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jerryking : penalties   5

Produce or Else: Wal-Mart and Kroger Get Tough With Food Suppliers on Delays
Nov. 27, 2017 | WSJ | By Annie Gasparro, Heather Haddon and Sarah Nassauer

Grocers are giving food companies a tougher mandate: Ship on time, or pay the price.
Food retailers want their suppliers to resolve the persistent problem of delayed or incomplete deliveries, which they say costs them millions of dollars a year in lost sales and overtime pay.
Retailers used to give suppliers more leeway, since any number of factors—bad weather, a surge in demand, technology malfunctions—can foil deliveries of cereal, cheese, candy and other packaged goods from warehouses scattered around the country.
But now as traditional grocers battle Amazon.com<http://Amazon.com> Inc. and other online retailers that prioritize delivery speed, as well as price-cutting discounters, more are taking a strict line with suppliers, telling them on-time deliveries will translate directly into more sales and profits.
Delayed deliveries can leave holes on store shelves. Sales of some $75 billion a year are lost because products are out of stock or unsalable for other reasons, according to the Food Marketing Institute, a trade organization. That is about 10% of annual grocery sales industry-wide at a time when sales growth is hard to come by. “It’s a massive opportunity from a financial and customer standpoint,” .....The country’s biggest grocers are leading the charge. Kroger is fining suppliers $500 for every order that is more than two days late to any of its 42 warehouses, and Wal-Mart Stores Inc. is charging suppliers monthly fines of 3% for deliveries that don’t arrive exactly on time, according to the retailers. They began issuing the fines in August........Wal-Mart has signaled it could do more than levy fines if problems persist. Charles Redfield, executive vice president of food for Wal-Mart U.S., told suppliers they could also lose shelf space if they don’t solve their delivery issues, according to people in attendance at a supplier meeting earlier this year. Retailers can threaten suppliers with loss of promotional space in stores, analysts said.....Packaged-goods companies are straining to keep up with the demands and remain in the good graces of retailers. They need GPS trackers and software to adjust routes in real time. Filling full orders fast is also challenging, since many manufacturers house items all over the country. That is particularly true for refrigerated items needing costly cold storage—which has fueled investments in more fulfillment centers......“Shipping complete orders on time is a completely reasonable request but turns out it’s harder than it sounds.”...
Wal-Mart  Kroger  grocery  supermarkets  supply_chains  retailers  delays  food  shipping  Amazon  cold_storage  penalties  delivery_times  fulfillment  CPG  Kraft_Heinz  P&G  on-time  shelf_space  supply_chain_squeeze 
november 2017 by jerryking
‘Locking Up Our Own,’ What Led to Mass Incarceration of Black Men - The New York Times
By JENNIFER SENIOR APRIL 11, 2017

LOCKING UP OUR OWN
Crime and Punishment in Black America
By James Forman Jr.
Illustrated. 306 pages. Farrar, Straus and Giroux. $27

Part of the power of “Locking Up Our Own” is that it’s about Washington — not the swamp of deceit merchants and influence-peddlers that Donald J. Trump promised to drain, but a majority-black city that hundreds of thousands call home, regardless of whose bum is in the Oval Office. Washington only first got the chance to elect its own mayor and city council in 1975, and the city’s coming-of-age story — and the challenges it faced — in some ways mirrored that of other cities with large African-American populations, like Atlanta and Detroit.

“Locking Up Our Own” is also very poignantly a book of the Obama era, when black authors like Alexander and Bryan Stevenson and Ta-Nehisi Coates initiated difficult conversations about racial justice and inequality, believing that their arguments might, for once, gain more meaningful traction. (Often, in fact, they said things the president, burdened with the duty to represent everyone, might not have felt free to say himself.......Forman does not minimize the influence of racism on mass incarceration. And he takes great pains to emphasize that African-Americans almost inevitably agitated for more than just law-enforcement solutions to the problems facing their neighborhoods — they argued for job and housing programs, improvements in education. But their timing in stumping for social programs was terrible. “Such efforts had become an object of ridicule by 1975, a symbol of the hopeless naïveté of 1960s liberalism,” Forman writes.

One result: A wide range of African-American leaders championed tougher penalties for drug crimes and gun possession in the 1970s, ’80s and ’90s. It was the one option they consistently had, and it seemed a perfectly responsible, moral position. Wasn’t the safety of black law-abiding citizens a basic civil right?
mass_incarceration  African-Americans  men  books  book_reviews  penalties  prisons  unintended_consequences  criminal_justice_system  difficult_conversations 
april 2017 by jerryking
Steering Clear of Sanctions - The CFO Report - WSJ
July 8, 2014 | WSJ | By RACHEL LOUISE ENSIGN, SAMUEL RUBENFELD and MAXWELL MURPHY.

