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Monday, December 31, 2007

Have You Seen this Bag of Bananas Pricing Solution?

When I used to work for Motorola years ago, people in several of the divisions that I used to work for would repeatedly say,

"Its cheaper to crush it than to sell it."

And the weird twisted truth was that on paper, it was cheaper to crush it than it was to sell it sometimes.  So much so that we shipped product over from China, sent it to a warehouse in Ft Worth Texas and ran teams of people on double shifts crushing electronics.

Sounds crazy right?

Well the sad reality was that it was cheaper to crush it despite our constant re-assessing of the situation trying to find a way to salvage the cost and turn it into a profit or at least a break even move.  Things kept raising the cost to ship those marginal products past the price point we could sell them, such as:

  • Freight Costs
  • Retailer Charge Back Costs
  • Price Protection Costs
  • COOP Percentages
  • Returns Costs or Allowances
  • Even Sales Commissions!

Some of these items were percentage level costs and some were flat dollar costs and with a product at the end of its life cycle, they could cost more than the product would sell for.  The total loss from these costs, less the revenue from sale would exceed the amount it would cost to pay someone to crush that stuff and send it to a landfill or recycling center (for the batteries and hard metals and things).

Well, the other day, I was at the store and noticed that they were selling three types of bananas

  1. Fresh bananas on the shelf where they normally are
  2. Slightly browning bananas mixed in with the fresh ones, but typically being ignored by consumers, because there are Fresh ones right there at the same price!
  3. and Bags of old bananas that look slightly the worse for wear over the previous 2 groups, but they are bagged and available at a fixed cost (not a per pound rate, but a fixed cost per bag so the consumer knows exactly how much they are spending) and they are available in quantities that are about 3 times what a consumer would normally buy.

I thought this was a great example of the grocery store getting creative to sell the bananas and avoid having to throw them out ( or crush them in the back or what ever they do with bad bananas at a grocery store).

To top off things, each of the paper bags had a recipe printed on it for home made banana bread using real bananas (not like the Betty Crocker banana bread that I am capable of making for an office pot luck.)

So the last couple weeks, I've been snacking on bananas like crazy.  I eat lots of them any way, trying to avoid things that are even worse for my diet like gummy bears and chocolate.  The thing is it took grocery stores maybe 20-30 years to find this solution.

It gives me hope that others in other industries might still stumble on ways to slice some more copper off the penny and safe some money as opposed to wasting it.

It may not work with 2 way radios (my nemesis, hell I even tried to give them to FEMA during hurricane Katrina but there were no takers).  But you never know, maybe someone will find the solution, whether its cell phones or flat panel TV's or home theater chairs or dog biscuits or excess Nintendo Wii's in 2009.

 

 

NOTE. My screwy spell check kept trying to replace bananas with bandanas when I wrote this article.  If you found a bandana in your banana, I apologize.  I have never purchased nor eaten bags of bandanas and do not plan to start.  My sympathy to whatever inventory manager out there that might be trying to move excess bandanas.

Saturday, December 29, 2007

Sick Birds Sold by National Distributor Appear in Connecticut and Washington First

Sick birds sold as pets in stores that include PetSmart have been identified by state agencies from Connecticut and Washington.  The reports came out on December 28th and it is likely that more reports will follow as the distributor of the birds was a national distributor that has not yet publicly been named despite the naming of some of its retail customers.

The Birds carry a disease that can be transmitted to humans, however this is not the notorious 'bird flu.'

It is unclear what kind of birds were infected or sold by PetSmart, but the disease is most often found in cockatiels, cockatoos, parrots and parakeets, according to the news release.

PetSmart has removed all the birds supplied by the vendor and is treating its sick and exposed birds with antibiotics, according to the news release. Customers who bought birds from the store will be receiving letters informing them of the potential for the disease.

Stores may have sold diseased birds | Seattle Times Newspaper

Disease Information

Avian chlamydiosis is caused by a type of bacterium called Chlamydophila psittaci, which is frequently found in birds, but does not cause the disease as frequently.

Sick birds experience loss of appetite, coughing, nasal discharge, sneezing, lethargy and diarrhea. The birds most vulnerable to the disease are psittacine species including cockatiels, cockatoos, parrots and parakeets.

Humans can develop psittacosis after inhaling dust from dried bird droppings, respiratory secretions and dust from feathers of infected birds. The symptoms of the disease in humans include fever, headache, chills, coughing and muscle aches. The symptoms, often mild, develop within 5 to 19 days of infection. Antibiotics are often used to treat the disease.

Foodconsumer.org

CDC Information on Chlamydophila psittaci

This event has not yet triggered a recall and no people have been diagnosed with the illness yet, but this is the early breaking of the story and more reports are likely to provide more information soon.

Future articles will cover Mizuno golf Products.

Thursday, December 27, 2007

Truckers and Gadgets

Many people in the electronics business fail to realize just how much truck drivers take to gadgets.  Truck drivers are mobile, traveling across the country without the luxuries of home and they need every mobile advantage they can get to make life on the road safer, healthier, happier and more comfortable.

They also have a long history of using mobile technology to best advantage from using CB's to portable refrigerators to DC inverters, you name it.  These days they are more likely to use a laptop and an air card along with a sturdy mobile phone and a good loud Bluetooth headset.

The point of this is that distribution companies, brokers, logistics and shipping companies should recognize the technical capabilities and early adopter tendencies in truck drivers when it comes to electronics.  Many firms have resisted the adoption of route optimization and GPS tools up until recently expecting push back from their drivers, but the reality is that the drivers will take any technology that works and makes then operate better.  They are the last ones that want to face up to Murphy's law or anything that slows down the freight.

Tuesday, December 25, 2007

Wanted 50 million Square feet of Warehouse with Deep Water Port View - Savannah

Savannah is one of the oldest ports in the United States.  Its located at the mouth of the Savannah River in Georgia, and its one of my favorite cities in the country.  I lived there, served in the military there, met my wife there and launched my first successful business there.  So it comes as no surprise to me that I am covering Savannah today as one of the pre-eminent port cities in the United States.

Savannah has a deep water port and is growing warehouse space to support the products coming off the ocean at a rapid pace.  Currently, Savannah is approaching 20 million square feet of cavernous warehouse space and they are looking to grow that to almost 50 million square feet before too long.  Target just set up shop in Savannah after suffering from disruptions over and over again in California.

The city offers up a strong infrastructure, a talented and skilled labor force and strong logistical access to the South East from Jacksonville (2 hours) to Atlanta (4 hours) to Nashville (8 hours) and up and down the coast from Miami to New York and everything in between.  The city is also attractive as a vibrant international tourist town, plus it supports the 3rd infantry division and one of the largest art schools in the world.

So whether or not you are moving stuffed animals to Target or exercise fitness equipment, electronics, or automobile supplies Savannah has the resources to provide excellent solutions.  Plus, in a custom fit world, if they do not have exactly what you need at this moment, they are building and now is the time to ask as they may be able to build it to fit and have it available tomorrow!

Warehouses support port growth, logistics

Distribution Benefits of Going Green

Like many companies, Sheperd Neame, a UK brewer has learned the benefits of going green.  They are increasing their supply chain efficiency with rout optimization software and other logistics planning tools to minimize their transportation costs and lower their carbon emissions.  That's good for the bottom line, it is good for the environment and it is good for public relations.

Ian Dixon, Shepherd Neame's production and distribution director explained that the investment in new fulfilment software will help the company maximise delivery truck loads, optimise routes so they are as cost-effective as possible and increase customer satisfaction by enabling more flexible and dynamic delivery planning.

"As part of our mission to cut overall carbon emissions in real terms, we are looking to maximise distribution efficiencies. By choosing Paragon, we are able to ensure our vehicles are loaded effectively and that in every case the delivery routes are both practical and cost-efficient."

ITPro: News: Brewery drives 'greener' distribution logistics

Getting product to the right place at the right time with the least amount of fuel spent or wear and tear used on equipment saves organizations real money.  It doesn't hurt that these steps also are better for the environment. 

In many ways the United Kingdom was the father of the industrial revolution.  So there is some balance in UK companies leading by practical example in improving efficiency, reducing costs and decreasing pollution.  Many countries followed in the footsteps of the UK and we have seen production sweep around the world with one country after the next marrying into industrialization.  Now they have received their groomsmen gift in the form of knowledge to do better business.

Many of the environmental negotiations taking place between countries would have the US take on the burden of cleaning up their efforts first before other countries have to suffer the burden or expense.  However, the UK example here illustrates the point that if the US cleans up first, they will save money and become even more dominant first.  Other countries like India or China could seize the opportunity to increase their efficiency now instead of pushing back against something that is good for business.

