2 Business Topics 2

CBS on the Go!

Posted on by spr1314mshah

With increasing number of people traveling for work and for pleasure with availability of faster Internet has increased the demand for live TV programs on Internet. Recognizing these consumers’ wants, CBS announced investing in Syncback. Syncback is a company, developing technology to stream local TV programs live to computers, tablets, and smartphones. This technology uses authentication system that checks that only authorize users, subscribed from local area, are watching streamed programs. Thus, it gives control over programming and viewer to TV channels.

This decision of making investment and becoming the part of the owner of Syncback has various operation management reasons. One of the main reasons is threat from Internet it self and companies like Aereo, Inc. It provides local over the air programs by streaming them to the customers by charging $8 to $12 a month. However, these programs suppose to be free and Aereo is doing this without TV channels’ permission. Therefore, channels like FOX, ABC, and CBS have sued Aereo, Inc. and trying to control over the air programming by streaming them by them selves using technology like Syncback.

Furthermore, there is no legal live streaming of the TV programs online, only alternatives are Netflix and Hulu.com, through which viewers can only access past aired episodes and for that they have to wait few days. CBS has seen potential in this opportunity and is trying to take it. If their research is successful, they can get more subscribers, as they will be one of few live streaming TV channels. At the same time, with Syncback’s Authentication technology, they will be able to control their programs and limit them to only locals. With other services, they do not have this control.

The third reason for investing in Syncback is related to supply-chain management. As the Coca-Cola Company produces their own bottles to reduce the cost; thus make more profit because they have resources to do that. Similarly, CBS had excess of fund, which they can invest and by investing in Syncback they can earn more money through subscribers by charging monthly fee, as they are part owner. Where as, if they had sold their rights to broadcast, they would have gotten only fraction of money as royalty, and also lose some control over programming as they sign off the rights. Thus, according to CBS, pairing with Syncback would add value to their company in long run.

The concern that bothers the stakeholder of CBS is that is it good idea to invest in company that is still in introduction cycle with trial and error, while there are other alternatives that people already use to access TV shows online for free. Because of that reason, the stocks of the CBS have not had any positive effects on them. Personally, I think that investing in Syncback was a smart move and will definitely bring profit to CBS.

Do you think investment in Syncback was right move? Or they should have just sold the rights for streaming? Do you think that the online service should be free to current subscribers?

 

http://online.wsj.com/article/SB10001424127887323735604578438801962307318.html

http://www.bloomberg.com/news/2013-04-22/cbs-invests-in-startup-that-lets-local-tv-stations-stream-online.html

 

adidas Closes Communication Gap Between Supply Chain Workers & Factory Management

Posted on by spr1324lvancrey

Recently, adidas Group has made changes in managing its supply chain that allows for better communication between factory management and supply chain workers. During 2012, adidas Group conducted a mobile phone communication pilot project at one of its major footwear suppliers in Indonesia. The project emphasizes the fact that many workers in Indonesia use mobile phones regularly and that this form of communication can improve relations between factory management and supply chain workers.

The use of mobile phones to communicate between factory management and supply chain workers allows workers to send an SMS text message anonymously to a hotline when there are issues in which they are concerned about. The factory Human Resources or compliance staff manages this hotline. Workers’ concerns can be investigated quickly and workers can easily communicate issues directly to factory management. This allows these issues to be detected and addressed early. Not only does this system allow workers to communicate their concerns to management anonymously, it also allows management to have a better understanding of the supply chain workers, which in turn helps them better manage the supply chain. This system is also useful in empowering employees because they have direct contact with factory management. Supply chain workers have a chance to voice their concerns regarding their working environment and their concerns will be heard directly by management.

During the beginning of this project, workers began to communicate matters related to Human Resources, like staff reductions, working hours, and insurance. Some workers went the extra step and asked questions, as well as made suggestions to management. The pilot thus far has shown positive results from both the workers and factory management. In order to gain worker feedback, surveys were administered, and a majority of the respondents enjoyed the new system and saw it as a valuable communication channel with factory management. The success of this project pilot in Indonesia has led adidas Group to implement the project to four other Indonesian factories and one Vietnam factory. adidas Group intends to further extend this service to other adidas Group suppliers in future years. They feel that this is an effective form of communication and that it closes the communication gap that can exist between workers and factory management.

adidas Group Board member Glenn Bennett, who is responsible for Global Operations, explained that, “Protecting the interests of global workers involved in manufacturing our products is an on-going priority for the adidas Group as we constantly strive to improve workers’ conditions in our suppliers’ factories.”

