4 Benefits of IoT Every Logistics Company in the Philippines Should Know

Image source: linkedin.com

IoT or Internet of Things has been a trend in the logistics industry. It is a system of interrelated computing devices, mechanical and digital machines, animals or people that are provided with unique identifiers and the ability to transfer over a network. The concept of IoT, as detailed by Forbes, is basically connecting devices with a switch to the Internet or to each other. The devices range from cell phones to washing machines. The relationship could be between people-people, people-things, and things-things.

With the rise of IoT, logistics companies in the Philippines should get on the bandwagon. Here are 4 reasons why:

Supply chain visibility

Visibility in terms of logistics means that the items to be delivered are being monitored from the manufacturer to the final destination. Since the logistics industry has many parts, having deeper understanding of each process is a must. With the upswing of IoT, you will be updated and informed with a precise and fast data of the items’ whereabouts. IoT will boost the efficiency of the process by using cloud-based GPS and Radio Frequency Identification. These technologies provide identity, location and other tracking information. By accessing data amassed by these devices, automation of delivery can now be made possible. The time of arrival, weather conditions, traffic conditions are just some of its many convenient features.

Enhanced Customer Satisfaction

Estimated time of arrival can now be sent thru customer service representatives. Customer’s needs are now addressed properly due to the accurate and real-time delivery of information. There is an increase in systems’ usefulness which directly affects the overall efficiency of the supply chain process. An enhanced customer satisfaction is an increase in sales, market share and overall company growth.

Inventory Management

Cloud-based inventory systems are able to track items in real-time by scanning them in and out of stock locations. The items’ information can now be stored in the digital inventory system. With the incorporation of IoT into your inventory management, you will be able to pin-point each and every item’s location. This will greatly decrease the number of lost or stolen products and increase management of stock shortages, as detailed by Clear Spider.

Cost Reduction

When logistics companies in the Philippines and beyond, fail to comply with regulatory agencies, penalties could be charged. Compliance with the government’s policies is one of the top priorities when it comes to logistics. With the aid of IoT, increase in accountability and compliance will be achieved. Another aspect in cost reduction includes saving in some of the supply chain’s expenses. With GPS, congested areas can now be easily and swiftly identified. Avoiding areas affected by traffic can reduce fuel costs.

Here are some ways to increase your logistics company’s efficiency and accountability. As stated by Business Insider, many industries and excited customers have pegged the Internet of Things as the next ‘Next Industrial Revolution’ or the ‘Next Internet’. IoT is logistics’ biggest innovation yet. Is your logistics company here in the Philippines ready to join the journey?

Upon hearing the benefits, why not entertain yourself with little facts about air freight.

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6 Key Questions To Ask When You’re Choosing the Right Logistics Service Provider in the Philippines

Picking out the perfect logistics service provider for your business is hard especially when you’re choosing from a sea of companies in the Philippines. You have to be meticulous because it is more than just business; it is a partnership between two different corporations who possess distinct ideals and principles. In order to get that partnership going smoothly, here are 6 important questions to ask your logistics services provider:

1) What is the company’s history?

As stated by Harvard Business Publishing, an intricate understanding of the past is one of the most powerful tools we have for shaping the future. The history of a company is an important factor in knowing their identity, purpose and goals. Once you have those in place, you are one step closer to getting to know them on a much deeper level. How long the company has been operating and how extensive their network is are just some of the most important things to consider.

2) What is the company’s central philosophy?

A business philosophy is a set of beliefs and principles that a company strives to work toward. A company’s vision, mission and goals are more than just a list of mandates; they give life to a company’s central purpose. Your company’s ‘philosophy’ also serves as a code of conduct for decision-making processes.

3) What kind logistics services do you propose for my business?

An accurate view of your logistic needs should always be met by your business partner. Research is a key when it comes to expecting your demands. From the initial stage such as supplying to the final stage like warehousing, a remarkable provider would know the process inside out. An extensive knowledge of your needed services is a reflection of the provider’s accountability.

4) How do you deal with operational disruptions?

Unexpected challenges are always experienced in any workplace but how it is handled is very significant. Thinking on your feet in times of unforeseen events is a way to know whether the logistics provider can provide efficient solutions and if they’ll make a good partner. Don’t hesitate to ask them if they have cargo insurance in case of theft, damage or loss.

