Better logistics planning for SMEs needed, says UPS

The pandemic-induced disruptions that wreaked havoc on supply chains have raised the need for companies, including small and medium enterprises (SMEs), to improve overall strategy when it comes to managing inventory, according to shipping firm United Parcel Service (UPS).

Michelle Ho, president of UPS Asia Pacific, told the Inquirer that shipping bottlenecks in recent years underscored the importance of having diversified options for supply.

“There are several ways businesses can do this, such as by establishing a list of second and third tier suppliers in case the ones they usually use suddenly become unavailable,” she explained.

At the same time, she suggested storing “more products closer to primary customer bases to cut order and stock replenishment times.”

It would also be helpful if companies consider shipping via air freight given the current maritime logistics constraints due to lack of containers, Ho said.

Industry sources observed that shipping delays began during the latter part of 2020 when production regained momentum after a series of COVID-19 lockdowns as demand slowly recuperated again.

Unfortunately, there were not enough vessels to ferry the finished goods and raw materials across the sea due to container imbalance amid the uneven pacing in the reopening of the borders, leaving them piled up at ports or warehouses.

Shipping delays until 2023

The shipping delays are expected to last until next year, Supply Chain Management Association of the Philippines told the Inquirer previously.

The UPS official said they are working closely with the Philippine exporters, manufacturers and SMEs to address their supply chain needs.

It provides digital visibility and tracking solutions to allow businesses to have better control of their incoming and outgoing shipments.

Ho said that such solutions also gives the recipients the “option of rerouting or rescheduling a delivery in real time, so they can receive it at a time and in a place that’s convenient for them.”

“We understand that businesses are under a lot of pressure, so we ensure that the support we provide is comprehensive, crisis-responsive and flexible,” she said. INQ