@Risk

For the first time since Grant Thornton began researching employment issues in its International Business Report (IBR) back in 2003, the number of businesses cutting headcount has exceeded those increasing it. In fact, Grant Thornton’s new data shows a global balance of -8 percent compared to +21 percent in 2009 – that’s a dramatic drop of 29 percentage points.

The survey, which polled more than 7,400 privately held businesses (PHBs) across 36 economies, also showed that: (more…)

There’s a growing labor shortage in China, and analysts aren’t exactly sure why.

According to The Wall Street Journal’s blog “China Real Time Report:”

Various domestic media reports put the labor supply gap at around a million people in Guangzhou and neighboring cities such as Dongguan, legendary centers of China’s export boom in the past three decades. Numerous assembly lines and construction sites are sitting idle while anxious employers have raised salaries by more than 30% but still can’t attract enough applicants.

Shen Hong, the author of the post, suggests that at least part of the problem may stem from the fact that new-generation migrant workers aren’t interested in tough basic jobs like construction any more.  The Chinese government has reformed policies and modernized farming to such an extent that rural jobs now compete favorably with work in the city. In addition, second-tier inland cities are experiencing economic booms of their own, and workers may prefer these alternative locations simply because they’re closer to home. Lastly, China’s improved standard of living, in general, means that young workers are less apt to accept the hardships of working in the city, Hong says. (more…)

The most cost-efficient US retailers manage many of their supply chain operations internally, and their costs in this area are 22 percent less than the median, according to new research from Deloitte Consulting LLP.

The research, conducted by Deloitte’s Global Benchmarking Center, was designed to quantify store operations and general and administrative (SGA) cost-improvement opportunities in retail. The study included more than 60 high-profile retail organizations and analyzed retail-specific functions such as store operations, merchandising, supply chain and marketing across 120 different performance metrics.

I found it intriguing that, in addition to their strategic supply chain management, Deloitte also found that low-cost performers differentiate themselves from median performers with: (more…)

Doug Cornelius writes a blog called “Compliance Building,” and he has done a fantastic job of summarizing sessions from this week’s Global Ethics Summit 2010, hosted by Dow Jones and Ethisphere.

In today’s increasingly complex and often unpredictable business environment, corporations are taking a long, hard look at their compliance practices. After all, effective compliance is a fundamental component of any supplier risk management program.  It reduces the likelihood of an offense.  And in some cases, it also can mitigate penalties (and negative perception) if noncompliance does occur. The conference was designed to help companies learn about current trends and best practices so that they can conduct business both successfully and ethically. (more…)

Are you sourcing chemicals from China?

If so, take a few minutes to read “China sourcing can be a key differentiator,” an article published yesterday at ICIS.com.

Recently, serious problems with quality, purity, safety and delivery have made many companies second- guess their China sourcing strategies. But, in the article, authors Tony Chu and Michel Bulliard contend that companies shouldn’t shy away from sourcing chemicals from China –as long as they use intermediaries capable of handling the wide range of challenges involved.

What are the typical challenges? The authors’ list includes: logistics, cultural differences, tax and regulatory compliance, communication, local and national government rules and regulations, technological capabilities that can vary significantly between chemical producers, and fluctuating economic stability among suppliers.

(Plus, any company that’s sourcing from China also has to deal with the sticky issue of intellectual property, too. According to Chu and Bulliard, “buyer beware” remains the best approach with regard to IP.) (more…)