5) Is your company technologically deft?

Technology plays a huge role in logistics. First, it increases the operational efficiency of various functional areas. Second, processing and analysis are done swiftly. Third, it facilitates system automation. Everything is faster and more efficient with technology. All of these result to cutting of costs, too.

6) Is your company an affiliate in professional associations and accreditations?

Validation from other associations is a sign of commitment to the craft. One of the country’s freight organizations, the Cold Chain Association of the Philippines (CCAP), specializes in the supply chain of chilled/frozen food products and other temperature controlled product storage. They promote and raise standards of the local cold chain industry by providing forums, training seminars and active sharing of ideas among its members. Joining associations establishes formal linkages making the company accredited.

If your probable third-party logistics provider has a foolproof answer to all of these questions, then you can now commence with your business matters. Building trust is the core factor not only in choosing a logistics service provider here in the Philippines but also in starting a relationship with your possible business partner.

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Logistics Services getting Richer by the Minute

If your functional image of logistics services in the Philippines is two guys inside a moving truck on the North Luzon Expressway, one of them driving while the other rakes in much-needed sleep, rushing at 90KPH and, to you, it seems like “just another day on the road”, well, there’s a big secret that you just don’t get at the mean time.

They could be the people making a lot of online businesses richer by the minute.

And why not! In the US, the trend of E-Commerce sales has continually grown since 2014 and can only get bigger in the years to come. This is spelling a lot of opportunity for people with big ideas but only have internet connection. Although not all endeavors in the internet industry involves trucking and delivering specific goods (like mobile applications, games, and various internet-based services), it is still amazing how much people will pay just to get something that they can’t get their hands on where they are.

Take eBay. A lot of users have made a living from using the platform to initially establish their business and this involves selling “junk” that they have to people who want them elsewhere. Since 1995, this has been the business machinery that, today, makes eBay earn as much as 19M daily.

You may be asking “what does have to do with logistics?”

Well, almost everything apparently, and logistics being the heart of the business of eBay is especially true for the infamous and well-trusted Lazada. Especially for Lazada PH, a lot of users find that not only does the retailer offer a lot of items for up to 70% off on their retail price but they also deliver on time, some of them receiving their packages just after a day or two! Sure, there are some issues with scams and fake products, but all those are from fakers who use wrongly spelled varieties of Lazada’s URL.

To prove how important logistics is, let’s take Lazada again. It has seen it’s worse performance just halfway through 2016 in the guise of, and you guessed it, and inefficient logistics partner. According to a LinkedIn user Apple Allison’s very detailed experience, she had a very good experience with the brand’s “Effortless Shopping”, as catch phrased by Lazada themselves. She however struggled so much with how long one of their orders came and how difficult it was to get the logisticians to cooperate. The well-known logistic service provider in the Philippines event went so far as to suggest they just go ahead and pick up their product from the warehouse.

As much as trying to do business online is concerned, when selling actual items that you’re supposed to ship, reliability is what must define the logistic service in the Philippines that will deliver your cupcakes, hardware, handicrafts, or whatever that is that’s going to be the next thing that breaks the internet market.

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Traffic Congestion: A Threat to Economic Growth

Everyone who has been on the streets of Manila will surely understand the struggles one must need to go through in order to get to a destination. Looking around your immediate location will make you understand that this issue is not just a result of poor urban planning or lack of discipline; many other matters also make every day traveling feel like a torture. This is not just a problem for commuters and motorists, but also a hazard in the economic growth of the Philippines.

The condition of the public roadways in the Philippines has been a constant threat to businesses in providing quality services. This is not just limited to freight forwarding businesses, delivery services, and couriers. To start off, setting deadlines with the clients can end up in conflict if the traffic congestion isn’t put into consideration. Every minute that is lost while stuck in traffic can also mean added production cost in form of gasoline. The extended hours on the road also means extended hours exposed to possible accidents on the road. These are the reason why it is necessary to plan ahead and consider the threats that may occur while on the road to avoid additional expenses. 

So how is the traffic congestion hurting us as a nation? To put it simply, the traffic congestion is hindering even the littlest of the citizens in fulfilling their occupational obligations. It is both physical and mentally straining which may also hurt their individual affect work performance. Collectively, that could hurt us as an economy. This could mean a decline in the business performance and may discourage foreign investors. Without these Investors, there won’t be enough jobs to provide to the continuously growing population of the country. 

