Local firms embracing outsourced supply chain management system

MANILA, Philippines—Local companies are increasingly embracing outsourced supply chain management services, in an effort to increase their operational efficiency and become more competitive in their respective sectors.

According to Linda Oliva Ramos, president and managing director of DHL Supply Chain Philippines Inc., the trend of outsourcing supply chain management services was now catching on in the Philippines, years after it became popular among industries in the West.

“Outsourcing of supply chain management has just recently become popular in the Philippines. Companies are still trying to adopt,” she said.

She said local firms, particularly those that belonged to a network of multinationals, recognized the importance of timely delivery of products and services to their customers.

Among the companies that had embraced outsourced supply chain management were DHL Supply Chain clients SM Malls, SC Johnson, Procter & Gamble Philippines and Avon.

DHL Supply Chain also counts among its clients telecom network giants Ericsson, Nokia, Siemens and Huawei, electronics firm Integrated Microelectronics Inc., and a number of information technology companies operating in the country.

Ramos said DHL Supply Chain provided these companies a wide range of services, including concept, strategy, and physical facilities.

DHL Supply Chain is the result of DHL’s acquisition of Exel Logistics in 2005. The DHL unit now has more than 1,100 employees, a fleet of more than 340 vehicles, and 37 customers.

It was the first recipient of the Best Logistics Provider of the Year award given by the Supply Chain Management Association of the Philippines.