Competition for job-creating foreign direct investment (FDI) is brutal these days in the European Union. Although it used to be the world's biggest recipient of FDI, its global share has now fallen from almost 29 percent in 2011 to 17 percent in 2013, according to UNCTAD. With European investment subdued, banks reining in lending and economies struggling to grow, foreigners with fat wallets are more than usually needed. Even France has engaged this year in a charm offensive to lure them in. So a recent study suggesting that only 12 percent of American companies with operations in France rate it positively as an investment destination is ruffling feathers.
The recent introduction of Apple Pay was widely described as the dawn of a new era for smartphone payments. But within a week, two major pharmacy chains, Rite Aid and CVS, rejected Apple’s version of the future: Both disabled Apple Pay (as well as other tap-to-pay mobile payments systems Google Wallet and Softcard).
Supply chains are becoming more complex in order to support the increasingly diverse levels sizes and needs of new suppliers and customers. There are so many variables that can go into a single sale, like selling across multiple channels, delivering products directly versus delivering through drop shipments, and selling items with one-time charges as well as recurring fees. This transformation is having a tremendous impact on organizations of all shapes and sizes. As supply chain complexity builds, it's important that companies aren't spending more time entering and managing data rather than focusing on growing their business. They should have a well-integrated, audited and secure system that can be precisely reported on at every level.
Is it wise to take advantage of early-payment discounts offered by suppliers? Or should you make other use of your cash until payment is due? There are lots of things to consider.
With Burger King planning to relocate there after completing its buy of coffee-and-donut chain Tim Hortons for about $11.4bn, Canada is emerging as the latest tax haven for U.S. firms fleeing a high tax code at home.
The United States has the highest corporate income tax rate among the 34 industrialized nations of the Organization of Economic Cooperation and Development, the world trade group, says a new paper from the Tax Foundation.
Small business vendors that frequently have to chase down larger clients to get paid might have reason to rejoice. According to a story in The Wall Street Journal, the White House has launched an initiative that will either speed payments to small suppliers or help them access "lower-cost capital."
Analyst Insight: The critical value-add of a manufacturing supply chain comes from constantly asking, "Can we make what we sell and sell what we make?" This is sales and operations planning (S&OP): a process of constant vigilance to meet customer commitments, while optimizing scarce working capital. Supply-chain optimization efforts can benefit from approaching projects as a hybrid of S&OP and supply chain. This places the focus on value creation over functional excellence. - Jon Kirkegaard, President, DCRA Inc.
Analyst Insight: The sales and operations planning process has fairly deep roots in most companies. Research by SCM World shows that many have been able to extend the process across most internal functions. However, few companies have extended the process externally to trading partners. The incentive structure of buyers and sellers tends to set these groups at cross-purposes. Flexibility pricing can shift the incentives in a direction that forces companies to negotiate the value of flexibility. - Barry Blake, Vice President, Research, SCM World
