In the QAD Precision News Round-Up: 25 February 2022, US jobless claims down; Macys forecasts strong sales; Chronopost invests in healthcare; production halted at Oxford's BMW Mini plant; plus what multi carrier shipping solution is right for you and more.
According to government data released on Thursday, US weekly jobless claims were less than expected last week and economic growth in 2021 was better than originally reported. The Labor Department said initial filings for unemployment insurance totaled 232,000 for the week ended February 19. That figure was below the estimate of 235,000 by Dow Jones and down 17,000 from the week previously.
In a separate report from the Commerce department, gross domestic product (GDP) increased at an annualized rate of 7 percent in the fourth quarter. This was slightly up from the previously reported pace of 6.9 percent and brings full-year growth to 5.7 percent. This is the fastest pace since 1984. For more information, please see CNBC.
Chronopost has announced a €20 million ($22.3M) investment to establish a nationwide infrastructure and transport network in France dedicated to healthcare. The investment will aid plans to meet the needs of the pharmaceutical and medical biology industries seeking reliable and affordable temperature-controlled transport solutions.
Chronopost invested €10 million ($11.2M) on transport and a further €10 million on infrastructure and metrology — an essential tool for monitoring temperatures. According to Chronopost, 20 percent of healthcare parcels handled are temperature-controlled. For more information, please click here.
DHL Express has announced a new route between the US and Ho Chi Minh City, Vietnam as bilateral trade grows. The alternative route will fly once per week. This is in addition to the current route which operates six times a week from Ho Chi Minh City to Hong Kong before heading to the US. The new route will provide up to 102 tons of additional capacity for customers in Vietnam. This brings the weekly total gross payload to over 940 tons. For more details, please see Aircargo News.
US Department store Macy’s has decided against a spin-off for its online business and has forecast better-than-expected annual sales. This follows a successful 4th quarter, largely driven by strong demand for apparel and jewelry. The company's quarterly sales grew to $8.67 billion and Macy's earned $2.45 per share. This result outperformed estimates by analysts.
During peak season, Macy’s e-commerce business expanded by 12 percent. Forecasts expect e-commerce to account for 37 percent of total sales in 2022. Furthermore, in Q4, app downloads soared by 81 percent compared to the previous quarter due to modernization efforts. Macy’s expects annual sales between $24.46 billion and $24.70 billion, above analysts' predictions. For more details, please see Reuters.
Oxford's BMW Mini plant will suspend production for a week. This is as a result of the ongoing global shortage of computer chips. According to BMW, production at its Cowley Factory is being halted from Monday to Friday. The plant employs 3,500 workers, and on average produces about 5,000 cars a week. Last April, the company also suspended production for three days over the shortage.
The chip shortage continues to impact automakers around the world, in addition, to supply chain disruption and Coronavirus-related restrictions.
Toyota, General Motors, Ford, Nissan, Daimler, BMW and Renault, have all reduced production in recent months due to low supply of semiconductors. For more details, please see BBC.
There is no doubt that there has been a rapid increase in the number of parcel shipments. According to Parcelmonitor, 2021 peak season shipments increased 47 percent over the record-setting volume in 2020. Consequently, shippers must find a way to access capacity while satisfying customer delivery requirements.
Due to the rising demand for parcel shipping, many shippers have moved away from the traditional single carrier strategy. Instead, many have to embrace a multiple carrier strategy. But simply adding extra carriers can add both costs and complexity. As a result, shippers are turning to multi carrier shipping software to help them manage volumes, customer requirements, and control costs. In this QAD Precision Report, we look at choosing a multi carrier shipping solution to manage high volume parcel shipments. To read the full report, please click here.
SANTA BARBARA, Calif. -- February 23, 2022 -- QAD Precision, a division of QAD Inc., today announced its achievement of Veracode Verified Team Status for its Global Trade and Transportation Execution (GTTE) solution. The Veracode Verified program provides third-party validation of a company's secure software development processes from Veracode, the largest global provider of application security testing (AST) solutions. For more details, please visit QAD.