QAD Precision News Round-Up for 9 August 2019
In the QAD Precision News Round-Up: 9 August 2019, FedEx ends Amazon ground services; Barneys files for bankruptcy; German industrial woes; USPS’s robot patent; Amazon launches UK pop-up store; how OEMs and aftermarket suppliers can thrive in an e-commerce world and more.
FEDEX ENDS GROUND DELIVERIES FOR AMAZON
On Wednesday, FedEx announced that it is ending its ground-delivery contract with Amazon and will not renew it at the end of the month. A FedEx spokesperson stated that “this change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do.” This is the second Amazon contract FedEx has chosen not to renew. In June, FedEx announced that it was ending its express US shipping contract. For more details, please see CNBC.
USPS GRANTED PATENT FOR SORTING ROBOT
The US Patent and Trademark has granted US Postal Service a patent for a sorting robot. According to the patent, the robot will work in the back of USPS delivery vehicles en-route to deliveries. The robot will be capable of grasping and sorting items, as well as assembling items and shrink-wrapping them. These robots could potentially replace a portion of the work performed by humans in a US postal buildings. For more details, please see Supply Chain Dive.
GERMAN INDUSTRIAL PRODUCTION DECLINES
Industrial production in Germany slumped 1.5 percent in June to its lowest level in nine years. The decline is as a result of the ongoing US-China trade war, which has impacted exports. According to analysts, the decline in sales of machine parts and cars to China and the Far East are largely to blame for the decline. Fears that the global economy is facing recession have exacerbated in recent weeks as tensions between the US and China ramp up. For more information, please see The Guardian.
BARNEYS NEW YORK FILES FOR BANKRUPTCY
On Tuesday, iconic retailer Barneys New York filed for bankruptcy. The retailer reported plans to focus on only five stores. Stores will close in Chicago, Las Vegas and Seattle, along with five smaller concept stores and seven Barneys Warehouse stores. Rent increases are at the forefront of this filing. The rent for company’s flagship Madison Avenue store increased from around $16 million to about $30 million in January. Furthermore, like many retailers Barneys is a victim of the retail upheaval, as both online shopping and purchasing directly from brands increase. For more information, please see CNBC.
AMAZON TO LAUNCH CLICKS & MORTAR STORE IN SCOTLAND
Amazon has announced the opening of the first Clicks and Mortar store in Scotland this weekend. The store, located in Edinburgh, is part of Amazon’s plan to include 100 small online businesses across ten UK Clicks and Mortar stores. The tech giant will open the pop-up store in Scotland as part of a UK-wide pilot that will offer smaller ecommerce platforms an opportunity to meet customers and promote their brand. For more details, please see Retail Gazette.
KODIAK ROBOTICS STARTS SELF-DRIVING FREIGHT ROUTES IN TEXAS
Kodiak Robotics, a startup firm developing self-driving trucks, has started to make commercial deliveries in Texas. Although the trucks are self-driving, a driver is behind the wheel for safety. The self-driving trucks will operate along “middle mile” highway routes. All going well, autonomous vehicles should increase the safety of highways while reducing costs associated with carrying freight and transportation time for longer routes. For more details, please see DC Velocity.
QAD Precision News
HOW OEMS AND AFTERMARKET SUPPLIERS CAN THRIVE IN AN E-COMMERCE WORLD
Automotive original equipment manufacturers and aftermarket parts suppliers face with two seemingly opposing trends. First is the increasing adoption of new technologies, including but not limited to, electric vehicles. As the electric vehicle (EV) market continues to grow, companies will need to react to shifting aftermarket requirements. At the same time, people are holding on to their vehicles for longer. In the US, the average age of cars and light trucks rose again this year to 11.8 years. In 2002, it was 9.2 years. What both of these trends have in common however is the influence of e-commerce. Automotive OEMs and aftermarket parts suppliers are facing disruptions from new technologies and e-commerce. In this QAD Precision Report we look at how OEMs and aftermarket suppliers meet these challenges. To read the report, please click here.
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