QAD Precision News Round-Up: 27 August 2021

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 and more.

Global Trade

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.  

Supply Chain

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. 

Retail 

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 click here. 

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.

Carriers 

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 Business Wire