Monday, December 17, 2007

Nintendo Guarantees Availability of Wii at Gamestop . . . After Christmas

In what is becoming a famous example of arriving late to their own party year after year, Nintendo came out this week and promised that they would answer the supply shortage of Wii units by providing a guarantee that the units would be available at Gamestop stores across the US  .. . after the holidays.

That is bad news for retailers like Best Buy, Wal-Mart and Circuit City that would rather sell Wii units this month while their customers still have a Christmas budget. 

Well Santa can't really waste time crying over spilt cookie milk, I guess the kids will just have to be happy with bulk cables in their stockings, which they can return and buy a Wii at Gamestop after Christmas.

Friday, December 14, 2007

CES 2008 Jan 7 - 10 in Las Vegas

CES2008 It's almost that time, about three and a half weeks until CES 2008 starts in Las Vegas.  I just returned from Vegas for a different convention last month, and I have to admit that looking forward to this CES feels a bit like a chore.

However, this is supposed to be a very good CES event.  There is no competing MacWorld running with a conflicting schedule, there are supposed to be a number of innovative devices out this year, and since last year was a bit of a dud, that should weigh in favor of the event as well.

Vegas is a great town for a convention but it can be tiring as well.  This year at CES I'm going to finally try and do what I haven't been able to do in the past, get lots of sleep, exercise regularly (not counting the walking) and eat normally.  For my fellow convention junkies, I'll see you there and we can all face addiction treatment together after the show.

Saturday, December 08, 2007

Wall Street Pushing For Changes at Palm after Logistics and Warranty Problems

Palm seems to be facing even more problems with its business these days.  Wall Street was quick to react this week when it was learned that Palm would miss its numbers due in part to product logistics issues that will prevent some units for making it in time for the Christmas season.  Even more troubling possibly our reports about warranty repair expenses coming in higher than expected and pressuring the bottom line.

When warranty repair expenses hit a company, this often times signifies both quality issues as well as internal control issues and accounting issues with reserves.  

Palm said a delay in certification of one of its products would cause a shortfall in revenue for its second fiscal quarter, which ended Nov. 30. The company said revenue will come in between $345 million and $350 million compared to its previously expected range of $370 million and $380 million for the period.

In addition, an "unforeseen increase in warranty repair expenses" will put pressure on the bottom line. More pressure will come from strong sales of the popular but lower-priced Centro device. Palm sells off as Wall Street questions management - MarketWatch

Editorial Disclosure - As a long time Palm product user myself, I have seen a significant decline in quality as I upgraded from an older Palm treo 600 to a Palm treo 700 running on the Verizon network which does not function terribly well with the 700.  I suspect that there may be opportunities for Palm to rectify this issue as Verizon opens up its network and enables people to avoid their tediously poor Verizon branded services that seem to run my device into the ground.  I have seen an improvement in synchronizations, which could be attributable to better cables or to better software.  Maybe if Palm could run its own software and its devices instead of Verizon software, they might see fewer warranty repairs at lease from that carrier.

Mail Boxes to Go Empty at CompUSA

CompUSA is shutting their doors, closing their stores, and team their mail boxes and going out of business after Christmas.  The office or the focused on computers and other electronic devices related to the office just couldn't compete with the other office stores such as Staples and OfficeMax who in recent years have made a stronger push towards furniture and paper.  Plus they have also had to compete with online sales, which is an area that is extremely competitive for tech savvy buyers that would have frequented CompUSA in the past.

CompUSA will be discounting items in their stores this month of December to help clear up the inventory before they start shutting their doors next year.  The store cites competition from Wal-Mart the biggest retailer and Best Buy the biggest electronics retailer as the source of their problems.

CompUSA had been up for sale most of the summer, but there were no takers.  103 stores will be closed or sold after the shutdown January.

Saturday, December 01, 2007

Twenty Percent of November Recalls Due to Lead Paint

Twenty Percent of the Recalls announced in November by the CPCC were due to lead paint.  That number would have been 49 percent if 4.2 million aqua dots had not been recalled due to a potential for poisoning of children that swallow them. 

There were approximately 1,391,800 units of 22 product categories recalled due to lead poisoning potential.  Many of the products recalled were small toys designed for children and not necessarily engineered for their longevity.

Recommending the purchase of quality built toys for Christmas may not solve the problem, but avoiding cheaper products of lower quality that are likely to break and thereby expose children to paint chips and edges faster might be a step in the right direction from a preventative perspective. 

Alternatively, avoiding toys all together might be another method for avoiding lead poisoning this holiday season.  Clothing, sports products, and even Bush furniture are alternatives that have a lower risk of lead poisoning. 

