The so-called logistics outsourcing in the Philippines means that enterprises outsource their logistics distribution business to professional Philippine logistics companies. Generally, the third party logistics company (3PL) not only provides logistics services, but also provides value-added services such as inventory management, transshipment docking, door-to-door distribution, commodity packaging and other value-added services, providing strategic and operational value for all kinds of global outsourcing customers.
·Growth in demand for electronic products
·Development of e-commerce industry
·Cost advantage of logistics outsourcing service
Let's analyze them one by one.
Growth in demand for electronic products
Due to the increasing demand of consumers and e-commerce industry for electronic products, the Philippine logistics market has a strong demand for electronic products transportation.
Electronics manufacturers in the Philippines see that low and middle-income consumers have a high demand for low-cost brand goods, such as tablet computers and smart phones. On the other hand, international manufacturers are trying to increase sales and income through credit card support, flexible payment methods, door-to-door delivery and other value-added services.
Therefore, as manufacturers move to developed cities such as Cebu Island and Davao, the demand of low-income consumers for low-cost brand products is rising, and the demand for electronic product transportation should also increase.
Cost advantage of logistics outsourcing service
The construction of logistics infrastructure needs a lot of funds, but it can not recover the investment in a short time. Therefore, outsourcing logistics can reduce operating costs.
Philippine logistics suppliers provide logistics outsourcing and supply chain management (SCM) related services, which can improve the efficiency of outsourcing enterprises and focus on improving the core competitiveness. In addition, outsourcing can also reduce the cost of warehouses, vehicles, machines, etc.
Philippine logistics suppliers can customize their services according to customers' needs to meet the needs of supply chain management. Therefore, the transportation owner can also outsource the parts and take the responsibility for the parts kept by themselves.