Logistics Bulletin

Monday 17 February 2020

This week’s Logistics Bulletin reports on disruption to supply chains. In the UK, JCB is set to reduce production levels due to anticipated component shortages from Chinese suppliers impacted by the coronavirus outbreak. More than 25.0% of JCB’s suppliers in China remain closed and those that have reopened are working at reduced capacity and are struggling to make shipments. The inbound supply of certain components from Chinese partners will be disrupted in the coming weeks as they seek to replenish their stocks. This inevitably means JCB will not have the required amount of parts needed to build the forecast number of machines in the short term.

In Australia, after falling victim to a targeted ransomware attack at the end of January, Toll is continuing to bring its IT systems back online securely. Toll is now working closely with customers at site level to return to full operational capability. It is continuing to move international air and ocean freight shipments and, where possible, processing customs clearance, as parts of its global forwarding network regain access to basic CargoWise One functions.

Elsewhere this week, XPO Logistics reported a 3.6% decline in full year revenues in 2019, as operating income climbed 16.6%. The results were announced in a week where the Company is set to lose business at two distribution centres. In the UK, retailer Marks & Spencer is consolidating its DC network, whilst in the US, it is reported that DJO, an orthopaedic device manufacturer, is taking over operations at a DC previously managed by the 3PL.

Corporate and market news...

• XPO Logistics reports solid profit growth as revenues fall
• SCS and Dedicated segments deliver strong growth in profitability at Ryder
• Revenue growth and margins impacted by eCommerce pricing pressure at Aramex
• Ocado delivers strong progress as milestone year begins
• Posti updates strategy with logistics focus
• Xpediator performance driven by a healthy mix of organic and acquisition led growth
• Lost momentum in global markets hits 9M results at KWE
• Singpost reports falling Q3 revenue and profits
• Hungarian Tax Authority imposes fine on Waberer’s
• Rhenus acquires LTK
• Pelican BioThermal acquires NanoCool
• A&R Logistics acquires First Choice Logistics

Service developments... 

• Toll continues battle to restore systems and services
• WW Solutions and Mitsubishi team up to deliver logistics JV
• WFS awarded certification for new pharma centre
• Output reduced at JCB due to anticipated component shortages from Chinese suppliers
• FedEx to optimise last-mile residential deliveries

Outsourcing news...

• Dachser wins logistics contract for Emerson’s Climate Technologies division
• INEOS awards logistics contract to Abbey Logistics
• Bolloré Logistics delivers exceptional cargo in The Netherlands
• XPO loses business at Texas distribution centre

Warehouse and distribution centre developments...

• Marks & Spencer set to close two UK logistics centres
• DSV opens new head office in Canada
• FM Logistic expands warehouse space near Moscow
• Mazda invests in logistics operations in Australia
• BNSF Railway launches Logistics Centre North Houston
• Yusen Logistics opens new UK cross dock facility
• Omnipack targets next working day deliveries in Germany
• Amazon set for logistics centre near DFW International Airport

IT, fleet and environmental developments...

• Audi is first automotive manufacturer to trial new driverless transport system
• Geek+ and Nike introduce same-day delivery to Japan
• Neovia Logistics standardises on IGEL software-defined endpoints
• P&O Ferrymasters chooses CORAX SaaS WMS
• DPD boosts electric fleet with UK's first MAN Truck & Bus 3.5t right-hand drive electric vans
• CEVA Logistics embarks on electric vehicle trial in London

Personnel and  HR developments...

• Wincanton appoints Non-Executive Director
• UPS and Pilots Union reach tentative agreement
• Walker Logistics appoint Financial Controller
• Executive Chairman to step down at C.H. Robinson
• XPO Logistics appoints Chief Financial Officer
• Maersk appoints CFO

The Logistics Bulletin has provided global supply chain professionals with the latest insight, news and analysis for 17 years. To receive this highly valued service direct to your in-box, register here. Press releases and articles for inclusion can be sent by email to logisticsbulletin@analytiqa.com