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Florida Prescription Drug Crackdown Extends to Drug Chain Walgreen

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Our readers with association to the pharmaceutical and drug industry may recall that in mid-February  both major drug distributor Cardinal Health and drug chain CVS pharmacy had certain southern Florida facilities temporarily shut down. Four pharmacies located in the Sanford Florida area suspected of selling “staggering” volumes of the controlled drug oxycodone lead to strong suspicions of a huge black market in this specific area.  The U.S. Drug Enforcement Administration (DEA) took the unusual step of targeting the supplier to these pharmacies, Cardinal Health Inc., the second largest U.S. wholesale pharmaceutical distributor, by seeking to block distribution of controlled substances from Cardinal’s distribution facility located in Lakeland Florida. The DEA alleges that Cardinal had failed to follow agreed-to monitor misuse of controlled substances such as oxycodone. Cardinal has attempted to appeal and overturn the injunction on controlled substance shipments from its Lakeland distribution facility but has thus far been unsuccessful […]

Delta Airlines Looking to Practice Vertical Integration of its Supply Chain

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Of late, Supply Chain Matters has provided a number of commentaries concerning a trend toward more vertical integration of a firm’s supply chain components.  The context has been industry specific, or the notion of closed vs. an open supply chain.  Some examples are Hon Hai Precision for the former, and Hyundai Motor for the latter. We were therefore surprised to read a report in today’s Wall Street Journal (paid subscription required or free metered view) indicating that Delta Air Lines is in talks to acquire a previously idled Pennsylvania oil refinery.  While industry and Wall Street observers are viewing this potential acquisition with some healthy skepticism, from a supply chain lens, it can be viewed as a bold and innovative strategy. According to the WSJ, Delta spent $11.7 billion in 2011 on aviation fuel, roughly 36 percent of the airline’s operating costs. That certainly qualifies fuel cost as Delta’s key […]

More Reaction to Apple’s Labor and Supply Chain Visibility Developments

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The business and supply chain management community has had time to reflect on the recent announcement of labor violations discovered by the Fair Labor Association in audits of Apple’s massive Foxconn contract manufacturing facilities. As can be expected, the responses vary in perspectives. Labor rights advocates feel that Apple’s efforts demand constant scrutiny. Other business media have opined that this development is a sign of strategic shifts or an overblown reaction to the reality of low-cost manufacturing environments such as China. We cite three articles of particular interest. In a Washington Post blog entry, Jena McGregor noted that the stakes for Apple are far higher than that for Foxconn.  By proactively responding to working condition findings, CEO Tim Cook could face the wrath of Apple shareholders for eventually increasing supply chain costs. McGregor astutely points to far bigger stakes, namely that Apple walks a fine line by not also pointing […]