List of Products Recalled in November

  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Dick’s Sporting Goods, of Pittsburgh, Pa., is voluntarily recalling about 57,000 “Power Bolt” Y-Frame and Ultimate Y-Frame Adjustable Pitchbacks. The upper portion of the frame can collapse after both locking pins are removed, posing a laceration hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Schylling Associates Inc., of Rowley, Mass., is voluntarily recalling about 3,600 Winnie-the-Pooh Spinning Tops (66,000 spinning tops were recalled on August 22, 2007). Surface paint on the wooden handle of the top contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), American Greetings Corp., of Cleveland, Ohio, is voluntarily recalling about 60,000 DesignWare® Confetti Bursts. The surface paint on the individual bags of confetti contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), American Honda Motor Corp., of Torrance, Calif., is voluntarily recalling about 22,000 Honda HRX217KHXA and HRX217KHMA Lawn Mowers. Due to a manufacturing defect, a crack can occur in the fuel tank causing a fuel leak. If gasoline leaking from the fuel tank is ignited, a fire or explosion can occur.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Baja Motorsports, of Phoenix, Ariz., is voluntarily recalling about 16,000 Baja ATVs. These ATVs lack a tire pressure gauge and flag pole mounting bracket, which could pose a risk of injury to riders.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Gate Five Group LLC, d.b.a. Roost, of Sausalito, Calif., is voluntarily recalling about 1,200 Birch Bark Wrapped Candles. The bark wrapping of the candle can ignite when the candle burns down, posing a fire hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), The Bon-Ton Department Stores Inc., of York, Pa., is voluntarily recalling about 1,000 Girls and Boys Bath Robes. The recalled bath robes fail to meet the children’s sleepwear flammability standard, posing a risk of burn injuries to children if the robe caught fire.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Cherrydale Fundraising, of Allentown, Pa., is voluntarily recalling about 45,000 Decorative Stretchable Aqua Bracelets. The bracelets contain high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), The Bon-Ton Department Stores Inc., of York, Pa., is voluntarily recalling about 3,240 Children’s fleece hooded zip-up jackets with neck drawstrings. The garments have a drawstring through the hood, which can pose a strangulation hazard to children. In February 1996, CPSC issued guidelines to help prevent children from strangling or getting entangled on the neck and waist by drawstrings in upper garments, such as jackets and sweatshirts.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Colossal Jewelry & Accessories Inc., of Maywood, N.J., is voluntarily recalling about 10,400 Children’s Metal Necklaces and Bracelets. The recalled jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Raymond Geddes & Co., of Baltimore, Md., is voluntarily recalling about 84,200 Children’s Pencil Pouches. The paint on the pencil pouches’ zipper pulls contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Paricon Inc., of South Paris, Maine, is voluntarily recalling about 800 Snow and Sand Castle Kits. The largest plastic castle block maker in the kit could crack at the handle during use, creating sharp edges that can pose a laceration hazard to young children.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Jetmax International Ltd., of Irving, Texas, is voluntarily recalling about 36,000 boy’s and girl’s storage racks with canvas totes. The storage rack can tip over, posing an entrapment and suffocation hazard to young children.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Buy-Rite Designs Inc., of Freehold, NJ, is voluntarily recalling about 43,000 Sparkle City Charm Bracelets and Tack Pin Sets. The recalled jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Dolgencorp Inc., of Goodlettsville, Tenn., is voluntarily recalling about 51,000 Children’s Fashion Sunglasses. The yellow surface paint on the sunglasses may contain excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Coby Electronics Corp., of Maspeth, N.Y., is voluntarily recalling about 12,000 Portable DVD/CD/MP3 Players. The portable DVD/CD/MP3 players can overheat, posing a fire hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Cooper Lighting Inc., a division of Cooper Industries, of Houston, Texas, is voluntarily recalling about 274,000 Metalux Fluorescent Shop Lights. When the two prongs on the plug’s electrical cord are touched simultaneously while lamps are installed, the light can pose an electric shock hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Bassettbaby, of Bassett, Va., is voluntarily recalling about 8,900 Wendy Bellissimo Collection Convertible Cribs. The bolts connecting the top corners of the crib can come loose, creating a gap and posing a serious entrapment and strangulation hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Marvel Toys, of New York, N.Y., is voluntarily recalling about 175,000 Curious George Plush Dolls. Surface paint on the toy’s plastic face and construction hat contain excessive levels of lead, which violates the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Discount School Supply, of Monterey, Calif., is voluntarily recalling about 20,000 Shaving Paint Brushes. Surface paint on the brush handles can contain excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), ELMO USA Corp. of Plainview, NY, and ELMO Co. Ltd., of Japan, are voluntarily recalling about 54,000 Visual Presenters (sold as Image Presentation Cameras by Epson). Improperly installed fluorescent top lights in the presenter can overheat, posing a fire hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Sailing (U.S.) International Corp., of Hackensack, N.J., is voluntarily recalling about 8,000 Flashing Pacifiers or 2-in-1 Flashing Pacifiers with Whistle Necklaces. The zipper pull on the slipcovers can break, posing a choking hazard to young children. The nipple can detach from the base, posing a choking hazard to young children.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Hobby Lobby Stores Inc., of Oklahoma City, Okla., is voluntarily recalling about 10,000 Halloween-Themed Baskets. Surface paint on the bat, pumpkin and witch emblems attached to the baskets contain excess levels of lead, which violates the federal lead paint ban.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Hunter Fan Co., of Memphis, Tenn., is voluntarily recalling about 84,000 Warm Mist Carefree Humidifier. Water used in the humidifier can leak into the unit’s electrical compartment, posing a fire hazard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Iceberg Enterprises LLC, of Park Ridge, Ill., is voluntarily recalling about 75,000 Plastic Folding Chairs. The plastic folding chairs can collapse during use, posing a fall hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), International Sourcing Ltd (ISL), of Springfield, Mo., is voluntarily recalling about 7,500 Dragster and Funny Car toys. Surface paint on the wheels and engine of the toys contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), La Femme NY 2 Inc., of Brooklyn, N.Y., of Maywood, N.J., is voluntarily recalling about 4,500 La Femme NY Children’s Necklace and Earring Sets. The recalled jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Fisher-Price Inc., of East Aurora, N.Y., is voluntarily recalling about 155,000 Laugh & Learn™ Learning Kitchen™ Toys. Pieces of the faucet or the clock hands can detach, posing a choking hazard to young children.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Dick’s Sporting Goods, of Pittsburgh, Pa., is voluntarily recalling about 125,000 Lounge Chairs and Recliners. The plastic support brackets can break and cause the chairs to collapse, posing a hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Meijer Inc., of Grand Rapids, Mich., is voluntarily recalling about 6,000 Grand Gourmet Firepits. The legs of the firepit can bend or snap off during use, causing the firepit to tip over and in turn the fire can escape. This poses a fire hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Family Dollar Stores, of Charlotte, N.C., is voluntarily recalling about 205,000 Rachel Rose and Distinctly Basics Assorted Metal Jewelry. The recalled jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), WMH Tool Group Inc. (WMH), of Elgin, Ill., is voluntarily recalling about 7,100 Performax and Wilton 10” Sliding Miter Saws. The saw handle’s switch can fail, causing the saw to smoke, spark, and trip circuit breakers, and disable the safety brake. The saw also can keep operating unless the unit is unplugged, posing a laceration hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Nike Inc., of Beaverton, Ore., is voluntarily recalling about 235,000 Football Helmet Chin Straps. The chin strap’s plastic cup can break as a result of contact, exposing the player to facial or head injuries.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Northern Tool & Equipment Co., of Burnsville, Minn., is voluntarily recalling about 7,200 “Big Red” Wagons. Surface paints on the wagon and handle contain excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Carrier Corp., of Farmington, Conn., is voluntarily recalling about 185,000 Packaged Terminal Air Conditioners (PTAC) and Heat Pumps (PTHP). An electric heater in the unit can break, posing a fire hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Tween Brands Inc., of New Albany, Ohio, is voluntarily recalling about 4,000 Decorative Packaging Pearl-like Bead Attachments sold with Girl’s Gift Sets. Surface coating on a plastic bead decorative packaging attachment contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Polaris Industries Inc., of Medina, Minn., is voluntarily recalling about 28,000 Snowmobiles. The fuel tank filler neck can crack and separate allowing fuel or fuel vapors to leak from the fuel tank. This poses a fire hazard to consumers.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Pure Allure, of Oceanside, Calif., is voluntarily recalling about 200,000 Crystal Innovations jewelry. The recalled metal jewelry contains high levels of lead. Lead is toxic if ingested by young children and can cause adverse health effects.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Reeves International Inc., of Pequannock, N.J., is voluntarily recalling about 36,000 2006 Snow Princess Stirrup Ornaments, 2007 Holiday Stirrup Ornaments, and 2007 Photo Frame Horse Shoe Ornaments. Surface paints on the ornaments contain high levels of lead, violating the federal lead paint standards.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Schylling Associates Inc., of Rowley, Mass., is voluntarily recalling about 2,600 “Robot 2000” collectable tin robots. Surface paints on the robot contain excessive levels of lead, which violates the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Schylling Associates Inc., of Rowley, Mass., is voluntarily recalling about 1,300 Dizzy Ducks Music Boxes. Surface paints on the wooden base of the music box contain excessive levels of lead, which violates the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Schylling Associates Inc., of Rowley, Mass., is voluntarily recalling about 3,500 Duck Family Collectable Wind-Up Toys. Surface paints on the ducks contain excessive levels of lead, which violates the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), The Boppy Company, of Golden, Colo., is voluntarily recalling about 38,000 Boppy® Slipcovers. The zipper pull on the slipcovers can break, posing a choking hazard to young children. In addition, paint on the zippers contains excess levels of lead, which violates the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Spin Master, of Toronto, Canada, is voluntarily recalling about 4.2 million Aqua Dots. The coating on the beads that causes the beads to stick to each other when water is added contains a chemical that can turn toxic when many are ingested. Children who swallow the beads can become comatose, develop respiratory depression, or have seizures.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Swimways Corp., of Virginia Beach, Va., is voluntarily recalling about 31,000 “Skippy” Pool Toys. The elastic tongue of the fish can break and forcefully come out and cut the users’ hands during launching of the toy.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Dollar General Merchandising Inc., of Goodlettsville, Tenn., is voluntarily recalling about 380,000 Pull-Back Action Toy Cars. Surface paint on the cars contains excessive levels of lead, violating the federal lead paint standard.
  • In cooperation with the U.S. Consumer Product Safety Commission (CPSC), Yamaha Corporation of America, of Buena Park, Calif., is voluntarily recalling about 49,000 Yamaha AC Power Adaptors. The housing of the power adaptor can separate, posing an electric shock hazard to consumers.
Tuesday, November 13, 2007

When Wal-Mart Reports Inventory Control Success- Short Their Suppliers

Wal-mart-Gets-Theres Wal-Mart is the 800lb gorilla of distribution and they know exactly how to throw their weight around in order to keep the dung off their fur.  Today their stock is up after they reported Inventory Control Success and savings in other cost cutting efforts.

 

Inventory control success

Consolidated inventory rose 2.7%, against year-to-date sales increase of nearly 9%, Wal-Mart Chief Financial Officer Tom Schoewe said in the pre-recorded call. That was better than Wal-Mart's goal of expanding inventory at half the growth rate in sales.

That's also allowed Wal-Mart to lower markdowns used to clear out inventory in its U.S. stores. 

Wal-Mart's shares gain on earnings surprise, holiday outlook - MarketWatch

That spells almost certain trouble for Wal-mart suppliers.  Those products do not get controlled and cut and moved through the system faster without a cost hitting somewhere.  Since Wal-Mart is unlikely to pay the bill for discounting and cost cutting, that means that Wal-Mart's supplies are even more likely to feel the pinch.

That's a double whammy for most Wal-Mart suppliers.  They are almost universally locked into contracts that prevent price increases.  So as the cost to manufacture and transport products increase, suppliers have to continue to sell to Wal-Mart at the same old price.  Then Wal-Mart comes in after the fact and discounts items away to clear the supply chain.

Suppliers selling to Wal-Mart better be out there aggressively finding cheaper source alternatives themselves or else their own reporting is not going to be half as positive as Wal-Mart's garden of life.

