In the Precision Software News Round-Up: 25 January 2019, UK signs trade deals with Australia; Brexit threatens Irish economy; Sony to move EU HQ from UK; DSV to keep shopping; and UPS announces green packaging pilot. Plus, we look at how educational and public institutes can control parcel shipping costs.
UPS TO TEST REUSABLE PACKAGING
UPS, along with recycling company TerraCycle, will pilot a reusable packaging system called Loop. Using Loop, customers will be able to buy products in reusable, brand-specific packaging. When they have finished with the product, UPS will collect the packaging so that it can be cleaned, refilled and delivered again. UPS will deliver and collect the Loop packaging, and TerraCycle will clean. Pilots of Loop will take place in Paris in Europe, as well as New York, New Jersey and Pennsylvania in the US. UPS and TerraCycle hope to reduce single-use packaging and promote the concept of a circular supply chain. You can read more on this at Supply Chain Dive.
UK AND AUSTRALIA SIGN NEW TRADE AGREEMENTS
Australian wine will keep flowing into the United Kingdom post-Brexit. This week the two countries signed two new bilateral trade agreements — the Wine Agreement and Mutual Recognition Agreement. These agreements are in essence the same as those already in place between Australia and the European Union. They ensure uninterrupted trade after 29 March 2019 if the UK leaves the bloc without an agreement. Nearly a third of Australia’s wine exports went to the UK in 2018. For more on this, please see the Sydney Morning Herald.
SONY TO MOVE EUROPEAN HQ FROM UK TO NETHERLANDS
Japanese electronics giant Sony will move its European headquarters from the United Kingdom to the Netherlands. The company said the move was to avoid customs issues and disruptions as a result of Brexit. However, the company will not move staff from the UK. Rival electronics firm, Panasonic has already shifted its headquarters to Amsterdam. A number of Japanese companies have moved or announced plans to move EU operations out of the UK. These include Daiwa Securities, Sumitomo Mitsui Financial Group and Japanese bank Norinchukin. For more details, please see the BBC.
NO-DEAL BREXIT TO NEGATIVELY IMPACT IRISH ECONOMIC GROWTH
Ireland’s Central Bank has warned that a no-deal Brexit could slow growth in the Irish economy. The Central Bank forecasts that, with a deal for the UK’s withdrawal from the European Union, the economy should grow 4.5 percent during 2019. Without a deal, this could fall to just 1.5 percent. The supply chain links between Ireland and the UK are of particular concern. A disorderly withdrawal could also impact food and consumer goods imports from the UK. In addition, Irish exports would fall due to reduced demand from the UK. The Central Bank added the caveat that economic forecasting is not an exact science. It noted that the Brexit is an unprecedented political and economic event. As a result, it is harder to make predictions on the likely economic impact. For more information, please see RTE.
DSV TO LOOK FOR FURTHER ACQUISITIONS
This week DSV’s Chief Executive Jens Bjorn Andersen said that the company will seek out additional deals. The company will do so no matter what happens with its bid to take over Swiss 3PL and air freight forwarder Panalpina. DSV has made a $4 billion offer to Panalpina, which — at the time of writing — has not yet been accepted or rejected. Andersen told reporters that further acquisitions are likely. “It is the best way we can spend the money we generate ourselves,” he said. For more details, please see Reuters.
HOW UNIVERSITIES AND PUBLIC INSTITUTIONS CAN CONTROL PARCEL SHIPPING COSTS
Universities and public bodies spend a huge amount on parcel shipping. Despite this, many institutions have no way of measuring — let alone managing — this. When your organization has different schools, departments, administrative units and so forth, it can be difficult to ensure that all staff follow the same shipping rules, and each may have their own procedures. Parcel shipping data is generally fragmented across a number of carrier systems. Furthermore, many institutions do not track intercampus or interoffice shipping costs.
At the end of last year, the major carriers announced their 2019 General Rate Increase. The GRI includes increases to both the base rate and surcharges. In some cases, this could make a shipment 10 percent more expensive than before. For any organization — including universities and public institutions — controlling parcel shipping costs is crucial. In the latest Precision Report we look at how universities and public sector bodies can leverage desktop shipping solutions to track and and manage parcel spend. To read the full report, please click here.
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