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Digitalising Logistics to Solve Supply Chain Challenges in the Philippines

In the midst of the pandemic, MSMEs are still finding solutions on how to operate, support, and service consumers in a variety of ways. According to the Department of Trade and Industry’s (DTI) 2020 MSME Statistics, over 957,620 Filipino enterprises deliver goods and services to customers every day, accounting for 99.51 % of total businesses in the country under the MSME category. Most of these companies are conducting their operations online in order to survive and thrive.

Traditional logistics players continue to dominate the sector, but the transition to a “new normal” as a result of COVID-19 and Filipinos’ growing acceptance of digital technology has pushed e-commerce to the forefront. E-commerce revenue in the Philippines reached USD 840 million in 2018 and is expected to rise even further in the coming years.

However, according to a recent DTI survey to determine the level of digitalisation among Philippine MSMEs and how it compares to the ASEAN market, 73% are having difficulty digitising their operations. It is indicated that they are most in need of financial, marketing, content management, e-commerce basics, and starting an online business skill.

With this, the Philippines’ leading telecommunications services step up to the plate to assist MSMEs by introducing them to their partners who are already at the forefront of digital logistics. These businesses include telecommunications service providers and business logistics partners. One of its logistic partners is a tech-enabled company that offers a one-stop end-to-end exporting platform to all trading businesses worldwide. The other is a technology-enabled express logistics company that provides hassle-free delivery services to businesses of all sizes throughout Southeast Asia.

To familiarise MSMEs with the new insights, information, and personal and business experience provided by Digital Logistics, the Philippines’ leading telecommunications services provider is hosting a digital session” with industry experts titled “Rerouting your Biz with Digital Logistics.” This online event is the second instalment of a three-part web series on telecommunications services that covers the supply chain industry, specifically retail, logistics, and manufacturing.” This session will be less formal, less technical, and more approachable in terms of insight and information sharing from industry leaders to MSMEs in the realm of trends, practices and the world of online tools for specific business needs.

Moreover, to facilitate digitalisation in the logistics industry, logistics players should invest in digitalising their own businesses or participate in digital platforms. They can seize more opportunities presented by the Philippines’ growing commercial activity, especially in e-commerce, by transforming digitally. Businesses can seize more opportunities offered by the Philippines’ rapidly increasing commercial activity, particularly in e-commerce, by transforming digitally. Going digital will help provide transparency about order status, shorten lead times, and potentially reduce customs clearance time by up to 80%, taking only 3–5 business days.

OpenGov Asia reported in an article stating that one of the Philippines’ largest, most experienced, and most reputable logistics providers are on a mission to accelerate the success of Filipino entrepreneurs. The logistic company is introducing a new service to cater to digital sellers. The new delivery service is the company’s newest nationwide online pick-up and delivery service aimed at assisting online micro-businesses in the Philippines. Essentially, the service allows digital micro-enterprises all over the Philippines to immediately upgrade their logistics by becoming a partner.

The company believes that having an affordable and dependable pick-up and delivery service available to online micro-businesses is an important component of customer satisfaction and will allow them to attract more customers.

Furthermore, the company is more than a digital booking and delivery platform. It is a change agent and a source of growth for micro-entrepreneurs. As the service bridges gaps and connect disconnects to propel the current micro-entrepreneurship landscape to greater heights, it supports grassroots businesses, which are the backbone of the Philippine economy.

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