Quotulatiousness

November 2, 2012

Modern inventory control and Hurricane Sandy

Filed under: Business, Economics, Food, USA — Tags: , , — Nicholas @ 08:53

Unlike major disasters of the past, storm-hit New Jersey and New York City won’t have to face the crippling shortages of food and other essentials in the wake of Hurricane Sandy. The just-in-time food supply chain is proving its versatility yet again:

The day Hurricane Sandy made landfall, the Jersey City, New Jersey, warehouse for food distribution giant Sysco Corp. (SYY) sent out 30,000 cases of food and drinks. Most of the shipments were headed across the Hudson to New York City. On Tuesday, the day after the storm ravaged the city, the warehouse sent out none.

Yet while news of flooding, power outages, downed trees, and other storm-inflicted wreckage abounds, you won’t hear stories of mass starvation in the streets. Food may not be moving in or out of the city, but the data-driven supply chains perfected by some of the world’s biggest companies in the pursuit of profits have become so resilient that even a cataclysm like Sandy registers as little more than a logistical hiccup. While the subways have stopped indefinitely, few in the storm’s path will have to deal with empty shelves for long, if at all.

[. . .]

Wilson says the key adjustment Sysco made ahead of Sandy was to shift shipments to mainly non-perishable goods to ensure customers would have food to last through power outages. The company also prioritized getting orders to institutions that would have to keep large numbers of people fed through the storm, such as hospitals, hotels, airports, shelters, jails, and college campuses. Restaurants will stay near the bottom of the list as the recovery proceeds. But Wilson says the process of getting back to normal won’t drag out. “It’ll be a week or so of business-not-as-usual. But we’ll get back to business-as-usual eventually.”

Large companies like Sysco with nationwide reach and a long history of managing supply chains can adapt quickly to natural disasters because they’ve been there before, and they have the data to show for it. Over the years, as real-time inventory tracking and analysis has become the norm, companies know what people buy before and after disasters. They know how demand has varied between a Gulf Coast hurricane and a New England blizzard. By cross-referencing that granular data with the latest weather predictions, companies can forecast changes in their supply chain needs in parallel with coming storms.

H/T to Charles Stross for the link.

November 1, 2012

The art of (bad) customer service

Filed under: Business, Humour — Tags: , , — Nicholas @ 10:02

James Lileks had to do the leg work himself to track down a part to fix his stove. After finally getting it, he wanted to express his frustration to the company that sold the stove (but didn’t carry the replacement part he needed):

So. I called Centerpoint, asked to speak to a manager, and had a nice friendly conversation about the fact that I found the part with elementary googling, and I had to pay for it and wait to be reimbursed.

Manager: we have supply channels and have to set up payment contracts and we can’t find anything, and what’s more blah, blah, blah.

To which I said I understood, but the fact of that matter was: I found the part in seconds, which means someone entered the part number into your system, it came up null, and that was it. They’d done their job. They’d checked the box. Move on to the next. So what I get as a customer of your service is that you don’t really look for the part. You search one closet and call it quits. Apparently there’s no leeway for your people to look elsewhere.

She understood my dissatisfaction, of course, but

AAHOOHGA

NEVER “BUT” YOUR UNDERSTANDING OF MY DISSATISFACTION.

Lie to me. Lie to me over and over: I understand your dissatisfaction AND I will be adding this company to our database. I understand your dissatisfaction AND I will be sending my boss a letter about expanding our searches and allowing for more individual initiative on the part of the part-procuring people. I understand your dissatisfaction AND apologize you’ll have to carry a $476 charge on your card while we process your request. I don’t care if none of that’s true. Just say it.

I still think they’re going to try to wiggle out of this somehow. I think my wife was right: they don’t want to fix it. They don’t want to pay for it.

All it took for me to be that cynical was a manager invested too deeply in company policy. I would have trusted them more if they’d lied.

