I.

Introduction

LMC LOGISTICS AND ALLIED SERVICES

Closed to twenty-two (22) years and counting, LMC Logistics Company has posted
considerable growth amidst the challenges posed by the economic environment both domestic
and global.

LMC Logistics and Allied Services, established in February 14, 1995.They expanded their
business in all facets of operations years before the Philippine government obtained an
investment grade status of bb+ from international credit rating agencies last March 2013.

LMC company’s resiliency to with stand the head winds, political, economic or
otherwise, is an upshot of sound fiscal policies, good working relationships with long standing
clients and agents coupled with intra-corporate cordial employee-employer partnership.

They consistently research and develop with the hope of offering innovative logistics
solutions to our clients and foreign counterparts as well, aimed at providing value-added service
worth of every penny spent.

Their list of clientele has consistently grown, quality wise, from locally based food
exporters to international carriers to multinational corporations operating inside the Philippine
Economic Zone Authority or PEZA.

1
LMC has garnered awards such as the 1998 Outstanding Service Provider from a Sumitomo-
affiliated company, 2003 Hauler of the Year from the Safety Organization of the Philippines,
2008 and 2009 Outstanding Hauler of the Year from North Luzon Toll Management.

In 2001, LMC company joined the ranks of forwarding companies under the umbrella of
Cargo Partners Network or CPN. CPN, a Mississauga-based entity, is an organization of freight
forwarding companies from practically all continents. Its aim is to foster teamwork and
cooperation among members through constant exchanges of sales leads and useful information
relevant to the industry.

In 2006, LMC Sea Air Services, Inc., formally obtained its ISO 9001:2000 from the
Certification Body of TUV Asia Pacific Ltd., thus aligning our company to offer services at par
with transnational firms moving along this line.

In 2007, LMC opened an affiliate company, Pinnacle Supply Chain, Inc. Inside PEZA
alongside big manufacturing concerns opting the Philippines as its hub. PCSI currently operates
and maintains a fully secured warehouse with an area of 2,500 square meters equivalent to 1,800
pallet positions inside PEZA area 40 kilometers south of Port of Manila. Its services include
Vendor Management Inventory, Product Labelling, Pick ‘n Pack, warehouse-to-door deliveries,
and other related activities.

In 2009, they achieved another milestone in their trailer-leasing business by way of acquiring
80x40 container chassis from the United States.

In 2010, LMC Sea Air Services obtained accreditation with the Bureau of Customs’ E2M or
Electronic to 2 Mobile System wherein payment of all duties and taxes to the government shall
be coursed through online banking. This new system reduces clearing time of cargoes from the
usual 5 to 1-2 days thus improving the delivery of goods, inbound or outbound.

2
Strengths

 We’re in the state of innovating the technology and system that we’re using.

 They are dedicated to meet the standard that the customers demanded.

 The price of the chassis that they offer is more affordable compared to their competitors.

 Their clients are the top priority of them.

 Highly maintenance of the rented chassis.

Weaknesses

 Location of yard is too far to the port area.

 Short time of leaves or vacation for their employees.

 They only have one rescue team when having trouble in chassis.

 The service that they offer is limited to rental of chassis or trailer.

 The chassis that they have is lesser compared to their competitors.

3
 Marketing Mix

4ps of LMC: Logistics and Allied Services

 Product/Services
LMC Logistics and Allied services offer their service as their product. The

service that they offer is “Trailer Leasing.”

 Price

LMC Logistics and Allied Services offer their chassis for rental. A 20 footer chassis can
cost 330 pesos. A 40 footer chassis can cost 350 pesos and a 45 footer chassis can cost 400 pesos.

The pricing strategy that LMC make is sending a quotation or pricing for their different
products. Listed are the many options that their client can choose from, which is cheaper and
comparable to what is existing in the industry. They also made sure that it is affordable and
beneficial to both parties. This is one of the strategies so that they’ll retain their service to their
client.

 Place
LMC Logistics and Allied services is located at Unit 401, Metropolitan Tower, 1746 A.
Mabini St., Malate, and it’s container yard is located at C4, Navotas City.

 Promotion

Due to huge amount involve for commercial and print advertisements, the company opt for
small and simple promotions which they think is also effective, like giving different give away
during December with printed company logo on the item itself. They also have a T-shirt which
the company name is embossed and wore by their employees and given to the clients. In the
simple way, they’re already promoting the company and the product in a less expensive manner.
Another promotional method is by means of referrals. They give incentives/commission to their
valued client or anybody who can refer their product and avail their services.

4
Main Competitive Advantage

LMC Logistics and Allied Services is a trailer leasing company, they offer their chassis in an

affordable price. With an exception in affordable price that LMC offered as their one of main

competitive advantage, they are dedicated to serve their clients with the feel of being priority.

LMC make sure that every unit of trailers are monitored if there’s a problem because they’re

eagerness to meet the demand of the customers is high. They always want to satisfy every

customer they will handle.

Major Market Served

LMC Logistics and Allied Services offer their services at Philippines. Their target

markets are the manufacturing company and shipping lines. The major market that they served is

the Japanese Manufacturing.

5
Vision statement

We aim to surpass customer expectations, handling every logistics project with utmost urgency

and professionalism.

Mission Statement

 “We are committed to provide flexibility, efficiency and speed to all trucking forwarding

and warehousing requirements.”