With mobile phone usage on the rise around the globe, how could this form of communication change supply chain management? Are there any negative effects that could result from this form of mobile phone communication between management and workers?

 

Sources:

http://finance.yahoo.com/news/adidas-group-shows-leadership-supply-120504917.html

http://blog.adidas-group.com/2013/05/marking-a-new-milestone-in-the-management-of-our-supply-chain-–-the-sms-worker-hotline-project/

Image: http://upload.wikimedia.org/wikipedia/commons/thumb/2/20/Adidas_Logo.svg/200px-Adidas_Logo.svg.png

 

 

Socialcast: Facebook for business or an innovative way for collaboration?

Posted on by Klaudia Obrzut
Source: http://www.socialcast.com/

Socialcast is cloud-based social network for business that aims at easing communication between employees and vendors. Its platform allows employees to share ideas, documents, videos, and seek for help, when needed.

VMware bought Socialcast in May 2011, when the company was just starting to target business with its goal of easing internal communication. VMWare, with it new update in mid-April, transformed Socialcast from merely a commination tool, to a dream product for any Project Manager.

VMWare, through Socialcast, wants to alter the way businesses access information by improving business processes. The new update is especially important for Project Managers as it integrates multiple different systems, such as CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), Sharepoint (document management software), email, and other applications. It creates a centralized workspace that helps Project Manager to keep track of deliverables and critical activities through communication with the team.

The new update also allows for instant messaging feature, called Socialcast Messenger, that is available on the platform as well as on mobile devices. While it is not an innovative feature, the IM keeps employees off using other massagers, such as Google Chat, and instead, keeps the communication centralized. Socialcast also allows employees to post updates, such a new security policy, and lets others in the company to comment on the post.

DePaul IT department, at which I am currently employed in as a Help Desk Analyst, uses similar features that Socialcast provides. We have a database, called DePaul University Knowledgebase or the “Wiki,” where specialists from different IT teams post documents and articles on various topics. This is especially helpful for my team because it aids in troubleshooting a technical problem. There are documents ranging from security polices to instructions on how to install various programs, such as SPSS, on DePaul machines. The Knowledgebase is especially useful for new employees, as they are not familiar with DePaul technology policies.

Socialcast Broadcast. Does this look like a Facebook wall?
Source: http://www.socialcast.com/

We also use internal instant messaging to aid in communication between different teams. I can communicate with my supervisor instantly without the hassle of e-mails. I personally find the IM and the Knowledgebase very useful, as I don’t need to get away from my desk and take time from others to ask questions that can be otherwise answered with a support document.

While Socialcast is useful for employees to familiarize themselves with the company’s policies and seek help, how much does it look to you like Facebook, but just for business? Even the platform of Socialcast looks very much alike the Facebook wall. The idea of Socialcast new update is to centralize the workspace and minimize e-mail communication, or even eliminate meetings. Has the way we communicate changed so drastically that we no longer seek face-to-face interaction even in the workplace? What do you think of the new Project Management update to Socialcast?

 

—–

Sources: 

Socialcast Website

VMware Adds Project Management, Secure IM to Socialcast Platform By Thor Olavsrud. April 18, 2013. 

VMware Updates SocialCast With Private Messaging By Chris Preimesberger. April 22, 2013. 

 

 

 

Does Apple Have A Supply Chain Flaw?

Posted on by spr1313emeador

Apple, a company that holds power, and diligence in the business world, is considered to have a top line supply chain management system. The success of this powerhouse company is mainly due to the innovative thinking and approach when it comes to supply chain management. However, why is their stock falling like a sack of bricks, and how come sales have slowed down?

Apple has created a “closed ecosystem” where they control every aspect of the supply chain, and in turn this enables Apple to launch large product lines avoiding high costs. For example, when designing the green light that lets you know the camera is on in all their laptops, they designed special tools to create this “at the time impossible idea.” They concluded that they needed to create lazar beams to cut a perfect whole in to the aluminum, which saved money and shows how they have total control over their product supply. Another example of innovative thinking that complements Apple’s productivity in their supply chain is when they bought 50 million dollars worth of holiday airfreight space. This in turn limited competitors to get their product to retailers, and also gave a huge supply of Apple products in stores limiting consumer options. “They have a very unified strategy, and every part of their business is aligned around that strategy,” says Matthew Davis, a supply-chain analyst with Gartner. He has ranked Apple as the world’s best supply chain for the last four years.

