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Where is my package?

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Have you ever received an online order in multiple packages and delivered days or even weeks apart? Raghav Sibal, Managing Director of Australia and New Zealand at Manhattan Associates tells us the root cause and why it’s a havoc for retail supply chains.

Retail supply chains are under greater pressure than ever before due to the ongoing impacts of COVID-19. As both retailers and consumers grapple with these issues, new research has highlighted that Australian retail delivery methods are the main reason for delays and of course, customer dissatisfaction. 

Where are the pressure points?

In today’s world, consumers expect their products at lightning speed. To keep up with consumer demand, retailers are trying to get the goods out to customers as quickly as possible. 

But unfortunately, in doing so, retailers haven’t made the investments in their technology and supply chains to master this process efficiently and effectively. 

Raghav Sibal, Managing Director of Australia and New Zealand at Manhattan Associates joined Ticker and told viewers that a major source of customer dissatisfaction and delays in receiving goods is due to multiple shipments for single orders. 

“So if a customer ordered five items in one single shop, it may be coming in two or three different packages to them,” he says.

In fact, new research by Manhattan Associates found 76% of Australian shoppers indicate that they have experienced unusual delays in receiving goods they ordered online in the last three months. Raghav says this is causing friction with the customer, many of whom would prefer options to receive their goods in one delivery.

Is split shipments really a problem if it means getting your goods faster?

Well, considering retailers are under the pump trying to meet customer demands, it is understandable that brands want to get their goods to customers as fast as possible.

Stepping into the consumers shoes – receiving multiple parcels under one online order is actually considered more annoying. Raghav says this method is causing immense frustration.

“Surprisingly, over 66% of customers in Australia have received multiple shipments for a single order. They feel like maybe the order that they placed didn’t go through correctly to the retailer. So they frantically start calling the retailer,” he says.

Customers may be waiting weeks between parcels that are under one order. Raghav says this impacts the hip pocket for retailers, who have to fork out the cash for extra resources across their operations.

“It’s not just about customer dissatisfaction or the impact that it’s having on the retailer’s brand, but also real financial impact. There’s more handling going on in the warehouses, more shipping costs, more packaging, and there’s a whole bunch of waste when retailers are already under pressure,” he says.

“From a financial standpoint, this all adds up and it’s having a significant impact.”

Image: File

So how does the process of multiple shipments affect retailers?

According to Manhattan’s research, over 70% of customers say that if they can’t find a retailer who’s reliable in the delivery methods, or in communicating about a shipment arrival time, they’re not going to be very keen to continue to do business with them. 

“This is greatly impacting brand loyalty and also keeping customers really engaged with that retail,” Raghav told tickerNEWS.

“Are retailers making the right investments in the technology that they’re using or not?”

In a disrupted operating environment, retailers must improve their communication with customers.

Sibal draws on an interesting finding from Manhattan’s survey that suggests only about 50% of customers are getting notified about the delay of a shipment or the fact that it’s come in multiple packages. 

Raghav says “that’s not good enough”. Adding, “we’re finding that about 65% or higher, feel like they would rather wait for the goods to arrive as long as they come together.”

What’s the solution to better manage these issues?

Raghav says it all comes down to how the overall ecommerce fulfilment is working for a retailer.

He says the first thing the retailer should do is look at how they are contemplating or considering the stock levels across the network.

“We talk about the network of an omni channel retailer, it could be the DCs, it could be their stores, it could be ports that are still in transit on transport,” Sibal says.

He adds that once retailers have the visibility and understanding of where the stock is, retailers need to be routing the orders and allocating goods in product from the appropriate fulfilment point – whether it’s a DC or a store.

Raghav emphasises that operational visibility and forward planning remain fundamental to ensuring a retail brand has stock available for purchase. 

“It’s okay to fulfil an order from one location, which may take a bit longer to fulfil, but you’re sending the package to the customer all at once and in one package,

“So it comes down to visibility across the network, making sure the orders are being sent to the right location for fulfilment. And that all comes through the right investment in an order management system.”