If you will try to identify the main cause of the traffic in the Philippines, you will realize that I will take enormous efforts to resolve it. The government hasn’t been lying down either in trying to address the issue of traffic congestion in the country. They are constantly searching for solutions that will make it bearable for everyone to travel and to enforce order. These are: 

Number coding scheme

Image Source: abs-cbn

The Unified vehicular Volume Reduction Program (UVVRP) or Number Coding is a traffic decongestion scheme which bans private and public utility vehicles from plying the roads on weekday peak-hours. For more information about this, visit MMDA – Things you need to know about the number coding scheme

Truck ban ordinance on main roads

Cargo trucks mostly used in a trucking services are motorized vehicles intended to carry cargos having a gross capacity weight of more than 4, 500 kilos. Refer to MMDA – Truck ban ordinance for further information.

Bus segregation scheme

Image Source: manila.coconut.co

Bus segregation scheme tends to limit the location the buses can stop to load and unload passengers. Visit Rappler - INFOGRAPHIC: How to find the right bus on EDSA for a visualize simplification.

Road widening projects

Road widening projects have taken effect to accommodate more vehicles on the road. This was under Republic act no. 917, for a broad explanation of this law just visit Official Gazette – Republic Act No. 917.

The traffic congestion in the country is a problem that is hurting us as a nation and needs to get addressed to keep us moving forward. It is not just an issue that freight forwarders or delivery services should learn to adapt to. With these numerous schemes being implemented and only minimal observable improvement, maybe it's time we start addressing the issue from a different point of view. Market localization and decentralization, anyone?

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Brief Timeline History: Warehousing

Today’s youth have been lacking time to look back on our rich history. Why won’t we begin with a timeline of the history of warehousing. Warehouse services are quite an essential when starting in an industry where you supply stocks and goods. Did you know that warehousing started in Ostia, Rome. Warehouses are mostly commercial buildings that acts as storage for goods. Warehouses are valued most by importers or exporters, manufacturers, etc. who needs a large area for storing huge amount of product inventory. By history, they mostly have built-in areas for the unloading and loading of goods and one of the busiest areas of the business. 

Early Rome

Ruined Warehouses in Ostia, Rome.
Image source: Wikipedia

Some of the documents found stated that the warehousing industry started in a large neighborhood called Ostia. Way way back in the fifth century, major shipping ports has a nearby warehouse for easy storage and forwarding large amount of goods. On those times, European explorers have created a route designated for such occasions made it possible for easier storage and movements of goods. 

Though at that time warehousing are still primitive and yet to be improved, this shows effective storage for it could provide secured storage and distribution of inventory.

The Industrial Revolution

Watts Warehouse in Manchester
Image Source: Wikipedia

This was on the 18th and 19th centuries, were people took on progression as an essential tool in development. They’ve started making machineries that could make forwarding a lot faster than what was present on that day and made warehouses, a business necessity. Through this, supply chain, a sequence of process responsible for the production and distribution of a commodity, has been a good source of income and made way for the business to start booming. 

Industrial revolution was more noted in the north western England of Manchester where they took warehouse designing more lavishly decorated. All the five types of developed warehouse was mostly seen on Manchester. 

At those times, most products needs time maturation in order to be sellable and this made warehouses more popular than they already were.

Twentieth Century Progression

Twentieth Railway
Image source: Dominion

The twentieth century gave way for the construction of rail warehouses wherein travelling through neighboring countries or state could be easily done. This popularized in North America’s extensive railway channels. Through such innovations, doing business with countries nearby has been possible and made faster and easy. 

With this transportation, new warehouses were built on ideal locations known to have good commerce and become a center for business.

Mid Twentieth Century

This has been the era of modern warehouses wherein they have been dependable on heavy machineries such as cranes and forklift used in moving large amount of goods in a short period of time and made way to mass production of goods. From this huge demand for warehouses, new warehouses were being built from time to time. To this day, they have been an essential to the ever growing supply chain of goods and products. 

Upon seeing the progress of warehouse services shows signs of growth in the business industry. From the start of warehouse establishment at ancient Rome to the modernized supply chain of the twentieth century have clearly evolve the industry’s look of business world. 

