ROSEMARIE RAFAEL
MANILA, Philippines — Logistics company Airspeed is targeting to open a new hub in Cebu by next year to house growing inventories amid a booming e-commerce sector.
Airspeed chair and president Rosemarie Rafael told the Inquirer they were currently looking for a property where the P100-million facility, covering an area of 4,000 square meters (sqm) to 5,000 sqm, would be built.
The subsidiary of SM Investments Corp. (SMIC) aimed to start constructing the hub, which is targeted to house 3,000 to 4,000 pallet positions, this year.
READ: SM-backed Airspeed expands logistics operations
Building localized warehouses where merchants can place inventory near their customers is seen to bring down costs as these facilities eliminate the need for additional inventory transfers.
The company is currently renting four warehouses for operations in Cebu, which Rafael described as a growth area for the company.
The Airspeed official also expressed a positive outlook for the logistics sector especially with the rising need for last-mile deliveries.
READ: Improved logistics boosted PH factory output in January
A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.
Corporate strategy consulting firm YCP Solidiance said enhancing the operations of the logistics industry, especially parcel deliveries, would bode well for the e-commerce sector.
“A successful last mile delivery can determine whether a consumer is satisfied or frustrated. A positive delivery experience can increase consumer loyalty and repeat purchases, whereas a negative experience can turn consumers away,” it said.