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Friday, July 8, 2011

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Issue 11

E D I T O R I A L L Y

PUBLISHED SINCE 1906 http://utdailybeacon.com

Vol. 117

I N D E P E N D E N T

S T U D E N T

Scattered T-Storms 60% chance of rain HIGH LOW 83 72

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Mag. puts alumna on ‘influential’ list Nation’s birthday goes off with bang The Associated Press

Vitasek argued that Vested Outsourcing has the ability to work with all types of business. “Almost all industries have begun trying the concept,” she said. “The Department of Energy and Proctor and Gamble UT lecturer Kate Vitasek was recently recognized for her are both implementing Vested Outsourcing. Microsoft, while work when she was named one of World Trade magazine’s a high-tech company, pilots the concept in their accounting most influential people in the trade industry. World Trade delivers business information and news to department. It really applies to all different services and manufacturers, retailers and wholesalers working in trade, companies.” Vitasek’s business model is transforming the way compaboth in the U.S. and abroad. Every year World Trade creates nies outsource. According to a study conducted by a list of the “Fabulous 50 Plus One” most influential list of people, places and things that have contributed to the growth PriceWaterhouseCoopers, three out of five companies participating in the study have utilized outsourcing as a compoand evolution of the supply chain business. This year’s list is a compilation of individuals, cities and nent of their business. Vitasek also contributes her time to academia by traveling business sectors that play an important role in the global supto Knoxville several times a year to teach at UT. Vitasek is a ply chain business. The list ranged from product design to researcher at UT’s Center for renewable energy to Lady Gaga. Executive Education in the World Trade Managing Editor College of Business Lara Sowinski explained why the Administration, where she list named many influencers from a became the nation’s first instrucvariety of industries. tor to teach students about vest“Directly or indirectly, we think ed outsourcing. this year’s candidates are playing a While the vested outsourcing part in shaping and influencing the program has been growing sucever-evolving global supply chain,” cessfully, Vitasek admits she still Sowinski said. has ambitious goals for the conThough the list extends to all cept. business sectors and professionals, “My goal is that it will be as one of those named on the list is big as the Lean or Six Sigma UT alumna Vitasek. model, which I consider to be Vitasek, currently residing in business ideas of the decade,” Washington state, is a supply chain she said. “I want Vested expert and innovator in the world Outsourcing to become a moveof logistics. Vitasek founded Vested ment, not just something nice to Outsourcing, a method that was say in business. I want it to based on award-winning research change the way we think about funded by the U.S. Air Force. business agreements.” “In 2005, the Air Force had Vitasek’s career in logistics asked the University of Tennessee has left an impressionable mark to look into something called per• Photo courteys of supplychainnetwork.com on the way companies do busiformance-based logistics,” Vitasek ness, and the business world has said. “The dean had asked me to work on the project, and I believed that even though perform- taken notice. Vitasek has been nationally recognized for her contribuance-based logistics is a very complicated concept, we could tions to the global supply chain industry multiple times in turn this into something that everybody could understand.” the past. The Journal of Commerce named her a “Woman on Vitasek remembered how the extensive research on the the Move in Trade and Transportation,” while DC Velocity project presented her with an exhilarating challenge. “As we did more research of different outsourcing deals, I Magazine gave her the moniker “Rainmaker” for her contrirealized my challenge was conveying this concept in a way butions to the growing supply chain industry. Ted Stank, marketing and logistics professor and associthat makes it common sense for everybody,” she said. ate dean of the Center for Executive Education, said This “common sense logistics” eventually became Vested Vitasek’s recognition will be good publicity for the industry Outsourcing. According to the Vested Outsourcing website, Vested and the college. “We believe our supply chain program offers a lot to the Outsourcing is a 21st-century hybrid business model created in association with UT that was developed to help outsourc- supply chain industry,” Stank said. “For one of our faculty ing companies and service providers work more collabora- members to be recognized by an industry that has a huge impact on world business certainly adds an accolade to our tively and effectively. Vitasek argues that Vested Outsourcing creates a benefi- program here at UT.” Vitasek might be well aware of her business model’s succial business relationship for both parties. “When companies don’t beat up their suppliers and cess, but she still is getting used to the idea of being named instead work collaboratively, they get better results,” she influential in World Trade. “It was a surprise to be named,” Vitasek said. “I got a real said. “You think you’re going to get more by being a bully, but kick out of it because I was listed right above Lady Gaga. I you get more by being nice. We educated companies on how thought, ‘Wow, supply chain is better than Lady Gaga.’” to craft a deal where they don’t have to be a bully. However, Vitasek acknowledges the recognition as an “I think business deals have become overcomplicated, and Vested Outsourcing is an attempt at making it more about affirmation of her business concept’s validity. “Just to be on the same list as the others listed is very honworking out a deal that satisfies the vested interest of both oring,” she said. “I think it shows that Vested Outsourcing is parties.” Vested Outsourcing has gained momentum in the business here to stay. It’s not a fad. We are educating companies on how they can have better relationships with their suppliers.” world, with Microsoft and Intel both utilizing the program.