Upon the opening of new opportunities for warehouse services, choosing for the right warehouse services could be a tough decision. But through research and article reading, one can make the right choices for the business growth.

This warehousing history was brought to you by Metro Combined.

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Trucking Road Hazards and Safety Tips

While on the road, unwanted circumstances could arise and could not be avoided. There are times due to too much road hazards the trucking services philippines is experiencing quite a huge setback on their business. The road hazards experienced by truck drivers where:

Types of Road hazards Experienced by Truck Drivers:

Truck road hazards could be specified and caused by different things such as people, animal, and many more. These intolerable situations could truly put a dent on our business. This could cause major loss on the business’ progress. Other factors that could contribute to these hazards where non-vehicular activities, weather condition and even environmental factors.

These truck road hazards could be seen everywhere and could happen to truck driver and even non truck drivers:

Debris: These are falling objects coming from the sky or from the top of the mountain. Debris could range from sand to rocks to ice to water and even litter. Sudden things falling from the sky could truly shocked a driver most especially when the situation was on a dark night and most surroundings was dim and quiet. It could really startle anyone even none drivers and cause them to react thoughtlessly leading to mishaps.

Potholes/ Uneven Roads: These are roads with unseen holes and uneven roads means the road is not level and could put the truck into an unbalance situation. When the truck pass by an unseen holes could shake the vehicle and cause the driver a short or severe panic. Uneven road could cause the vehicle to major damages to too much shaking up for it makes the vehicles’ loosen some screwed knots and the drivers’ grip be a bit loosen that could lead to motor vehicle collisions.

Pedestrian: Due to the heavy load of trucks making it go to a full stop could not be done easily for every pedestrian passing by. Most of the time, pedestrian is not diligently following the rules set by law enforcers causing a number of unwanted serious road accidents.

Animals: They are quite known to be the ‘badass of the road’ for they do not care and lookout for incoming vehicles. This was due to their limited awareness of the road hazards. These should be the ones to be avoided not them to avoid you for if you don’t, the authorities would definitely come and pick you up from the crime you did.

These are quite hazardous but with a little of self-awareness could possibly prepare you for such occasions. Here are some tips for truck drivers’ road safety:

8 Road Safety Tips

1. Watch your blind spots

Blind spots is where the person’s area of view is obstructed. Be sure to make yourself aware of your blind spots. These are:

• Just behind trucks 

• Behind the reach of the side mirrors 

Some might not know of such but as a person who already know these, they should be the one adjusting just to avoid accidents or unwanted situations. Just always remember not to drive too close and be cautious or else.

2. Slow Down on Work Zones

It is a must to reduce speed on road construction being too hot-headed on these occasion could cause major arguments even cause much heavier traffic. These work zones could be avoided by planning different route and knowing the lightest roadways possible. If only the fastest way to go through your destination is going that route, I suggest you to just keep your cool and be patient at most times.

3. Check your vehicle

Always make it a habit to maintain your vehicle from time to time. Be sure to always check for any damages or any old parts that needs repairing. Making sure of your vehicles’ maintenance could not just help you deliver your goods on time but also secure yourself from hazardous situation.

4. Fasten your seatbelt

This safety tip might be a bit of a cliché but it is a must to do so. It may cause some people whose wearing such the feeling of uneasiness or in a state of being uncomfortable due to being too tight or it being irritable while you’re driving. These could be less of a hassle if  you clip on somewhat of a cushion pillow to decrease the irritability being experienced.

5. Arranging cargoes wisely

Trucks drivers delivers quite a heavy amount of goods. These could be bothersome if the goods is not arrange wisely by wisely I mean the weight is being scattered equally not being stacked piles of piles of stacks leaving empty spaces around. From such, it could be prone to damage goods for it could cause the goods to fall then break or lose its quality. Be mindful of the capacity of vehicle and strategize a stacking plan.

6. be mindful of the Weather

Always remember to check for weather updates just so you could prepare for it. Because alertness is a good trait to exercise. Have a sense of what was happening in your surroundings, if the following trucks are pulling over due to bad weather, I think it is best to do the same just so you could avoid any damage that might hurt you or your goods.

