Clorox aims to triple the size of its healthcare products business by 2017, growing revenue to $300 million.

Don Knauss, the chief executive of Clorox, told Reuters that about half the anticipated growth will come through acquisitions of businesses worth between $10 million and $50 million.

The Clorox healthcare line, which includes disinfectant products and sanitizers, grew from a $2 million business to a $10 million business in the last five years, according to Knauss.

Already in 2012, Clorox acquired Apilcare and HealthLink, spending a combined total of between $80 million and $90 million on the deals, Reuters stated.

The increased focus on its healthcare business is part of a broader realignment of the Clorox brand, which according to Reuters is positioning itself to take advantage of increasing consumer concern with wellness and sustainability. However, its signature bleach products are still a mainstay of the company, and Knauss indicated Clorox is interested in acquiring Procter & Gamble's Central American bleach business.

On May 30, Clorox announced it will be changing the packaging of its Germicidal Wipes and Hospital Cleaner Disinfectants, offering them under the Clorox Healthcare umbrella.

Clorox repositioning, expanding its healthcare business

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Fiat Industrial is looking to form a merger with the U.S.-based farm and construction vehicle business CNH, which would shift the company's capital center to the United States, dropping the Fiat name.

Sergio Marchionne, Fiat Industrial chairman, recently called for the full merger, but also cautioned that it would not be a precursor to a merger between the companies' auto businesses, which are in a three-year partnership, according to Bloomberg Businessweek.

Following a possible deal between Fiat Industrial and CNH, the combined company's shares would be traded on the New York Stock Exchange and have a secondary listing in Europe, the source stated.

"The plan to leave the country has been going on for a while, while we continue to cling to Fiat," said Giorgio Airaudo of the FIOM union. "A marriage cannot be one-sided. The car business is of national interest, and for that reason we need transparency."

Despite Fiat Industrial giving up the Fiat name if the merger is completed, Marchionne has informed employees that the operational structure of the business would not change, according to Bloomberg.

Fiat also recently announced that it will not buy a stake in Mazda Motor, but is planning to move forward with plans to increase its stake in Chrysler to more than 60 percent, Reuters reported.

Fiat proposes CNH farm business merger

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No, I’m not referring to what is around many Americans mid-sections. One thing most people don’t plan for is being stuck on the side of the road with a flat tire. It usually ruins your day. It used to be that any time this happened you would pop open the trunk, take out the spare tire, jack, and tools and get to work replacing it. If you paid attention when your Dad (or Mom) taught you had to do this right you could be back on the road in 10 minutes. Years ago many car manufacturers did away with full size spares as being unnecessary and provided smaller, “doughnut” spares instead. Over 5 years ago, many sports models like the Chevy Corvette, Dodge Viper, and Porsche Boxter stopped providing spares all together. Well now, there has been a growing trend of car manufacturers to drop the spare as well. According to AA Mid-Atlantic, about one in eight of every new vehicle had no spare included. Instead, they offered a can of tire sealant and an air compressor. Manufacturers are doing this for a number of reasons. First, they are able to reduce direct costs for the spare tire, jack, and tools required to replace it. Second, by removing those items they are able to offer more storage space to drivers. Thirdly, those tools can way over 40 pounds. Removing them can make a difference with improving the vehicles miles per gallon. This helps car manufacturers meet ever tightening federal fuel efficiency standards. AAA warns that not having a spare can cause issues however. The sealants lose effectiveness over time or may not work at all if there is sidewall damage on the tire. They advise new car buyers to ask about the spare before purchasing a car or negotiate having it included if it doesn’t come standard. They also advise to regularly check the spare to ensure it is properly inflated and in good condition. But honestly, who actually does that? I don’t know a single person that checks their spare on a regular basis. I bet most don’t even know if they have one or would actually change it themselves if they did. Best case scenario you know how and the spare is in good working order - do you really want to risk life and limb to change it on the side of the New Jersey Turnpike? I don’t think so. Especially nowadays where most new cars come with bumper to bumper warranties with 24 hour roadside assistance (if not negotiate to get it), it might be better to take the additional storage room and better gas mileage. If you drive in the middle of nowhere frequently, where help is far or non-existent, then it is probably worth it to have a nice spare available. But you also should then ask yourself – why am I driving in the middle of nowhere?

How Car Manufacturers are Saving Big - Spare Tires

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The Maine Wind Industry Initiative will organize a Maine Wind Industry Pavilion at WINDPOWER, which takes place from June 3-6 in Atlanta.

The group is planning to further advance Maine's wind energy supply chain products and professional service business at the event.

"Maine continues to demonstrate high-caliber wind energy capabilities at national and international conventions and has become a serious wind power supply chain resource," said Paul Williamson, MWII director and industry coordinator . "In fact, Maine has been chosen as the location for the AWEA Regional Wind Energy Summit-New England and we are preparing to launch an online wind energy ME supply chain product and business locator."

Maine's windpower capabilities have been developed and promoted in a number of sectors, which include construction, engineering, composite technologies, steel fabrication, precision manufacturing and marine trades.

