With a tech-savvy populace, rising internet accessibility and penetration and a supportive online shopping environment make the Philippines an ideal country for e-commerce businesses to commence operations and capture a dominant market share. In this archipelago, efficient logistics and timely order fulfillment become a primary factor in fostering customer satisfaction and loyalty. E-commerce business owners in the Philippines often struggle to provide clients with affordable shipping, quicker delivery alternatives, leaving shoppers to drop off. .
This is where a logistics provider enters the picture. They give a smooth way to streamline your company’s operations, which will help you develop and succeed overall. It can be challenging to select the best logistics company in the Philippines to give your company a competitive edge, though, given the abundance of these businesses.
This article highlights the top Logistics companies in the Philippines and the factors one must consider before partnering with a Logistics provider. Let’s jump in!
Overview of Logistics in the Philippines
The Philippines is a country that has experienced a surge in online shopping, especially post-pandemic. Hence, the need for seamless logistics is a necessity. Here’s a glimpse into the landscape:
Thriving Market: The e-commerce industry is expected to grow at the rate of 7%, and a projected revenue exceeding $25 billion by 2028. Filipinos are shopping online more frequently, with high search volumes for “how to track my order” reflecting a demand for transparency.
Customer Needs: Filipino consumers crave fast deliveries, hassle-free returns, and personalized experiences. Easy pick-and-pack fulfillment and efficient order tracking are crucial for a positive online shopping experience.
The add-to-cart rate of 9.5%, the cart abandonment rate of 87.1%, and the conversion rate of 1.2% in 2023 in the Philippine eCommerce industry indicate the degree of user engagement, possible areas for improvement, and the effectiveness of converting interest into sales.
These challenges can hinder or delay success for e-commerce businesses looking to capitalize on the thriving Philippine market. Managing logistics and order fulfillments in-house requires a lot of manpower and capital investments. With a logistics company supporting your e-commerce business, you reduce costly operational overhead and make sure shoppers receive a consistent experience.
Benefits of Outsourcing Fulfillment to a Logistics Company:
Expertise: Logistics providers offer the expertise and infrastructure to streamline order fulfillment, reducing delays, meeting online marketplace SLAs and improving delivery times.
Inventory Management: Optimize inventory storage and visibility, ensuring transparency in real-time inventory levels that help e-commerce businesses prevent stockouts.
Scalability: Logistics providers can accommodate growth, allowing e-commerce businesses to scale up inventory storage to meet demand and the logistics resources to meet surge in order volume.
Customer Satisfaction: By providing faster deliveries, easier returns, and real-time order tracking, logistics companies contribute to a smoother customer experience, ultimately boosting satisfaction and loyalty.
Top 10 Logistics Companies In The Philippines
1. Locad
Leading the way in the Philippine Logistics market, Locad promotes a tech-driven strategy to strengthen your Philippine e-commerce enterprise. Your operations’ primary nervous system is their powerful Order Management System (OMS) which allows popular marketplaces like Lazada, Shopee, Shopify, Tiktok Shop and Zalora to be effortlessly integrated with it.
This means that managing different platforms for different marketplaces is no longer necessary because you will have a single, consolidated view of your inventory and orders across all sales channels.
Locad’s dedication to technology extends beyond its partnerships with marketplaces. With features that optimize your fulfillment operations and increase productivity, their OMS gives you the power to keep your inventory on track and avoid stockout with their Out-Of-Stock indicator. Additionally, Repetitive tasks like order picking, packing, and shipping are eliminated by automated workflows within the OMS. You can easily handle and cancel bulk orders with bulk shipping management, giving you complete control over your fulfillment procedures.
Locad’s focus on technology empowers you to streamline your operations, improve efficiency, and ultimately, deliver exceptional customer experiences.
Locads services include:
– Same Day Delivery/Fulfillment: Get products into customers’ hands within hours, boosting satisfaction and loyalty
– Locked stock handling: Ensure accurate inventory control by dedicating specific stock to pre-orders or promotions
– Inventory Forecast: Predict future demand with data-driven insights to avoid stockouts and overstocking.
– Multichannel selling: Sell seamlessly across multiple online marketplaces, reaching a wider audience effortlessly.
