May 17, 2020

Why the Philippines is becoming less competitive for logistics

Logistics Performance Index (LPI) World Bank
Philippines logistics competitiveness
South East Asian logistics
Connecting to Compete 2016: Trade Logistics in
Nye Longman
2 min
Why the Philippines is becoming less competitive for logistics
Following the much publicised election of Rodrigo Duterte to the presidency of the Philippines, the countrys ranking in the Logistics Performance Index...

Following the much publicised election of Rodrigo Duterte to the presidency of the Philippines, the country’s ranking in the Logistics Performance Index (LPI) of the World Bank has fallen by 14 places to 71st this year from 57th in 2014.
 

The report “Connecting to Compete 2016: Trade Logistics in the Global Economy” showed that the Philippines scored 2.89 this year from 3.14 when it ranked 44th in 2010.

Stalwarts of the Philippines’ logistics industry have voiced concerns over a series of Bureau of Customs (BoC) directives instigated in the past year which, they say, have made live contracts with the Philippine Ports Authority (PPA) more uncertain.

Specifically, the directives hampered PPA’s regulatory authority in licensing port operators, which port stakeholders considered as a midstream change in rules.

The Philippines’ score in the WB report dropped in all criteria except in timeliness of shipments, which jumped to 70th year from 90th in 2014.

The country’s ranking in customs services dropped to 78th place from 47th based on the efficiency of the clearance process that included speed, simplicity, and predictability of formalities by border control agencies.
 

For quality of trade and transport-related infrastructure, the South East Asian nation dropped to 82nd from 75th. Its rank for easing the arrangement of competitively priced shipments criteria plunged to 35th from 60th. The ranking of the Philippines slipped to 77th from 61st for competence and quality of logistics services including transport operators and customs brokers. It also fell to 73rd from 64th on the ability to track and trace consignments.

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SOURCE: [Philstar]

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Jun 17, 2021

Cainiao Network Launches Customer-Centric Logistics

Cainiao
Alibaba
Logistics
Tmall618
3 min
Cainiao will focus on the customer experience in Singapore and Malaysia during its Tmall 618 Mid-Year Shopping Festival

As the logistics division of the Alibaba Group, Cainiao Smart Logistics Network has decided to provide its Southeast Asian customers with unsurpassed service during its annual shopping festival. Based on customer feedback surveys, the company will expand its real-time customer service support and speed up delivery times. ‘By expanding and deepening our services, we aim to provide a stronger logistics infrastructure that can bolster the booming eCommerce sector, support merchants’ expansion into new markets and diversify retail options for consumers’, said Chris Fan, Head of Cross-Border, Singapore, Cainiao Network.

 

Who Is Cainiao? 

According to TIME Magazine, Cainiao ‘is far from a typical logistics firm’. The company controls an open platform that allows it to collaborate with 3,000 logistics partners and 3 million couriers. This means that merchants can choose the least expensive and most efficient shipping options, based on Cainiao’s real-time logistics analytics. The company’s goal is to ship packages anywhere in the world in under 72 hours—and for less than US$3.00. 

 

For countless small business owners around the world, from coffee-growers to textile-weavers, this could change everything. Usually, it costs about US$100 to ship a DHL envelope from Shanghai to London in five days. Cainiao aims to change that. Said its CEO Wan Lin: ‘The biggest barrier to globalisation is logistics’. 

 

What’s Part of the Upgrade? 

Throughout the Tmall festival, Cainiao’s logistics upgrade will be divided into four critical segments: 

 

  • Real-time customer service support. Cainiao has launched a direct WhatsApp channel for customers to receive logistics updates and ask questions. 
  • Expansion of air freight parcel size and weight limits. Packages can now be up to 30 kilograms or 1-metre x 1.6 meters to help ship large items such as furniture. 
  • Daily air and sea freight connections. Shipping frequency will almost double to seven times weekly to maintain resilience and efficiency. 
  • Compensation for lost or damaged packages. Customers will be reimbursed up to RMB 2,000 (US$311). 

 

Where is the Company Headed? 

From June 1st to June 20th, the finale of Tmall, Cainiao will ensure that its customers feel confident in the company’s ability to deliver their packages. Despite global shipping delays due to COVID, the show will go on. Said Fan: ‘This series of customer-centric logistics upgrades reaffirms our goal of pursuing value-added services to enhance customers’ shopping experience while mitigating challenges posed by external factors’. 

 

Furthermore, Cainiao has recently expanded its Southeast Asian operations, achieving revenue growth of 68% year-over-year. In Malaysia, the logistics operation has partnered with BEST Inc. and Yunda; in Singapore, the company has partnered with Roadbull, Park & Parcel, and the Singapore Post. And if its recent measures help retain and grow its customer base, the company will be well-poised to lead the industry in resilient and customer-centric global logistics. ‘COVID-19 made everyone realise how important the logistics infrastructure backbone is’, said Wan. ‘And it gave us a peek at what Cainiao should look like in three years’. 

 

 

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