The Maine Wind Industry Pavilion will also host a reception with a book signing by the author of the first Wind Technician AS college textbook that is focused on wind turbine maintenance for the United States.

Wind turbine test installations will begin in the Gulf of Maine next year, following a delay because of permits still pending for the site, which are expected to be approved in the next two to three months, according to the Free Press.

Maine wind industry group promoting supply chain capabilities

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Apple's Asian supply chain is struggling to meet demand for the company's next series of products, which is planned to be released soon.

According to the Taiwanese industry publication DigiTimes' unnamed sources, suppliers are having difficulties meeting demand for the production of more Apple products as a result of not being able to find enough workers to make components.

The new MacBooks are expected to debut this summer, but the demand far outweighs the supply.

The source also said MacBook shipments could total between 16.24 million and 19.2 million this year, which is between a 30 and 50 percent increase from last year.

According to RBC Capital Markets, there was an outperform rating on the Cupertino company's stock, and within a year shares could reach a $700 price target.

Chinese regulators recently approved Apple's iPad 3, which opens up the possibility for the company to launch the latest version of its tablet in the huge Chinese market.

Supply chain struggles for Apple

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Oil and gas company EP Energy was recently acquired by investment funds affiliated with Apollo Global Management, Riverstone Holdings, Access Industries and Korea National Oil Corporation for an estimated $7.15 billion.

EP Energy has operations that include programs in southern Texas, Louisiana and Utah. The recent acquisition comes after the company saw first quarter production volumes up 11 percent year-over-year.

"We are excited about our partnership with Apollo, Riverstone, and our other investors, which we believe will enhance the value of EP Energy and extend our performance track record," said Brent Smolik, president and CEO of EP. "We will continue to focus on large acreage positions with low-risk, repeatable drilling opportunities that generate strong financial returns. "

EP will continue its operations in Houston, where it employs more than 1,000 people.

Colorado-based Grid Petroleum Corporation recently announced that it has acquired a 10 percent working interest in the Garcia #3 well, which will soon be drilled.

EP Energy acquired by Apollo Global Management

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The University of Louisville Hospital is looking to partner with another hospital and expand its patient base, according to a consultant's report released recently.

The Courier-Journal reported that even if the hospital improves its operations and business strategy, a partner will still be needed to handle the daily operations of the medical facility.

Consultants from Dixon Hughes Goodman from Hudson, Ohio, recently advised the hospitals ad hoc committee, which was formed to oversee an operational review of the hospital with a focus on boosting financial stability.

The committee voted unanimously to accept the report, which will be sent to the board of the University Medical Center, the nonprofit organization that runs the hospital.

Under the consultant's recommendations regarding supply chain, its labor force and revenue cycle, the hospital could possibly save more than $8.5 million in 2013 and $17.5 million in 2014.

A recent post on Healthcare Matters' website compared the healthcare and airline industries, arguing that line airlines, healthcare providers benefit from working with as few vendors as possible to streamline supply chains while standardizing operations.

Hospital searches for partner

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Dell recently announced it completed its acquisition of Wyse Technology, which is a global leader in cloud client computing.

The acquisition gives Dell the ability to offer its customers new end-to-end IT solutions. The computer company has made significant strategic investments over the past three years to expand its enterprise technology and services capabilities.

"We're excited to officially welcome Wyse to Dell and help extend its industry-leading efforts to a broader range of customers and partners," said Jeff Clarke, Dell vice chairman and president, Global Operations and End User Computing Solutions. "We believe the Dell Wyse capabilities, combined with our previous desktop virtualization offerings and the strength of the Dell enterprise portfolio, provides the most comprehensive and competitive DVS solution available today."

Dell is planning to preserve Wyse's channel offerings and all of the company's channel partners will be made eligible for Dell's PartnerDirect Program.

According to Bloomberg, Dell is also in advanced discussions to acquire Quest Software, which has a market value of more than $2 billion. Dell's acquisitions come after revenue was down in the first quarter of 2012.

Dell completes acquisition of Wyse Technology

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Letters from hospitals and group purchasing organizations that pleaded with the IRS to ensure device makers pay for their share of the cost of health reform were recently answered by a medical imaging original equipment manufacturer trade lobby.

The lobby said that an excise tax planned to be implemented next year would not be a windfall for the industry.

"Only in Washington could paying a $30 billion tax over the next 10 years be viewed as a windfall opportunity, but that's exactly the false claim being made," Gail Rodriguez, executive director of the Medical Imaging & Technology Alliance, said in a statement. "MITA continues to oppose the device tax precisely because we believe it creates strong headwinds against an important sector of the U.S. economy."

A 2.3 percent excise tax on device companies was mandated by the Affordable Care Act, which is set to be implemented in 2013. Some say the tax will benefit the device makers because it can be deducted from income and the costs can be passed along to consumers, DOTMed News reported. The tax was expected to raise $20 billion, but manufacturers now believe the true cost is an estimated $30 billion.