– Cross-border selling: Expand your reach beyond borders and tap into global markets.
– B2B Order Workflow: Streamline the ordering process for businesses, fostering stronger relationships with wholesale clients
2. Yusen Logistics
Yusen Logistics Philippines is a subsidiary of the international logistics giant Yusen Logistics. They offer a range of services including freight forwarding (air and sea), warehousing, and distribution across the Philippines. This global network could be beneficial for businesses that require international shipping or import/export expertise.
What Customers Say:
– International shipping
– Expensive
– Lack of local knowledge
– Poor customer service
3. F2 Logistics
F2 Logistics Philippines is an established player in the Philippine logistics market that provides a wide range of services, including cold chain solutions, international shipping, and warehousing in addition to local freight. Their well-established infrastructure and vast network of warehouses guarantee effective fulfillment across the nation.
What Customers Say
– Extensive infrastructure
– Offers international shipping
– No real-time tracking
– Expensive
– Poor customer service
– Poor packaging
4. TOP Logistics
TOP Logistics is a prominent player in the international logistics industry in the Philippines and focuses on the rapidly expanding e-commerce businesses.
They have a national network of warehouses that are arranged for effective delivery throughout the Philippines. Additionally, they provide order fulfillment services, which include picking, packaging, and shipping, in addition to inventory management and warehousing. It may be possible to integrate with well-known e-commerce systems, which would simplify order processing for companies.
What Customers Say
– Nationwide warehousing
– Limited technology
– Uncertain scalability
– Poor customer service
– Lack of clarity in pricing
5. CEVA Logistics
As a division of the CMA CGM Group, CEVA Logistics is a global leader in logistics and shipping. Large and medium-sized national and international firms have complicated and frequently changing supply chain needs, and their specialists specialize in creating end-to-end customized solutions to match those needs.
What Customers Say:
– International Shipping
– Lack of personalized packaging
– Incompetent website
– Poor customer service
– Delayed delivery
– Delayed pick-up
6. Susumi Philippine Logistics
Susumi Philippine Logistics markets itself as the Philippines’ all-inclusive supplier of logistics solutions. They serve a broad spectrum of industries, maybe including online retailers.
Susumi provides warehouse options all throughout the Philippines, which enable planned inventory placement and even expedited national delivery. They offer fulfillment services that include shipping, packaging, and selecting. To guarantee effective product distribution, they may form alliances with reputable courier services or operate their own delivery network.
What Customers Say
– Nationwide warehousing
– Handles complex logistics
– No multi-channel selling
– No marketplace integration
– Lack of tech-integration
– Poor customer service
7. FedEx PH
Beyond traditional 3PL services, FedEx Philippines stands out for its expertise in fast and reliable international express delivery. Businesses can leverage their extensive global network and established infrastructure to reach customers worldwide. They cater to both businesses and individuals, offering various shipping options and online tools for managing shipments.
What Customers Say
– International shipping
– Expensive
– Delayed delivery
– Poor customer service
– Excessive taxes
8. Makati Express
Makati Express, a seasoned player in the Philippine logistics scene since 1980, provides businesses with logistics and cargo forwarding solutions. With possibilities for both air and sea cargo, they provide both domestic and international freight movement. E-commerce companies may use their services for door-to-door delivery, warehousing, and even reaching overseas clients. When it comes to e-commerce fulfillment, Makati Express might not be as skilled as specialized logistics providers . There may be a lack of features like smooth e-commerce platform integration or real-time tracking.
What Customers Say
– International reach
– Door-to-door delivery
– Not data-driven
– Lack of tech-integration
– Poor customer service
– Complicated return process
9. ShipIt
ShipIt Logistics Philippines offers a two-pronged approach, catering to both international and domestic needs. They provide cost-effective international courier services for businesses looking to expand their reach. Additionally, they handle import solutions for individuals or businesses requiring assistance bringing goods into the Philippines. Their services are designed to ensure swift and secure deliveries, with clear communication throughout the customs process.
