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QAD Precision News Round-Up: 14 February 2020

In the QAD Precision News Round-Up: 14 February 2020, DPD to add 100 EVs to fleet; FedEx Ground to deliver select residential shipments; UK shoppers cautious about spending; coronavirus upends Apple and Australian retail supply chains; plus 7 e-commerce fulfillment trends for 2020 and more. 

Supply Chain

CORONAVIRUS MAY DISRUPT AUSTRALIAN TOURISM AND RETAIL 

This week, analysts from Commonwealth Bank and ANZ forecast that coronavirus could significantly impact Australian retailers as well as the broader economy. Electronics retailers such as JB Hi-Fi and Harvey Norman could experience significant disruption to the supply of computers, TVs and smartphones. The factories where many such electronics are manufactured have been closed due to the coronavirus outbreak. Furthermore, Chinese tourists and international students — generally high spenders — are impacted by a travel ban. Under Australia’s travel ban, anybody who has visited mainland China must spend at least two weeks outside China before entering Australia. For more details, please see The Guardian.

CORONAVIRUS QUARANTINES THREATEN APPLE SUPPLY CHAIN

In more coronavirus news, Apple is experiencing both production outages and decreased demand for its products in China. Apple’s Chinese manufacturing partners have imposed quarantines on employees returning from China’s Lunar New Year holiday. As a result, the assembly of Apple products could be stopped for up to a month. Generally speaking, Apple stores aim to have enough inventory to last between four to six weeks. However, a month-long delay could disrupt this buffer. In addition, restrictions on people’s movements in parts of China, along with Apple store closures, will reduce demand for the tech company's products in China. However, this is likely to be only “partial demand destruction” as many consumers are likely to wait to buy electronics at a later stage. For more information, please see the LA Times.

ALIBABA LAUNCHES B2B PLATFORM FOR CORONAVIRUS MEDICAL SUPPLIES

Alibaba has launched a business-to-business sourcing platform to speed up coronavirus medical supply delivery. The Alibaba Global Direct Sourcing Platform will match sellers of medical supplies and their products with hospitals and local authorities impacted by the disease. The Green Channel established by Alibaba’s logistics unit, Cainiao Smart Logistics Network, will transport the goods to hospitals and work with partners to handle shipping, handling, customs clearance and delivery. For more information, please see Parcel and Postal Technology.

Retail

UK SHOPPERS STILL CAUTIOUS ABOUT SPENDING IN JANUARY

A survey released this Tuesday showed that British consumers were wary about spending in January. The report suggests that Britons have not experienced an increase in confidence since December’s election broke the Brexit deadlock. The British Retail Consortium (BRC) revealed that total retail spending increased by an annual 0.4 percent in January. “Consumer confidence has started to return post-general election, but we have not experienced any major leaps for the sector yet,” said Paul Martin, a partner at KPMG which produced the survey with BRC. For more information, please see Reuters.

Carriers

FEDEX GROUND TO DELIVER SELECT RESIDENTIAL EXPRESS SHIPMENTS

In March, FedEx Express and FedEx Ground will enter a contract for the transport and delivery of select day-definite, residential shipments. FedEx Express deliveries are generally delivered by FedEx employees using company-owned vehicles. However, FedEx Ground deliveries are normally fulfilled by independent contractors. FedEx hopes that this will help to reduce the number of delivery vehicles in residential areas. For more information, please see eSellerCafe.

DPD INVESTS IN 100 ELECTRIC VANS

DPD is to purchase 100 eTGE electric vans from MAN Truck & Bus UK. This deal increases DPD’s UK electric fleet to 600 vehicles in total. DPD will take delivery of the first 100 eTGE’s when production is complete in June. MAN has designed the eTGE to meet the needs of inner-city delivery traffic. The vehicle has a load capacity of 10.7m3 and a range of 65-70 miles. Furthermore, the eTGE has a 36kW lithium ion battery that can be fully charged in about five hours as well as rapid charged to 80 percent in 45 minutes. For more information, please see Post and Parcel. 

QAD Precision News

7 E-COMMERCE FULFILLMENT TRENDS FOR 2020

The rise of e-commerce has made most of us impatient. We want what we want, delivered how, where and when we want it. As e-commerce matures, our expectations are likely to become increasingly demanding.

A few years back, price was the major issue determining our purchasing behavior. Now our decision-making takes into account a number of factors such as delivery speed, costs and convenience along with price. Retailers and e-commerce merchants need to leverage fulfillment as a competitive weapon to capture our business — and in particular, our loyalty. With so much choice, domestically and globally, we are unwilling to offer repeat business to retailers that cannot fulfill orders quickly and accurately.

In order to survive and thrive in the e-commerce landscape, retailers need to be able to meet customers’ needs. In this QAD Precision Report we look at 7 e-commerce trends for 2020. Read the full report here. 

[JOIN OUR WEBINAR] GOT PARCELS? LEARN HOW TO EXTEND OTM FOR GLOBAL MULTI CARRIER PARCEL SHIPPING

The explosive growth of e-commerce has upended distribution channels and made the need for express and parcel shipping crucial to many industries. 

Presented jointly by Oracle and QAD Precision, this webinar will discuss the advantages of this integration and how users can  extend OTM with QAD Precision’s global multi carrier parcel rating and invoice validation. Together, Oracle OTM and QAD Precision integrate to create a uniform shipping process across all modes of transportation. To register for the webinar , please click here.

 

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