Challenges & opportunities in ex-im logistics

In addition, the rapid shift to online shopping has created a number of immediate and pressing requirements. Almost all of the supermarkets are searching for short term warehouse space to cope with online demand and we expect short term demand to grow over the coming weeks and months. Several of the REITs are managing their voids and accommodating these requirements.

But in other sectors we are seeing growing demand from existing tenants for rent holidays. This is a difficult question for landlords seeking to assess the validity of claims and whether government support should provide sufficient aid to tenants, rather than simply placing the onus on landlords who, as yet, are being offered little by the proposed government initiatives.

The development market is unsurprisingly holding its breath. We expect both buyers and sellers to take stock over the next month or two and then to continue with their long term business plans acknowledging that there will be revised aspirations on both sides.

Indeed, there are several well capitalised buyers who believe that this is just a blip and have faith in the long term integrity of the sector and are therefore keen to pursue opportunities once the immediate impacts of the virus have subsided. A number of purchases have been put on pause however there is emerging evidence that an encouraging proportion of deals agreed pre-outbreak are still proceeding.

Imminent sales have generally been put on hold due to the difficulty with access arrangements which may also slow down existing purchases. Whilst in the short term there will be challenges for occupiers, developers and investors alike, the long term impact is expected to be positive. There are several drivers of note:. The importance of manufacturing and the supply chain and the suitability and adaptability of real estate that supports it has rarely been higher profile than now.

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Since then, the unravelling of freedoms we might have taken for granted has been rapid. He was disappointed by the limited choice of options, surprised by the long lead-in to secure a pre-let and outraged by the increasing rents. Management attitudes have held us back. Trust remains an issue. Modern leaders manage through outputs not presenteeism. Get in touch with one of our professionals.With bright economic prospects and an expanding population—mostly young and well-educated and English-literate consumers—spread across more than 7, islands, the Philippines presents a growing need for an efficient goods and service delivery and transport system.

Increasing demand for fresh foods and quality products resulting from greater spending power brought about by the robust BPO industry and cash remittances from overseas is also opening up opportunities for logistics and distribution. True enough, we are already seeing the growing demand for warehouses and storage facilities, in particular for food, beverage, clothing apparel and packaging materials.

The significant backlog in infrastructure, however, keeps businesses from ensuring products efficiently reach consumers. But this program alone will not solve all problems, and everyone from government and the private sector needs to be involved. The port congestion ina result of delivery restrictions to and from the ports, led to even more severe traffic and taught us some lessons. The need to actively get feeder connections to Batangas and Subic was one of these lessons, such that eight shipping lines now serve Subic and four shipping lines serve Batangas.

However, berth capacity in Manila seems to be at a brink again with Batangas neither expanding fast enough. Coupled with a severe shortage of off-dock container yard space, we are entering once again a period of low productivity in deliveries, which results in shortage of trucks and high transport costs.

Subic as a real free port is still an untapped opportunity. Subic can be a less costly alternative for the distribution of goods in the north. Cold chain— The growing population creates a need for additional cold storage facilities all over the country. This means opportunities for integrated cold chain systems offering seamless logistics solutions, which would then mean upgrading not just the equipment but the IT systems and antiquated POD and manual DR systems as well.

Consignees would also need to update their systems to ensure alignment in systems and processes and avoid unnecessary spoilage and truck congestion. Packaging and distribution —High spoilage risks in moving perishable cargo from the farm to the market reflect the importance of modern packaging and transport systems and equipment. Investing in state-of-the-art packaging facilities in major producing areas such as Baguio, Tagaytay and Mindanao is, thus, crucial.

We need an effective agri-food supply and value chain, in which logistics plays a deciding role.

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The distribution centers should be generally located outside urban centers and, together with cold storages, should comply with international and local standards. This means stricter enforcement of food safety regulations.

In terms of distribution and delivery, the opportunity is in inventing new ways of delivering the goods. These could include using motorcycles in high-traffic areas for carton-sized deliveries to newer, bigger vessels for better economies of scale in domestic shipping. Domestic shipping —The future hinges on better port facilities, bigger and newer vessels and more reliable, on-time deliveries.

Domestic shipping is both a big opportunity and challenge, with bureaucracy and high taxes hindering local ship owners from creating enough capital base to compete better.

challenges & opportunities in ex-im logistics

Connecting Mindanao to Luzon with competitive freight rates to ensure high-quality, on-time service would give the industry a boost. Improving port facilities in Cebu, Cagayan de Oro, Davao, Iloilo, Bacolod and Zamboanga can help in ensuring depth for bigger, more economical vessels while installing ship-to-shore cranes to service ports with ungeared container ships will push down freight rates.

