The logistics sector has to implement advanced technology and innovative solutions to enhance efficiency and lower operational costs.
These were among the focus of the 2024 Logistics Conference, an activity organized by the Mandaue Chamber of Commerce and Industry (MCCI) in partnership with the Chamber of Customs Brokers, Inc. Cebu, and the Visayas Unified Trucker Association Inc. (VUTA Inc).
“The logistic sector is the backbone of our economy and the driver of our economic activities. So, whatever happens to the logistics sector affects our consumer goods and our inflation rate,” MCCI President Mark Anthony Ynoc said in an interview. “Logistics is one of the biggest contributors to the consumer price.”
MCCI organized the logistics conference to help the sector identify the technology needed to improve its efficiency and learn best practices from each other. “So, in terms of technology, we can track our trucks better, and plan our routes better to optimize our revenues. We can also track our gasoline usage,” Mr. Ynoc said.
The MCCI president pointed out that the logistics sector is plagued with traffic congestion, port congestion, manpower shortage, and unstable gasoline prices. He added the need to improve all aspects of the subsectors like trucking, warehousing, and data analysis.
Israel Alin, president of VUTA Inc., noted that the conference is the final platform for collaboration, dialog, and sharing of best practices.
“Innovation, sustainability, and resilience must be at the forefront of the sector’s efforts,” he said. Mr. Alin said the sector faces challenges and needs inputs to improve the sector’s efficiency.
Regional Director Maria Elena Arbon of the Department of Trade and Industry (DTI) cited the importance of the logistics sector. “The efficiency of bringing goods from farm to market from work to consumers is not just a matter of convenience.”
She added that this is crucial in the competitiveness of our local industries, and benefits our communities and the growth of our economy.
Meanwhile, Emilio “Jun” Neri Jr,, lead economist of the Bank of Philippine Islands, emphasized the importance of having cold storage facilities.
Having cold storage facilities will help stabilize the price of food, Mr. Neri said. He stressed that the presence of cold storage facilities will enjoy lower prices.
“When supplies (food consumer goods) are low, we can fill the gap through the cold storage system. So, with the refrigerants and cold storage facilities available, we can expect the price of the commodity products to be more stable in the future, he said.”
Mr. Neri expressed hope that more conglomerates will invest in cold storage facilities to ensure more stable prices of commodity products.
Ankush Kumar Banathia, country manager of Stackbox Services Private Limited, said artificial intelligence and the new age technology are changing the logistics sector.
Based in India, Stackbox Services Private Limited provides supply chain management and B2B distribution services for the retail industry. It offers cloud-based enterprise-grade software-as-a-service (SaaS) solutions to automate and optimize supply chain and distribution operations.
Their products help companies become efficient, more productive and have cost savings, Mr. Banathia said. Stackbox empowers businesses with the next-generation order fulfillment platform, driving growth and customer satisfaction.
On the other hand, Elizir Lao, president of the Chamber of Customs Brokers Inc. Cebu, stressed the need to explore new technologies. “Together, we can address the challenges and unlock new potentials for growth, efficiency, and innovation in the logistics,” Lao said.
The future of the logistics industry in the Philippines is promising, especially with the continued growth of e-commerce and the expanding manufacturing sector. By investing in technology, improving infrastructure, and fostering collaboration between the public and private sectors, the logistics industry can further enhance its role as a key driver of economic growth.