The Market Analysts Always Read Wal-Marts impact on the Market Backwards

So with all that said, its rather funny that Wall Street always reads Wal-mart reports like this as a positive sign for the economy.  Wal-Mart in fairness is keeping the supply chain honest, but they make things look a little more chipper than they really are.  What is OK for Wal-Mart is rarely OK for the rest of the industries working with Wal-Mart.

If you are looking for a positive economic sign in Wal-Mart's financial's, you will not find it in their Inventory Control Success.

Thursday, November 08, 2007

Date Rape Drug in Children's Toys Causes Another Chinese Product Recall

GHB has been found in children's toys.  GHB is commonly known as the 'date rape drug,' a drug that is sometimes slipped into drinks at parties or bars.  The person that consumes the drug often loses consciousness or forgets what happens next.  This results in assaults, robberies, theft, and rape.

aqua-dot-recall-ghb

That same drug has been found in kids toys imported from China.

The coating on this product actually turns into GHB (Like a gel filled cap almost), when the toys are swallowed or put in a child's mouth.  Children in the US have already been hospitalized as a result of putting these small beads in their mouth.

This popular product is on Wal-Marts list of most popular toys for the season. 

I have a feeling that a corporation somewhere is going to be looking for a realtor for their offices very soon.

Monday, November 05, 2007

Why Can't Microsoft Stomp Google in Phones?

Microsoft has been planning a mobile phone play since 1994.  They have worked with Smart Phones.  They have rolled out the second coming of the Zune with WiFi.  Yet Google threatens them with the advent of the GPhone.

Microsoft should have the advantage here, but oddly enough they do not.

They should be able to leverage their search business, their phone business and their mobile media player business to hit a home run.

Third To Market Strategy At Play Here?

They have all of the ingredients and the only one that could possibly be holding Microsoft back, must be Microsoft.  They do not play well in markets where they are first to market.  In fact, they do not even like to be second to market.  Are they waiting for Google to follow the IPhone and pave more ground in the final round of device convergence?

Once convergence is completed, Microsoft might then be ready to swoop in and roll out the MPhone or Zphone or maybe even the XPhone (They have a lot of brand names to choose from  . . .)

Is it possible that they are following a strategy cooked up on purpose to allow the market to be further paved with a few early adopter GPhones before they then swoop in and clean up a market share number that means something (like 90%).  How needs a phone popup blocker, when the phones actually enable them to commoditize the market and do business the Microsoft way.

Thursday, October 11, 2007

UAW Shooting for a Non-Strike Trifecta

So the UAW rolled out another non strike, this time with Chrysler.  A six hour show of force?

The union members walked off the job like a online poker player going all in with fake internet money.  Regardless, both sides are claiming a victory (even though Chrysler and GM still have labor costs $20 an hour above Toyota).

The union thinks that it protected health care for retiring workers.  I have to ask, the question, why was the health care of retiring workers on the table in the first place?

What round of negotiations in the past did the UAW screw up so much that it put their members health care at risk after retirement?

If they didn't make a mistake in the past and 'suddenly' the health care was at risk, couldn't another unforeseen event put that same health care at risk again?

The skeptic in me suspects that all of those auto workers are getting duped by both the company and their union leaders.  Part of the problem here is that the two prime negotiators, the company and the union leaders drive what goes on the table and that ultimately makes the workers codependent on the Union and weirdly enough on the company. 

Its almost akin to a crack addict having their crack dealer renegotiate better prices with a Columbian drug lord.  At the end of the day, you know the crack addict is not going to come out on top and neither will the rank and file in this case.  The crack addict can go to drug rehab and the rank and file can renegotiate, but that doesn't change the dependency dynamic.

UAW Targets Hobbled Ford

So next up the UAW is going after Ford, a company that almost went completely under this year.  Ford has labor costs $20 an hour above Toyota also.  How much of the union rank and file are going to be protected if Ford or GM go bankrupt?

That's the real question here, right now.

Wednesday, October 10, 2007

UAW Strikes Again!

This might appear like DeJa Vu.  A little over a week ago, the UAW went on strike against GM and then all of a sudden the strike was over.  Seemed almost like the strike was orchestrated to make a statement as opposed to actually kicking of a strike.

UAW walks off the job at Chrysler

Well the UAW may have stolen a few page from their own books at GM to apply to Chrysler.  Workers are walking off the job in Detroit this morning as it appears talks are breaking down and the union may soon be going on strike against Chrysler.

Will this be another 1 day all show, now teeth strike?

Or is this one going to be the real thing?

Wednesday, September 26, 2007

Importance of Fostering Environment for Employees to Keep their Lives Balanced

I would like to focus on an important topic today for businesses.  It is the concept of keeping your employees bounced.

It is very important to keep your employees balance so that they can make rational and informed decisions without letting emotion or subjective views sway them down a path that is bad for business.  This is difficult for any business to achieve and definitely requires the support of system and structure that promotes and fosters an environment for employees.  The concept of helping employees establish a life balance is actually very similar to running a good business. 

getting-started-series-clay-nelson-Life-Balance

I've been reading a great audio book by Clay Nelson, a life coach and motivational speaker.  In his book "Getting Started Series: Having a Say in How Your Life Turns Out" he walks through several concepts that are very important for individuals looking to establish balance in their life and achieve their goals.  (read more on CD)

These include concepts of:

  • creating your purpose
  • How not to be stopped by fear
  • Commitment

Clay-Nelson He covers this in a three CD set, one CD for each concept and I'm currently just starting on CD number two.  CD number one does a very good job of walking through the concept of building a purpose statement for individuals. One of the concepts here is that it's very difficult to keep yourself balanced in life if you don't know what your purposes you don't know where you're going.  When you have no purpose, everything that happens in your life has the potential to put you off balance.

Clay walks through the process of establishing a purpose statement for person and how to live by that statement so that people are always working to stay on track, stay focused and in essence or by default keep their life balance.

After reading this section of the book, the concept has been sticking with me for several days.  I do have a purpose statement for myself that I've built quite some time ago.  After reading the section I found a few flaws in my statement and have revised it.  The key thing that I took away from this particular CD was the concept of always paying attention to what you're doing and asking yourself if it fits with your life purpose.

Sure there are some things in life that you have to do, but if you're not tackling those items that are most important towards achieving your purpose, and odds are your life is going to be off balance.  I'm looking forward to the next sections of the book and will be happy to share some of those with you as I get into them.  I do write book reviews on a different site, and you're more than welcome to read some of those reviews whatever you like.  This particular book resonated with me from the perspective that companies need balanced and rational employees to make good decisions, and to achieve that goal than you employees that know how to balance their lives out.  I do think that this book is a good resource both for employers and employees looking to achieve this purpose of life balance.

This is not a new concept for me, I have read many books on the subject in the past and attended several seminars on the subject as well.  This audio book does a very good job of providing some practical and applicable steps of the person can use to achieve life balance and in that, it is a valuable resource.

Monday, September 24, 2007

UAW Calls Strike on GM - 73k Americans On Strike

Contract Negotiations between General Motors and UAW started to stall and ended in a strike today.  Over 73,000 workers will now go on strike unless talks can be put back on track.

General Motors has sought a number of concessions from the UAW as the automobile giant loses money and loses its number 1 position to rival Toyota.

It is however a sure thing that sending 73,000 workers on strike, three months before Christmas in the middle of an economy that is in the midst of a mortgage crisis as well.  Both GM and the Union workers may literally have everything to loose, if they can only get back to the table they might have everything to save as well.

It is almost assured that this will now be a bad year for GM and for the union workers of GM, this could be the beginning of the end.  Christmas will be difficult, no home theater systems, or home theater popcorn machines.  This will be a year of cold picket lines and scabs. 

Saturday, September 22, 2007

Mattel- We Are Sorry China?

There is nothing worse sorry about the recent chain of recalls than the sorry companies that fail to manage their products, build and manage their product designs, feel to manage their licenses, and failed to manage their subcontractors in China.

Mattel is truly a sorry company.  To Mattel's credit, they have been apologizing left right and sideways.  Many people were awestruck by the fact that they even apologize to China for damaging China's good reputation at manufacturing.  I'm sure you're surprised that China had a good reputation as a manufacturing country.  Yes they do have a reputation but it has not been a good reputation so it's a little ironic that Mattel is apologizing to China.

The reality is however, that Mattel's gigantic number of recalls were largely Mattel's fault in designing bad and dangerous products.  Regardless China was definitely complicit.  It was Chinese subcontractors that replaced paint with lead-based paint it was given to children all over the US and possibly elsewhere where there is less oversight.