The industry needs greater competition instead of market consolidation to make rates more competitive. Incentives for bigger but less-polluting LNG-powered vessels might encourage investment in such vessels. Removing red tape in government and lowering taxes would also help companies boost their competitiveness both in the domestic and international platforms. International shipping —In Asean, we may see some intraregion cabotage easement, which can create opportunities and competitive challenges at the same time.

We see promoting Subic and Batangas as not only relieving traffic in Manila but creating more opportunities for shipping companies. There should be a clear separation between an operator and the regulator government agency. Airfreight handling —Seventy percent of domestic airfreight is carried in the belly of passenger aircraft. Investing in freight-version aircraft will mean more uplift capacity, greater competition and lower freight charges.

Instead of franchising air cargo handling to a restricted few, opening the operation to competition would help lower tariffs. The government may also want to review the reasons why Naia 3 has no air cargo facility despite a concluded bidding.Trading in the Philippines, a country where amazing business opportunities mix with logistical challenges caused by its geographical location and diversity.

An archipelago of islands where most of the economic activity is focused in the capital Metro Manila and in other major cities such as Cebu or Davao. So how to supply all this islands and sell your products nationwide? Which kind of challenges arise?

What is best solution? Here is an general overview of the general logistics infrastructure in the Philippines:.


The different freight terminals are pretty well equipped and offer a large variety of services such as express delivery, refrigerated transport, secured area and many others.

Aside from those airports, all provincial airports only offer domestic flight but with a very limited cargo capacity. Maritime With over 33, KM of shore line, Metro Manila still remains the principal entry to the country as this is where we can find the main maritime terminal specialized in the transportation of passenger, row materials, consumer products as well as equipment.

Domestic shipments are organized regularly, however, due to limitation of some equipment, this easily become limited. But again, the number of rotation can easily become limited. Road — Land transportation The Philippines road network permit to reach most part of the country; however the major infrastructures are still all around the capital Metro Manila. The number of vehicles and the lack of public transportation are the biggest causes.

Customs clearance In the Philippines, customs clearance remains a delicate process. For example, every imported product must be register with the FDA which was not clearly the case in the past.

If a company does not respect this ruling, huge penalties will be imposed and in the worst case scenario the product will not be released by the bureau of customs. Several tax free zone PEZA are developed and are usually well dissevered by the logistics network road, airport and maritime.

Aside from the capital Metro Manila, many new areas are being developed: Clark, Subic, Batangas and Davao are some examples.

Every year, the rainy seasons brings several typhoons which directly impacts the logistics chain flooding, landslide, cancellation of maritime and air flows. This clearly creates risk of non-conformity and delays.

challenges & opportunities in ex-im logistics

This phenomenon is clearly amplified in the most provincial areas. Invest and develop its general infrastructure to attract more foreign investment and reach international standards must be prioritized.

The bureau of customs must also progress in term of transparency and ethics to reach International standard. Do you want to understand the Philippines? Learn how to overcome some of the obstacles of your business? Contact usTriple i consulting and its team can surely assist in complying with the different requirements of the various governmental agencies you will be working with.

Post Comment. Here is an general overview of the general logistics infrastructure in the Philippines: Air With regards to the airline transportation, the main airport is located in Metro manila NAIA. Leave a Reply Cancel Reply Your email address will not be published.Logistics industry has always been an underdog, and has not achieved the much deserved attention yet. The sector is full of potential, but we are still lacking optimal utilization of resources.

However, we can see a rapid hike in demand and awareness of the sector this year. We can see a lot of startups entering the sector offering services like never before.

Logistics plays a vital role in strengthening the economy. It is the lifeline for every other commercial sector. The sector is evolving at a fast pace and infrastructure, and technologies are paving new paths towards growth.

India has jumped 19th place in the world banks Logistics performance index, from 54th place to 35th. This was announced by the world Bank Group in the recent launch of its report. With a huge jump of 19 places, India has crossed many countries like New Zealand, Thailand, Saudi Arabia, Iceland, Latvia and Indonesia who were ahead of it in the index.

First on our list in the lineup of opportunities is 3PL. It has been in the sector from a very long time but with the advancement in e-commerce and vendors racing up to provide the fastest door to door services the scope for 3PL has widen like never before.

