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Supply Chain Challenges in the Philippines: How can you overcome them?


November 25, 2021
6 MIN READ
Vinculum
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What do you think happens when there is no proper management of the inventory in the entire process? The whole process of satisfying consumers will go in vain in following such an unsystematic way of handling things.

To maintain e-commerce logistics, one must follow the inventory management, order placement process, storage or warehouse, backend, and front-end management of the e-commerce platform. The process that binds all such requirements in one chain is called Logistics.

What do you mean by logistics in setting up the business in a broader way, and how it works in the Philippines is a matter of concern?

Right from taking an order and delivering it to the right place regulates the logistics in a great way to cut off the costs and hugely gain the profit.

E-commerce and its growth in the Philippines

Suppose you are planning to set up an e-commerce platform in the Philippines or want the platform’s growth to gain profit out of it. Then you have landed in the right article to gather the information. The answer to the above assumption is that you have to control the logistics chains to further the operation process.

In the past scenario, e-commerce in the Philippines was not up to the mark toll 2019. But in the latest update, the country wants to be a hub for such an e-commerce platform and the growing opportunities to upgrade itself.

Online shopping is skyrocketing in most parts of the world like the Philippines, Singapore, and many more. The hike in online shopping is from 33% in 2020 to 45% in 2021.

The e-commerce challenges that the Philippines are going through in terms of Logistics

The pandemic in the ongoing years has devastated the logistic process, and the cross-border supply of products has been reduced to a minimum. As per OECD reports, the logistics are pretty maintained in the Philippines, around 27% of its sales.

The logistics challenges that the e-commerce platform faces are delays in the delivery of the products and cargo delays in reaching the spot, congestion, and hindrance in the customs management and its processes to deal with the supply.

Sometimes customers do not support the goods delivered to them because of its worst condition or deteriorated quality. Let’s explore the challenges in detail to further understand and think over them to get a better solution.

The unevenness of the infrastructure

The Philippines has two regions, and traveling in either of the areas is quite complex and going from one part to another is also a challenging task. Even language in both areas differs. The streets of the Philippines are seen in a rush and congested, which may delay the delivery of products. The Perishable goods face issues to deliver on time before their expiry. The delivery setup is not managed in a specialized way to look into the matter in depth.

  1. Manual Work 
    In the tech-savvy world, still, specific works are done manually, like generating AWB numbers. Going through a manual process is time-consuming and delays the further process to deliver the things on time without any negligence.
  2. Increased Logistics Cost
    The cost of delivering the product is high as there is no proper management of the movement of the goods out for delivery. Even the customer service is not up to the mark and reduces the profit for further purchasing. The need of the time is to collaborate with different courier services to save the extra cost.
  3. The return policy 
    The return policy may not satisfy the end-user and may cause loss of the customer on their goods. The cost is permanently attached, whether it be Return to Origin or Customer Initiated Return. The returned products will occupy space in the storehouse or may worsen the conditions of other products available in the warehouse. With the return, reasonable costs add to the development costs also from your pocket.

The call is to deal with such issues and witness the growth of the e-commerce platform in a significant way. The logistic departments can follow such ideas to improve the return policy like maintaining the warehouse, a specific place for returned products to store safely. The return items need to be categorized better based on their type and nature.

Why choose the Philippines as E-commerce logistics and its Solutions

Some of the solutions that e-commerce logistics can follow to upgrade the platform are mentioned below.

  • The e-commerce platform needs to follow an easy return policy.

The return policy should be simple and easy for even a layperson to handle. They must collaborate with the solution provider agency to benefit the end-user in sorting, shipping, integrating, and other relatable processes. The demand of the customers is meant on time to get good feedback.

  • Enhancing the value chain insight

You must view the entire process in a step-by-step process. You are looking into the inventories, warehouse management, placing an order, and shipping on time. All such processes undergo specific routes, and in case of any query, you can directly deal with the respective department to handle the issues.

  • Minimize unnecessary costs

They should set the entire cost process under one umbrella to keep track of the budget. If it gets over the budget, you will be aware of it and cut off the cost to maintain the balance sheet.

  • All the operations must be vivid and transparent.

To maintain the organization, all the processes and workflows are kept organized and transparent. And the system will monitor all the functions and keep complete data of it to maintain transparency at times of any query.

  • Focus more on customer satisfaction

The services placed for the customers should be appropriate and linked with their emails or phone number to track the goods at times of shipment. The e-commerce platform focuses mainly on customer satisfaction, and the customer experience is critical data for them to gather and display the goods or products likewise to shop more. A happy customer is a boon to the business as they come back for regular purchasing.

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