If China wants to develop a good reputation, they should help to identify dangerous products and not react to dangerous products reported to them after the fact.  If China was truly a good or even a great manufacturing country, their own engineers would have done due diligence on the products that they were manufacturing to ensure a small magnets were safe and that Mattel having given them a bad design that could harm the Chinese manufacturing reputation.

chinese-labor-camp-image

China is so far away from being able to accomplish that level of due diligence and demonstrate that level of competency that the suggestion almost seems ridiculous.  However, if China wants to be seen as a great manufacturing country, a country that manufactures excellent products, safe products, products that make the world better, and that is what they have to do and that is the level of competency that they had to achieve.

If they want to have a reputation that doesn't include operating manufacturing systems like there in the wild West and they could care less if their customers are killed or maimed were supplied with products provided by slave labor, and China needs to step in up and show that it can truly be a great country.  China may have been a great country wants, but they are definitely not a great country right now.  The choices they make now will determine if they ever become a great country again.

The massive number of recalls coming from Chinese related products this year only serve to demonstrate the potential that China could have if they do something to realize that potential.  Far too often they engage in common thuggery, theft of intellectual property, financial Ponzi schemes, and outright fraud (I've personally witnessed at all), that shows the country and its true aims and ambitions for what it is.  They are slightly better than criminals at this point in time and they have a long way to go if they're ever going to be a valuable partner to the world.

Mattel can apologize to China all they like, however I haven't heard any Chinese official come out and make a major statement apologizing to the world for supplying dangerous products.  Mattel is shown that they are actually a better company in China is a country.  I'm not saying Mattel is great, but they're definitely a level above China. 

Behind Mattel’s Apology to China

GPSInsight Delivers Scalable GPS Services - No long term GPS contracts and cheap GPS Prices

Where's My Drivers?

Where are my drivers?  That is the question that every fleet owner will ask at one point or another in their business.  They're just times when your drivers disappear from your visibility.  This usually happens exactly at the point in time when your customers need to know where their delivery is, where their service provider is, where their contractor is, where their medicine is, or where their transplant organ is.

These days GPS solutions are getting very cheap and when combined with online tracking functionalities they can be extremely powerful.  When GPS systems first started to come out, they typically requires long-term contracts.  The technology has gotten cheaper and the systems to manage that technology have also been simplified and scaled out.  You shouldn't have to get a GPS system shackled to a long-term contract. You should not have to get a GPS system that requires you to maintain a large number of GPS tracking units even when the size of your fleet varies over time moving up and down.

With that said we would like to provide a review of GPSInsight, an online company that provides a relatively cheap and very powerful system for tracking fleet vehicles.

gps-insight-website-review

What are My Drivers Doing?

GPSInsight provides a number of different capabilities with their systems.  These GPS systems among other things enable you to identify what your drivers are doing.  You can figure out where they're going, if they're staying on Route, you can even determine if they are exceeding the speed limit for driving dangerously or taking the most efficient path to their destination!  

Being able to confirm whether or not your drivers are being safe can help you get better insurance rates and lower costs, it can help you defend liability lawsuits, and it can help you take corrective measures to train your drivers to be safer avoid accidents and possibly save their lives.  It's very important to know what your drivers are doing with your vehicles.

How Can I get GPS Tracking systems Fast and Cheap?

GPSInsight can enable you to quickly set up a GPS tracking system for your fleet of vehicles.  When I say quickly I don't mean a few weeks or a few months or a few quarters, were talking about days.

GPS tracking devices are small and powerful these days and can be quickly shipped overnight to any location in the United States. Furthermore you can take a look at a number of online tutorials at GPSInsight where you can see just how powerful their systems are and all of the advantages that you can manage with the online systems that support the actual devices in your vehicles.  Furthermore the only charge a couple bucks per unit and that means you don't have to spend hundreds or thousands of dollars per vehicle to buy the equipment and hundreds more to install it. The installations are fast and quick and very cheap to get the system up and running.

Furthermore they provide excellent support systems and they are constantly evolving their online tools such that you'll receive new product services on a regular basis.

Where can I get World Class Support to track fleets with GPS Systems without a Long Term Contract?

It simple to find world-class support for GPS systems about having a long-term contract.  You can establish a month-to-month relationship that can expand and contract with the volume of your fleet and the business that you do.  Some transportation businesses are seasonal as well, and GPSInsight can enable you to quickly ramp up or ran down as your business and its business cycle requires.

Sunday, September 16, 2007

Don't Buy her the Car, Get Her a Diamond Instead

Unlike cars, diamonds might be the safe bet for a Christmas present this season.  After all, you don't want to get her a present that will remind her of you after she gets in an uphill accident because her breaks went out on her Jeep Grand Cherokee after she missed the recall card in the mail.

jeep grand cherokee recall

There may have never been a safer time to purchase diamond rings as a present than this year.  Diamond rings are rarely coated in lead paint, they don't have to many life threatening recalls associated with them at all.  Diamond ring scandals at their best deal in zirconiums (zirconii sp?) or poorly fitted settings and at worst might wipe out a family or even a tribe of children in Africa, but they won't threaten your loved one here in the US.  If you are looking for a safe present, skip the car and get a safe present.

Thursday, September 06, 2007

Food Recalls and Wasted Distribution Energy Around Recycling

Like anything, good things happen in threes, so do bad things.  The recall of canned chili and other products made by Georgia-based subsidiary Castleberry's Food Co. was announced on 18th of July 2007 after two incidents of botulism poisoning involving four people, and was expanded on the 21st of July 2007 to include all goods from the suspect product line.

The recall includes a list of 87 food products and four different pet food products.   The majority of the 87 food products are based on different combinations of chili, .

This list of recalled products has over 25 different brand names.

http://www.castleberrys.com/news_productrecall.asp

On a separate note, we have been covering a lot of recalls from China.  I'd point out that American businesses have gotten in trouble in other areas of the world, such as India where soft drink manufacturers were basically booted from the country due to the perception of tainted bottle water.  In fact I was reminded of this tonight, during a talk radio show that mentioned Cokes attempts to build the largest plastic bottle recycling center in South Carolina (biggest in US to be located in SC).

A critic mentioned that Coke wouldn't need to recycle so much if they stopped bottling water in the first place and if the government encouraged people to drink the same water out of tap, even if its some extra fancy Delta faucets, whatever it takes to put the image of sexy back into tap water and stop wasting so many resources to bottle water in plastic, pack it, ship it, carry it home, send it to the recycle bin, pick up the plastic, and haul it to SC where it can happen all over again!

Recall an Easy Bake Hobby

Late July 2007, Hasbro cooperated with U.S. Consumer Product Safety Commission, announced a nation-wide voluntary recall of new Easy-Bake Ovens.   The recalled Easy-Bake Oveneasy-bake-recall-promo-image is a purple and pink plastic oven that resembles a kitchen range with four burners on top and a front-loading oven.

The Easy-Bake Oven is a purple and pink plastic oven that resembles a kitchen range with four burners on top and a front-loading oven. "Easy Bake" is printed on the front of the oven. Model number 65805 and "Hasbro" are stamped into the plastic on the back of the oven. This recall includes all units with the retrofit kit. The Easy-Bake Oven is an electric toy and is not recommended for children under eight years of age. Ovens sold before May 2006 are not included in this recall.

The recall affects Easy-Bake Ovens sold at Toys "R" Us, Wal-Mart, Target, KB Toys and other retailers nationwide from May 2006 through July 2007 for about $25.

For additional information, contact Easy-Bake at (800) 601-8418 anytime, or visit the firm's Web site at www.easybake.com

So again, as you are looking to pursue a product line strategy for the christmas season, you might want to hedge your bets with something not manufactured in China, otherwise you might find your self with lots of spare time to pursue other interests at the local hobby shop.

Chinese manufactures may be getting a bad rap, but American businesses are the ones with their necks on the lines and the ones likely to be hit the hardest from lawsuits, especially as its just about impossible to collect anything in a lawsuit from a Chinese manufacturer.  So call in your buyers and huddle up, and start finding ways to hedge your product mix with supplier products that can be trusted.

Some Perspective on the Pet Food Recall

Since March 2007, Menu Foods and several other companies issued numerous pet food recalls due to the contamination of wheat gluten from a single Chinese company.  This recall came in response to reports of renal failure in pets.   The scope of the recall also affected pets located in Europe and South Africa.

