In the QAD Precision News Round-Up: 14 January 2022, India and UK
to enter trade talks; US inflation up; UK manufacturing costs
increase; record breaking US holiday sales; EU plans simulated
supply chain attack; plus multi carrier shipping software explained
On Thursday, India and the UK launched free trade agreement
negotiations in New Delhi. The two nations aim to reach a deal by the
end of 2022 that could boost bilateral trade by billions of pounds.
Furthermore, Indian trade minister Piyush Goyal and his British
counterpart Anne-Marie Trevelyan said they would introduce an interim
trade agreement in the coming months, before the free trade deal is finalized.
According to the UK, the deal could almost double British exports to
India and boost total trade by £28 billion ($38.3 billion) per year by
2035. In addition, British statistics show that total trade in 2019
was worth £23 billion. For more information, please see Reuters.
The US consumer price inflation index is at the highest level since
June 1982. The Bureau of Labor Statistics reports the index rose 7
percent over the past year before seasonal adjustments. Consequently,
this is higher than the analysts' predictions as well as the November
increase of 6.8 percent. Excluding food and energy costs, inflation
rose 5.5 percent between December 2020 and December 2021. This
represents the largest yearly increase in inflation since February
1991. In further bad news, analysts predict inflation will continue to
rise into 2022. For more details, please visit CNN.
A survey of UK manufacturers has found that Brexit, customs delays
and increasing costs will negatively impact their businesses in 2022.
Two-thirds of industrial company leaders revealed Brexit had hindered
their business, according to a survey by Make UK, the industry body
representing 20,000 manufacturing firms across Britain. In addition,
over 50 percent of firms said they expected to suffer further damage
from customs delays in 2022 due to import checks and product labeling
changes. For more details on this news item, please see The Guardian.
Online holiday sales in the United States hit a new record of $204.5
billion according to Adobe Analytics. As a result, online sales during
the holiday season rose nearly 9 percent. Adobe Analytics compiled
almost one trillion visits to retailers’ websites to get the data. The
record-breaking number is due to higher prices across all categories.
Compared to the year previous, December online prices are 3.1 percent
higher and up 0.8 percent month over month. December is the 20th
consecutive month of online inflation on a year-over-year basis.
In addition, analysts predict the December sales would have been even
higher without supply chain constraints. From November 1 to December
31, consumers saw more than six billion out of stock messages on
retailers’ websites. This is 10 percent higher than in 2020 and 253
percent higher than in 2019. Other factors affecting the holiday sales
numbers include: lack of discounts, low inventory and a consumer trend
of earlier shopping. For more details, please visit CNBC.
The European Union will begin a six-week cyberattack simulation this
week. The large-scale simulated attack will focus on supply chains. In
addition, the simulated attack will also have socio-economic effects
on multiple states. The objective is to coordinate public
communications as well as a diplomatic response. Furthermore, the EU
hopes the simulation will increase preparedness as well as an
effective joint response from the member states. For more information,
please click here.
On Wednesday, DHL Express announced that it has opened the Middle
East’s largest robotic sorting center in Israel. The 250 million
shekel ($80 million) investment will enable DHL to keep up with the
increase of orders in Israel.
CEO of DHL Express Israel Yair Bitton said the new facility includes
100 conveyor belts and has the capacity to sort 20,000 packages per
hour, approximately five times more than before.
In 2021, Israel's economy was expected to have expanded by 7 percent.
Additionally, the nation was on course for a record year with recent
data predicting exports reached $140 billion, an increase of 18
percent compared to the year previous. For more details, please click
Today’s trading environment is one of global supply chains.
Furthermore, e-commerce is no longer limited to consumer goods. People
shop online for every kind of product — everything from tiny
components to large industrial machines, from consumer electronics to
food and beverages, medicine and medical devices, or clothes and
shoes. In order to thrive in this world, enterprises need the
flexibility to call on the right carrier to match the speed, distance,
region, and environment their products need.
Shipping internationally can be complex. There are a multitude of
forms to complete, regulations to obey, and tariffs to calculate. To
make matters worse, the rules change frequently, making it even harder
to keep up.
Your company can’t afford shipment delays because of a minor
infraction or human error. In order to manage the costs and complexity
of global deliveries, enterprises have been turning to multi carrier
shipping software. With multi carrier shipping software, companies can
automatically switch between carriers. In this QAD Precision Report we
break down exactly what this means, and the benefits of multi carrier
shipping. Read the full report here.