October 29, 2012

The Dragon returns, bearing cargo

Filed under: Business, Space, Technology — Tags: , , , , — Nicholas @ 09:37

At The Register, Brid-Aine Parnell reports on the mostly successful cargo delivery round-trip by SpaceX’s Dragon capsule:

The reusable cargoship dropped into the ocean yesterday evening around 250 miles off the coast of Mexico after resupplying the ISS and its crew. The Dragon was ferried to a port near Los Angeles where it will be prepped for its return to SpaceX’s test facility in Texas.

Some of the cargo brought back by the capsule is due to be returned to NASA in the next couple of days, including research samples from the station’s microgravity environment. The ship delivered 882 pounds of gear to the ISS, including scientific research and crew supplies. It returned with nearly twice that weight of stuff.

The mission was only a part-success, as the secondary objective was to launch a satellite for Orbcomm, but due to a malfunctioning engine in the launch phase, the satellite could not be placed in the correct orbit and was lost. Orbcomm is sticking with SpaceX for two more satellite launches in spite of this initial failure.

Who actually benefits from the expansion of “self-service” retail?

Filed under: Business, Food, Humour — Tags: — Nicholas @ 09:25

In the Wall Street Journal, Joe Queenan meets the modern grocery store checkout:

At the end of my visit to my town’s brand-new supermarket the other day, the cashier said she would be more than happy to help me self-check-out my purchases.

I said, “No, thank you, I would prefer that you do that.” She said, “Actually, we prefer that the customers get into the habit of checking out their groceries.” I said, “Actually, I would prefer to never get into that habit. I would prefer that you handle the entire operation. You are the cashier. You are the vicar of groceries. You, not I, work here. So earn your money and ring up my purchases. And then bag them. Please.”

Are we entering a dark, deeply un-American era when we literally have to do everything for ourselves?

Retailers love the idea of self-checkout and other forms of selling goods to customers with fewer staff members and more volunteer labour donated by the customers themselves. Some customers even prefer this, as it makes them feel more empowered about their retail experience. Bring your own bags (so we don’t need to provide you with bags we have to buy)! Pack your own bags (so we don’t have to hire as many checkout clerks)! But don’t fool yourself that the store is doing it “for the environment” or any other such catchy excuse: they’re on board with ideas like this because it’s more profitable for them.

October 26, 2012

“Canada has effectively become the Digital Third World”

Filed under: Business, Cancon, Media, Technology — Tags: , , — Nicholas @ 09:21

In Forbes, Reuven Cohen looks at the state of internet access in Canada:

Before I get into what was discussed, I need to provide some context to the current state of Internet connectivity in Canada. To understand the Internet landscape in Canada is to endeavour into the realm of duopolies, bandwidth caps and mediocre Internet connections. As it stands today, Canada has effectively become the Digital Third World.

A recent video interview with The Globe and Mail’s Omar El Akkad and Netflix CEO Reed Hastings summaries the problems with cloud computing in Canada. Hastings’ specifically calls out capped Internet plans as compared to the rest of the world saying “Canada has the misfortune of being the country with the lowest internet caps maybe in the world but certainly in the developed world and in all of the Netflix world. In Mexico, Internet is largely uncapped; in the US it’s largely uncapped; in the UK it’s completely uncapped; in Canada there’s a number of providers with very low caps…I don’t quite understand it.”

Herein lies the problem, the widespread use of bandwidth caps in Canada is partially the result of a market defined by vast geographies and a limited population base. This has resulted in a highly concentrated market controlled by a small group of ISPs. Making things worse is a highly government controlled telecom industry that prevents foreign investments, particularly for wireless and broadband services. This combination of factors has led to one of the most restrictive markets for cloud computing as well as other internet related services found in any of the major industrialized nations today.