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The pace at which E-commerce has developed, foundation has not developed in that design. To sustain agriculture the land requires adequate rainfall is of prime importance. A normal rainfall this year could prompt the government to ease cutbacks on its export policy.

We can expect this because we have witnessed this in past. In the year anddue to a good monsoon the Indian government has eased curb on export of rice and wheat which was good for the economic growth. The production of oil seeds and grains gets a boost when rainfall is normal. A good crop indirectly curbs inflation. Monsoon is essential for quite a few crops in India. Kharif crop which is sown in March depends on Monsoon rains. States of Gujarat and Rajasthan sow peanuts just before the rains arrive.

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If rains do not arrive in time or are scanty the crop fails. This is also the season for paddy plantation in Uttar Pradesh. Paddy is dependent on rainfall for good harvesting. Monsoon influences many other crops across the country.

Top Challenges Faced by Logistics Management Today

Soya bean, Sugarcane, cotton, rice and millet are some of the crops that flourish when rainfall is good. As we can see India is having a good monsoon season this year, with above average rains. We can surely expect a hike in agricultural production and also an increase in their transportation, export etc.

Players in this sector can contemplate the future and keep a keen eye on this to monetize the situation. A large part of opportunities in logistics will be powered by technology and associated innovation. A regular courier is handled around 20 times during its journey from its origin to the final destination. With technological enhancements, this number will go down significantly in the future.

Automation, in terms of material handling, information exchange, and telecommunications will play a large role to serve this purpose. More and more companies are shifting towards outsourcing operations to third-party logistics 3PLs.In this article, we talk about the nitty-gritties of the on-demand laundry domain that are rarely addressed. For customers, washed and dry-cleaned clothes are delivered to their doorstep. For vendors, the significant real estate component the front-end, an added cost is eliminated.

The laundry business has prevailed for a long time. With on-demand, there are value-added services that enhance an existing market. An on-demand laundry service hires delivery professionals and partners with the local dhobis to manage them aggregators.

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Alternatively, they hire skilled labour and use technical leverage to wash and dry-clean the clothes. According to a Euromonitor International reportthe unorganised laundry sector in India is worthcrore annually. The current players in the market serve Tier I and II cities, typically charge on a per kg basis, and deliver washed and dry-cleaned clothes between 24 and 48 hours from the time of collection.

Business books mention laundry among the top 10 business ideas to be explored. Nominal capital required, no-entry barriers, huge neighbourhood market and good returns generally make it a hot business idea.

Yet none of them mention the difficulties in scaling, owing to a large number of uncertainties. Low margin business — A customer is far more likely to go out of his way to find a good doctor than a good housekeeper or dry cleaner.

While customers generally prefer to have their laundry delivered at home, willingness to pay extra for it is unlikely. The challenge is to find a sustainable customer pool ready to pay an incremental price for this convenience or have individual service providers give bulk discounts.

Shortage of skilled labour — Dependence on skilled labour leads to a greater cost of human capital.

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Even after introducing software and machinery, dependence on manual work is not eliminated. The industry is trying to solve the challenge of empowering and rewarding labourers with a fair wage. After all, they do the weight lifting and hard work. Most players underestimate the cost of retaining and hiring a trained workforce.

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Optimising real estate — With on-demand, the infrastructure is optimised by removing the customer facing properties and moving the operations to economic industrial warehouses. For example, on-demand grocery startups deliver groceries straight from a warehouse. This removes the need of urban storage infrastructure, which is pushed out to cost-effective warehouses. For long-term success, the cost of logistics should be lower than the real estate cost. Variables and customer experience — Laundry has many processes attached to it that require human interference.

The customer expectation is high and chances of errors are equally high since the process cannot be completely automated. Customising the customer experience is a huge task in itself. High risk-reward ratio — The risk associated with this business does not convert into a proper reward. For example, suppose that an on-demand service processes sarees a day and charges Rs each. That is, at least one in sarees will get damaged.

If the damaged saree costs Rs 3, and has to be paid to the unhappy customer, the entire profit on sarees gets wiped out.

Challenges and Opportunities in Logistics

Thus the risk-reward ratio is too high. Consolidating and capturing the market is difficult — This market is dominated by local dhobis, dry cleaners and maids. Finding ways to attract this skilled labour and add their existing customers to the on-demand laundry platform for convenience and value is the biggest challenge for consolidating and capturing this market.