Clearly they are doing something right, right? Well with the decline of the stock a lot of question has been raised. For example, if Tim Cook is such a supply chain specialist, then why does he only have one supplier for all it displays? Even worse, why is that sole supplier Samsung, one of Apple’s biggest competitors? Because of business related tension between the two, and lawsuits, Samsung is not supplying displays to Apple for the new iPad Mini which is a problem. Tim Cook is clearly forced with a rough decision, and now basically has to choose between two Suppliers, LGD, and AUO, who is a very new inexperienced supplier. AUO cannot meet the volume demands for Apple so that really only leaves one supplier, LGD.

Overall, if there is such a fantastic supply chain in the company, and Tim Cook, who was COO under Steve Jobs, is considered to be the specialist in that, why would he but sole supplying responsibility on Samsung, one of their biggest competitor? It seems to be a huge gamble, and almost idiotic. Do you think that this sole supplier Apple uses is their flaw? Do you think this is going to hurt them in the long run? Could Apple be giving away their “closed eco system” by doing this? Could it be the small size of the supplier market that is hurting Apple? How can they avoid this problem?

Sources:   http://www.businessweek.com/magazine/apples-supplychain-secret-hoard-lasers-11032011.html

http://www.forbes.com/sites/petercohan/2012/10/26/apple-cant-innovate-or-manage-supply-chain/

Open Season Ending For Social Media Hackers

Posted on by spr1313cpfeiffer
Twitter Hoax Causes Market Decline–Washington Post

 

Following a recent slew of high profile Twitter accounts being hacked, the popular social media outlet is beefing up its security efforts.  If the company were to allow for the same security measures to remain in place, it would not only be damaging its own reputation, but it’s very operations would be ignoring a major ethical concern surrounding people’s right to privacy.

People are posting more and more of their personal information on the internet and social media outlets for various reasons and in varying capacities every day.  Naturally, such a movement has led to a simultaneous leap in presence of hackers.  The danger of social media hacking does lie solely in loss of personal data, however.

Individuals are now relying on social media as a primary source of news.  Inaccuracies in what is posted by seemingly reputable sources then has the potential to make for major overreactions and misunderstandings.  This is evidenced in the recent Twitter hackings of members of the Associated Press (AP) that led to several different incidents of false information being spread via the social media site.

Recently, false posts from a hacked AP account contributed to a stock market decline.  A hacker (following the tragic events of the Boston Marathon bombings) posted untrue information regarding an explosion at the White House.  He even went so far as to say that President Obama was hurt in the explosion.  Reactions to the news led to the aforementioned drop in the S&P 500 that saw a $136 billion dollar decline in market value.  This news is especially threatening to Twitter considering it was only a few months ago that the sharing of market-sensitive data was made legal on the social media site.

These sort of issues directly speak to the need for greater security measures to be taken by Twitter to ensure that private information and accounts are not compromised.  In response to the recent account hackings, Twitter has begun to take proactive steps to ensure that these sorts of issues do not continue.  New security measures are to include a multi-step authentication process that may even include identification codes being sent to account owner’s cell phones that must be utilized in order to be granted access to one’s Twitter account.

The increase in security measures is a great move, but it would appear that such a step is long overdue.  As we learned in class, proper planning steps could have addressed the potential for these ethical issues originally and saved the hassle now.  Individuals and companies entrust Twitter with personal information with the assumption that they will be protected from hackers and the like.  If Twitter or any other site is unable to live up to such assumptions, a very serious ethical issue could cause the reliability and credibility it has attained to be lost.

What other steps can Twitter take?  Do reports of these sorts of issues make you wary of the credibility of Twitter sources?

 

The “King’s” Strategies-Burger King

Posted on by spr1323rpogorzelski

Burger King, the popular fast food giant went public again in 2012 after being privately owned by a privately owned equity group called 3G Capital. After analyzing the numbers of Burger King’s quarterly reports from last year, it is apparent that the company is heading in the right direction after comparing the first quarter earnings this year from a year ago. Last year the company reported its first quarter earnings at $14.3 million compared to $35.8 million this year. So with these numbers on the rise, can the fast food giant compete with other companies such as McDonald’s and Chipotle while also being a valuable investment for its shareholders?

