Tag Archives: Stock

Energy

UK reduces its oil imports by over 75 million barrels in five years

The UK has reduced its oil imports by more than a fifth (21%) in five years, a new online tool from Daily FX has revealed.

While the country remains the 12th biggest global importer of oil, including petroleum oils, it has taken great strides towards reducing its reliance on such environmentally-harmful fuels.

Between 2013 and 2018, the UK had the eighth-best rate in Europe for reducing such imports, with its intake dropping by 76.9 million barrels (from 359 million to just over 280 million).

Malta (93%) and the Republic of Moldova (92%) experienced the most significant decreases across the continent.

The data has been visualised on a new interactive tool built by Daily FX, the leading portal for forex trading news, which displays global commodity imports and exports over the last decade.

The tool shows that China has recently overtaken the USA as the world’s biggest importer of oil. The Asian giant imported nearly 3.4 billion barrels in 2018, which was over 240 million more than the USA. China tops the list having increased its oil imports by 64% since 2013 – nearly six times the rate of its rival (11%).

The top 10 global importers of oil (2018) are:

  • China – 3.38 billion barrels
  • USA – 3.14 billion barrels
  • India – 1.65 billion barrels
  • Japan – 1.09 billion barrels
  • The Republic of Korea – 1.09 billion barrels
  • Germany – 622 million barrels
  • Netherlands – 506 million barrels
  • Italy – 460 million barrels
  • France – 397 million barrels
  • Singapore – 376 million barrels

Daily FX’s unique tool allows traders to spot developments in the flow of commodities and the growth of both supply and demand while comparing the changes to critical economic indicators.

One trend highlighted by the tool is the decreasing reliance on oil among African countries. Five of the world’s ten best nations at reducing oil imports are found on the continent, including the top four. Morocco, Kenya, Burundi and Gambia all decreased such imports by over 99%.

John Kicklighter, Chief Currency Strategist at Daily FX, said:

“The world is changing and so is the way that it uses energy. Renewable and environmentally-friendly fuel options are the future, and while the end of crude oil is still far off, there will be considerable changes in the world’s top importers and exporters. Our new tool helps track those changes.

“While some of the larger countries have increased their appetite, it is interesting from an investor’s perspective to see the UK exploring alternative energy sources and reducing its dependence on oil.”

‘Global Commodities’ takes the form of a re-imagined 3D globe where the heights of countries rise and fall to show the import and export levels of a range of commodities over the last decade. The data visualisation allows users to switch views from a single commodity or market and show information relevant to that commodity or market’s performance.

To learn more about Global Commodities and view the tool, visit: https://www.dailyfx.com/research/global-commodities

Research, Retail

Improved accuracy in stock reporting could boost retailer’s sales up to 8%

Retail stores are missing out on millions of pounds in increased sales due to inventory record inaccuracy, according to new research from emlyon business school. In fact, the researchers found that retailers could boost their sales by up to 8% annually if their stock record was more accurate.

The research was conducted by Yacine Rekik, a professor of operations and supply chain management at emlyon business school, alongside research colleagues from Cardiff Business School and TU Darmstadt, and in collaboration with the industry and trade body for shrinkage and consumer demand, Efficient Consumer Response (ECR). Though it is a common knowledge that inventory record inaccuracy has a negative impact on sales in the retail sector, this is the first study which has put an actual specific figure on the financial implications of inaccuracy in inventory reporting.

To understand this real financial impact, the researchers worked with seven well-known retailers – across four European countries – in the grocery/general merchandise and fashion/apparel sectors. They studied data on around 233,000 different individual products throughout the whole research project.

To collect these findings the researchers conducted a 24-week inventory experiment where they compared two different stores per retailer, with each store having a different stock take method. In one of the stores the researchers completed a thorough stock take at the beginning and end of the 24-week period but not during this, whilst for the other store the researchers completed a thorough stock take at the beginning and the end, but also in the middle of the 24-week period, re-correcting any errors in inventory stock numbers.

Researchers then compared the differences in profit margins per store, finding that the store which had a more accurate and frequent stock take had on average 4-8% better profit margins. The researchers also found that at any point in time, around 60% of the retailer’s inventory records are likely to be wrong. This not only impacts the firm’s sales and turnover, but also the stock that is available to customers, often leaving shelves unfilled. Correcting these inaccuracies can lead to an increase in the average sales of the retailer between 3.83% and 8.38% with an average of 5.98% across all retailers, according to the researchers.

Professor Yacine Rekik says,

“There can be a number of reasons as to why these stock records can be so inaccurate. Most of the time it comes down to damages to products, misplacement problems such as products being moved to different shelves, human or computer errors when entering stock levels into systems, or even the products being stolen. It is extremely important that retailers look to report their stock levels more accurately and more regularly so that they are not under or over reporting stock levels – as this inaccuracy either way has a negative effect on annual turnover.”

When looking into these inventory inaccuracies, the researchers also found that the type of product also had an impact on how accurately it was reported for inventory purposes. The researchers found that products which can be described as fast-moving goods, generating up to 75% of the whole turnover, are much more likely to be inaccurately reported in stock takes compared to slow-moving goods.

Professor Yacine Rekik also says,

“There are a number of ways that retailers should be looking to improve their stock accuracy, which would consequently boost sales and annual turnover. Firstly, looking into technological solutions, such as intelligent products identification which are able to update inventory levels when purchased is a way to remove human error and shrinkage risk, but of course costly and fairly untested. Whilst more simply, improving the efficiency, frequency and intelligence of current stock taking practices is a practical way to do so. Though this would take more time and be more costly in the short-term, it would ensure inventory is more accurately reported, eventually saving money long-term. Whilst another option would be to employ business intelligence, such as data analytics to stock-taking in order to better identify stock evolution patterns and improve the record accuracy.”

The researchers are now looking into the second phase of this research project. After confirming and identifying the specific financial implications of inaccurate stock inventory in the first phase, they will now be researching innovative and effective ways that retailers can use for more accurate inventory reports thereby improving their financial performance. Conclusions are soon to be published.