QAD Precision News Round-Up: 26 March 2021

In the QAD Precision News Round-Up: 26 March 2021, Eurozone activity improves; UK plans 4 regional trade hubs; UK inflation down in February; Nike’s US imports plummet; DHL to invest $7 billion in zero carbon logistics, plus delivery exception management and more. 

Global Trade

EUROZONE BUSINESS ACTIVITY IMPROVES IN MARCH

According to a preliminary survey released on Wednesday, business activity in the Eurozone grew for the first time in six months in March. However, with the onset of a third wave of coronavirus infections and renewed restrictions across Europe, this growth is not expected to last. 

In March, IHS Markit’s flash composite PMI increased to 52.5 compared to 48.8 in February. This is above the 50 mark separating growth from contraction and is the highest reading since late 2018. In Germany, factory output grew to record levels. The German services sector also expanded, after five months of contractions. Activity in France was better than expected with manufacturing increasing at its fastest pace in over three years. For more details, please see Reuters.  

UK PLANS 4 REGIONAL TRADE HUBS 

On Tuesday, the UK announced plans to develop four regional trade and investment hubs to boost pandemic recovery. The hubs will open in Edinburgh, Cardiff, Belfast and Darlington, according to Secretary of State for International Trade Liz Truss. The UK government said the hubs will help businesses access major trade markets as well as boost exports. This announcement comes as new data from the Office for National Statistics (ONS) shows UK goods exports to the EU declined 40.7 percent in January. You can read more on this story at BBC News.  

UK INFLATION RATE DROPS IN FEBRUARY 

In February, UK inflation declined. This was the greatest annual fall in clothing prices since 2009 and also gave consumers access to cheaper second-hand cars, toys and computer games. The Office for National Statistics said the annual rate of consumer price inflation fell to 0.4 percent last month from 0.7 percent in January. However, the Bank of England expects inflation to rise back towards the bank's 2 percent target in the first half of 2021. BoE cited increases in oil prices and household energy bills as well as other one-off effects. For more details, please see RTE.

Carriers 

DHL TO INVEST €7 BILLION IN CLIMATE NEUTRAL LOGISTICS

Deutsche Post DHL Group has announced its commitment to invest €7 billion ($8 .3 billion) over the next 10 years to reduce its CO2 emissions. The company plans to invest in alternative aviation fuels, as well as increase its zero-emission vehicle fleet and climate-neutral buildings. 

As part of its plan to reach zero emissions by 2050, the company is pledging new interim targets. DHL has announced plans to reduce its greenhouse gas emissions by 2030 in line with the Paris Climate Agreement. In 2020, DHL’s emissions were 33 million tons. The group committed to reducing its annual CO2 emissions to below 29 million tons by 2030, despite the expected strong growth in global logistics activities. For in-depth information, please see Parcel and Postal Technology 

Retail 

NIKE IMPORTS DECLINE 39 PERCENT 

Last week, Nike executives said port congestion and other supply chain bottlenecks were constraining its inventory levels. According to Nike, inventory delays of up to three weeks in North America, affected the timing of its wholesale shipments. 

In addition, during Q3, Nike’s inventory in North America was up 31 percent year-on-year, however, much of this was in-transit inventory. Nike CFO Matt Friend said the inventory in its distribution centers was down 20 percent year-on-year for the quarter. Mr Friend cited container shortages, transportation delays and port congestion as the reasons for the interruption in the flow of inventory supply. For details and analysis please see Supply Chain Dive.  

JOHN LEWIS ANNOUNCES CLOSURE OF 8 MORE STORES

Department store John Lewis has announced that it will permanently shut eight more of its outlets. This includes locations in York, Peterborough, Sheffield and Aberdeen and puts 1,500 jobs at risk. Earlier this month, the retail group reported its first full-year loss. In addition, John Lewis, announced the closure of four homewares speciality stores. Last year, John Lewis permanently closed 8 stores. This was due to the coronavirus pandemic accelerating the shift to online shopping. At present, e-commerce accounts for three-quarters of its sales. More information on this story can be found at The Guardian.  

QAD Precision News

3 MINUTE EXPLAINER: WHAT IS DELIVERY EXCEPTION MANAGEMENT?

In 2020, an iconic British retailer entered administration and later announced it would be liquidated. The brand was later bought by an online-only retailer that would not retain any of the company’s physical stores.

The closure of such a longstanding retailer was a huge blow to high streets, British and Irish shoppers — and most especially, the company’s thousands of employees. 

But if you’d ever tried purchasing goods online from this retailer, the closure may not have been a surprise. At a time when e-commerce volumes are soaring, companies can no longer afford to be lax about the delivery experience. If they are, their competitors will win market share and customer loyalty.

If you are aggravated when your packages don’t arrive on time, your customers are too. In this 3 Minute Explainer, we explain why delivery exception management is a must-have for parcel shippers. To read the full report, please click here.