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QAD Precision News Round-Up: 13 March 2020

In the QAD Precision News Round-Up: 13 March 2020, coronavirus results in supply chain delays for US retailers; Irish construction sector faces supply disruption; increased demand for driverless delivery in Beijing; UPS tests electric trucks in the UK; the importance of trade compliance for retailers, plus more. 

Transportation

DRIVERLESS DELIVERIES IN CHINA GROW

A Beijing-based driverless delivery service Noelix has seen an increase in demand since the beginning of the coronavirus outbreak. The small, driverless vans reduce physical contact between consumers and delivery personnel. In addition, they also address labor shortages caused by quarantines and travel restrictions. Noelix customers include Alibaba Group Holding Ltd., Meituan Dianping and JD.com Inc. The company has booked orders for more than 200 vehicles in the last two months. Before this, it had only produced 125 units since May 2019, founder Yu Enyuan said in an interview. For more information, please see Post and Parcel. 

Global Trade 

CORONAVIRUS IMPACT ON IMPORTS EXPECTED TO BE WORSE THAN PREVIOUSLY PREDICTED

Coronavirus is expected to have a more significant impact on imports at major US retail container ports than previously anticipated. That’s according to the Global Port Tracker report, released by the National Retail Federation and Hackett Associates. The report noted that factory shutdowns and travel restrictions in China continue to disrupt production. Although some factories are back to production, Covid-19 has impacted the movement of cargo. For more information, please see SupplyChain247. 

CORONAVIRUS  RESULTS IN SUPPLY CHAIN DELAYS FOR IRISH COMPANIES 

On Monday it was reported that construction firms in Ireland have started to experience delays in securing supplies due to the worldwide impact of coronavirus. Ulster Bank's monthly survey of construction purchasing managers showed that delivery delays in February hindered efforts by some films to secure supplies. In February, longer delivery times were generally the result of  stormy weather However, there were also delays caused by the outbreak of coronavirus in China. For more details, please see The Irish Examiner. 

Retail 

INCREASE IN OUT-OF-HOME DELIVERIES EXPECTED IN AUSTRALIA

The growth of e-commerce is transforming Australia’s traditional retail landscape. In Australia, online retail sales have grown by 14 percent annually in the last three years. Speaking at the Hubbed “Future of PUDO Conference” last week, Managing Partner at Last Mile Exports, Marek Rozycki predicted that out-of-home deliveries will solve important logistical problems for retailers, carriers and consumers. Mr. Rozycki predicts that out-of-home deliveries will also make up a significant portion of last-mile markets. For more information, please see Post and Parcel. 

Carriers

UPS TO TRIAL ELECTRIC, DRIVERLESS VEHICLES IN LONDON

UPS has started testing the suitability and durability of Gaussin electric vehicles to move semi-trailers and containers on the grounds of UPS’s technology hub in London. The vehicles have autonomous driving capability. However, UPS will test them with drivers to evaluate the vehicles' operations and efficiencies. UPS will progress to the next testing phase later this year. This will include testing autonomous driving operations. Gaussin electric vehicles have zero tailpipe emissions. They also have battery swap technology, allowing empty batteries to be swapped out for fully charged ones. UPS chief information and engineering officer, Juan Perez said that the vehicles will help UPS to cut fuel costs and reduce emissions. For more details, please see Post and Parcel.

QAD Precision News 

THE IMPORTANCE OF TRADE COMPLIANCE FOR RETAILERS

The Covid-19 crisis has made one thing crystal clear: companies that sell consumer goods have complicated supply chains. That’s true whether a company sells computers, clothing or chocolate. It’s also the case whether a company outsources the manufacture of all or part of the goods they supply, or if they buy finished products to sell. And complex supply chains are generally accompanied by compliance challenges.

The explosion of e-commerce has upended the nature of retail selling. Not that long ago, retail selling and geographic reach were indivisible. Today, retail supply chains are global. Goods can be manufactured anywhere, transported anywhere, and sold anywhere. Consequently, retailers can sell well beyond their local market. However, sourcing and selling globally introduces significant complexities.

Any company with an international supply chain must remain compliant with in-country regulations in all the markets where they operate. If you wish to do business with customers or vendors in another country, you need to be aware of — and comply with — local regulations.

Governments want a clear picture of what a company is exporting or importing. There are commercial implications as well as safety and security standards that enterprises must meet. Failure to do so can mean customs delays, fines, damaged reputations, and unhappy customers. Despite not being seen as a heavily regulated industry, retailers that source or sell globally face a number of regulatory challenges. In this QAD Precision Report, we look at the importance of trade compliance for retailers. To read the full report, please click here.

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