October 25, 2012

The Apple cult as a modern religion

Filed under: Business, Media, Religion, Technology — Tags: , , , — Nicholas @ 09:40

Do non-Apple fans sometimes think they’re talking to religious fanatics when they talk to Apple users? It’s a silly question, isn’t it? Of course they do, because Apple has become more and more a religious experience rather than a mere technology company:

[Kirsten Bell] wrote in the Christian Science Monitor that a stranger observing one of the launches could probably be forgiven for thinking they had stumbled into a religious revival meeting.

Bell now studies the culture of modern biomedical research, but is an expert on messianic religious movements in South Korea.

She said that an Apple product launch takes place in a building “littered with sacred symbols, especially the iconic Apple sign itself”.

Keynote speeches feature an Apple leader reawakened and renewing their faith in the core message and tenets of the brand/religion.

The tradition of not broadcasting launches in real time is akin to a religious event where it is forbidden to broadcast Sacred Ceremonies.

Instead scribes or its Tame Apple Press act like the writers of the gospels, “testifying to the wonders they behold” in a completely non objective way.

October 23, 2012

Unnamed band about to get big media exposure through the “Streisand Effect”

Filed under: Business, Law, Media — Tags: , , — Nicholas @ 11:09

Ken at Popehat is looking for pro bono legal help for a music fan site that after years of faithful service to an unnamed band is now being “cease-and-desist”-ed by the band’s new management:

It’s time to put out the Popehat Signal on behalf of a threatened web site.

Today, I’m looking for pro bono help (or help at a modest rate) for the proprietor of a fansite for a band. The proprietor of the fansite has been running it for years, promoting the band and its appearances to its fans. Apparently the members of the band knew of this and were cool with it — until recently, when they hired new management, who used a Los Angeles area attorney to send a threatening cease-and-desist issue.

One has to assume that $BAND (or more likely the new management team) has never heard of the Streisand Effect, because they’re risking a classic case of it through this kind of action.

The Streisand effect is the phenomenon whereby an attempt to hide or remove a piece of information has the unintended consequence of publicizing the information more widely, usually facilitated by the internet. The term is a modern expression of the older phenomenon that banning or censoring something often makes that item or information more desirable, and leads to it being actively sought out to a greater extent than it would have otherwise been.

It is named after American entertainer Barbra Streisand, whose attempt in 2003 to suppress photographs of her residence inadvertently generated further publicity. Similar attempts have been made, for example, in cease-and-desist letters, to suppress numbers, files and websites. Instead of being suppressed, the information receives extensive publicity and media extensions such as videos and spoof songs, often being widely mirrored across the Internet or distributed on file-sharing networks.

Canada’s foreign investment “net benefit” test is a farce

Filed under: Bureaucracy, Business, Cancon, Government — Tags: , , , , — Nicholas @ 10:15

Andrew Coyne scrambles to find the right words to describe the indescribable:

The existing rules, as readers will know, require that a foreign takeover be of “net benefit” to Canada. How this is to be demonstrated, how it is even defined, is a secret to which the bidder is not privy — understandably enough, since it is not known to the government either. The result may be compared to a game of blind man’s bluff, only with both players wearing blindfolds. The bidder makes repeated attempts to hit the mark, while the government shouts encouragingly, “warmer… ” or “cooler…” depending on its best guess of where the target happens to be at the time.

I’m joking, of course. In fact, there’s a perfectly clear definition of “net benefit.” As set out in section 20 of the Investment Canada Act, the minister is required to take into account the effect of the investment on “the level and nature of economic activity in Canada,” specifically (but “without limiting the generality of the foregoing”) “on employment, on resource processing, on the utilization of parts, components and services produced in Canada and on exports from Canada.” Clear enough, right?

[. . .]

All told, I count more than 20 different criteria to be applied, vague, elusive and contradictory as they are. Whether it is possible to measure even one of them in any objective fashion, still less all of them at the same time, may be doubted — but even if you could, the Act provides no benchmark of what is acceptable, separately or collectively. Neither does it say what weight should be given to each in the minister’s calculations, or even whether he strictly has to pay any of them any mind at all (“the factors to be taken into account, where relevant, are…”).