Discounts help in attracting new customers. Business models where the profits can be shared with the people doing the actual work still have to be worked out.

challenges & opportunities in ex-im logistics

Challenges in the backend — Out of every customers, there will be at least one unsatisfied one. While they can be easily attracted by offering discounts and through online and offline marketing, retaining them is the challenge.

The backend operations have to be scaled at a speed proportional to month-on-month customer growth.In present-day global economics, logistics plays a key role in facilitating trade. Also, by extension, ensuring the success of business operations.

Logistics managers have seen increasing challenges to create and keep efficient and effective logistics and supply chain methods. Logistics management is all about providing the right product in the right quantity to the right place at the right time. Customers want full transparency into where their delivery is at all times. In fact, as customer expectations have increasedtheir willingness to pay for fast shipping has decreased, with just about 64 percent of consumers unwilling to pay anything extra for less than two-day shipping.

Higher fuel prices are likely to increase transportation costs for U. Additionally, rising U. In order to stay as efficient and effective as possible, periodic assessments and redesigns of each business sector are necessary.

These adjustments are put in place in response to changes in the market, such as new product launches, global sourcing, credit availability and the protection of intellectual property.

Managers must identify and quantify these risks in order to control and moderate them. It is important to create, understand and follow mutually agreed upon standards to better understand not only current performance but also opportunities for improvement.

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Thus, having two different methods for measuring and communicating performance and results in time and effort wasted. Carriers face significant compliance regulations imposed by federal, state and local authorities. As well as federal regulations, environmental issues such as the anti-idling and other emission reduction regulations brought about by state and local governments have created concern that the compliance costs could exceed their benefits.

With the landscape of business operation continuously changing, there is a shift in the ensuing challenges as well. Therefore, staying up to date with these changes and taking preemptive measures to ward off challenges is a sign of successful logistics management. Read the latest on the COVID pandemic and learn how it is affecting your business and the logistics industry.

Learn More. Here we discuss five of the biggest logistics challenges faced on a daily basis. Key Challenges Faced by Logistics Managers 1.Logistics operations need to innovate successfully in light of e-commerce growth. Source: Shutterstock. By Adlina AR 10 January, It has continued to promote steady growth across the globe over the last several years. In fact, several Southeast Asian countries like Malaysia, Indonesia, and the Phillippines have promoted impressive double-digit market growth proving that the region is a goldmine for international retailers.

The driving forces of this immense growth are the ever-increasing consumer demands and evolving innovative digital solutions. As technological advances enable more web-based retail platforms to be established and bring more shoppers online, the pressure to deliver purchases effortlessly now falls onto logistics companies. According to a recent study by DHL, logistics companies now face greater challenges driven by the high growth of e-commerce.

However, these challenges also bring profit opportunities that can ultimately tip off the economic output of the logistics industry.

challenges & opportunities in ex-im logistics

To begin with, customers have high expectations when it comes to online shopping. Knowing that a wide array of technological advances are available in the market that could make fast deliveries and quick response time possible, expectations have significantly increased. Thus, logistics companies must deliver on these expectations by expanding their capabilities or prepare to lose business opportunities.

Next, there is a booming demand for delivery in urban areas. The cities are normally where population growth and e-commerce impacts are most prominent due to the fast-pace, on-the-go lifestyle. The study notes the fact that urban e-commerce trends are of high velocity and high frequency but of small quantities which can be cost-consuming for logistics companies if they intend to maintain the same performance standards for large-quantity deliveries.

Fulfilling the demand for quick shipping in urban areas can be overwhelming for logistics companies, but with emerging technologies like drones, the outcome can be changed. E -commerce growth is, therefore, clearly forcing logistics companies to expand operations; but such growth is not always possible.

As a result, labor shortages and rising costs are becoming a common issue in the industry. However, if logistics companies strive to automate certain processes, the initial manual labor can be reskilled and focused on areas that are shorthanded. The report highlights the necessity for logistics companies to strategically innovate in order to stay on top of these growing and changing demands as well as counter the shortcomings of the industry.

Innovative efforts must be pursued at full-scale to satisfy this exploding market and that means adopting innovative-first thinking, investing in long-term solutions, and automating processes to increase efficiencies.

With the right strategies and gameplan, the dynamics of logistics operations can be drastically changed and supply chain processes can be transformed. By Adlina AR. Adlina AR RahimAdlina. Adlina A.

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