Well it looks like Burger King has a solid structured plan to make ends meet and come back to being a household name again. Last week the company sold its Canadian subsidiary, which owned 94 stores, to privately owned Redberry Investments. Now the company is planning on focusing on their operations in cutting costs in turn to making their sales more profitable. Another plan is to revamp 40% of their restaurants which will have a new 20/20 design and a change in lighting and seating arrangements. In order to increase the number of stores the company is promoting third-party financing opportunities as well as a 50% discount on the annual franchisee fee for their franchisees. Lastly, the company is focusing more on aggressive advertising techniques in order to promote their new valued items. These new strategies are from the article cited below and I should mention that Burger King has seen little changes to their menu from 1989 and 2012. Other restaurants have introduced healthier food choices for their customers such as smoothies, specialty salads, wraps, yogurts, etc.

It is obvious that the success factor of any restaurant is the quality of food it serves. Many sales at Chipotle are single burritos, burrito bowls, and tacos which can range from $7.50 to $9.50, depending on whether you want to upgrade your food with their delicious homemade guacamole. Keep in mind, Chipotle is a new restaurant that has come out in the last decade. It is also very appealing because of being considered a healthier option than most fast food restaurants. This is one of the reasons that Chipotle stock is currently being traded at $360 per share! Most of us have witnessed the long lines at the Chipotle across from the DePaul Center in the loop. So why do most of us insist on  waiting sometimes up to 15 minutes  for a burrito that costs on average around $8 rather than going to Subway or McDonald’s across the street and buying a meal that would surely cost more? Clearly, Chipotle’s plan is successful, so how does a fast food giant like Burger King raise its value and compete with all the other fast food giants?

The secret ingredient to that recipe is innovation! But what must they innovate to attract YOU personally?

Source: http://beta.fool.com/tinade/2013/04/28/burger-king-is-just-one-step-behind/32871/?source=eogyholnk0000001

Image Courtesy of MyFoxChicago.com

Apple Lacking Innovation? Or Master Plan…

Posted on by spr1313jmusolino

In the recent months, Apple has been the hot topic of debate for almost every media source. This can be derived partially due to its 25% stock price decrease in the past year, but also because of an increase in competition from companies such as Samsung. Despite record profits, critics argue that Apple is “lacking innovation,” which is vital for its continued growth. Does apple not understand what consumer’s want/desire? Or could their upcoming innovations be so groundbreaking that it just takes longer to unveil?

Despite popular belief, Apple produces almost none of the components that are in its products. What makes Apple products both beautiful and efficient is their ability to integrate the hardware and the software so seamlessly. This is done through their remarkably efficient and streamlined supply chain.

In my opinion, Apple tends to innovate backwards. Apples innovation can be described like this; Apple solves the puzzle first, and then finds the pieces they need to make their vision a reality. Apple’s size, power, and money give them the ability to do this, but the actual timeline for a finished product may not be so clear and defined. This is why an efficient and communicative supply chain is so important to Apple.

Most analysts would agree that the biggest upcoming feature on the iPhone 5S is its fingerprint sensor. This is not a new concept, but the way Apple will use it will be remarkable. The mobile payment system is the way of the future, yet is has failed to take off. This is not due less to lack of technology, but more because of security concerns. By having someone’s phone password, one could gain access to every credit card they own. A fingerprint sensor would basically eliminate this problem, and would allow the mobile payment system to grow exponentially.

Keep-Calm-And-Slide-to-Unlock-iPhone-Fingerprint.jpg

Apple sold over 50 million iPhone 5s, so a small glitch in hardware or software can be detrimental. First, Apple needs to make sure the hardware is functioning properly. Last week Reuters reported this, “A supply chain source in Taiwan said Apple was trying to find a coating material that did not interfere with the fingerprint sensor, and this may be causing a delay.” Second, Apple needs to make sure its manufacturers can produce the product that keeps up with demand. Third, the software needs to be 100% accurate to prevent possible fraud. Last, Apple needs to beta test the product until they know it is absolutely perfect.

Personally, I believe that Apple’s master plan is much smarter and more innovative then any analyst can predict. Critics thought the first iPhone would fail because it didn’t have a keyboard. They thought the iPad was just a “big iPhone,” and no one would buy it. Currently, these are two of the most successful and profitable consumer devices on the market. Apple’s master plan is bigger than we think. Supply chain issues may slow its product cycle down now, but I think it will only be a minor speed bump in Apple’s continued dominance.