The U.S. blacklist names nearly 6,000 entities and individuals that are off-limits to U.S. companies and—in some cases—their foreign subsidiaries.

The list changes often: the Treasury Department’s Office of Foreign Assets Control added almost 500 names last year, and this year has added nearly 240, including Igor Sechin, chief of Rosneft. More than 350 names were crossed off this year, largely due to the removal of most remaining sanctions on Colombia’s Cali drug cartel.

Treasury penalties for violating sanctions this year have totaled about $1.2 billion, largely because of the department’s share of the BNP penalties.

“We call them Powerball penalties now,” said Judith Lee, a sanctions specialist and partner at Gibson, Dunn & Crutcher LLP, referring to their size.

As the U.S. tries to exert more geopolitical influence with financial levers, rather than military might, multinational companies are at risk of running afoul of its sanctions. Many sanctions programs have different rules for different countries. Individuals on the list often are reputed to operate networks of companies with little transparency. And the penalties can be extracted by a range of U.S. authorities.

When it comes to sanctions, “the U.S. government is effectively deputizing all of these companies to be their own policemen,” said Ms. Lee.
sanctions  U.S.Treasury_Department  geopolitics  multinationals  blacklists  penalties  economic_warfare 
august 2014 by jerryking
Learning to Love Volatility: Nassim Nicholas Taleb on the Antifragile
November 16, 2012 | WSJ | Nassim Nicholas Taleb

In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes Nassim Nicholas Taleb.

Some made the mistake of thinking that I hoped to see us develop better methods for predicting black swans. Others asked if we should just give up and throw our hands in the air: If we could not measure the risks of potential blowups, what were we to do? The answer is simple: We should try to create institutions that won't fall apart when we encounter black swans—or that might even gain from these unexpected events....To deal with black swans, we instead need things that gain from volatility, variability, stress and disorder. My (admittedly inelegant) term for this crucial quality is "antifragile." The only existing expression remotely close to the concept of antifragility is what we derivatives traders call "long gamma," to describe financial packages that benefit from market volatility. Crucially, both fragility and antifragility are measurable.

As a practical matter, emphasizing antifragility means that our private and public sectors should be able to thrive and improve in the face of disorder. By grasping the mechanisms of antifragility, we can make better decisions without the illusion of being able to predict the next big thing. We can navigate situations in which the unknown predominates and our understanding is limited.

Herewith are five policy rules that can help us to establish antifragility as a principle of our socioeconomic life.

Rule 1:Think of the economy as being more like a cat than a washing machine.

We are victims of the post-Enlightenment view that the world functions like a sophisticated machine, to be understood like a textbook engineering problem and run by wonks. In other words, like a home appliance, not like the human body. If this were so, our institutions would have no self-healing properties and would need someone to run and micromanage them, to protect their safety, because they cannot survive on their own.

By contrast, natural or organic systems are antifragile: They need some dose of disorder in order to develop. Deprive your bones of stress and they become brittle. This denial of the antifragility of living or complex systems is the costliest mistake that we have made in modern times.

Rule 2:Favor businesses that benefit from their own mistakes,not those whose mistakes percolate into the system.

Some businesses and political systems respond to stress better than others. The airline industry is set up in such a way as to make travel safer after every plane crash.

Rule 3:Small is beautiful, but it is also efficient.

Experts in business and government are always talking about economies of scale. They say that increasing the size of projects and institutions brings costs savings. But the "efficient," when too large, isn't so efficient. Size produces visible benefits but also hidden risks; it increases exposure to the probability of large losses.
Rule 4:Trial and error beats academic knowledge.
Rule 5:Decision makers must have skin in the game.

In the business world, the solution is simple: Bonuses that go to managers whose firms subsequently fail should be clawed back, and there should be additional financial penalties for those who hide risks under the rug. This has an excellent precedent in the practices of the ancients. The Romans forced engineers to sleep under a bridge once it was completed (jk: personal risk and skin in the game).
Nassim_Taleb  resilience  black_swan  volatility  turmoil  brittle  antifragility  personal_risk  trial_&_error  unknowns  size  unexpected  economies_of_scale  risks  hidden  compounded  disorder  latent  financial_penalties  Romans  skin_in_the_game  deprivations  penalties  stressful  variability 
november 2012 by jerryking

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