The logistics industry remains a significant and growing segment of the Philippine economy due to commerce and infrastructure developments. In 2019, the transportation and storage summed up to USD 13 billion and has accounted for around 4% of the Philippines’ GDP over the last five years. Developed alongside the Supply Chain Management Association of the Philippines (SCMAP), our latest white paper “Digitalization in the Philippine Logistic Industry” highlights that digitalization is crucial to bringing the industry forward.
The e-commerce industry currently accounts for 2% of the Philippines’ total retail market, and it is predicted to reach 7% of the total market share in the near future. As demands for effective and transparent logistics services keep increasing, this condition can be nurtured should it go hand in hand with technology development in the industry.
Why Digitalization is Crucial in the Philippine Logistics Industry
E-commerce companies such as Lazada, Zalora, and Shopee have been at the forefront of digital transformation, collaborating with technology-driven logistics companies (e.g., Ninja Van and Lalamove) in delivering goods so that customers can track their orders in real time.
Going digital will help provide transparency regarding order status, shorten lead times, and potentially cut down the customs clearance processes by up to 80%, taking only 3–5 business days. Focusing on digitalization has helped Lalamove, for instance, to achieve roughly 2,000% growth in the Philippines over the last four years.
To enable digitalization in the logistics industry, it would be ideal for logistics players to invest in their own businesses’ digitalization or participate in digital platforms. By transforming digitally, they can seize more opportunities presented by the Philippines’ growing commercial activity, particularly in e-commerce. Download our report to find out more about digitalization prospects in the Philippine logistics industry.