Without going over the number of fatalities, lets focus on the money issue.   This blunder created an economic impact on the pet food market that Menu Foods alone lost a minimum of $42 million from the recall, even without taking into account reduced sales.

Many of my friends who have dogs and cats as their animal companions have taken the cause of making their own pet food instead of buying it.  Whether they can maintain that discipline is a different story.

Some people can provide pets and animals with more attention and discipline than others from the people that raise them to fight like Michael Vick, to the people that patrol the beaches saving turtles from encroaching street lights, to people that go for seagull lighting to spice up the entry way to their side entrance with a chandelier.

More Mattel Problems

Beside The Barbie and Tanner Playsets, the magnetic problems also affect other Mattel toys.
They are:  Polly Pocket Play Sets (multiple products); Batman Magna Play Sets (4 products); Barbie(r) and Tanner Accessory (1 product); Doggie Daycare Play Sets (multiple products); and Shonen Jump's One Piece (1 product).

Including the Barbie and Tanner Playsets, over nine million play sets were sold.

More information can be found by contacting Mattel at (888) 597-6597 anytime or visit the firm's Web site   ( service.mattel.com)  for instructions on receiving a replacement toy.

So if you are having a difficult time coming up with early christmas gift ideas, maybe you should consider non-toy gifts.  Right now, its up for grabs weather Santa's Gifts will be safe for kids.

Thursday, August 30, 2007

Do Not Let Your Kid Eat the Toys R Us Crayons - Another Chinese Recall

Its beginning to be almost as regular as a clock or the setting of the sun, but there is yet another recall of Chinese manufactured product that are poisoned with lead.

toysrus crayon and paint recall

This time Toys-R-Us is recalling 27,000 sets of crayons and finger paints.  The wooden case that holds the units is painted with lead contaminated paint and some of the water colors also have lead in the paint. 

What's Next Baby Food?

1010 WINS - On-Air, Online, On Demand - Toys 'R' Us Recalls Wooden Coloring Cases

Wednesday, August 22, 2007

The Small Business Impact of Debt Solutions

Regardless of the good times or bad times, many small businesses usually make poor money management decisions due to inadequate professional experience. After awhile the owners become overwhelmed with debts that they loses their direction in building the business.

Soon, these same owners realized that their debt problems and the prospect of bankruptcy are holding back the potential growth of their business. Especially when the current business cycle strategically favors their business.

One of those debt problems that affect most small businesses is the problem of "near-max out" credit cards with high interest rates. What does one do when the revenue is down and the credit card bills are high? Emotional pressure become prevalent especially when the collectors are calling everyday

To free your business of burdensome debt, without filing bankruptcy, I recommend the consummate Debt Relief solution: credit card consolidation.

What does one get when they get a "Credit Card Consolidation" solution?

(1) Debit payments are consolidated;

(2) Your Monthly payments are lowered;

(3) Interest rates are reduced;

(4) Late fees are waived

(5) Collection calls are eliminated

Another Mattel Recall: Small Powerful Magnets Are Dangerous

In August 2007, the U.S. Consumer Product Safety Commission and Mattel are recalling even more magnetic toys. The Barbie and Tanner Play sets contains powerful magnets that can detach and be swallowed by children. The danger comes if more than one magnet is swallowed, they can attract each other and cause serious intestinal issues, including perforation or blockage, which can be fatal.   Mattel recently received three reports of the magnets coming loose, but no injuries have occurred.

It has been estimated over 680,000 of these play sets were sold at toy stores nationwide from May 2006 to August 2007 for about $16 each.  

More information can be found by contacting Mattel at (888) 597-6597 anytime or visit the firm's Web site ( service.mattel.com) for instructions on receiving a replacement toy.

Wal-Mart Finds More Melamine

Wal-Mart pulled a number of dog treats from the shelves last month and subjected them to their own in house testing.

Those tests have come back and confirmed the presence of Melamine the agent thought to have killed or sickened possibly thousands of pets during the pet food recall earlier this year.

The treats were chicken jerky strips sold under the brand name Bestro's.

The products were sold under the name

  • Chicken Jerky Strips - by Import-Pingyang Co
  • Chicken Jerky - by Shanghai Bestro Trading

The pet foods caused liver failure in multiple types of cats and dogs (an official count was never reached).  This wasn't just a case of dog food gone bad causing pets to suffer colon cleanse symptoms, but actually caused organ failure.

Tuesday, August 21, 2007

Mattel Recall


In early August 2007, Mattel performed a nationwide recall on their Fisher-Price Toys and Pixar Car toy "Sarge".  They discovered both product lines contained Lead Paint. 

Fyi- Lead is toxic if ingested by young children and can cause adverse health effects.

While 1.5 million of the Fisher-Price product line representing various Nickelodeon and Sesame Street characters were sold, 253,000 of the Pixar's "Sarge" car were also sold. For many consumers returning from summer vacation, they might find that they are working to filter out recalled toys before they back up their Orlando rental home and head to the airport.  The speed and numbers of recalls lately have been fast and large and Mattel's is one of the largest next to the dog food recalls from this spring.

If you have any of the named products, please contact Mattel.

More information can be found at this link that leads to a specific Mattel's web site [http://service.mattel.com].

Mobile Phone Recalls

Sometimes it seems like you can't hardly get a product cut out of a master pack with box cutters before someone is issuing a recall these days.

Beside laptop batteries being recall, it was only a matter of time the batteries for the mobile phone would be recalled.

On the 14th of August 2007, Nokia issued a 'product advisory' (the company does not call it a recall) for the BL-5C battery manufactured by Matsushita Battery Industrial (BEI). The Matsushita Battery Industrial revealed faulty manufactured batteries that could explode after short circuit. 

It has been estimated that there are over 45 million BL-5C batteries in the hands of users.

What does one do when the batteries for the laptop and the mobile phone do not work? 

The question is your phone battery working ok?

Recall Communications are not like Sending a Wedding Announcement

Since 2006, laptop batteries have been recalled.  In August 2006: Dell recalled over 4 million notebook batteries, after a number of instances where the batteries, made by Sony, overheated or caught fire.  Most of the defective notebooks were sold in the US, however some 1 million faulty batteries could be found elsewhere in the world.

Following Dell's battery recall, Apple Computer also recalled 1.8 million Sony notebook computer batteries. Similar to Dell, most of the notebooks were sold in the United States. However some 700,000 units could be found overseas.

Between September and October 2006: Matsushita (Panasonic), Toshiba ,  IBM/Lenovo, Hitachi and Fujitsu recalled a minimum of 1,000,000 batteries.

In February 2007: Lenovo and Sanyo recall 200,000 batteries.

None of the recall announcements went very well in the last year.  Some of the recalls were triggered very publicly with YouTube videos of burning laptops at conventions and airports.  A recall does not trigger a joyous event like engagement announcements for your daughter's wedding.

They inspire fear and anger and reactionary behavior.  That doesn't mean that the message should be slowed down or that any portion of the truth should be held back.  Consumers need to know that they can trust your company again after a recall and that requires coming clean truthfully and completely right away.

Definition of Product Recall

A product recall is a request to return to the maker a batch or an entire production run of a product, usually due to the discovery of safety issues. The recall is an effort to limit liability for corporate negligence (which can cause costly legal penalties) and to improve or avoid damage to publicity. Recalls are costly to a company because they often entail replacing the recalled product or paying for damages caused in use, albeit possibly less costly than indirect cost following damages to brand name and reduced trust in the manufacturer.

Lately, there has a rash of product recalls from many industries.  Products like batteries, food, toys, tires and so forth, are being recalled .   There are many areas that have not been impacted and that go under reported as well from landscape lighting to desk chairs to large portions of the food supply that didn't harm anyone yesterday, last month or last year. It only takes a few 'bad apples' however to cause a problem and quality initiatives have possibly never been more important for distributors to manage than they are now. You can't necessarily assume that the manufacturer is going to cover a product, build it right, or back it up during a recall. You can not assume that the brand on a product is being managed well by the company that licensed that brand to the manufacturer.

So, the questions are what actions are we planning to take to stop this onslaught of faulty products? 

Do you trust the government to do the right thing? By Your Company?  By Your Customers?  By Your Family?

Dedicating a bigger Section to Recalls

We are going to dedicate a segment of our articles towards recall news.  Recalls and returns for that matter or a major expense in time and money for anyone that works in any form of distribution.  Recalls, especially those covering products sourced in China are getting a great deal of attention, and rightly so.