In other words, the whole thing is a charade, applying a veneer of objectivity to what remains an entirely subjective — not to say opaque, arbitrary and meaningless — process. Which is good, since any attempt to define such benchmarks, weights, etc would be even more arbitrary and meaningless. Because there isn’t any objective definition of “net benefit,” at least in the sense implied, nor is it necessary to invent one. We don’t need to clarify the net benefit test. We need to abolish it.

October 13, 2012

Chinese shipyards adapt to slower international sales

Filed under: Business, China, Military — Tags: , , — Nicholas @ 11:17

Strategy Page on one of the ways Chinese ship builders are adapting to a tougher market for new ships:

Recent photos from China show three 1,500 ton coastal patrol ships (“cutters” in American parlance.) being built simultaneously, next to each other. This is part of a 36 ship order, in part to help the domestic ship building industry, for the China Marine Surveillance (CMS). Seven of the new ships are the size of corvettes (1,500 tons), while the rest are smaller (15 are 1,000 ton ships and 14 are 600 tons). The global economic recession has hit shipbuilding particularly hard over the last four years, and China is one of the top three shipbuilding nations in the world. For a long time coastal patrol was carried out by navy cast-offs. But in the last decade the coastal patrol force has been getting more and more new ships (as well as more retired navy small ships). Delivery of all 36 CMS ships is to be completed in the next two years.

The CMS service is one of five Chinese organizations responsible for law enforcement along the coast. The others are the Coast Guard, which is a military force that constantly patrols the coasts. The Maritime Safety Administration handles search and rescue along the coast. The Fisheries Law Enforcement Command polices fishing grounds. The Customs Service polices smuggling. China has multiple coastal patrol organizations because it is the custom in communist dictatorships to have more than one security organization doing the same task, so each outfit can keep an eye on the other.

CMS is the most recent of these agencies, having been established in 1998. It is actually the police force for the Chinese Oceanic Administration, which is responsible for surveying non-territorial waters that China has economic control over (the exclusive economic zones, or EEZ) and for enforcing environmental laws in its coastal waters. The new program will expand the CMS strength from 9,000 to 10,000 personnel. CMS already has 300 boats and ten aircraft. In addition, CMS collects and coordinates data from marine surveillance activities in ten large coastal cities and 170 coastal counties. When there is an armed confrontation over contested islands in the South China Sea, it’s usually CMS patrol boats that are frequently described as “Chinese warships.”

Sometimes there’s a logical reason to discriminate in pricing

Filed under: Business, Europe — Tags: , , , — Nicholas @ 11:00

Tim Harford on the recent EU ruling that insurers will no longer be allowed to consider gender in setting insurance rates:

He: And not before time. It’s outrageous that I have to pay more for my car insurance than you do. I’m a perfectly safe driver.
She: Of course you are, dear. But you also drive a lot more than I do, which is not unusual for men. Since you drive more miles you are exposing yourself to the risk of more accidents.
He: Am I? Oh.
She: This is one of the reasons that men have more accidents than women. Another, of course, is that some young men are aggressive, overconfident idiots. But in any case you should probably put the money you save into your pension pot because you’re going to need it when you get stuck with the low annuity rates we women have had to put up with.
He: But my life expectancy is shorter. I deserve much higher annuity rates. That’s outrageous.
She: So you’re outraged that discrimination against you hasn’t ended earlier, and equally outraged that discrimination in your favour isn’t going to continue for ever?

[. . .]

She: We might not get too comfortable. Insurers will start looking at other correlates of risk. The obvious one is how far people drive: men tend to drive more than women. Then there are issues such as the choice of a sports car rather than a people carrier. Such distinctions may carry more weight in determining your premium than they do now. As for annuities, if they can’t pay any attention to your sex they might start paying more attention to your cholesterol.
He: I can see that this might get very intrusive.
She: It might. Or it might get very clumsy. Mortgage lenders used to be accused of using geography as a way of discriminating against minorities in the US, since ethnicity and postcode can be closely correlated. There are modern analogies: since women are on average smaller than men, perhaps in the future premiums will be proportionate to height. Stranger things have happened.

