Showing posts with label Recent Reading. Show all posts
Showing posts with label Recent Reading. Show all posts

Wednesday, November 7, 2018

What is going on in grocery retail?


Farmhouse Market in particular caught my eye. It's a shop in Minnesota that lets customers use a key code to enter and shop 24/7. You can buy groceries alone. There is no on there to help, no on there to watch you, no one there to check you out. For me it flips the downside of zero staff—the fact that no one can help you—into an upside—you can shop anytime you'd like. Many large grocery stores let you shop 24/7 too, but having the option to shop in a smaller shop close to home with better food and less carting around through endless aisles...it sounds compelling. It also upends the Amazon Go grocery test where they hung a zillion dollars worth of cameras watching every move in the effort to let you shop without cashiers. That model is crazy expensive and freaks many people out that they are turning the act of buying cereal into Orwell's 1984. Instead, this couple installed a fifty dollar lock. And Big Brother isn't watching.

One emotion that staff-free retail invokes is trust. Do we believe customers will steal if left unattended? I lived in post-communist Slovakia for a year just after the Berlin Wall fell. The way retail worked there was utterly devoid of trust. In many shops you had to wait in a queue and ask for someone to get your item for you. To buy some noodles I would wait, then point at a box of pasta behind a counter and ask for someone to get it for me. Part of the justification for this nonsense was communism's mission to maximize employment. Jobs for everyone, jobs doing everything. A job getting you a box of pasta. A job handing you a piece of toilet paper at the bathroom (I'm not making that up). But another reason was trust. Since everything was owned by the state, people probably felt about as bad stealing as people do cheating on their taxes in America. A little wouldn't hurt, right?

I haven't thought about what that experience meant to me for years. Then I read this article on Chinese ecommerce. It is fascinating. (I'm sorry it's behind the New Yorker's firewall, if you'd like a copy I can send you a PDF.) It had loads of interesting news. For example, if you're like me and thought Amazon's drone special on 60 minutes was a PR stunt intended to deflect holiday attention from the working conditions described in an undercover Mother Jones article, you may be surprised to learn that they were just copying the Chinese who already use delivery drones. Who knew? But it was the author's own experience coming to America that hit home for me. She is a Chinese immigrant and described shopping for the first time in America after, like me in Slovakia, having to queue-and-ask shop in China. Here is her description of the marvel:

I can still remember the first visit my mom and I made to a Stop & Shop in New Haven, Connecticut, soon after we moved to the U.S., in 1992. I interpreted the unguarded aisles of open shelves as a sign that everything was free. I’d never heard the word “supermarket” before, and it seemed likely that “super” indicated a market where no money was necessary. My mother was awed that store employees, instead of trailing our every move as they did in China, seemed indifferent to our presence. How had shoplifting not bankrupted the establishment? What sort of society would allow such a risk? 

I had always thought of the Slovak model as weird. Here was someone describing how she felt the model I grew up with was weird. I took our get-it-yourself shopping for granted. But a hundred or so years ago, we shopped in America like they did in Slovakia, like they did in China. We lined up in a queue and asked. It made me realize that, of course, duh, retail changes. In high school I had a job at a video rental store. (It was there I watched Better off Dead about a hundred times.) That job no longer exists—for anyone. People don't rent videos from stores. Blockbuster used to employ almost 60,000 Americans. Where did they go? What do they do now?

Of course retail is going to change. Here is a mind boggling list of recent grocery innovations alone. How else will it change? Will it go backwards, like it's done recently adding delivery, something our grandparents took for granted? What will it add? What will it eliminate? Will we eliminate  the next queue — lining up to have people take our money? It seems the answer is inevitably Yes. There are many places, like CVS, where we line up and a machine takes our money. Or there are shops like Apple —or Zingerman's Mail Order, during our warehouse sale — where almost anyone walking around can take your money. There's no need for a single queue. Amazon wants their invisible app to take your money at Amazon Go. Surely that's just a stage, too.

But all that payment stuff, in context, seems like small potatoes now that I think about it. That's just the last part of retail. The money. There is so much more. One of the cornerstones of Toyota's lean operation tools, kanbans, came from how American supermarkets replenished shelves. That idea, born in retail, transformed manufacturing around the world. What else will come from retail? What else will come to retail?  How will we react to it? 


Tuesday, January 16, 2018

The crazy story of why the fax machine is the way all doctors talk to each other

"The Obama administration spent upward of $30 billion encouraging American hospitals and doctor offices to switch from paper to electronic records. The program was a wild success, in one respect. The number of hospitals using electronic records grew from 9 percent in 2008 to 83 percent in 2015, a huge change in less than a decade. 
But the program didn’t account for a critical need: sharing. Hospital and doctor offices generally remain unable to transfer electronic information to other hospitals and doctor offices. Billions of dollars later, they are left printing out documents and faxing them."
From the article The Fax of Life.

I was wondering how fax machines were doing since Office Space!

The article is a fascinating look at yet another hunk of waste that fills our health care, helping to make the U.S.A.’s health system one of the most expensive on the planet. (I’ve written about another waste, called coding.) You know this particular waste from visiting a new doctor and filling out those endless forms, but let's lay it out:

1. You enter your patient information on one of their faded clipboard forms
2. Someone in the office types what you wrote into a computer 
3. When another provider requests your info, they print it out and fax it
4. The other provider enters that info into their computer by hand — or with a "fax reader"

Expensive to retype all that? You bet. But even worse, I'd suggest, is that I count at least three chances for something to be entered wrong. If there's even a slight chance of entering any particular piece of information wrong, the sheer amount of data to be entered and the times it must be re-entered means the likelihood of something on your medical record being incorrect is pretty darn high. I'd say it's nearly certain. Hopefully it's not something critical. 

