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QAD Precision News Round-Up: 22 November 2019 

In the QAD Precision News Round-Up: 22 November 2019,  Australia demands compensation for Brexit trade disruption; US to issue Huawei with 90 day extension; DHL expands parcel network in Germany; the importance of flexible delivery options and multi-carrier shipping for retailers and more. 

Carriers

DHL EXPANDS PARCEL NETWORK IN GERMANY 

DHL has opened a parcel center in Bochum with a sorting capacity of up to 50,000 per hour. This facility is DHL’s largest parcel centre in Europe and when it reaches full capacity in 2020, approximately 600 new jobs will be created. At present, the Bochum facility sorts more than 20,000 items per hour.  For more details, please see Post & Parcel. 

FEDEX & UPS TO INCREASE SURCHARGES ON PARCELS 

FedEx and UPS are both due to add additional handling surcharges for packages weighing between 50 to 70 pounds.   At present, shipments weighing up to 70 sounds are free from the surcharge. This will change when the carriers’ 2020 rates come into effect on December 29 for UPS and January 6 for FedEx. For more information, please see Freight Waves. 

E-Commerce

CAR MANUFACTURERS INCREASE E-COMMERCE 

According to the 2019 Automotive Ecommerce Reports from Digital Commerce 360, car makers are increasingly looking at ways to sell cars, trucks and SUVs to consumers online. Founder of Tesla, Elon Musk is challenging convention by favoring direct-to-consumer strategies that permits consumers to research and purchase a vehicle entirely online. Last year, Tesla produced and delivered 245,506 electric cars to consumers. For more details, please see Digital Commerce 360. 

AUSTRALIA POST TEAMS UP WITH DODDLE

Australia Post and Doddle have partnered to make e-commerce deliveries and returns easier for consumers. Doddle offers a network of collect and return locations. Australia Post Collect & Return will offer shoppers the option to collect and return online shopping at various locations including post offices, 24/7 parcel lockers, supermarkets, pharmacies and department stores. For more details, please see Post & Parcel. 

Global Trade 

AUSTRALIA DEMANDS COMPENSATION FOR BREXIT TRADE DISRUPTION

Australia and a number of non-EU countries have asked for compensation from the UK and the EU over Brexit-related trade disruption. At the World Trade Organisation negotiations in Geneva, Australia stated that its beef and lamb exports had already been negatively affected by Brexit uncertainty. The EU limits the amount of agricultural products that can be imported without tariffs being applied. Once the UK leaves the bloc, the quota available to Australian companies will be reduced. Australia claims that this will result it in a $366 million reduction of meat exports to the UK and EU every year. Australia’s claim won support from 14 non-EU countries, including Canada, China, India, New Zealand and the US.  For more details, please see The Guardian. 

US ISSUES HUAWEI WITH 90 DAY LICENSE EXTENSION 

On Sunday, Reuters reported that the US government was expected to issue a 90-day licence extension allowing US companies to continue doing business with Huawei. After adding Huawei to an economic blacklist in May, the US Commerce Department has permitted the telecommunications company to purchase some American-made goods to minimize disruptions for its customers. Commenting on the extension, which was granted on Monday,US Commerce Secretary Wilbur Ross said that his department would continue to monitor sensitive technology export. For more information, please see Reuters and The New York Times.

Retail

HOME DEPOT EVALUATES TARIFF IMPACT AT SKU-LEVEL 

On Tuesday, Home Depot said that it has mitigated half of its potential tariff costs with a data-driven approach that assesses the impact of tariffs at SKU-level. In Q2 and Q3, the retailer lowered its sales guidance due to concerns about the impact of tariffs. Home Depot has put the cost of list one to four tariffs at $2 billion for the year. Goods on lists one to three have a duty rate of 25 percent, while list four is at 10 percent. For more information, please see Supply Chain Dive. 

QAD Precision News 

THE IMPORTANCE OF FLEXIBLE DELIVERY OPTIONS AND MULTI CARRIER SHIPPING FOR RETAILERS

For omnichannel and e-commerce retailers standardizing customer delivery operations across different distribution centers, bricks-and-mortar stores and geographic locations, can seem impossible. Retailers ideally aim to offer the same high levels of customer service through all channels, both online and offline. However, when a retailer relies on third parties outside of management control to execute critical services — such as on-time parcel delivery — this can be a challenge.

In order to meet customer expectations, high volume and high value retailers often rely on a few trusted carriers. This trust is important. After all, your customers will blame you, not your carrier, if a delivery is late or if they receive their goods in less than perfect order.

Having said that, retailers who rely on just one or two carrier partners are vulnerable to higher delivery costs. Plus there is the risk of orders going unfulfilled if the preferred carrier is experiencing capacity issues, or is dealing with an unforeseen disaster, such as a fire in a hub. In this QAD Precision Report we look at how multi carrier shipping software can help retailers standardize shipping procedures, control costs and meet customer expectations. To read the full report, please click here. 

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