7. Reduce speed on curves

Road curves are regular bends provided for a gradual change of direction. These road type could really be prone to accidents because of unseen incoming vehicles. I think it would be wise to reduce speed on such for own safety.

8. Take care of yourself

Trucks could not run by itself so to make it operational always keep yourself in good condition. Always keep mind to hydrate yourself for some weather conditions could really be challenging or demanding. Remember to stop over some pit stops or pull over to take a break and eat and stretch your legs to avoid strain muscles.

From determining the road hazards, we could now be prepared by remembering these road safety tips. Always remember, having a job is important but keeping yourself healthy is more important.

These road safety tips is brought to you by Metro Combined, a logistics company that handles land, sea and air freight forwarding.

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4 Tips on Selecting the Best Warehouse Services

On the growing industry of warehousing, many believe not all can be trusted. Not all can manage your interest resulting to wasted time, effort and money. Having the best warehouse services could be achieve through following these tips. Keeping in mind that things will go smoothly once you’ve analyze your needs as well as your expectations.

Looking for the right one could be tough as you go along and learn. One can easily filter the goods ones from the bad ones through experience but not everyone had experienced such. Here are some tips to have you ground up on what needs to be done and be prioritize.

1. Have a background check

Knowing the company to gain services from is not sneaky nor bad in a way. It’s just like having a little research on the person you wanted to talk to just so you could not get their hopes way up. How to start background checking:

• Do a research on the internet. 
• Look up their former clients and ask them comments about the services. (if possible) 
• Ask for a copy of the services they offer and have a read of the services they offer. Read the fine print as well. To avoid shocking bill dues. 
• Look thoroughly if they do exercise the services you’re interested in. 
• Look for their qualifications for validity purposes. 

2. Have them send a personnel over to broadly discuss their services

If you’re still confused I could suggest you to have the company send over a personnel or a contact person to carefully discuss with you the services they offer and the benefits you can gain from them. No one can gain more than you being all careful and meticulous to details. These are question you could ask and might ease the confusion in you. 

• Do they have the appropriate adequate volume and space? 
• Do they have the right equipment handling for your products? 
• Do they practice warehouse management system (WMS)? 

"A warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations", as defined by Searchmanufacturingp.techtarget.com.

Through such system, an assurance of accurate reports could be delivered in an instant resulting to more time for other business processes.

3. Accessibility issues

You should always consider its accessibility. Will having their services be a benefit or a setback? One must specifically determine their area of need. Does the place could easily be reach? Have it in your hand to know whether they could be easily accessed. Like, ask them send over a specific amount and be delivered on the time and date expected. Also consider if they are near any port locations, just so you could benefit in your importing and exporting venture. If they could also be accessible to major highway arteries for faster delivery transaction needed in forwarding freight by land. 

4. Risk management

Do they offer insurance for the safety of your products? Though it seems like it was already given, it should still be asked whether the company offers goods insurance. There are times, they do have insurance but you’re not satisfied on what was included so to fully enjoy the services, ask and be keen on details. 

Do they have top of the line security system? If the company practices security system such as alarms, CCTV and be monitored 24/7 would be the best company to avail services from. Though insurance on your goods are already given on the table, being reliable in terms of security will be much approved by most.

This article is brought to you by Metro Combined, a leading logistics solutions that offers reliable warehousing services as well as managed you freight forwarding venture.

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The Role of Logistics Companies In The Philippines and the Undertakings They Need to Commit to

Wouldn’t it be convenient if we can just ride a bus to take us to Cebu, Palawan, or Davao? For an archipelago like the Philippines, traveling has always been a disadvantage. Unlike the United States of America wherein one can easily drive from one state to another, the bodies of water surrounding our country makes this impossible. This is also a major hurdle in business. The topography of our country makes it harder for goods and products to reach other provinces without careful business planning. Luckily, there is a solution that connects us with the other islands in the Philippines.

Freight transport has been the refuge of businesses in the Philippines to overcome the topographical and geographical hurdles. Partnering with a logistics company that offers freight forwarding services, air freight, and sea freight as well as trucking services will make transporting goods easier, opening a window for a wider market. Following the principles of the law of supply and demand, a businessman can take produce that is abundant in one place to another place where that produce is needed but is scarce, and sell it for a higher price. This could lead to higher profit if utilized properly.