This is how you can have a health care system like ours that is both more expensive AND worse than almost any other industrialized nation. Or, as my CFO Ron Maurer might put it, "You can get better health care, but you can’t get more expensive."

Wednesday, March 1, 2017

Recent reading



Many environmental footprint studies are flawed. This one appears to be pretty good. It shows the carbon footprint of a loaf of bread. You might be surprised at what's the biggest contributor to greenhouse gas. Hint: it's not transportation.

UPS taxed air and we cut back on shipping air. The same logic applies when you tax food — check out the eye-popping results of Philadelphia's soda tax.



Monday, March 7, 2016

Michael Pollan on labeling

 "I think we should have a lot more transparency about food, not less. I think we should label food if it contains pesticides, but nobody is talking about that. It's really peculiar that if you're not using pesticides, if you're organic, you have to pay to put a label on declaring you aren't using pesticides. It should be the other way around."
For my money Michael Pollan one of the most considered food thinkers of our time. His insights are profound but also realistic, sensible. This comes from a brief interview by New York Magazine's Grub Street about his new Netflix documentary Cooked, which I'm watching now. If you haven't read his book, The Omnivore's Dilemma, I highly recommend it. 


Friday, March 4, 2016

Recent reading, design edition.



A comparison of Lush and Body Shop's website. Hat tip to Joseph Richardson.

An incremental design improvement, made over a weekend kaizen event, and the result is a machine that has outlasted four "improvements". A great article on why the B-52 is still the main big plane for the U.S. armed forces. 

Friday, October 16, 2015

Recent reading on meat


The lack of small, local slaughterhouses is often cited as one of the obstacles getting in the way of you and me buying affordable meat from small, local farmers. There's a bill being proposed to change slaughterhouse oversight rules in a way that would make it easier for them to get off the ground. The article quotes from some people we work with like Will Harris and Greg Gunthorp.

One argument against raising animals for meat is that it redirects calories to animals that we could otherwise eat. Except...
"...most of the feed that livestock eat is not edible by humans. Globally, just 18 percent of animal feed is made up of grains or other crops that people might otherwise eat. The rest is crop residues, grass, and waste from milling grain and other food processing. And so, despite the inefficiency of converting calories to meat, animals are able to give humans access to energy that they wouldn’t have been able to access otherwise."
Many more interesting points in the article Can meat ever be environmentally friendly?

Friday, January 23, 2015

Recent Reading, Screwed up animal husbandry edition



"If, thanks to an experimental inspection program, a meatpacking firm produces as much as two tons a day of pork contaminated by fecal matter, urine, bile, hair, intestinal contents or diseased tissue, should that count as a success?" The kind of problems you get when you let the meat industry regulate itself.

Foie gras is for assholes. Mark Bittman makes the totally valid point that any furor about lifting the California foie gras ban is totally misplaced. Foie gras from force fed ducks is small potatoes. It's the rest of our animal husbandry sytem in America that's cruel, and it's on an epic scale.

Sunday, December 7, 2014

Recent reading, chicken edition


 

First the depressing story. A farmer that opened up their farm to reporters and was transparent about how he raises chickens. Now his only customer, Perdue, will probably shut him down for it.

But not all chicken stories end badly.  People complain about pricey food being elitist and out-of-touch. Being a merchant of that kind of food I know that can be the case (hopefully not the case with much of what I sell, since there should be a good reason for the expense). But here's an example of how higher prices have made chickens live better lives—and helped prevent antibiotic resistant organisms from growing. The story is the government asked chicken farmers to go antibiotic free. But because antibiotic-free chicken sales grew 34% last year many did it before the deadline.

Tuesday, October 28, 2014

Recent Reading on Poverty and Wealth in America




How do you think wealth is distributed in America? Hint: it's not even close to being as fair as you think it is. (Caveat: the speaker sometimes uses the words "income" and "wealth" interchangeable but they're very different. Income is the money you make. It's a flow. Income comes in this year, and some of it leaves as expenses. Wealth is what you own. You can make a million dollars this year but have zero wealth. Conversely, a good saver — or a person who inherits wealth — can have little income but lots of wealth.)

Thursday, October 16, 2014

Sunday, August 17, 2014

Recent Reading



In the seven years of bike share programs in American big cities people have taken 23 million trips and experienced zero fatalities. Turns out that, unlike adding more cars to roads which causes more deadly accidents, adding more bikes causes fewer.


Wednesday, July 23, 2014

Recent Reading

What if UPS and FedEx were like Uber and Lyft, where regular people do the deliveries, not employees? She started a company to see if that can work. 

A 40 fruit tree. Hat tip to Spike. 

Ever wonder what a camel broker eats each day? Hat tip to Val.

Saturday, July 19, 2014

Tuesday, July 15, 2014

Monday, June 16, 2014

Recent Reading



Microlending, meet micropayments. Square is starting a business loan program where you pay off the loan pennies at a time—with each customer credit card transaction.

There's no such thing as cheap food without consequences. The scary story of slave labor shrimp at Costco.