Jamie Cunningham Staff Writer

NEW YORK — The nation’s most extravagant display of July 4 fireworks Monday was a triumphant celebration that turned sober briefly to commemorate the 10-year mark since the Sept. 11 attacks. Tens of thousands of people from around the world streamed to Manhattan’s West Side to see the pyrotechnics show over the Hudson River between New York and New Jersey, featuring more than 40,000 shells exploding in choreographed, multicolored progression. “It’s beautiful,” said Rosa Riveras, a 57-year-old health educator from Manhattan, as bursts of light filled the sky. “It’s amazing. I’m loving it.” NBC ran an exclusive broadcast from a pier along the river, with Nick Lachey of the show “The Sing-Off” hosting. Viewers got pre-recorded performances by Beyonce, filmed in front of the Statue of Liberty, and country music star Brad Paisley. Then the fireworks lit up the sky, tightly choreographed to a half-hour soundtrack from Katy Perry, LeAnn Rimes, Jennifer Hudson and other artists. Beth Cochran of Scottsdale, Ariz., was with two childhood friends from Fishkill, N.Y. The group of three periodically broke into renditions of “God Bless America” and other patriotic songs. “We do not take friendship or freedom for granted,” said Cochran, wearing an American flag tank top. “I’m proud to be an American.” John Woods, a 52-year-old information technology consultant from Wimbledon, England, said he appreciated the diversity of the crowd, which included many immigrants and tourists from around the country and abroad. “I think it’s just a celebration of being an American,” he said. The show, sponsored by Macy’s, paid tribute to the 125th anniversary of the Statue of Liberty’s debut in New York Harbor. Fireworks blasted off from six barges along the river to heights of 1,000 feet. As “Amazing Grace” was sung, bursts of golden fire-

works lit up the sky to pay tribute to victims of 9/11. Big cheers broke out in the crowd during the finale. All across the country, Americans marked the 235th anniversary of the signing of the Declaration of Independence with parades, fireworks, barbecues — plus presidential campaigning, a White House birthday and competitive eating. Thousands showed up near the Washington Monument to eagerly await the annual fireworks show on the National Mall, while others were throwing on Hawaiian shirts and shorts to ski the still-snowy slopes at resorts from California to Colorado. Earlier in the day on New York’s Coney Island, the annual Nathan’s Famous July Fourth hot dog-eating contest brought out the biggest names in competitive eating for a clash that was short in timespan but high in calories. Joey “Jaws” Chestnut, of San Jose, Calif., wolfed down 62 hot dogs and buns during the 10-minute contest, winning his fifth straight title. Sonya “The Black Widow” Thomas chowed her way to victory in the first-ever women-only contest, eating 40 hot dogs, one shy of her 2009 total. In Boston, the annual Boston Pops concert was a must. In Akron, Ohio, the Rib, White & Blue Food Festival was enticing. And then, there were Nevada’s casinos, which promised a pyrotechnics extravaganza that could be a gambler’s best bet. At the mountaintop home of Thomas Jefferson in Charlottesville, Va., officials continued a nearly fivedecade-old tradition of swearing in new U.S. citizens. Seventy-seven people took their oaths during a naturalization ceremony at Monticello. The holiday is celebrated as the nation’s birthday, but it also was Malia Obama’s 13th birthday. The president’s eldest daughter had to share her parents with hundreds of others as Barack Obama and first lady Michelle Obama invited troops and their families to attend a special barbecue and USO concert on the South Lawn. See FOURTH on Page 3

Debit fee charged to bookstores cut Jamie Cunningham Staff Writer The amount debit card issuers can charge in transaction fees to the UT Book and Supply Store and college bookstores nationwide has changed because of a new rule approved by the Federal Reserve Board. In June, the Federal Reserve Board passed a rule that will chop the fees collected by debit card issuers — sometimes known as “swipe fees” — nearly in half, from 44 cents to 21 cents. This means that debit card issuers can no longer charge transaction fees that often cost more than the cost for processing the transaction. Abigail Zenner, a legislative assistant at the Nation Association of College Stores, said the fees were unfair because they were disproportional to the actual cost of clearing the transaction. “It only costs the debit card issuer four cents to clear a transaction; however, issuers were charging college bookstores 44 cents,” she said. According to the Merchant

Payments Coalition (MPC), an organization advocating for debit card fee reform, debit cards should be considered electronic checks because the money comes from the customer’s bank account. “For almost 100 years, paper checks have cleared at par without swipe fees,” said the MPC press release. This new rule is a step closer to a parity between paper checks and debit cards. Zenner said that college bookstores benefit more from the rule because most of their customers are college students. “As opposed to other retailers, there is more of a direct benefit for students to lower these interchange fees,” Zenner said. Richard Hershman, director of government relations for the National Association of College Stores, said these “swipe fees” cost college bookstores approximately $100 million annually. Before the final ruling, Sen. Bob Corker (R-Tenn.), along with Sen. Jon Tester (DMont.), et al., attempted to hinder the ruling by co-spon-

soring an amendment that would delay the reform. “This push-back is an attempt to punish, to stick a stick in the eye, of the financial industry,” Corker said on the Senate floor on June 8. Frank Keating, president and CEO of the American Bankers Association, supported the delay amendment. “Interchange revenue helps banks fight fraud, provide lowcost banking services and efficiently operate a payments system that is seamless and of tremendous benefit to individuals, businesses and the U.S. economy,” he said. The amendment failed to pass the Senate, coming up six votes shy of the 60 votes necessary for adoption. Sen. Richard Durbin (DIll.) lauded the ruling as a means to creating fairer fees for college bookstores. “(The rules) will finally make swipe fee reform a reality and help bring fairness, transparency and competition to a debit card system that for years has operated without Anthony Cespedes • The Daily Beacon them,” Durbin said in a press release. Incoming freshman walk outside the Haslam Buisness building during orientaion on June 8. Incoming freshman attend a two day orientation throughout the summer to See DEBIT on Page 3 get their schedules and other things ready for school in the fall.


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