October 10, 2012

Is “national security” just another term for “protectionism”

Filed under: Business, Cancon, China, Government, Technology — Tags: , , , — Nicholas @ 10:16

Daniel Ikenson at the Cato@Liberty blog:

Chinese telecommunications companies Huawei and ZTE long have been in the crosshairs of U.S. policymakers. Rumors that the telecoms are or could become conduits for Chinese government-sponsored cyber espionage or cyber attacks on so-called critical infrastructure in the United States have been swirling around Washington for a few years. Concerns about Huawei’s alleged ties to the People’s Liberation Army were plausible enough to cause the U.S. Committee on Foreign Investment in the United States (CFIUS) to recommend that President Bush block a proposed acquisition by Huawei of 3Com in 2008. Subsequent attempts by Huawei to expand in the United States have also failed for similar reasons, and because of Huawei’s ham-fisted, amateurish public relations efforts.

So it’s not at all surprising that yesterday the House Permanent Select Committee on Intelligence, yesterday, following a nearly year-long investigation, issued its “Investigative Report on the U.S. National Security Issues Posed by Chinese Telecommunications Companies Huawei and ZTE,” along with recommendations that U.S. companies avoid doing business with these firms.

But there is no smoking gun in the report, only innuendo sold as something more definitive. The most damning evidence against Huawei and ZTE is that the companies were evasive or incomplete when it came to providing answers to questions that would have revealed strategic information that the companies understandably might not want to share with U.S. policymakers, who may have the interests of their own favored U.S. telecoms in mind.

It’s not just the United States, either: Canada is also getting wary of Huawei.

The Canadian government has said that it will be invoking a “national security exemption” as it hires firms to build a secure network, hinting that Chinese telco Huawei could be excluded.

The exemption allows the government to kick out of the running any companies or nations considered a security risk, which coming in the wake of the US report earlier this week labelling Huawei and ZTE as security threats, strongly indicates they’re out of the bidding.

Prime Minister Stephen Harper’s top media spokesman refused to say for sure whether the government had Huawei in mind when invoking the exemption.

“The government is going to be choosing carefully in the construction of this network and it has invoked the national security exception for the building of this network,” he said, according to the Calgary Herald.

October 9, 2012

Gewirtz: The Windows 8 user interface

Filed under: Business, Technology — Tags: , , , , , — Nicholas @ 09:19

David Gewirtz is unimpressed with the Windows 8 user interface. To understate the case a wee bit:

… And that’s why, in pure analytical terms, one has to wonder what went through the (fill-in-the-blank) (fill-in-the-blank) misguided brains of Microsoft’s managers, analysts, and strategists when they decided to ditch the Start menu.

I finally decided to load the preview edition of Windows 8 and use it. And, despite the operating itself being a marvel of engineering, ease of use, speed, and underlyng functionality — I’m forced to say that it’s unusable for desktops out of the box. Un-frakin’-usable.

[. . .]

Microsoft, on the other hand, has decided that — rather than make some very minor interface nods to the billion or so users it has — it’s going to force everyone to change how they use their machines.

This is not change in a good way. It’d be as if Ford decided to yank out the typical comfortable interior of a car, and replace it with a motorcycle seat, handlebars, and control interface. One day, grandma would get up to go to work, get in her trusty Ford (which she’s been happily driving for decades) — and not know how to do anything!

Worse, since the motorcycle UI isn’t designed for the inside of a car, using it there would suck. People have tried it, and it’s amusing as an exercise, but it doesn’t really work.

Windows 8’s change to the Start menu is not amusing as an exercise. It’s an insult to all the billions of Windows users the world wide.

