Category Archives: Service Operations

Competition between railroads and pipeline operators to transport oil

An article in Bloombergbusinessweek (June 17,2013) describes competition between a oil pipeline owner, Kinder Morgan, and railroads to transport oil from West Texas to Los Angeles. While pipeline operates demands long term contracts to cover their capital costs, railroads can … Continue reading

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Volvo offers Dimethyl Ether (DME) as a truck fuel

An article in the Supply Chain Digest (June 12, 2013) describes the use of Dimethyl Ether (DME) as a truck fuel by Volvo, producing 95% lower carbon emissions than diesel and 70% lower emissions than natural gas. Volvo claims that … Continue reading

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Tracking medicines to prevent counterfeits in the US

An article in Bloombergbusinessweek (June 3,2013) describes a plan to install a digital ID on tablet bottles to track them as they move through the supply chain. Individual companies would have to be registered in the Federal licenses and subject … Continue reading

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Apple’s 30% commission elimination and price increase

An article in the Wall Street Journal (June 10, 2013) describes the Justice department’s claim that Apple’s 30% revenue sharing contract (uniform for all products Apple sells) is a violation of antitrust and uncompetitive. The article claims that when this … Continue reading

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The emerging “internet of things” and opportunities

An article in WIRED magazine (June 2013) describes the emerging internet enabled devices across homes, factories, cities etc. They predict three stages – Stage 1 links devices to the internet, Stage 2 enables conditional actions (If-Then actions) between pairs of … Continue reading

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Decreasing the $290 billion cost of poor drug adherence

A report in the Wall street Journal (May 21, 2013) quotes a $290 billion cost estimated by the New England Health Institute due to poor drug regimen adherence by 33% to 50% of the patients, thus increasing hospital or other … Continue reading

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Vertical integration in the US global pharmacy supply chain and impact

An article in the Wall Street Journal (May 21, 2013) describes an alliance between Walgreens, Alliance Boots and AmerisourceBergen to consolidate their global purchasing of generic and branded pharmaceuticals and sell them through their US Walgreens retail stores and AllianceBoots … Continue reading

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The economics of the $6.75 shirt in Bangladesh

In an article in the Wall Street Journal (May 16, 2013), a manufacturer, Rubana Haq, describes the producer margins in a $6.75 shirt he manufactures. He claims that it costs $4.75 to buy the cotton cloth and $1 for the … Continue reading

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Software to track detailed flows from prescriptions to drug usage at the patient level

An article in the New York Times (May 16,2013) describes software that uses insurance records, claims etc to track individual drug prescriptions from doctors to patients to pharmacies, including refills, albeit without patient identifiers. But the data does include details … Continue reading

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Does the hospital penalty for “excessive” re-admits improve service quality ?

An article in the Wall Street Journal (May 5, 2013) discusses the impact of the Affordable Care Act’s penalties for hospitals with excessive re-admits within 30 days, set at 1% in 2013 and going up to 3% in 2015. But … Continue reading

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