In the Precision Software News Round-Up: 18 May 2018 we examine how Brexit is impacting UK suppliers, how US firms are dealing with warehouse worker shortfalls, UPS’s new UK hub and DHL’s planned Australian one.
WORKER SHORTAGES PROMPT WAREHOUSES TO OFFER BETTER PAY AND BENEFITS
America’s unemployment rate is at 4 percent. This may be good news for the country but bad news for supply chains. The demand for warehouse workers and truck drivers has increased, but there are fewer people willing to do the work. Companies are also finding it harder to retain staff. As a result, companies are offering better wages and conditions. This includes flexible schedules and on-the-job training allowing unskilled workers to move into higher paying skilled roles. For the full article, please see Supply Chain Dive.
BREXIT FEARS MAKE EU FIRMS WARY OF USING UK SUPPLIERS
Brexit and its impact on cross-border trade has made a number of EU firms wary about using UK companies in their supply chains. There is no clarity on what customs agreements may be eventually put in place, and fears that tariffs and regulations will be imposed. Theresa May has repeatedly refused to consider allowing Britain to remain in a customs union with the EU. This would prevent tariffs on trade with the bloc, as well as a prevent a hard border between Northern Ireland and the Republic of Ireland. This March, the Chartered Institute of Procurement and Supply published the results of a survey of supply chain managers. They found that almost a quarter of British firms with suppliers in the EU were struggling to secure contracts that run beyond March 2019. For more on this, please see Reuters.
UPS CREATES 500 JOBS AT UK DELIVERY HUB
UPS has opened a new package sorting and delivery hub outside of London that will employ around 500 people. This is one of the company’s largest infrastructure projects outside of the US. The facility represents a £120 million ($163.24 million) investment in the UK, despite continuing uncertainties regarding Brexit. For more on this, please click here.
DHL TO OPEN NEW AUSTRALIAN FACILITY
DHL Express is to open a new service hub on Queensland’s Gold Coast. Construction has already started on the planned 3,000 square metre facility. It should open before the end of the year. DHL has invested significantly in Australia in recent years. This including upgrades to their facility in Melbourne, a service hub in Canberra and expansion to service regional Tasmania. To read more, please click here.
TARGET AIMS TO SPEED UP THEIR SUPPLY CHAIN
Target is trying a major supply chain shake up. The aim is to allow stores to reduce their storage space but keep their shelves stocked by replenishing inventory more frequently and much quicker — within hours instead of days. Target is trialing this fulfillment strategy in New York City. This entails sending smaller but more frequent shipments of merchandise from their warehouse in New Jersey to stores across the city. If successful, Target will expand this strategy across the US. For more information, please see Forbes.