In the QAD Precision News Round-Up: 29 March 2019, Italy joins the New Silk Road; Wayfair is to open a B+M store; UPS launches first commercial drone delivery; Target wants suppliers to set climate goals; and we look at trade compliance issues for high tech.
This week, Italy signed up to China's Belt and Road Initiative (BRI). Also known as the New Silk Road, the programme aims to facilitate trade between China and Europe. Italy signed 29 deals worth around $2.9bn during Chinese President Xi Jinping's visit to Rome. Critics have suggested that the BRI is a bid for geopolitical and strategic influence. China has used the initiative to build roads and other infrastructure projects in Africa and South Asia. Both the European Union and the United States expressed concern. Italy is the first G7 country to have accepted funding from China. The agreement includes deals on energy, finance, and agricultural produce as well as the ports of Trieste and Genoa. Italian gas, energy and engineering firms will gain access to the Chinese market. For more information, please see the BBC.
United Parcel Service Inc. has begun offering the first commercial drone deliveries in the US. The drone flights will ferry medical samples between the WakeMed Health & Hospitals network in North Carolina. UPS has partnered with drone maker Matternet for this project. The drone flights will make multiple deliveries daily. UPS hopes to offer a similar service to other US hospitals. The carrier has also worked with Zipline, a drone maker and operator, delivering medical supplies to remote parts of Rwanda. For more information, please click here.
On Tuesday, the furnishings retailer Wayfair became the latest internet giant to move into bricks-and-mortar. The company announced plans to open its first permanent store in Natick near Boston. The retailer has previously opened short-term pop-up stores. Wayfair has not confirmed if other stores are in the pipeline. According to Wayfair CEO and co-founder Niraj Shah, the goal is to offer shoppers more options along with “knowledgeable support and expertise of our in-store design team.” For more information, please click here.
This Wednesday, Target released new climate goals to reduce emissions in its supply chain as well as its own operations. The retailer plans to reduce its own emissions by 30 percent by 2030. However, Target also requires that 80 percent of suppliers set science-based reduction targets by 2023. The Science-Based Target initiative requires companies to set reduction goals that are "in line with the level of decarbonization required to keep global temperature increase below 2 degrees Celsius compared to pre-industrial temperatures." Companies that commit to the initiative have a year to set goals. In an email to Supply Chain Dive, Target noted that the supply chain represents 96 percent of the retailer’s total emission footprint. To reach its 30 percent reduction goal, Target will use renewable energy sources such as wind and solar power, improve energy efficiency in stores, and improve energy and water efficiency in the company’s own manufacturing facilities. For more see Supply Chain Dive.
Global trade is the cornerstone of the contemporary economy. Supply chains are global, and manufacturers source products and raw materials from all around the world. The final products we buy may use components and intellectual property from every region of the world. Despite this, the global trade landscape is not open to the unfettered movement of goods. Remaining compliant with export controls and international regulations is critical for high tech manufacturers. For manufacturers shipping dual use goods with both military and civilian applications this is even more the case. There are significant consequences attached to violating export regulations, including monetary fines, penalties, delayed shipments and even criminal charges. In the latest Precision Report we look at four major compliance issues for high tech manufacturers. To read the full report, please click here.
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