In plain view, the freight forwarding system seems simple. People might think that you just need to own a truck, a ship, or a plane and you can ride the freight forwarding business train. If you think it’s that easy, then you’ve never been so wrong. Let us breakdown some of the technical issues that a freight forwarding business needs to undergo.

To start off, it is important to understand that the Philippine Economic Zone Authority is the government office that is responsible for checking the services of logistics companies. A person who would like to start up a logistics business in the Philippines needs to commit to the following undertakings, as enumerated in the registration form to be an Ecozone enterprise:

1. That the applicant is capable of operating, on a sound and efficient basis, and of contributing to the objectives of the Philippine Economic Zone Authority in particular and to the development of the national economy in general;
2. That the project is economically, technically and financially sound;
3. The applicant proposes to engage, in good faith, in the creation of a market for its project/product;
4. That the applicant has installed/undertakes to install an accounting system adequate to identify the investments, revenues, costs and profits or losses of the project covered by this application separately from the aggregate investments, revenues, costs and profits or losses of the other business activities of the applicant not registered under Republic Act No. 7916, as amended by Republic Act 8748 or has established/undertakes to establish a separate entity for the project/activities covered by this application if so required by the Authority. (Applicable only if applicant is engaged or proposes to engage in undertaking or activities in addition to the project covered by this application); 
5. The exported products/services meet the standards of quality established by the Bureau of Standards or in default thereof, by the Philippine Economic Zone Authority, or by such public organization, Chamber, group or body as the Authority may designate.
6. Domestic raw materials and supplies will be used in preference to imported goods whenever these are available at comparable quality and price.
7. That the applicant shall submit periodic reports and other information, pertaining to its activities in the Ecozone that the Authority may require;
8. That the applicant has read Republic Act No. 7916, as amended, and the Rules and Regulations adopted by the PEZA and commits itself to abide by the provisions thereof as well as amendments thereto;
9. The applicant will start and operate the project covered by this application within such reasonable time as may be fixed by the Authority;
10. That the applicant's Board of Directors has authorized the filing of this application in accordance with the terms thereof if the applicant is a corporation;
11. That applicant has neither opened nor cause to be opened a letter of credit or entered into a contract for the importation of capital equipment for which tax exemption will be claimed, prior to its registration with the Authority. (Approval of the project brief containing a list of capital equipment proposed to be imported does not amount to an implied approval of the tax-free importation of said capital equipment; a separate application for this importation should be submittedfor PEZA approval.)
12. Applicant shall comply with all rules and regulations on exportation of Philippine products/services promulgated by the Central Bank, Department of Finance, Bureau of Customs and other government agencies.
13. Pursuant to the provisions of Sec. 3 and Sec. 14 of R.A. 3019 (Anti-Graft Act), the applicant-enterprise has not given or promised to give and will not give any gift to any officer or employee of the Philippine Economic Zone Authority in connection with the filing and processing of this application.
14. The applicant's Board of Directors has authorized the release of the portion of its project study entitled "Brief Description of the Project" to the public.
15. That based on the records of the applicant, no Board member or officer of the Philippine Economic Zone Authority has an investment or any other financial interest, direct or indirect, in the applicant's enterprise; and
16. That there exists no dummy relationship between any of the stockholders and/or principal officers of the applicant and any foreign individuals/business entity.

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The Path Always Taken: An Analysis on How Public Roadways Affect Logistics Business in the Philippines

The present condition of the roadways of our beloved country, the Philippines, is a double-edged sword for logistics service providers. The state of our roadways is one of the main reasons why people are buying the idea of taking advantage of logistics services but at the same time, it is also what causes most of the biggest challenges for logistics companies.

Transportation is a major problem in the country. Just recently, we have been labeled as one of the countries with the worst traffic and airport. If we will look closely, there are many factors that contribute to this situation like overpopulation, poor urban planning, lack of discipline, and corruption. In the Metro Manila alone, more private vehicles are occupying the road than public utility vehicles and the number of registered motor vehicles only seem to increase each year. With the election for public officials looming, we can expect that the already chaotic traffic will worsen with the attempts of the outgoing officials to arrange last-minute road patch-up projects for the sake of having one.

Logistics companies have learned to embrace the fact that the current state of our roadways is one of the hurdles that they need to accept and adapt to but there is more to it than what meets the eye when it comes to logistics business. The poor roadways can affect the logistics companies in many ways.


