* * * * *
- Surface Transportation CMC,
Supply Management, 12-11-03
NON-SUPPLY MANAGEMENT EMPLOYEES
Have you ever wondered why Supply Management suggests that you make eBuy purchases, paying a seemingly higher price for an item that is available at a local store? You probably ask yourself, "Why would management want me to pay a higher price for something and at the same time tell me to do all I can to hold costs down?" The frustration of this situation seems quite valid, but if you take a closer look at all the costs involved in making a purchase from a local supplier and compare them to how little it costs to make an eBuy purchase, you will come away with a different conclusion. This closer examination is often referred to as an "all-in-cost" or "true cost," or "total cost of ownership" (TCO) analysis.
A TCO analysis is routinely performed for items that Supply Management purchases from all of the Postal Service'sTM national strategic contracts (e.g., office supplies, custodial products, furniture, etc.). All purchasing decisions take item price into consideration, as this is usually the major component of the total cost. However, Supply Management professionals also take into account "all-in-cost" components - the hidden costs associated with requisition preparation and approval, invoicing, and payment - before awarding a contract.
An example of an "all-in-cost" consideration in a TCO analysis is the shipping and handling (S&H) cost. When you order items from eBuy, the item price almost always includes S&H. Even if you pick up the item yourself to avoid the S&H costs, you still have to factor in the cost of your time and - if you use a Postal Service vehicle to pick up the item - the cost of gas and maintenance.
Other less obvious costs are those associated with requisition preparation and approval, invoicing, and payment. The least expensive way to make and pay for a Postal Service purchase is by using eBuy. With eBuy, requisition preparation and approval, invoicing, and payment are made electronically. If you purchase an item locally and pay for it using miscellaneous disbursement, no-fee money orders, or cash, the administrative costs to process the associated paperwork are significant, often costing more than the price paid for the item. Of course, using a Postal Service credit card helps to lower these costs, but when you consider the credit card reconciliation process, eBuy is still by far the least expensive method for anyone in the Postal Service to purchase and pay for an item.
You may often spend several hours searching for better prices for items you want to purchase. If you look hard enough, you may find the item you are looking for on sale. But considering the time and effort you spend to hunt out this "bargain," when you do find it, that bargain may, in fact, not be a bargain at all. Also, do not make the mistake of comparing the price of an item in one of our supplier's commercial catalogs with that of a competitor. Commercial catalogs do not show the Postal Service's negotiated prices. To obtain these prices, you must look the item up in eBuy or call the supplier and ask for the special Postal Service price. You will be pleasantly surprised at the discount.
All of these less obvious transaction costs are real and must be taken into consideration. The "hidden" costs of time spent tracking down the correct order information, shopping for the lowest price, placing and receiving the order, processing and paying the invoice, and all of the associated material costs for these necessary steps are significant. However, when you use eBuy, you can be assured of receiving a quality product, timely delivery, and a fair price at the absolute lowest transaction costs to the Postal Service. eBuy incorporates the latest technological advances to ensure our transaction costs are always kept to a minimum.
Costs associated with product quality (warranties and returns) are also often overlooked. When you purchase an item through eBuy from one of our national strategic suppliers, warranty issues and returns are not a problem. Each of these suppliers has agreed to total customer satisfaction. Warranty issues and returns are accepted without added costs, such as restocking charges. Additionally, Supply Management professionals are available to assist if you have a problem with a purchase from these suppliers. Our purchasing power with these suppliers is significant and suppliers do not want to lose Postal Service business due to unsatisfied customers.
There are also important organization-wide strategic benefits to consider when making a purchasing decision. The Postal Service takes its corporate goals toward environmental stewardship, supplier diversity, and small-business development very seriously. Each strategic partner is committed to search out and offer environmentally friendly products and services, manufactured by small minority- or woman-owned businesses. Similarly, there are important legal requirements that must be met throughout the purchasing process such as compliance with the Javits-Wagner-O'Day Act. This act mandates that certain items must be purchased from workshops that provide employment opportunities for blind and severely disabled persons.
Additionally, knowing how much the Postal Service spends for products and services is invaluable for Supply Management when making future strategic sourcing decisions. If we can accurately identify and consolidate similar purchases, we can leverage the organization's total spending to negotiate larger discounts from our suppliers. This "cheaper by the dozen" principle can amount to huge savings when applied to a $66 billion organization. All of these strategic nonprice issues are automatically addressed when making purchases from our suppliers.
In short, TCO analysis is an important step that Supply Management professionals always consider when selecting a national supplier. So the next time you see an item "on sale" at a local business and wonder why you are asked to pay a slightly higher price through a Postal Service national contract, remember that a whole team of Supply Management professionals worked to ensure that you get the absolute best value (a combination of quality, delivery, and price) at the absolute lowest total cost of ownership.
- SCM Strategies,
Supply Management, 12-11-03
On July 19, 2003, the Postal ServiceTM awarded a contract to Signode Packaging Systems (Contract Number 1CIEQU-03-P-6563) for textured and nontextured strapping materials. The two existing contracts for strapping materials are with EAM-Mosca and with Polychem.
Detailed ordering instructions are contained in Material Logistics Bulletin MLB-CO-02-003. The bulletin is available at http://blue.usps.gov/purchase/depot.htm. If you do not have access to a computer, you can obtain the MLB by calling the Material Distribution Center (MDC) at 800-332-0317, option 2.
Effective December 11, 2003, you must order Signode strapping materials using eBuy - the preferred purchasing method - at http://ebuy.usps.gov/eBuyWelcome.jsp. To order through eBuy and to obtain an eBuy logon ID and password:
From Internet Explorer (version 5.0 or higher), go to the blue page at http://blue.usps.gov and type "ebuy" in the address line and then hit the Return key. (The direct URL is http://ebuy.usps.gov/jsp/co/Login.jsp; note that this URL is case sensitive.)
Contract pricing is available from the electronic catalog on eBuy or by calling Signode Packaging Systems at:
Contact: Linda Beckner
Telephone: 800-323-2464, ext. 2022
Fax: 847-913-9078
E-mail: lbeckner@signode.com
All orders under this contract must contain a valid Federal Standard Requisitioning and Issue Procedures (FEDSTRIP) number and ensure that locally established buying procedures have been followed. You cannot use a credit card to order under this contract.
The Delivery and Industrial Equipment Category Management Center (CMC) has administration responsibility for this contract. If you have any questions concerning contract requirements, contact the following commodity manager:
WANDA S BOST CPM
DELIVERY AND INDUSTRIAL EQUIPMENT
CATEGORY MANAGEMENT CENTER
PO BOX 27496
GREENSBORO NC 27498-0001
Telephone: 336-665-2851
Fax: 336-665-2866
E-mail: wanda.s.bost@usps.gov
- SCM Strategies,
Supply Management, 12-11-03
