In the QAD Precision News Round-Up: 27 August 2021, Euro zone is
going strong; McDonald’s UK has supply chain woes; Target to open 4
new sortation centers; UPS delivers vaccines via drone; Walmart
unveils new delivery service; plus optimizing e-commerce delivery
EURO ZONE BUSINESS ACTIVITY STRONG IN AUGUST
In August, Euro zone business activity was strong due to the
relaxation of Covid-19 restrictions and vaccination uptake. However,
activity was down from July’s two decade high growth. In August, IHS
Markit's Flash Composite Purchasing Managers' Index, seen as a guide
to economic health, declined to 59.5 from 60.2 last month. It was
ahead of the 50-mark separating growth from contraction but just below
Reuters poll estimate for 59.7.
In Germany, the bloc’s biggest economy, both the services and
manufacturing indices grew. Business activity in France slowed
compared to July but remained strong as problems with supplies of
goods and coronavirus health protocols impacted trade. For more
information, please see Reuters.
MCDONALD’S FACING SUPPLY CHAIN ISSUES IN THE UK
Supply chain issues are forcing McDonald’s to stop selling milkshakes
and bottled drinks in the UK. The shortage affects over 1,300
restaurants across England, Scotland and Wales. The supply issue is a
two-pronged problem, staff shortages and supply chain delays from the pandemic.
Supply chain delays are in part, caused by a shortage of truck
drivers. The Road Haulage Association estimates that the UK is short
approximately 100,000 truck drivers. McDonalds is not alone in its
supply chain issues, delays are being reported across the food
industry, from chicken to dairy. For more details, please see CNN.
WALMART ANNOUNCES NEW DELIVERY SERVICE
Walmart announced on Tuesday that it is launching a new delivery
service for merchants throughout the United States. The new program,
called Walmart GoLocal will handle “last-mile” delivery to customers.
Walmart GoLocal will dispatch employees from its Spark delivery
network to retrieve items from local stores then deliver them to
consumers. Over the last year, Walmart has doubled Spark’s coverage to
over 500 cities. Walmart is not releasing its program fees, only
calling it “competitively priced.”
Amazon has a similar model that contracts with van fleets for
same-day deliveries. Both Walmart and Amazon are hoping these services
will help alleviate some peak holiday season volume that can cause an
excess of almost 5 million parcels per day. For more details, please
TARGET TO OPEN 4 NEW SORTATION CENTERS
On Thursday, US retailer Target announced plans for four new
sortation centers. These will be based in Houston, Dallas,
Philadelphia and Lawrenceville, Georgia. The retailer plans to open
two of the centers by October 2021 with the remaining two expected to
open after peak season. Target COO John Mulligan said the new
facilities will help to speed up delivery times at a lower cost in
markets with a high density of shipments. Furthermore, the new centers
will allow for more space at the store locations they serve, expanding
capacity for more digital growth over time. For more information,
please click here.
BEST BUY SALES RISE
On Tuesday, Best Buy reported its second-quarter sales rose almost 20
percent. Best Buy shares closed Tuesday up 8.32 percent to $121.49 per
share. Best Buy reported $11.85 billion in revenue, up from its
projected $11.49 billion. It also increased its second quarter net
income from $432 million to $734 million.
Best Buy attributes its growth to strong consumer spending,
government stimulus money, and increased wages and savings. During the
pandemic, many consumers also upgraded their devices and equipment to
create better work-from-home setups. Best Buy’s estimated revenue is
now $51 to $52 billion for the fiscal year. For more information,
please see CNBC.
UPS VACCINE DELIVERY VIA DRONE
On Wednesday, UPS Flight Forward planned to complete the first drone
delivery of coronavirus vaccines in the US at Atrium Health Wake
Forest Baptist in Winston-Salem, North Carolina. According to UPS, the
delivery will leave from the hospital and transport the vaccines to a
family medicine practice. The Matternet M2 drone will maintain
temperatures of 2 to 8 degrees Celsius. Additionally, a temperature
monitor aboard the drone will alert users if temperature diversions
arise. Dan Gagnon, VP of UPS Healthcare said each drone can carry 25
vials for a total of 450 doses. For more details, please click here.
QAD Precision News
THE NECESSITY OF E-COMMERCE DELIVERY OPTIMIZATION
Last year upended e-commerce in ways that are still reverberating.
From March, e-commerce volumes grew exponentially, reaching peak-like
levels. Now 18 months later, retailers are bracing for supply chain
disruptions and high peak season delivery surcharges.
It is a truism to say that a successful e-commerce delivery strategy
is one that prioritizes customer convenience and satisfaction. But
putting this into practice is a significant challenge.
Think back to the last time you shopped online. Were you satisfied
with the delivery experience? Or were you frustrated by lack of clear
communications from the retailer regarding your delivery?
Clear communications that set delivery expectations should be a
priority. An online shopper may be happy to wait, for example, three
days for a delivery. This goodwill — and trust in the e-commerce
business — evaporates if the delivery takes five, six days or longer.
In this QAD Precision Report, we look at the necessity of e-commerce
delivery optimization. Read the full report here.
QAD PRECISION TO SHOWCASE ITS DESKTOP SHIPPING AND MULTI-CARRIER
SHIPPING SOLUTIONS AT THE NATIONAL ASSOCIATION OF EDUCATIONAL
PROCUREMENTS (NAEP) DISTRICT VI CONFERENCE
SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Precision, an
industry-leading provider of global trade management and
transportation execution solutions, will showcase its desktop shipping
and multi-carrier shipping solutions at the National Association of
Educational Procurements (NAEP) District VI Conference on August 29 -
September 1, 2021 in Westminster, CO. QAD Precision is a division of
QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB). For more details, please see