12 Essential Reasons Why You Should Partner with a Logistics Company in the Philippines
A rapidly expanding economy demands that businesses keep up with best practices and maintain smooth operations. Logistics plays a big role in the supply chain, and it is often the most outsourced service for different industries, such as wholesale and retail, which accounts for 30.79% of Philippine freight and logistics market shares in 2024. Hiring a logistics company may be a more practical option for businesses that are unable to establish in-house logistics.
There are many reasons why contracting a logistics company in Metro Manila is advantageous to various businesses. Explore your options through this guide to the services and benefits of logistics service providers.
What Does a Logistics Company Do?
A logistics company provides shipping and logistics services using different modes of transportation such as sea, land, or air. They manage and oversee logistics activities on behalf of businesses, whether big or small. Through their expertise, professionals come up with an array of services from cargo shipment, warehousing, container van and yard, and more to solve shipping dilemmas of its clients.
The role of a logistics company in the supply chain is crucial. Different industrial sectors supplying products, raw materials, and more would be heavily affected should logistics services halt or experience delays. It is an important player in the overall domestic and global economy.
Services Provided by a Logistics Company in Metro Manila
The various services offered by a shipping and logistics company are tailored to suit the needs of small and medium to large businesses. This is a general overview of the most common solutions provided by companies, excluding value-added services.
- Freight Forwarding – Organizes and moves shipment from the origin to the destination on behalf of the shipper.
- Sea Freight Transport – Goods are loaded aboard various types of water vessels (cargo ships, tankers, RoRo, etc.) and carried across the sea.
- Land Freight Transport – Goods are transported on roads or railways using vehicles (trucks, vans, trains).
- Air Freight Transport – Movement of goods is made possible using aircraft carriers (airplanes, helicopters) and freight.
- Cold Storage & Refrigerated Transport – Temperature-sensitive goods are stored or transported in specialized vehicles and containers to preserve quality and freshness.
- Cargo Handling and Shipment – This includes General, breakbulk, FCL, and LCL shipping services that handle various types of cargo and ship items using sea, land, air, or multimodal transport.
- Container Yard Services – These are Ports and terminal operations that specifically handle, load, unload, and transport shipping containers.
- Tracking and Monitoring – This involves Tracing the movement of goods in real-time using technology and data systems.
- Warehousing and Distribution – This refers to the Efficient storage of goods and order fulfillments.
12 Benefits of Hiring a Shipping and Logistics Company in Metro Manila
Cost-efficient logistics solutions
Outsourcing services of a logistics company in Metro Manila helps your business cut back on overhead costs brought about by in-house logistics. Many companies also offer highly customizable options for varying types of services, which is extremely beneficial for businesses with large volumes of shipment or those that seldom require shipments.
Specialized knowledge and skills
A logistics company consists of a team of professionals with expert knowledge and experience in the supply chain. Not only can they perform logistics services with ease, but they can also offer valuable advice on shipping regulations, documentation, permits, transportation, and customs processes that the ordinary person may not be knowledgeable about.
Reduced infrastructure spending
Hiring a logistics company in Metro Manila takes away the need to invest in and build a separate warehouse, trucking units, yard, and other infrastructure. They can readily supply your business with the necessary packaging, transportation, facilities, and storage from the get-go.
End-to-end coverage
One of the logistics management benefits is the ability to fulfill end-to-end processes of the supply chain without having to recruit multiple personnel or services. Most logistics companies in the Philippines offer services such as pick-up, delivery, loading, transit, unloading, dispatch, and even storage or warehousing. This allows businesses to maintain a good relationship with logistics providers and operate worry-free.
First, mid, or last mile fulfillment
If your business doesn’t require end-to-end solutions, you can still enlist the help of a logistics company in Metro Manila to achieve first-mile, mid-mile, or last-mile tasks. Besides reducing the burden on a business, logistics providers can bridge the gap between a shipper and consignee, especially in remote or far-flung areas.
Convenient booking
A logistics company in Metro Manila typically accepts bookings through its own website, mobile application, or over the phone. Payments are usually settled online, through the bank, or in person at the port. This minimizes the need to pay a visit to the offices or cargo receiving centers, and encourages hassle-free arrangements.
Optimized shipping
A streamlined shipping process is one of the best logistics management benefits. Smaller quantities of shipment are typically consolidated into larger ones (such as in LCL shipping) and offer container solutions for a complete, large quantity of cargo (FCL shipping). Logistics providers also offer flexible options for all sorts of cargo types, such as temperature-controlled containers that maintain freshness and prolong the shelf life of pharmaceutical or dairy products.
Easy cargo tracking
Technology has advanced to incorporate real-time monitoring and tracking of cargo shipments through online systems. Logistics experts are able to provide accurate information on the routes taken, cargo status, and other key information to both the shipper and consignee.
Broaden market reach
Your business can access new local markets and build new partnerships through the vast network of a shipping and logistics company. Exploring new markets lets you expand your coverage without further overhead costs. For example, Metro Manila based operations can now extend to Mindanao through logistics services that have direct routes to Cagayan de Oro.
Mitigate supply chain delays
In the face of inclement weather or traffic delays, a reliable logistics company has sufficient capacity to perform rerouting or execute contingency plans. This allows them to make efficient use of time and avoid delay without compromising your business operations.
Risk management
Outsourced logistics providers have the ability to assess and provide the appropriate packing and security practices, ensuring the safe transport of your items. Their dependable knowledge and expertise allow them to recognize potential threats to the shipment process and address them as early as possible.
Improved regulatory compliance
Local and international trade entities implement regulations to control logistics movement and prevent unscrupulous trade activities. A logistics company can proactively help businesses comply with regulations on:
- Hazardous goods and materials
- Environmental regulations
- Customs regulations
- Prohibited items
- Permits to transport (applies to agricultural products, livestock, aquatic wildlife)
Adherence rewards a business with minimized risk of penalties, delays and seizure of items. It also builds a favorable reputation among logistics service providers, suppliers, and consignees.
Maintaining a competitive edge is essential for every business, and a reliable logistics company can provide the right tools for your convenience. With various solutions at your disposal, you can focus on other aspects of your operations while a partner handles all logistics matters on your behalf.
ALSO READ: Chelsea Logistics Achieves Record PhP 8 Billion Revenues in 2024
Get comprehensive logistics solutions with Chelsea Logistics
Chelsea Logistics is the largest shipping and logistics company in the Philippines, offering an array of services such as cargo shipping, freight forwarding, transportation, tugboats, and passenger. Enjoy nationwide coverage and markets with our links in Manila, Batangas, Cagayan de Oro, Cebu, Davao, Mindoro, Zamboanga, and many more.
Contact us today and avail of our dynamic services.