What Customers Say:
– Fast delivery
– Late responses to enquiries
– Inaccurate tracking system
– Poor customer service
– Expensive
– Delayed pick-up
10. Anchanto
Anchanto Logistics Philippines offers a comprehensive suite of 3PL solutions designed for e-commerce businesses. They combine warehousing and fulfillment services with value-added features like kitting, customized packaging, and cash-on-delivery (COD) management. Anchanto leverages technology to ensure seamless integration with online stores and provides real-time tracking visibility throughout the fulfillment process.
What Customers Say:
– Real time tracking
– Poor customer service
– Expensive
– Delayed delivery
– Poor refund and return system
Partnering with a Logistics Company For Your Philippine Business
The Philippine e-commerce landscape is booming, but managing logistics internally can be a strain on resources and growth. A logistics company not only helps you address these challenges with scalable solutions, but they also help you tailor a personalized and consistent experience from storage to fulfillment . Here’s how outsourcing logistics can transform your Philippine business:
Enhanced Inventory Management:
- Out-of-Stock Indicator: Logistics companies provide real-time inventory visibility, alerting you when products are running low and preventing missed sales opportunities due to stockouts.
- Inventory Forecast: Gain valuable insights into future demand trends. Partnering with logistics companies can help you analyze historical data to forecast sales better. This key insight helps you optimize inventory levels and avoid incurring high holding costs due to overstocking or lost sales due to understocking.
Streamlined Order Processing:
- B2B Order Workflow: Efficiently manage B2B (business-to-business) orders alongside your regular B2C (business-to-consumer) operations. Logistics providers offer systems designed to handle both order types seamlessly.
- Multi-marketplace Integration: Sell across multiple online marketplaces without juggling separate fulfillment processes. Logistics providers can integrate with popular platforms like Lazada and Shopee, centralizing order management.
Improved Customer Experience:
- Account Health Widget: Monitor your performance across various metrics like order fulfillment times and customer satisfaction ratings. This allows you to identify areas for improvement and maintain a healthy online presence.
- Expiry Management: Ensure product quality and avoid costly expired inventory. They offer expiry management systems to track product lifespans and prevent expired items from reaching customers.
- Multi-carrier Management: Benefit from competitive shipping rates and efficient delivery networks. Logistics providers partner with multiple carriers, giving you access to the best options based on location, cost, and delivery speed.
Choosing The Right Logistics Provider In the Philippines
The Philippines is seeing a rise in e-commerce, partly due to the country’s rising internet penetration rate and tech-savvy populace. However, overseeing scalable and effective fulfillment procedures is another difficulty brought on by this expansion. This is the area of expertise for third-party logistics providers. Your company might see increased customer satisfaction, streamlined processes, and ultimately sustained growth by partnering with the proper logistics supplier.
But selecting the ideal logistics partner needs thoughtful thought. When making this crucial choice, keep the following critical aspects in mind:
1. Services Provided: Is a full range of services that correspond with your company’s requirements provided by the logistics provider? Think about important elements like inventory management, order fulfillment (picking, packaging, shipping), warehousing, and returns processing. Additional value-added services like kitting, specialized packing, or cash-on-delivery (COD) management may be provided by certain providers.
2. Technology Integration: It’s critical that your online store and e-commerce platform integrate seamlessly. Robust Order Management Systems (OMS) are employed by effective logistics companies, and they interface with well-known marketplaces such as Lazada, Shopify, Shopee, and Tiktok Shop with ease. This reduces errors and streamlines fulfillment by enabling automated processes, centralized order processing, and real-time inventory tracking.
3. Pricing and Transparency: One important consideration is cost. Make sure the logistics provider offers clear pricing structures that fit your budget and business plan, even though price shouldn’t be the only consideration.
4. Scalability and Flexibility: As your company expands, so will your needs. Select a 3PL supplier who can grow and adjust their offerings to fit your company’s needs. They ought to be equipped with the tools and resources necessary to deal with variations in the number of orders and kinds of products.
Conclusion
Your business success in the Philippines is largely dependent on your choice of logistics company. A trustworthy third-party fulfillment business takes care of order fulfillment, pick and pack, inventory management, and tracking so you can concentrate on what truly matters—making exceptional products and shopping experiences for your customers. In order to facilitate business growth and expansion, a 3PL fulfillment provider must be aware of your particular requirements and offer a comprehensive range of services, technology integration, and infrastructure.