What is your current view on Apple? Are you continuing to buy Apple products? Will a fingerprint sensor on the iPhone 5S be the deciding factor on whether you will upgrade or not?

http://www.forbes.com/sites/anthonykosner/2013/04/28/is-the-iphone-5s-fingerprint-reader-worth-the-wait/

https://www.google.com/finance?cid=22144

“Inventory Is Evil”

Posted on by spr1323nnadeem


Apple, Inc. is one of the largest, most innovative companies in the world, selling not only electronic gadgets for users of all skill levels, but also how it manages inventory and forecast for its demand. The company has devised new inventory management strategies that have become a benchmark in the electronic industry and examples to many other companies worldwide.

These newly implemented benchmarks not only minimized inventory costs, but simultaneously helped Apple smoothly sail through high profile product launches without giving scope to competitors or allow them to catch up with competitively similar products. The case not only covers inventory management techniques at Apple, but also provide basis for calculating the internal fund requirements of the company based on projected sales.

In the electronics business, companies desire to minimize inventory storage as much as possible to avoid the risk that it won’t move to consumer hands. However, when a company underestimates the anticipated demand of a product and produces fewer units than expected, this results in a shortage of inventory, leading to a loss in both customers and market share. Therefore, a fundamental practice for a manufacturer is to keep as little inventory on hand as possible. As Apple’s agenda is perceived, they try to keep the right balance of inventory in all of their stores to satisfy customers demand.

Marketing products quickly saves the company storage costs and avoids the devaluation of products due to the continuous improvement of technology both internally and by new innovations from competitors. The best way to keep the inventory at minimized level is to invest and focus on supply chain and marketing continuously. To increase production, it is wise to hire contractors for manufacturing equipment instead of owning one. By doing so, the company will focus on promoting the inventory management in order to sell that specific line of products speedily at the fixed price.

Tim Cook, the manager of Apple, believed inventory loses somewhere between 1-2% of its value each week under standard conditions, the same way milk goes bad soon after the carton is opened. Operating under this philosophy, he put Apple in front of other competitors, such as Dell, by improving the way of moving inventory, where he claimed that “inventory is evil”.

There are a few ratios that show how quickly companies can liquidate inventory. For instance, the “days of inventory” ratio measures a company’s performance and provides a better idea to investors of how long a company takes to turn its inventory into sales, with shorter periods being better. Likewise, “inventory turnover,” shows that a low turnover can mean poor sales and thus products will be sits in a warehouse losing their value; on the other hand, high turnover means strong sales and relatively empty warehouses.

 

 
What sort of inventory management practices can other companies learn from Apple, Inc.?

 

 

 

Sources:
H., Victor. “Apple’s Secret Sauce for Success Is Inventory Management.” Phone Arena. N.p., 29 Mar. 2012. Web. 28 Apr. 2013.
http://www.phonearena.com/news/Apples-secret-sauce-for-success-is-inventory-management_id28558

Niu, Evan. “Does Apple Have a Little Inventory Problem?” (AAPL). N.p., 5 Mar. 2013. Web. 28 Apr. 2013.
http://www.fool.com/investing/general/2013/03/05/does-apple-have-a-little-inventory-problem.aspx

“What Is Apple’s Inventory Management Secret? | QuickBooks Manufacturing Blog.”QuickBooks Manufacturing Blog. N.p., 17 Apr. 2012. Web. 28 Apr. 2013.
http://quickbooksmanufacturing.wordpress.com/2012/04/17/apple-inventory-management-secret/

 

Can We Afford to Raise Wages to 29 Cents per Hour!?

Posted on by spr1313pnolan

After several major accidents in textile factories in Bangladesh over the past couple months, in which hundreds of workers died, Walmart sent a warning of its new “Zero Tolerance” policy to suppliers. At least two of these factories had what Walmart called “unauthorized” contracts with its suppliers. Walmart has reacted by informing its suppliers that it will no longer tolerate unsafe working conditions or unethical practices in the factories that make goods destined for Walmart stores. In a letter sent to suppliers outlining the company’s new policy, Walmart states that suppliers who fail to meet Walmart’s new guidelines could risk being permanently barred from doing business with the retailing giant. Is this move by Walmart just PR damage control or do you think the company will truly follow through on this new policy? If the company does follow through, is this new stance based purely on calculated analysis that will save money in the long run, or does Walmart truly care about human rights?

On April 24th a Bangladeshi garment factory complex collapsed killing 362 people, although the building housed nearly 6,000 employees and many are still unaccounted for (Link #1). This disaster is at least the third of its kind to occur in the south-Asian nation since 112 workers died in a factory fire in November 2012.