The industry needs to police itself and clean things up or face a consumer and multi-government backlash.  This will mean higher costs if businesses proceed with a business as usual mentality, but fortunately there are also many new technologies and tools that can enable companies to manage their products and product life cycles much more effectively and efficiently.

So whether you are selling Air Jordans retro shoes or dog food or tooth paste, automobile tires or DVDs, there are better ways to do business, help your customers and grow sales without destroying the market through slash and burn tactics that result in short term savings, but end up costing the entire industry millions and possibly putting your company out of business.

Friday, August 17, 2007

Dell restates earning by up to $150M - Aug. 16, 2007

Dell Computer announced that it will restate earnings following recommendations by auditors that have investigated weaknesses in the company's internal control procedures.  Executives apparently had the flexibility to make accounting adjustments so as to achieve short term quarterly sales results.   

Dell said it expected to conclude that control deficiencies identified by auditors "constituted material weaknesses in the company's internal control over financial reporting."

The company added that executives, who it did not name, transferred excess accruals from one liability account to another and used excess balances "to offset unrelated expenses in later periods."

Dell restates earning by up to $150M

Many people were surprised to hear that the findings were not more severe.  Following other high profile financial scandals there was an expectation on the street that the problems at Dell would prove to be much worse than they appear to be.  There was a sense that the company would have to prepare for something akin to Mesothelioma treatments and instead only needed to take a few doses of cough syrup and antibiotics for a few days. In fact their shares on the Nasdaq rose 2.6 percent on Thursday while most of the financial markets around the world were still in a state of free fall as a result of problems in the mortgage industry.

Friday, August 10, 2007

More Recalls from Sony - on Toshiba Laptops

Toshiba had to issue another recall this week on laptop batteries of Satellite models (A100, A105, and the Tecra A7).  The batteries are manufactured by Sony, which has been in an almost constant state of recall since this time last year when a laptop caught fire on video at a conference and another laptop later self incinerated at LAX.

Sony is not having a good year.  They have been plagued with recalls, they've had to cut the prices on the PS3, which came out late and was over shadowed first by the early release of the XBOX 360 and then the super popular Wii from Nintendo.  More recalls and price cuts will not bode well for Sony's bottom line.  Plus, the summer is almost over and the advertising plans for Christmas are almost cooked.  Sony has not been able to get its mix right all year and that will probably push retailers to go with what works - Wii and XBOX 360 unless Sony places heavy incentives on the PS3. 

If Sony doesn't get their act together, they are going to have to carry out an executive retreat somewhere secluded, where they can knock some heads around without any distractions.  I'd recommend a Pigeon Forge cabin rental package. Maybe the simple life will help the executive team pull it together and stop worrying about saving face and start worrying about doing better business. The Sony reputation has probably suffered more in the last 12 months than it has in its entire existence.

Note.  This article was written on a Satellite P105, which is not yet impacted by these recalls.

Toshiba Recalls More Laptop Batteries -- Battery Recall -- InformationWeek

Thursday, August 09, 2007

Silicon Valley's Wake Up Call - Go Directly to Jail

Silicon Valley received a serious wake-up call yesterday. 

Gregory L. Reyes, former CEO of Brocade Communications Systems Inc. of San Jose, faces the possibility of 20 years in prison and a $5-million fine for rewarding key employees with options to buy company stock at artificially low prices.

Ex-CEO guilty in backdating of options - Los Angeles Times

The conviction, a conviction on 10 counts, is making all of the Silicon Valley companies that have pushed options inconceivably backdated those options rethink their safety zone.  Dozens of companies including Apple Computer have been caught up in snared in backdating trouble.

The conviction of the CEO of Brocade is the wake-up call to all of these companies and their CEOs and CFOs that juries could take away their freedom and send them to jail for what they look at as a simple way to strategically place funds within the budgets of their corporate accounts.

Backdating options is equivalent to cooking the books and it's a crime.  It was not a crime with teeth until the jury brought home a conviction.  Now it's a serious crime and CEOs will be much much more careful in their defense.  The problem is the damage is already done and they can take back what they've been doing for years or done in the past.

Corporations can hang their hats on their auditors and blame their auditors for failing to find wrongdoing in their backdating scenarios.  Anyone that wants the Enron case knows that auditors are fallible and when they fail it's the companies that pay the price not the auditors.  There is no scapegoating to an audit firm when you break the law.

If nothing else, prisons around the country might see a higher quality of coffee mugs showing up behind bars as CEO's emigrating to jail take some of those great personalized cups into that notorious big house with lots of bed rooms replete with built in bathrooms and no swimming pools anywhere.

It's likely that a number of people that are under investigation are going to look at this recent conviction and realize that the consequences are serious and they're going to start talking to prosecutors in trying to establish a deal.  That's good for the people at lower levels in the company and very bad for the CEOs of companies that are being targeted.

China, Real Estate, Bad Products, the Economy

If there were any doubts about how plugged in China is into the United States economy, those doubts were likely to raise today.  The news is not full of talk about fallout from the shakeup in the mortgage and real estate industry in the United States for several days.  The news also been full of product recalls, bad products, defective products, and food that's not fit for consumption being distributed from China all around the world.

There's also a growing buzz about the lack of speech freedom and freedom of the press in China with hints of the pollution in the air and the water in China are also starting to bubble to the surface as we approach the 2008 Olympics.

Instead of rising to the occasion and promising to fix or work on the problems that are plaguing China, the government stepped up this week and threatened the United States with an economic attack of nuclear proportions that could potentially sabotage both countries economies.  China holds approximately a half $1 trillion in US debt in the form of T-bills.

China is essentially threatening to foreclose on that debt and send the United States economy into a hyperinflationary period, the likes of which the world hasn't seen since before the Great Depression.  Since the United States is a prime outlet for the goods to China produces and hence one of the primary contributors to providing employment for Chinese workers, such a move would be akin to cutting off their own head in order to create a mortal will own for the United States which they must perceive as an enemy as opposed to a customer and partner in the world.

China doesn't have a central government like many of the worlds great nations, and so any of the diatribes that come out of the country come in the form of a multi-headed factionalized government.  This makes all the statements that come from China less than credible and yet they are always very possible.  Any of the factions could trigger any of the actions that are threatened if the other heads of Government did not step in to thwart them.

 

This is the dangerous part of the Chinese government.  Most governments especially democracies are set up to maintain the status quo and not perform any actions in last the entire government gets together and makes those actions happen.  In China it works that way part of the time, the part of the time any segment of the government can take action if the other segments of Government did not stop them from taking action.

 

With that in mind countries around the world will have to take an extra careful and diligent approach to doing business in dealing with China in the future.  They have demonstrated their immaturity in the face of tough times in shown that they cannot be counted on to clean up their own house.  Anyone that relies on products or food or sustenance or supplies from that house needs to have a redundant backup plan or else they might suffer from a collapse of that house.

 

This immaturity will likely benefit several areas of the world and extreme fashion.  South Korea stands to benefit the most as they have attempted to keep up with Chinese manufacturing capabilities and growth.  As long as North Korea could be held at bay, South Korea has the ability to show their reliability to the rest of the world and step in where China is in capable of living up to its own potential.  If North Korea could reconcile with South Korea under a South Korean leadership, South Korea might even overtake China in the short term.

 

However it is India that contains the most potential to step in and become the world's new leader in manufacturing and supplies to the world.  Like China, India has vast resources of people ready to step in and do the work that Chinese workers in factories are unable or unwilling to do in a safe and reliable way.  India has the technology and the intellectual capital to pull this off.  They've been working for several years to grow their infrastructure and to build out their economic capital such that they could exercise their power in this way.  China's recent threats will start to drive the world towards investing in India to become initially a backup supplier to the world and potentially the primary supplier to the world.

 

In the meantime China will continue to rise, but their potential as just been capped by their own actions, their failure to respond, and their political immaturity.
Sunday, July 29, 2007

Qwest ex-CEO Nacchio ordered to forfeit $52 mln

 The ex-CEO of Qwest has had a bad week.  He's been sentenced to six years in jail and will have to forfeit $52 million that he received and was prosecuted for successfully by the government.  He received a $52 million from stock gains he received when trading on his own company that he had inside information on.  Over 20 other charges were dismissed at the government was successful in convicting him on 19 counts of insider trading.

A federal judge ordered the former chief executive of Qwest Communications International (Q.N: QuoteProfile , Research), Joseph Nacchio, to forfeit $52 million in stock gains from insider trading, before his sentencing hearing on Friday.

...

Nacchio, 58, whose April conviction on 19 counts of insider trading was one of the biggest victories for U.S. prosecutors in a range of cases charging illegal financial dealings by corporate executives.