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Australia’s stalled economy forces businesses to innovate or die

Australia’s economy is slowing with 0.2% GDP growth; experts suggest interest rate cuts, prompting businesses to adapt for growth.

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Australia’s economy is slowing with 0.2% GDP growth; experts suggest interest rate cuts, prompting businesses to adapt for growth.


Australia’s economy is slowing fast, with GDP growth at just 0.2% and output per person in decline. Experts are now predicting steep interest rate cuts to avoid recession.

What can businesses do to adapt and grow in this climate? Subscribe to never miss an episode of Ticker – https://www.youtube.com/@weareticker

#AustralianEconomy #RBA #InterestRates #BusinessStrategy #EconomicNews #GDP #TickerNews #AustraliaFinance

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World Bank predicts U.S. growth cut by tariffs

World Bank forecasts U.S. growth halving due to tariffs; global economy also faces significant slowdown, especially in exports.

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World Bank forecasts U.S. growth halving due to tariffs; global economy also faces significant slowdown, especially in exports.

In Short:
The World Bank has downgraded U.S. growth projections to 1.4% for 2025 due to President Trump’s tariff policies, warning that increased tariffs could worsen the global economic slowdown. The report highlights a decline in growth for multiple economies, with a particular emphasis on the negative impact on living standards and the need for negotiated trade barriers.

The World Bank has downgraded its growth projections for the U.S. economy, forecasting an increase of just 1.4% in 2025, down from the previous year’s 2.8%. This reduction is attributed to President Trump’s tariff policies, which are anticipated to hamper both U.S. and global growth.

The World Bank’s latest report highlights an expected slowdown in multiple economies, including the eurozone, Japan, and India. Mexico is projected to experience the most significant impact, with growth dropping to 0.2% from 1.5%.

Exacerbate the slowdown

Amid these forecasts, the World Bank warned that a further rise in tariffs could exacerbate the slowdown. If tariffs were raised by an additional 10 percentage points, global growth could plummet to 1.8% this year and 2% in 2026. Such an escalation would lead to reduced trade, declining confidence, and increased market turmoil.

Indermit Gill, the World Bank’s chief economist, noted that if a course correction is not made, the negative effects on living standards could be severe. The Organisation for Economic Cooperation and Development has also voiced concerns about the implications of tariffs, predicting a U.S. growth rate of 1.6% with inflation approaching 4%.

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What Virgin Australia’s return to the ASX will mean for investors

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Virgin Australia is coming back to the share market. Here’s what this new chapter could mean

Petr Podrouzek/Shutterstock

Rico Merkert, University of Sydney

It is finally happening. After five years of being a private company, Virgin Australia will relist on the Australian Securities Exchange (ASX) on June 24. The company is expected to raise A$685 million through the initial public offering (IPO).

So, who will benefit from Virgin Australia’s return to the share market? Having paid $3.5 billion for the bankrupt carrier back in 2020, private equity firm Bain Capital will be the most immediate winner.

Earlier this year, Bain had sold 25% of the company to Qatar Airways. Now, with the IPO, Bain will reduce its stake from about 70% down to 40%. Most of the $685 million raised will go straight to Bain.

With Virgin’s anticipated market capitalisation close to $2.3 billion and enterprise value of reportedly up to $3.6 billion, it is now evident that Bain has – with Jayne Hrdlicka at the helm of the airline – not only managed to turn the company around, but to also profit nicely from doing so.

Without Bain’s rescue at the beginning of the pandemic (which was catastrophic for airlines globally), the situation may have become quite detrimental for travellers. It also avoided having the Australian taxpayer foot the bill for a bailout.

Will the airline’s customers be better off after this? It will depend on how much, if anything, Bain chooses to reinvest in Virgin after this share offering is over. But Virgin has also recorded substantial recent profits, some of which are expected to be spent on newer aircraft and improved services.

Stronger competition for Qantas?

Looking at the strategies of both Virgin Australia and its biggest competitor, Qantas, in recent years, it seems both have learned to love playing the duopoly game.

