THE Philippines remains the most expensive in terms of logistics costs compared to its Southeast Asian neighbors.
“Logistics costs in the Philippines took up 27.16 percent of the total sales of companies, making the country the most expensive compared to regional peers,” said Marflin Chu of Transportify Philippines.
He said our neighboring country, Indonesia reported 21.4 percent; Vietnam had 16.3 percent, while Thailand, 11.11 percent.
Based on the 2018 performance in global logistics rankings, Philippines landed 60th place among the 160 countries. The Philippines’ ranking in terms of Customs was 85th place; infrastructure, 67th spot; international shipment 37th place; logistics quality and competence, 69th place; tracking and tracing, 57th; and timeliness, 100th.
To be able to cope up with the challenges such as scalability overhead cost productivity, there must be decentralization, outsourcing, automation, and systems integration.
He explained that the inventory was placed closer to the customers so that companies can make quick decisions once there will be shift, based on local market conditions and distribution needs that were strictly unique to the warehouse.
“Cutting-edge logistics technology developed by 3PLs helps businesses drive supply chain efficiency, cost savings, and visibility,” he said.
He added that the logistics automation features gives control over freight management, freight costs, and risk, by using Automation rules engine, which is based on optimized plans and routing guides.
“Companies can either buy off -the-shelf software, have a bespoke solution developed to meet their exact needs or have all of their already existing and used systems integrated into one,” he said.
Chu said the benefits of on demand logistics include the overhead expenses becoming variable and it eliminates staffing overhead.