QAD Precision News Round-Up: 30 April 2021 

In the QAD Precision News Round-Up: 30 April 2021, UK economy forecast to soar; EU agrees post-Brexit trade deal; Japan ratifies world’s largest free-trade deal; USPS prepares for 2021 peak season; UPS had a great Q1; plus mitigating financial supply chain risks and more. 

Global Trade

UK ECONOMY FORECAST TO GROW AT FASTEST RATE SINCE 1941 

In 2021, the UK’s economy is forecast to grow at the fastest pace since 1941. This growth is as a result of businesses better adapting to coronavirus measures and the easing of lockdown restrictions. That’s according to the EY Item Club, a UK economic forecasting group. The group updated its growth forecasts, and now expects GDP to expand by 6.8 percent in 2021, compared to the 5 percent it predicted in January. This would be the strongest annual growth in UK national income since 1941. 

Last year, the UK economy contracted by 9.8 percent, the biggest decline in the G7. According to the EY Item Club, the UK will recover its pre-pandemic peak by the middle of 2022, helped by a surge in consumer spending. For more details, please click here. 

EU RATIFIES POST-BREXIT TRADE DEAL 

On Wednesday, the European Parliament voted to ratify the post-Brexit trade EU-UK trade deal by a vote of 660 to five, with 32 abstentions. This move concludes years of negotiations and will ensure the continuation of tariff- and quota-free trade between the two regions. Until now, the Trade and Cooperation Agreement (TCA) had been operating provisionally and was set to expire on April 30th. In addition to the vote to ratify the agreement, the parliament passed a resolution condemning the UK’s breach of the Withdrawal Agreement. For more information, please see The Irish Times. 

JAPAN APPROVES WORLD’S LARGEST FREE-TRADE DEAL 

On Wednesday, Japan ratified the world’s largest free-trade agreement — the Regional Comprehensive Economic Partnership (RCEP). 

Last November, 10 members of the Association of Southeast Asian Nations (Asean) as well as China, Japan, South Korea, Australia and New Zealand signed the China-backed RCEP.

The agreement will create a free-trade zone covering almost one-third of the world’s economy, trade and population. Furthermore, the deal will remove tariffs on 91 percent of goods. Signatories plan for the trade-agreement to take effect from the beginning of 2022. According to Japan’s government, the RCEP will create 570,000 jobs and boost its GDP by 2.7 percent. For more details,  please see South China Morning Post.

Carriers 

USPS INVESTS IN ADDITIONAL PARCEL SORTERS 

In preparation for peak season, the US Postal Service announced on Wednesday that it is investing in sortation equipment and annex facilities. Over the next 18 months, USPS plans to purchase processing machines, including 138 package processing sorters. 

Last year, USPS recorded 25 percent growth in holiday shipping and package volume during peak season compared to the same period in 2019. The investments are part of the company's 10-year plan to avoid the $160 billion in losses it was forecast to suffer by 2030. For more details, please click here.   

UPS Q1 EARNINGS BEAT ESTIMATES AS E-COMMERCE BOOMS

On Tuesday, UPS beat estimates for quarterly revenue. The carrier has benefited from a rise in e-commerce deliveries during the coronavirus pandemic, increasing its shares by 6 percent. According to UPS, revenue in its US domestic unit increased 22.3 percent, driven by growth from small and medium-sized businesses. According to Refinitiv data, the company's total revenue expanded 27 percent to $22.9 billion. This result topped estimates of $20.49 billion. For more information, please see CNBC . 

DHL BUYS 100 FIAT ELECTRIC VANS

DHL Express has partnered with Fiat Professional to purchase 100 units of Fiat’s new electric van E-Ducato. The electric vehicle has a range of over 200km, a large capacity and a long battery life. As a result, the van is ideal for last mile logistics. DHL expects its last-mile fleet in the EU to grow to 20,000 vans by 2030 as consumer demand for international express deliveries increases. The company plans for 14,000, or 60 percent, of these vehicles to be electric in an effort to reduce its carbon emissions. For more details, please click here.  

QAD Precision News

ASSESSING AND MITIGATING FINANCIAL SUPPLY CHAIN RISKS

Even the best run organizations with robust supply chains and mature business processes face external threats. Natural disasters, geopolitical upheavals, shifting trading relationships, labor shortages, cyber attacks, theft and loss can all impact supply chains and the smooth running of business.

For banks and financial institutions, the risks are even higher. Security is especially critical in the financial supply chain because of the sensitive nature of shipments.

A Dun & Bradstreet survey of 1,100 financial risk professionals ranked supply chain disruption as the foremost risk they faced. Over a third — 38 percent — called monitoring risks within the customer, supplier, or partner base a “high” risk. In this QAD Precision Report, we look at threats to the banking supply chain and the steps financial institutions can take to mitigate risk. To read the full report, please click here. 

QAD PRECISION CHOSEN AS A TOP 100 LOGISTICS IT PROVIDER BY INBOUND LOGISTICS

SANTA BARBARA, Calif.--(BUSINESS WIRE)--QAD Precision, a division of QAD Inc. (NASDAQ: QADA) (NASDAQ: QADB), today announced it has been recognized by Inbound Logistics as a Top 100 Logistics IT Provider for 2021. 

Every year, Inbound Logistics editors recognize 100 logistics IT companies that support and enable logistics excellence. Drawn from more than 400 companies using questionnaires, personal interviews and other research, Inbound Logistics selects the Top 100 Logistics IT Providers for each year. 

To read the full press release, please click here.