This week's top stories include what do U.S. state sales tax changes mean for
your e-commerce business, can Lego go green without sacrificing product
quality and labor conditions improving for Bangladeshi garment workers. Remember
to click the link below for the full stories and two other featured articles.
First up, what do U.S. state sales tax changes mean for your e-commerce
business? As of 2018, state sales taxes are collected on just half of ecommerce
sales. But the Supreme Court's landmark South Dakota versus Wayfarer decision in
June is likely to change this number drastically. For the last 50 years
internet sellers only had to collect sales tax from buyers if the company has
property or employees in the state of sale. The court's ruling doesn't require
ecommerce companies to start collecting sales tax, but it allows individual
states to put such a mandate in place. There are more than 15,000 taxing
jurisdictions in the U.S. And understanding the complex tax laws is no
easy task. Technology has luckily reached a point
where online retailers don't have to figure out individual laws themselves.
Consider using sales tax software to assist with this transition. Why stress
about tax compliance when you can automate it? For example, Avalera helps
more than 20,000 companies globally with tax compliance. Avalera integrates with
your existing systems and automatically makes sales tax decisions on every
purchase. Next up, can Lego go green without
sacrificing product quality? By 2030 Lego wants to build all its toys from
plant-based materials and eliminate dependence on petroleum-based plastics.
The company is striving to reduce its environmental impact amid rising
consumer concern over the use of plastics. But with a product made
entirely from plastics it may be hard to change materials and maintain product
continuity. Lego is facing a common manufacturing challenge. How can you
change an input material in your product without changing the production output?
Consider using a systematic approach involving data collection, reflection and
consistent reassessment for change management. And remember, change can be an
opportunity for growth. Last up, labor conditions are improving for Bangladeshi
garment workers. Bangladeshi garment workers produce more than 30 billion
worth of products for Western retailers annually. But major compliance issues
and a surge of worker unions have pushed some garment manufacturers to
look elsewhere for their production needs. However, the industry's focus on
safety in the past few years is beginning to pay off. And its helped many
factory workers climb out of poverty. After the Rana Plaza collapse, more than
200 companies signed the accord on fire and building safety in Bangladesh. This
is a legally binding, five-year agreement between global brands, retailers and
trade unions. And over the last four years, factory worker salaries have
increased by about 77% in Bangladesh. But challenges persists for all involved in
manufacturing in Bangladesh. Key impediments for further improvements
include political pressure for continued economic growth, factories operating on
thin margins and murky business practices. Those are just the top three
stories from this week. To read the other 2 follow the link in the description
below. Thanks for watching and tune in next week on Best in Manufacturing!
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