With wages and inflation increasing in China, Bangladesh has seen many garment manufactures move to the impoverished nation. China’s average hourly wage is now $1.34, while Bangladeshi wages are on average between 18 and 26 cents per hour, the lowest in the world. Spurred by cheap labor, the garment manufacturing industry in Bangladesh has grown to about $19 billion as of 2013 (Link #2). This quick growth, coupled with a low-cost focus, has led to unsafe conditions in which many factories have been converted from residential buildings, thus not meeting fire safety or maximum occupancy regulations. According to the executive director of the Bangladesh Center for Worker Solidarity, about half of the factories in Bangladesh do not meet legally required work safety standards, standards that are much lower than other emerging nations to begin with.

To combat this problem, Walmart has released a document spelling out its “zero tolerance policy” pertaining to working and safety conditions in factories suppliers subcontract with (Link #3). Within this document, Walmart states it “would like to improve the safety of [its] global supply chains”, and that it “is committed to value chains that empower people who work in them.” To oversee this goal, all factories in Bangladesh are to be audited by Walmart to ensure they are abiding by acceptable safety standard regulations and “Ethical Sourcing” requirements. Factories that fail to meet these requirements will be added to a “red card” list on Walmart’s corporate website, which will bar them from being included in the company’s massive supply chain. Further, according to the “Zero Tolerance” document, Walmart has been meeting with government officials and other companies who outsource manufacturing to Bangladesh in order to create a united front against subpar labor standards.

If the “Zero Tolerance” measures don’t work in Bangladesh, Walmart’s suppliers may have to move contracts to countries like Cambodia or Vietnam where average hourly wages are 29 cents and 55 cents, respectively. This move will undoubtedly raise costs associated with Walmart’s supply chain, as will implementing the auditing process of Bangladeshi factories.

As a reader of this blog, what do you think Walmart’s motives are for implementing these strategies? From a profit and loss standpoint, do you think this will help or hurt Walmart’s shareholders?

Follow LeanPath: Way to reduce food waste

Posted on by spr1333rmortha

Among 150 hotels, hospitals and universities, the University of Massachusetts Amherst is utilizing an innovative method to reduce food waste conjured by a company called LeanPath.

According to LeanPath, the issue of food waste is getting to be tremendously harmful for energy and water resources. Being the biggest source of waste in the United States, food waste accounts for $8 billion to $20 billion worth of waste annually. This is because about 4% to 10% of food bought is wasted rather than consumed.

What exactly is this waste? What LeanPath tracks is not exactly what we think of when we think of the term “food waste”. It is not the food our moms tell us to “finish because kids in Africa are starving”. The food waste that LeanPath targets is focused to tackle the root of the problem. It is the food that is wasted even before it reaches the plate. This can be anything from meat to vegetable trimmings. Imagine you are making mashed potatoes. How much of the potato are you really peeling? How much potato skin are you discarding? Leanpath can measure and put a dollar amount to all of these questions.

How does LeanPath help and what does it do exactly? Quite simply, LeanPath provides the means for establishments to track the food they are wasting. Employees can do this by weighing their waste on the scales provided by LeanPath.  The employees enter in the type of food, size of container, type of meal and the reason it is being discarded in to the LeanPath machines. The machine then calculates the waste into a dollar amount using their special software. All of this would cost the establishment about 5,000 dollars. Though the software doesn’t provide the employees with solutions to reduce food waste, it provides them with useful charts and graphs that help the employees make these decisions. The employees and their managers then meet up once a month and brainstorm best practices to reduce the waste they are calculating on the LeanPath scales.
How effective has this been? Specifically, the University of Massachusetts Amherst has saved $300,000 dollars after it has started using LeanPath’s methods. I think that this is a great start to saving a lot of waste in the food industry. I do think LeanPath would be more effective if they gave practical solutions to reuse food that is intended to waste rather than giving facts and charts. With LeanPath’s program now, it looks like only the institutions that are most dedicated to sustainability will benefit from LeanPath’s products. This is why more commercial institutions like restaurants and food courts are not using LeanPath. Anyone can weigh the food waste but there needs to be an active desire to come up with solutions to reduce food waste in order to make this program more effective.

Can LeanPath eventually reach more commercial industries? Do you think it needs to alter its program to do so? If so, how?

Links: http://www.businessweek.com/articles/2013-04-11/dont-throw-that-out-leanpath-harnesses-data-to-fight-food-waste