In the QAD Precision News Round-Up: 24 May 2019, Theresa May to resign; Nigeria will sign African trade deal; UPS commits to renewable natural gas; Royal Mail to invest £1.8bn; DHL rolls out wearables; plus we look at returns strategies for retailers.
THERESA MAY TO RESIGN AS PRIME MINISTER
This Friday, UK Prime Minister Theresa May said she would step down on 7 June. Mrs May said that serving as Prime Minister had been “the honour of my life” and stated her regret she was unable to deliver Brexit. The PM announced an updated Brexit deal on Tuesday. This angered Conservative members of parliament (MPs) as well as her cabinet. Mrs May was also unable to convince Labour MPs to back her plan. Andrea Leadsom, the leader of the House of Commons, resigned on Wednesday, rather than bring the Brexit bill to parliament. Boris Johnson, the former foreign secretary, is the frontrunner to replace Mrs May as Prime Minister and leader of the Conservatives. He will not run unopposed. Secretary of State for International Development Rory Stewart will also stand. Other senior figures such as Jeremy Hunt, Michael Gove, Penny Mordaunt and Sajid Javid also likely to contest the leadership. For more information, please click here.
TRADE MINISTER: NIGERIA WILL SIGN AFCFTA
There were indications this week that Nigeria will sign the Africa Continental Free Trade Agreement (AfCFTA). Okechukwu Enelamah, Nigeria’s minister of industry, trade and investment said that when President Muhammadu Buhari approves an impact-assessment report on the deal the country will sign the agreement. AfCFTA hopes to increase intra-African trade, investment and innovation. The agreement will come into force on 30 May 2019. Nigeria is a notable absentee from the 22 countries which have ratified the agreement. For more details, please see Bloomberg.
UPS TO BUY 170M GALLONS OF RENEWABLE NATURAL GAS
This week, UPS announced plans to buy 170 million gallon equivalents of renewable natural gas (RNG) from Clean Energy Fuels Corp. through to 2026. This is the largest commitment to use RNG by any company in the US. UPS is working towards making alternative fuel 40 percent of its total ground fuel purchases by 2025. The carrier also has plans in place to reduce greenhouse gas emissions of its ground fleet 12 percent by 2025. The deal with Clean Energy Fuels Corp. and the switch to RNG will reduce greenhouse gas emissions by UPS by up to 1,074,000 metric tons. For more information, please click here.
ROYAL MAIL INTO INVEST £1.8BN IN UK
This week Royal Mail announced plans to invest approximately £1.8 billion (around $ 2.28 bn) in the UK over five years. Royal Mail will also make changes to operations. This includes introducing a second delivery for Next Day parcels. These parcels are generally retail purchases made the previous evening. The service will mean many customers will receive their purchases less than 24 hours after ordering. Royal Mail will also build three new fully-automated parcel hubs to support this service. In addition, Royal Mail also plans to collect returns from customers at their homes. Royal Mail will also offer customers the ability to redirect deliveries if they are not going to be at home when their parcel is due to arrive. To read more about this, please click here.
DHL ROLLS OUT WEARABLE TECH
DHL is expanding the deployment of Google’s Smart Glasses and other wearable technologies in its warehouses. According to DHL, wearables and augmented reality results in more accurate and efficient picking. Other DHL business units, including DHL Express, also plan to use wearables in their hubs. You can read more about this here.
QAD Precision News
RETURNS STRATEGIES FOR RETAILERS
The explosive growth of e-commerce has been a mixed blessing for retailers. Retailers are jostling with an ever greater number of rivals — including global competitors, digital start-ups and online marketplaces. They are also dealing with significantly more returns and grappling to control those costs. Online shoppers return items in much higher numbers than those purchasing goods from physical stores. Only about 10 percent of bricks-and-mortar purchases come back; for online shopping, rates of returns fall between 30 and 40 percent. If you sell goods online, returns are inevitable. In this QAD Precision Report we look at strategies retailers can use to control the costs of returns. To read the full report, please click here.
LET’S KEEP IN TOUCH
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