Quality of service –

Source: Business World Online

Traffic condition is one of the things that is put into consideration when deciding deadlines and estimating time for deliveries to be completed. Trying to give out a realistic timeframe on when a transaction can be completed can be a real challenge. The traffic can stall the progress of deliveries and can sometimes cause delays. This is why there are some logistics companies who do not accept transporting perishable good. This could also be a problem with setting the expectations of the clients especially those who are trying to catch tight deadlines.


Maintenance --

Long hours on the road put a huge toll on the vehicles that are used in deliveries. The poor condition of the road can also add up to the strain and, in worse scenarios, may cause damages. If a vehicle will be out for repair or maintenance, this could affect the production and could lead to missed deadlines and decrease in the company output quality. Not to mention, repairs could be really costly almost 100% of the time.

Fuel Costs –

Representation of Money spent on Fuel

Fuel is essential to keep the vehicles needed for the deliveries alive and running. We are all aware on how much fuel can cost nowadays. For people in the business of transportation, getting stuck on traffic is losing money with every stagnant drone of the engine.


Damages –

In the worst of worst situation, no matter how cautious a driver is, accidents may occur on the road due to many circumstances. This may lead to damages in properties that will probably lead to unnecessary profit loss. These could be in the form of potholes, faulty bridges, fellow motorists or even an errant piece of jagged rock.

This is just a careful analysis of some of the challenges that logistics businesses experience due to the current state of our pubic roadways and a reflection on how much attention is needed to develop more reliable and dependable roadways that not only big businesses can use but are also beneficial for ordinary Filipinos.

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Hurdles of Starting Business in the Philippines: Topography

There are many factors that we need to consider when starting up a business. If one would like to be proficient in this field, it would take more than experience, knowledge, and strategies. Even exceling in business courses cannot guarantee you of success as a businessman. We have seen how big business rise and fall. And I guess we can agree that this is true: there is no guaranteed formula in business. We need to understand that every business if different from one another and they would need unique set of rules, regulations, and business plans to set everything rolling. Even the careful study of data, figures, and economic trends can only be used guides in plunging in to this complex world of business.

Business opportunities, target market, and business location are just some of the important factors that a person venturing in business needs to know. But for today we are drawing your attention to one of the easily ignored factor in business: topography.

We might have all heard about topography in our science and geography classes and yes, it is what you think it is: the arrangement of the natural and artificial physical features of an area. More than being a term we’ve heard in academic classes, topography plays a big role in strategizing for business. But before we go down into the details, let us break down the physical features of our country, the Philippines.

The Philippines is the largest archipelago in the world that is found in the southeastern coast of the Asia mainland. Philippines is surrounded by water in which in the east by the Pacific Ocean, on the south by the Celebes Sea, and on the west and north by the South China Sea. The country consists of 7,107 island and islets. Only 2000 of these islands are inhibited. The populated and mountainous islands are grouped into three: Luzon, the biggest island group, covers 141,395 square kilometers; Visayas, 56,606 square kilometers; and Mindanao, 102,000 square kilometers. Other main islands are Samar, Negros, Palawan, Panay, Mindoro, Leyte, Cebu, Bohol and Masbate.

Ever wondered what the oil price hike has got to do with the prices of other products? It is because consumers also pay for the expenses companies allot for distributing/moving their goods. And seeing how this works, we can say that any mountains, plains, desserts, and bodies of water can aid or hinder a business. The Philippines, being an archipelago, is surrounded by bodies of water. There are a handful of businesses that can really take advantage of this like sea freights, sea cargo services, etc. But for businesses that depend on the distribution of their products and service for profit, this could be a problem. Distributing to all the corners of the country would be costly since it will be necessary to partner with an air freight or sea freight company to be able to cross regions and distribute to other parts of the country. This could limit the potential of small scale businesses, farmers, and fishermen especially those who cannot afford freight services.

Realizing how topography can make or break a company, a smart businessman can come up with a sound business plan or solution that can take advantage of hurdles of Philippines’ topography. Running a business is all about strategy, and the more you understand about the things around you, the further you can go.

This article is brought to you by Metro Combined, a top of line logistics provider and freight forwarder in the Philippines.

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