Trade association strives to bring down logistics cost to 15%
A local trade association of logistics firms on Thursday said it would endeavor to reduce the handling cost of goods to 15 percent of the total price, setting this goal as part of a national logistics road map being jointly developed by the private sector and the government.
According to the Department of Trade and Industry, the cost of logistics accounted for as much as 25 percent of the price of goods, as of 2020.
Pierre Carlo Curay, president of the Supply Chain Management Association of the Philippines (SCMAP), said they would like to bring down the logistics cost to such a level to keep the local industry competitive with those from other countries.
“It’s a challenge. But with the rate in the development of infrastructure and the partnership with the government, I think we can achieve that,” Curay told reporters on the sidelines of an industry forum held in Makati City and organized by logistics and courier firm Ninja Van.
Curay added that the plan has also been presented to other stakeholder organizations, including the Logistics Services Philippines and the Private Sector Advisory Council.The SCMAP president also said that the lack of infrastructure in the country remains the biggest hurdle in improving the local logistics sector as well as digitalization.
However, he expressed optimism given a number of the government’s infrastructure projects which he believes will improve the current situation.
“There’s constant infrastructure being built. And we see that, and it’s progressing very well,” said the SCMAP official, referring to new bridges being built in the provinces of Bataan, Samar and Bataan. INQ