Here’s the thing. You get into Windows and it’s Metro. You click the desktop tile because you have real work to do — and you’re stuck. How do you launch apps? There’s no launcher or Start menu. If you don’t know to click in the corner of the screen, you ain’t doin’ nothin’. There’s no hint, no cue, no application, no Start menu. There’s nothing there, there.

October 8, 2012

Legal weapons of mass destruction

Filed under: Business, Law, Technology — Tags: , , , , — Nicholas @ 11:19

Software patents: two words that probably should not go together at all.

Mr. Phillips and Vlingo are among the thousands of executives and companies caught in a software patent system that federal judges, economists, policy makers and technology executives say is so flawed that it often stymies innovation.

Alongside the impressive technological advances of the last two decades, they argue, a pall has descended: the marketplace for new ideas has been corrupted by software patents used as destructive weapons.

[. . .]

Patents are vitally important to protecting intellectual property. Plenty of creativity occurs within the technology industry, and without patents, executives say they could never justify spending fortunes on new products. And academics say that some aspects of the patent system, like protections for pharmaceuticals, often function smoothly.

However, many people argue that the nation’s patent rules, intended for a mechanical world, are inadequate in today’s digital marketplace. Unlike patents for new drug formulas, patents on software often effectively grant ownership of concepts, rather than tangible creations. Today, the patent office routinely approves patents that describe vague algorithms or business methods, like a software system for calculating online prices, without patent examiners demanding specifics about how those calculations occur or how the software operates.

As a result, some patents are so broad that they allow patent holders to claim sweeping ownership of seemingly unrelated products built by others. Often, companies are sued for violating patents they never knew existed or never dreamed might apply to their creations, at a cost shouldered by consumers in the form of higher prices and fewer choices.

October 6, 2012

Here’s a potentially viable secondary market for SF hardcovers

Filed under: Books, Business, Media — Tags: , — Nicholas @ 11:14

Charles Stross updates his readers on what’s in the writing and production pipeline, and in the process discovers a niche market that might just be viable:

[…] Because if there’s one thing guaranteed to annoy everyone, it’s embarking on a project that is bound to be at least a year late …

What’s the problem? Well, I only get one slot per 12 months with my main publishers, and they’re nailed down years in advance. And the 2013 slot is currently occupied by Neptune’s Brood, which I finished writing in July this year, about six months later than originally expected. Neptune’s Brood is notionally a space opera, but I prefer to think of it as a parable about the banking liquidity crisis of 2008; the setting is recycled from Saturn’s Children, albeit 5000 years later and without the overt Heinlein homage (and the characters). Unfortunately I’m a slow learner. A chunk of the action takes place on (or rather in) an aquatic super-earth with no land masses: consequently, the early cover art treatments rely on the theory that the book will sell best if, rather than somehow conveying the message that it’s about fractional-reserve banking fraud in a slower than light universe, the cover promises MERMAID BOOBIES!!!1!!

Hmm.

(I wonder if there’s a secondary market for fake dust-jackets for the easily-embarrassed reader, bearing the correct name and title but a different illustration? Signed by the author, even …!)

For example, here is the original cover for Saturn’s Children:

October 4, 2012

The zero-sum trading myth

Filed under: Business, Cancon, China, Economics — Tags: — Nicholas @ 09:44

In Maclean’s, Stephen Gordon decries the undying myth that if one party to a trade is benefitting then the other must be losing:

In The Myth of the Rational Voter, Bryan Caplan argues that the most important obstacles to implementing sound economic policies are not lobby groups or the ability of other special interests to influence politicians, but certain systemic, irrational beliefs of the electorate. This is hardly an encouraging conclusion, but if we needed any more evidence for at least one aspect of his thesis, the CNOOC-Nexen takeover is providing it.

One of the prejudices identified by Caplan is what he calls anti-foreign bias: “a tendency to underestimate the economic benefits of interaction with foreigners.” According to popular (mis)perception, dealing with foreigners is to be mistrusted: if they want something from us, then they must perceive some benefit from the exchange. And if foreigners are gaining, then Canadians must be losing.

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