In the QAD Precision News Round-Up: 11 September 2020,  Euro zone GDP declines by less than expected; China exports see greatest increase since March 2019; UPS prepares to hire over 100,000 seasonal workers; e-commerce delivery optimization and more. 

Global Trade

EUROZONE GDP DECLINES BY LESS THAN EXPECTED

From April to June, the euro zone economy contracted by less than predicted. However, this decline was still the sharpest on record as consumer spending decreased due to Covid-19 restrictions. On Tuesday, data from the European statistics agency Eurostat showed that gross domestic product dropped by 11.8 percent from Q1 and by 14.7 percent year-on-year. Although this decline was more favourable than estimates of 12.1 percent and 15 percent respectively, it represents the steepest drop in data since the series began in 1995. For more information on this news item, please see The Irish Times. 

UK ECONOMY RESURGED BY 6.6 PERCENT IN JULY 

In July, the UK economy increased by 6.6 percent on the previous month. UK GDP in July was 18.6 percent higher than its April low, when the economy fell 20 percent. Although this is positive news, data from the Office for National Statistics (ONS) showed an overall contraction of 11.7 percent compared to the previous year. This decline was slightly below forecasts of 11.4 percent. ONS Director of Economic Statistics Darren Morgan said although the UK economy has been steadily recovering, it has yet to make up nearly half of the GDP lost since the start of the Covid-19 crisis. For more information, please see CNBC.

CHINA EXPORTS SEE GREATEST INCREASE SINCE MARCH 2019

In August, China’s exports increased for the third consecutive month. This follows the relaxing of coronavirus restrictions in some of China’s trading partners. According to customs data, exports in August increased 9.5 percent on a year earlier and mark the strongest growth since March 2019. Furthermore, this figure exceeded predictions of a 7,1 percent growth rate. However, imports unexpectedly declined by 2.1 percent. For more details, please see RTE News. 

Retail 

UK ONLINE RETAIL SALES INCREASE, HIGH STREET SALES SUFFER

According to the British Retail Consortium (BRC), total retail sales increased by 3.9 percent in August compared to the previous year. It was the third consecutive month of growth since the reopening of stores in June. However, online sales account for the majority of this growth rather than bricks-and-mortar stores. BRC chief executive Helen Dickinson stated that city centers are “devastated by low footfall” as office workers stayed at home. Furthermore, sectors such as beauty, clothing and footwear, which are particularly reliant on footfall locations, remain low. You can read more details on this story at Sky News. 

Carriers

FEDEX INCREASES SUNDAY RESIDENTIAL COVERAGE TO NEARLY 95% OF US POPULATION 

From September 13, FedEx will expand its FedEx Ground year-round Sunday residential coverage to approximately 95 percent of the US population. Along with FedEx Saturday residential service that is available across 96 percent of the US population, FedEx stated that the development of the Sunday delivery cover will provide a weekend competitive advantage for the carrier. For more details on this news item, please see Post & Parcel. 

UPS PREPARES TO HIRE OVER 100,000 SEASONAL WORKERS

UPS has announced that it expects to hire approximately 100,000 seasonal workers. The staffing increase is in preparation for the annual increase in package volume from October 2020 to January 2021. Chief Human Resources Officer Charlene Thomas said that this year, UPS is preparing for a record peak holiday season. The carrier is hiring for both full- and part- time positions which includes package handlers, drivers and personal vehicle drivers. Over the last few years, more than a third of UPS seasonal jobs became permanent positions following the end of peak season. To read more on this news item, please see Post & Parcel. 

QAD Precision News 

THE NECESSITY OF E-COMMERCE DELIVERY OPTIMIZATION

This year has upended e-commerce in ways that are almost unthinkable. From March, e-commerce volumes have grown exponentially, reaching peak-like levels. With all this unexpected growth, came delivery delays and unhappy customers.

Think back to the last time you shopped online. Were you satisfied with the delivery experience? Or were you frustrated by lack of clear communications from the retailer regarding your delivery?

It is a truism to say that a successful e-commerce delivery strategy is one that prioritizes customer convenience and satisfaction. But putting this into practice is a significant challenge. In this QAD Precision Report, we look at the necessity of e-commerce delivery optimization. To read the full report, please click here.