Philippines to create supply chain body

15 April 2016

The Philippine government is stepping up plans to create a more e cient transport and logistics system, including a government body for supply chain.

The Department of Trade and Industry (DTI) and members of the United Port Users Confederation of the Philippines and the Philippine International Seafreight Forwarders Association discussed what needed to be done to improve the country’s domestic and international trade.

In the Philippines, logistics costs account for 24% to 53% of wholesale prices, with shipping and port handling costs making up 8% to 30%, depending on the goods and routes, and 5% of the retail price of goods.

“A more e cient transport and logistics system can better serve the international market, raise the country’s competitiveness, and enable local industries to take full advantage of a healthy economy,” said DTI secretary Adrian Cristobal Jr.

The government’s Logistics Industry Roadmap, which proposes the creation of a government body on supply chain and logistics, is in its final stages.

The roadmap aims to establish strategies to develop the country’s transport infrastructure, particularly roads and ports outside Manila, such as Batangas and Subic.

The new government body will coordinate all initiatives related to the supply chain and follow through on implementation and compliance with policies. Cristobal said harmonising supply chain and logistics initiatives would help in the e cient allocation of limited resources to fix the country’s logistics problems.


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