IBISWorld reported that the healthcare industry increased at an average annual rate of 2.7 percent to reach $677.3 billion in 2011, and this number could top $850 billion by 2015.

Device tax not a windfall, lobby says

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In the professional world, sourcing and negotiations are part of my job, but I tend to take these two tasks and apply them to my personal world.  I find myself more and more sourcing and negotiating things for my house, looking for the best deals for clothes and shoes, food shopping, and even look for ways to save when it comes to my health.  I recently read two articles on CNNMoney.com that outline some helpful savings tips for reducing your medical expenses.

Reviewing your health care providers in-network and out of network coverage can be daunting but it can also be helpful.  Obviously, using in-network is going to save you money; however be mindful of your visits to the GP and specialists.  The number of visits you make can add up when it comes to your co-pay and out of pocket costs.  Don't be afraid to ask questions about why you are seeing a specialist, or going to a GP for multiple follow ups. See what steps you can take to reduce your trips to the doctor's office.  One article suggests using home testing kits instead on ongoing visits.  For example, at-home glucose kits can range from $20-$130 which can be less than multiple visits to the doctor's office in the long run.  If you are doing physical therapy, the article suggests working with your therapist to put together a home exercise program that would relieve you from multiple trips to the office for a workout.  In this case, you need to be motivated.  Having the therapist put together a plan and then not following it will only result in more problems.  Lastly, when going to the doctor's office don't be afraid to ask them what the price would be if you pay cash.  Doctors may be willing to reduce their price if you pay cash.  This negotiation tactic will work in many other scenarios as long as you don't forget to ask.  

Another example for savings on medical expenses is transitioning to generic medications when possible.  It's important to check with your doctor when looking at generics, but also its important to see what prescriptions will be covered under your insurance provider.  Don't forget about mail order for things like your medications and prescription eye wear.  Purchasing these items in bulk can result in significant cost savings.  The article also points out that you can source your prescriptions through websites such as GoodRx.com which allows you to find the lowest cost prescription drugs at local and online retailers.

There is a few more cost savings tips in the two articles; however I believe the best savings strategy for medical expenses is to make sure you are taking care of yourself.  Taking the first step of eating right and exercising can go a long way in reducing your medical costs.

Saving on Medical Expenses

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Workers at the Canadian Pacific Railway recently walked off the job, starting a strike that could have a detrimental impact on several industries.

Canadian Pacific accounts for close to 40 percent of Canada's rail activity. According to Bob Ballatyne, president of the Canadian Industrial Transportation Association, anything more than a few days is going to have a huge impact on Canadian supply systems, according to CBC News.

Among the industries expected to be affected by the strike are coal mines, farms, auto manufacturing plants and possibly Canadian Tire.

"We are actively working to mitigate any impact to our operations through alternative shipment methods," Chrysler Canada spokeswoman Lou Ann Gosselin wrote in an email to CBC.

Fadi Chamoun, a research analyst at BMO Capital Market in Toronto, recently reported that the Canadian Pacific Railway, which had revenue of $5.2 billion last year, could possibly see $13 million a day in lost or delayed revenue, according to the news source.

The Canadian Labor Minister Lisa Raitt recently introduced legislation to end the strike. CP is Canada's second-largest railroad behind Canadian National Railway Company.

Canadian railway workers go on strike

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Supply Chain Managers are facing unprecedented pressure from consumer and activist groups to increase transparency regarding the sustainability, ethics, and fair labor standards of their low cost country suppliers.  The high profile story of Apple's Chinese supplier FoxConn and their factories' labor conditions have led many to investigate how labor conditions come to be harsh or unfair and what can be done to avoid it.  Some resources that supply managers can utilize while looking into low cost country suppliers and labor include the Fair Labor Association, The Workers Rights Consortium, and The Ethical Trading Initiative.

The Fair Labor Association (FLA) is an association of businesses, universities, and nonprofits which advise, investigate, and promote fair labor standards in factories, farms, and other labor-intensive businesses.  The FLA was thrust into the spotlight for launching the investigation into  conditions at the FoxConn factories that supply and assemble many popular Apple products.  They released their much anticipated report on FoxConn at the end of March 2012 after interviewing over 35,000 workers.

The Workers Rights Consortium is an independent labor right monitoring organization focused on apparel.  They are currently working to develop an approved supplier list which universities can use to avoid sweatshop labor for university-branded apparel.

The Ethical Trading Initiative (ETI) is an alliance of companies, trade unions and voluntary organizations. They provide ethical trade toolkits and other resources to organizations looking to trade ethically.  Based on ETI's definition, ethical trade means that retailers and their suppliers take responsibility for improving the working conditions of the people who make the products they sell. Corporations that are members of the ETI utilize labor from poor and vulnerable workers, homeworkers, and developing countries in an ethical manner based on the ETI code of conduct.

Supply Chain Ethics and Sustainability is an important issue for supply chain managers.  Any sourcing initiative that utilizes low cost country suppliers should take ethics and supplier labor practices into consideration.

The Ethical Supply Chain

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