Based on our own calculations, Virgin controls roughly 33% of Australia’s domestic seat capacity and the Qantas group (which includes Jetstar) much of the rest on the country’s core flight network.

In the 2010s, the two airlines were out-competing themselves in adding capacity to the market, which drove down yields (or revenue per passenger) and nearly killed Virgin Australia 1.0.

Now, Qantas and Virgin have new chief executives who understand both airlines can be very profitable if they show some (capacity) discipline in how many seats they create and sell.

Better services

For that reason, it’s likely not much will change in terms of competition, at least in the domestic market. But this is only true as far as capacity is concerned.

It seems reasonable to assume Virgin’s recent profits and any funds from the capital raise will only be used to support future growth if it is profitable. The majority of the profits will likely go towards fleet renewal and improvement of the airline’s product.

For consumers, this wouldn’t necessarily mean lower airfares in the domestic market. But it would mean newer aircraft and enhanced services, which is a positive for both flyers and the environment.

International departures

Virgin Australia will become a more formidable competitor to Qantas, thanks to its newly formed relationship with international partner Qatar Airways and the additional cash from relisting.

It will be interesting to observe what Qatar will do next and whether a new player – perhaps Singapore Airlines – will enter the scene and take a stake in the airline once Virgin Australia is trading publicly again.

It would not be the first time an international airline has taken a stake in Virgin Australia, and could create some interesting dynamics.

Another beneficiary is Virgin Australia’s management team, who’ve been somewhat shackled by the priority of getting the IPO off the ground. The IPO will free up management to deploy resources towards more longer-term priorities.

Many will see a significant payday – it’s estimated staff are sitting on shares that could soon collectively be worth $180 million.

Why now?

Bain Capital has timed this IPO carefully. Virgin Australia has (in tandem with Qantas) produced a stellar financial performance in the last financial year. It may deliver an even better one in the current reporting period.

To maximise returns, it is likely Bain did not want to waste the opportunity to capitalise on the moment. Global markets are still full of volatility and geopolitical uncertainty. What may diminish is the financial performance of the core business Bain Capital is trying to sell.

At $2.90 a share, Virgin Australia will have a price-to-earnings ratio (used to assess how relatively expensive a share price is) of seven times its expected earnings this financial year. This is lower than Qantas’ ratio of ten times expected earnings this financial year.

Profits are likely to remain high this year, with continuing strong demand, high yields and low jet fuel prices. The brokers and underwriting investment banks will use this to sell the story.

IPOs can sometimes deliver those already holding shares in a company significant day-one windfall profits. In this case, however, Bain’s expertise in the venture capital market means it is unlikely to leave any money on the table.

One may also argue while Virgin appears to be priced at a discount compared to Qantas, there may be legitimate reasons for the price differential, such as Qantas’ very profitable loyalty business.

Given uncertainties around demand and geopolitical tensions, there is no guarantee the share price of Qantas will remain at record highs for too long, which means the opportunity to present Virgin shares as a bargain may be short-lived.

In the long term, it is widely agreed airlines are by definition volatile investments and not necessarily something the average investor should have in their portfolio.

Moving forward

Symbolically, the decision for Virgin to use a new stock ticker – VGN instead of the old VAH – may avoid bringing back bad memories.

Five years can be a lifetime in aviation, but maybe not to bond holders who got just 10 cents in the dollar and shareholders (including the large airline partners who held equity stakes) who got nothing when the airline collapsed in 2020.

From a strategy perspective, it will be important for management to avoid history repeating itself with international airlines buying into Virgin and securing board seats.

This can be one way of influencing the strategy of the carrier’s domestic arm to funnel more passengers to their own international flights.

It is positive, for both Virgin Australia and the Australian aviation industry, that Bain Capital appears set to pull this off and that the revitalised airline is now truly Virgin Australia 2.0.


Clarification: this article has been amended to clarify that most of the $685 million raised will go to Bain Capital.

Rico Merkert, Professor in Transport and Supply Chain Management and Deputy Director, Institute of Transport and Logistics Studies (ITLS), University of Sydney Business School, University of Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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