QAD Precision News Round-Up: 28 January 2022

In the QAD Precision News Round-Up: 28 January 2022, Singapore inks deal with Pacific Alliance; 2022 retail predictions; semiconductor shortages continue; air cargo demand up; plus multi carrier software for high volume shippers and more.

Global Trade 

SINGAPORE SIGNS TRADE DEAL WITH PACIFIC ALLIANCE 

On Wednesday, the Singapore government announced that it has signed a free trade agreement with the Pacific Alliance. The Pacific Alliance includes Colombia, Mexico, Peru and Chile and the deal aims to facilitate trade and closer ties with Asia. Furthermore, the Colombian government said the agreement will aid cooperation in the energy, infrastructure, digital and food industries, as well as the shipping and logistics sectors. 

The members of the Pacific Alliance will now approve the agreement in their respective legislatures. The deal will come into effect once at least two countries' lawmakers have ratified the agreement. For more details, please click here. 

Supply Chain

DELOITTE RELEASES 2022 PREDICTIONS

Deloitte released its 2022 Retail Industry Outlook filled with predictions for the new year. The annual survey compiles insights from 50 retail executives on their predictions for supply chains and e-commerce for 2022. Nearly 80 percent of executives polled believe customers will prioritize stock availability rather than brand loyalty. Deloitte predicts companies will also need to expand their sourcing partners to reduce bottlenecks and disruptions this year. 

Automation is expanding as well. Half of those surveyed said that automating fulfillment and distribution centers was critical. Conversely, 57 percent of executives say they do not have plans to invest in robotics or automated material handling. 

More than half of respondents also see stores becoming free of staff in the next five years. AI and data sharing will grow over the next year although few reported planned investments. One trend almost all executives, 48 out of 50, agreed on is reaching customers via social platforms known as social commerce. Overall, the executives expect growth in 2022 with 54 percent anticipating up to 5 percent growth and one third expecting over 5 percent growth. For greater detail on this news item, please visit Freight Waves.

SEMICONDUCTOR SHORTAGES EXPECTED TO CONTINUE

According to semiconductor producers, shortages are not expected to ease in the near term as demand and order backlogs restrict supply. In addition, a Deloitte industry outlook expects the shortage to remain in place throughout this year. 

To increase production, suppliers are investing in new factories and billions of dollars worth of capital expenditures. Intel has announced a $20 billion investment in two chip factories in Ohio and expects production to be in operation in 2025. Taiwan Semiconductor Manufacturing Company, a supplier of Apple, is opening factories in Arizona and Taiwan. This year, the company intends to expand its supply by spending between $40 billion and $44 billion in capital expenditures. For more information, please see Supply Chain Dive.  

SUPPLY CHAIN ISSUES IMPACT GE’S Q4

General Electric Co (GE) reported a decline in quarterly revenue for the fourth quarter. The company stated all of its businesses were experiencing supply chain issues, particularly its healthcare business. Supply chain constraints were responsible for driving up the costs of both raw materials and transportation. In response, GE plans to raise prices as well as source new suppliers and redesign products. The earnings report sent share prices down 7 percent to $90.03. For more details, please see Reuters.

Carriers 

FEDEX INVESTS IN ROBOTICS 

FedEx Express and Dorabot, a robotics solutions provider for logistics, have announced the launch of an AI-powered intelligent sorting robot named DoraSorter. This announcement represents the company’s latest push in digitizing its operations and building a smart logistics network to handle increasing volumes of e-commerce-related shipments. 

The DoraSorter robot is being deployed at the FedEx South China E-Commerce Shipment Sorting Center in Guangzhou. The robot has the capacity to handle small inbound and outbound packages from e-commerce customers and is part of daily operations  presently. For more information, please see Post and Parcel.  

AIR CARGO DEMAND UP UP AND AWAY

Air cargo demand was up in December following a sluggish November. According to the International Air Transport Association, demand in December increased 8.9 percent over 2019 levels and after only increasing 3.9 percent in November. Overall, the industry saw a 6.9 percent gain in cargo volume. International demand also grew, topping 2019 as a whole by 7.4 percent and 20.5 percent compared to December 2019. Strong cargo numbers for the year helped airlines suffering from decreased passenger capacity due to Covid. For more information, please click here.

QAD Precision News

MULTI CARRIER SHIPPING SOFTWARE FOR HIGH VOLUME SHIPPERS

High volume shippers are subjected to demands from all sides. In recent years, a number of carriers have had constraints — particularly during peak season. Add to that the fact that costs continue to rise.  

Meanwhile, your customers expect free shipping and rapid delivery.  High volume shippers are caught in the middle. As a result, high volume shippers are leveraging multi carrier shipping software to reduce costs without reducing customer service. In this QAD Precision report, we look at the benefits of multi carrier shipping software. To read the report,  please click here.