Qwest ex-CEO Nacchio ordered to forfeit $52 mln | Reuters.co.uk

 

I foresee a CEO that's going to be living a lot more simply over the next few years while he is in prison indefinitely after he gets out.  He may even have to sell a luxury home or to to make ends meet.  The government took $52 million I'd hate to see what his lawyers are taking from him.  But in reality that's all chump change compared what he took from investors and other stakeholders in Qwest.
Saturday, July 28, 2007

Notes from a Mobile Professional (3): Tools of Trade

I am working on a new concept of pushing a series of articles out across several blogs in the Softduit Network.  This is part 3 in a series that continues to grow.

As a mobile professional, I am a big fan of storing data with different data storage mediums.   My favorite storage mediums are: data tape; DVD, and SD card.   My preferred data storage and backup software tool is Norton's Ghost.

In terms of SD Card, my preference is the 8 GB size.   At the same time, I have SD cards of numerous memory sizes.
For most of my devices (digital camera,) I do prefer the use of SD card to storage small file sizes, image files, video clips and audio files.

As of this time, SD-card is the most popular memory card format used in compact digital camera. Those who purchase SD-card must realize that there are different types of SD-cards.

Mobile Professional Tools Series

Part 1 | Part 2

Tuesday, July 24, 2007

Avnet Acquires European HP and IBM Distribution Business

Avnet announced that they will acquire Magirus Groups Enterprise Infrastructure Division for Europe making them one of the largest European distributors of Enterprise solutions. 

Avnet has made several acquisitions in the past year-and-a-half. At the beginning of this year it acquired Access Distribution. Avnet acquired Belgian auto-ID distributor Printex in March of last year and the assets of Zeta, a German wholesaler in June.

IT Channel News by CRN and VARBusiness

Avnet is in the process of sewing up this market tight, but he deal is still subject to regulatory approval but its unlikely that any Funeral Insurance for this deal will be necessary.

Tuesday, July 17, 2007

Microsoft Project 2007

If you are a Microsoft Project Depot today, and you haven't considered jumping ship to a cheaper alternative, you might consider reading this article at our sister site.

Microsoft Project 2007: The Essential Tool for Project Managers at Top 10 Tech Software

it describes why the new Microsoft Project 2007 might continue to be the essential tool for all project managers.  Whether you're managing a complex ongoing operation or continuous process or building a one-time project Microsoft project can definitely help you coordinate and manage large body of a complex and intricately balanced requirements.  It does have an expensive price tag however and that means you need to do your homework before you make a purchasing decision. 

Reader Feedback

  1. If you're using Microsoft Project 2007 we definitely like to hear from you and learn what you think of the new software.
  2. We'd also like to hear from you if you are definitely considering upgrading or definitely not going to upgrade to Microsoft Project 2007.
Monday, July 16, 2007

Effective Advertising with the Right Voice for the Job

Advertising online these days requires much more than throwing up a website and maybe supporting that with a business blog or a few white papers.  Visitors coming to your company website are often times going to bounce away to a competitor site unless you have compelling and sticky elements on your website that encourages them to stay.

Putting together a simple flash video presentation accompanied by a high quality voice over track can provide a level of stickiness that will keep people on your site and encourage them to hear out your entire message.

Finding good voice over talent is not difficult. For example Don Capone is readily available for performing voice over work. He has experience in TV, radio and internet mediums and can definitely provide the level of professionalism that your company and your website or commercial needs to succeed.

Voice over work can have a long shelf life for your company.  It can be used on individual presentations and even small excerpts can be cut and mixed for future advertising efforts.  You can even use this work in inserts to be advertised through other Radio or Internet Radio or Podcast broadcasts.

Hints of a China v US Trade War

China has banned shipments of US food products from Tyson and other companies citing contamination of the food products.  This appears to be a counter response to US Customers actions halting the shipment of fish shipments from entering the US border.

Many types of Chines fish products grown on fish farms have been identified to contain unauthorized levels of antibiotics in the fish.  Chinese fish farmers treat their fish with antibiotics to counter over crowded and poorly maintained fish farms.  The fish are kept healthy enough to go to market with the antibiotics.

Many other Chinese products have come under fire recently from toothpaste to poisonous childrens' cough syrup killing kids in Latin America. With a US economy that is heating up from inflated energy prices and a $9.5 trillion deficit, a trade war could be extremely bad for the US and for China both. 

If this type of tit for tat reaction spreads to other areas from simple Wal-Mart products to consumer electronics and more, we could be marching towards a significant show down.  A trade war could cause significant disruptions in products for US businesses and consumers from food, to iPods to Dell Memory, to kids toys, back to school supplies and much more.

IHApplebOP Merger

High Gas prices and a week real estate market have  created an ideal situation for IHOP to buy Applebee's for $2.1 billion.  IHOP is being led by Julia Stewart, who came from Applebee's originally back in 2001.  She is credited with turning IHOP around and through the merger will now be charged with turning her former employer around.

The combined chain of restaraunts will be capable of earning $6.8 billion in revenue per year.  The real question will be how consumers will react as they continue to feel the pinch of inflation, energy prices on the rise, a week real estate market and a Federal deficit approaching $10 trillion weighing in on the American economy.

The interesting thing about this story is probably the CEO, Julia Stewart.  She came out of operations and has steadily improved the operations of IHOP.  Its this ability to change the fundamentals of a company and add value that is significant (as opposed to the all too typical slash and sell off model used by companies in other industries - Motorola comes to mind).  A company that is led by a leader that knows how to fix things is going to be far stronger in a bad economy than a company that only knows how to take chargers and sell off their company one fire sale at a time per quarter.

With this approach in mind, executives from Applebee's might be hanging up their Callaway golf clubs on the wall at Applebee's to add to the ambience. They will probably find themselves skipping some business at the club and rolling up their sleeves to get back to basics in their restaraunts.

IHOP to buy Applebee's restaurant chain for $2.1 billion - MarketWatch

Saturday, June 30, 2007

900,000 Tubes of Tainted Toothpaste circulated in US - Problem Still Growing

Earlier this month authorities identified a few thousand of tubes of Toothpaste from China that were suspected as tainted.  They also found knock off toothpaste labeled as Colgate but shipped from South Africa.

Now the Toothpaste problem appears to be larger than originally suspected. 

The New York Times reported on Thursday that about 900,000 tubes of tainted Chinese toothpaste were more widely distributed in the U.S. than previously thought and had been distributed in correctional facilities, mental institutions and some hospitals.  Government is distributing tainted products to the nation’s more vulnerable people.

Source: Dismal Scorecard For FDA

 

Like the petfood recall, that originally started with a few small reports the tooth paste recall seems to be unfortunately expanding and growing.  Tainted tooth paste has been pulled from dollar stores originally, but now also its being found and pulled in hospitals, prisons and juvenile detention centers in small containers that might be described as travel sized.

The question that remains is how many more tainted tubes of tooth paste from China or South Africa or some other country are floating around in the world wide markets for consumers to use and potentially get sick or die?

Blog Advertising with PayU2Blog

This blog and several blogs in the Softduit Partners Publication Portfolio are monetized by the advertising services provided by PayU2Blog.  PayU2Blog provides blog advertising services to companies and websites that are working to promote their websites or individual product pages through inline contextual advertising programs.

There are many types of blog advertising programs.  This program works to manually place contextual links throughout the blogosphere pointing towards an advertisers websites.  Each of these links when placed contextually (like in the paragraph above) are identified by search engine robots that perform automated searches throughout the internet.

Each of these links are tallied up along with the keywords they are associated with providing a vote for that link on that keyword.  We place these links on articles within our publication system to help advertisers rank higher and to enable the on occasion to pick up additional visitors or traffic when people read the articles and take an interest in the hyperlinked keyword.

Walgreens Opens Advanced Distribution Center in Anderson SC

Walgreens announced the opening of an advanced distribution center in Anderson South Carolina.  Walgreens worked to design a DC that enabled people with Disabilities and Special Needs to work within the facillity and specially tailored work stations.  The DC will accomodate people with a range of mental or physical challenges. Their recent press release did not indicate whether or not Walgreens would employ people seeking drug rehabilitation services.

With the growing preponderance of people of all ages suffering from prescription drug addictions, drug distributors and retailers are coming under fire for not doing enough to protect the public and their own customer base.

Source: News: Walgreens Celebrates the Opening of Its 12th Full-Service Distribution Center in Anderson, S.C.. Genetic Engineering News - Biotechnology from Bench to Business