The Friday Report: January 10th, 2020Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry
California Clears the Way for First State Prescription Drug Label
In an effort to reduce prescription drug prices, the state of California announced its intention to be the first state to launch its own prescription drug label. The idea, proposed by Governor Gavin Newsom leverages the power of government purchasing to help gain control over increasing healthcare costs.
The state of California would be empowered to contract with generic drug manufacturer to facilitate the availability and sale of medications to all Californians. The revolutionary plan would be part of the Governor’s new budget proposal. Both public and private insurers would negotiate prescription drug pricing together to provide more effective results in reducing drug prices.
Selected drug manufacturers would be able to manufacture generic drugs on behalf of the state of California. The unusual proposal would empower all purchasers to combine their purchasing power and the state would take advantage of a “most favored nation” clause in the marketplace. This would mandate that manufacturers would be obligated to sell drugs at the lowest cost offered anywhere in the world. To learn more, read on here: https://thehill.com/policy/healthcare/477494-california-plans-to-launch-own-prescription-drug-label
Another Holiday Season, Survival at Risk for Bed Bath & Beyond
Even despite previous news that it would close 60 of its 1,500 total locations, Bed Bath & Beyond continues to struggle. A new board and management team are searching for assets that can be monetized, costs that can be cut as well as sourcing and merchandising opportunities to keep the retailer afloat.
Bed Bath & Beyond’s newest CEO recently reset expectations, lower than anticipated and promised a turnaround plan by spring. Despite increased consumer spending, some mall-based and traditional retailers continued to flounder.
$42 Billion in Returned Goods This Holiday Season
With an estimated handling of over 1 million returned packages every day during the recent holiday season, retailers and others across the supply chain are struggling with issues such as diminished profits and sustainability.
Buying online and returning purchases via Smartphone has become all too normal these days. The overall returns rate continues to expand at a rate of 10 percent annually, resulting in a total loss of $50 billion for retailers each year due to inefficiencies handling returns. For more details, continue reading here: https://www.cnbc.com/2019/12/19/online-returns-this-holiday-season-to-hit-record-41point6-billion.html