 We provide world-class international forwarding, warehouse services and facilities to our

business partners.

 We are proactive in customizing our services and built-to-suit solutions to satisfy the

evolving needs of our customers.

6
 Mission Statement Evaluation
9 Essential Components Inclusive
No. Statement Retain Revise Remove Proposed Statement
We provide world-

1
Customers class international
forwarding,

warehouse services
Who are the firm's customers? and facilities to our
business partners.

Products or Services We provide world-

2 class international
forwarding,
warehouse services

and facilities to our
business partners.

What are the firm's major products or We are committed

services? to provide
flexibility,
efficiency and speed
to all trucking
forwarding and
warehousing
requirements.
3 Markets
Geographically, where does the firm
compete?

4 Technology
Is the firm technologically current?
Concern for survival, Growth and
5 Profitability
Is the firm committed to growth and
financial soundness?

We gave importance to
Philosophy
6  every client’s that were
handling.
What are the basic beliefs, values,
aspiration, and ethical priorities of
the firm?
Self-Concept We are proactive in
7 customizing our

What is the firm's distinctive

services and built-
to-suit solutions to

competence or major competitive satisfy the evolving
advantage? needs of our
customers.

8 Concern for Public Image

(Is the firm responsive to social,

community and environmental
concerns?)

9 Concern for employees

Are employees a valuable asset of the
firm?

7
Proposed Mission Statement

 We gave importance to every client’s that were handling.

Proposed Vision Statement

We’re aiming to expand our yard locations and to become the most chosen provider of

chassis to different areas in the Philippines by the year of 2022.

8
II. Competitors Analysis

SPRINT TRANSPORT SERVICES INC.

Sprint Transport Services Inc. is corporation form of a business. They promote their services
through direct/personal selling. Its present owner is Mrs. Felly G. Castro.

Their pricing is depends on the deal between client and boss. Sprint chassis yard is located at
Navotas and Batangas.

EMME SUBIC TRANSPORT CORPORATION

Emme Subic Transport Services Corporation is a result of a

merger of our two trucking companies. It started on June 6, 1975. The
company was founded by the newly married couple Lt. Edgar B. Aglipay
and Mrs. Marinette Y.

It has done business with prestigious business firms such as the

Chempil Group of Companies, DM Consunji, National Steel Corporation and Bacnotan Steel.

Through its 39 years of service, it has grown its fleet from 2 trucks in 1975 to about 300
units of trucking equipment to date and increased its garage area.

9
 DELBROS WATERFRONT LEASING INC.

The Delgado Brothers (Delbros) Group, has made a name for itself across generations as a
pioneer in the logistics industry. The company drive to bring innovation and modernization has
brought many firsts into the country, contributing to the growth and betterment of the Filipino
people. Presently, the Delbros Group consists of over 20 subsidiaries and member companies
both locally, with interests in logistics, leasing, trading, real estate, technology manufacturing
and investments.

10
 Mission Statements Comparison
Emme Subic
9 Essential Components Sprint Transport Transport Delbros Waterfront
No. LMC Logistics and Allied Services Services Inc. Corporation Leasing Inc.
We provide world-class N/A N/A
Customers international forwarding, N/A
warehouse services and facilities to
1. Who are the firm's customers? our business partners.

We provide world-class N/A N/A N/A

international forwarding,
warehouse services and facilities to
Products or Services our business partners.
2.
What are the firm's major products We are committed to provide
or services? flexibility, efficiency and speed to
all trucking forwarding and
warehousing requirements

Markets Malabon
3
Geographically, where does the firm Malate Port Area Parañaque
compete?
Technology
4
Is the firm technologically current? Website Website Website Website
Concern for survival, Growth and
5 Profitability
Is the firm committed to growth and N/A N/A N/A N/A
financial soundness?
Philosophy
6
What are the basic beliefs, values, N/A N/A N/A N/A
aspiration, and ethical priorities of
the firm?
Self-Concept We are proactive in customizing N/A N/A
our services and built-to-suit
solutions to satisfy the evolving
needs of our customers.
7
What is the firm's distinctive N/A
competence or major competitive
advantage?
Concern for Public Image
8 N/A
(Is the firm responsive to social, N/A N/A N/A
community and environmental
concerns?)
Concern for employees N/A N/A N/A
9
Are employees a valuable asset of the N/A
firm?

11
 Vision Statements Comparison
No. Companies Inclusive Statement
We aim to surpass customer expectation, handling every logistics project
1 LMC Logistics and Allied Services with utmost urgency and professionalism.
2 Sprint Transport Services Inc. N/A
3 Emme Subic Transport Corporation N/A
4 Delbros Waterfront Leasing Inc. N/A

12
 Price Comparison
LMC Logistics
and Allied Emme Subic Transport Delbros Waterfront
Services Sprint Transport Services Inc. Corporation Leasing Inc.

Product
s Price Price Price
No Categor Product Differenc Product Pric Differenc Product Differe
. y Name Price Product Name Price e Name e e Name Price nce
20 ft.
1 Chassis 20 ft 330 Chassis 20 ft 340 10 20 ft. 330 0 Skeletal 335 5
40 ft.
2 Chassis 40 ft 350 Chassis 40 ft 380 30 40 ft. 360 10 Skeletal 355 5
45 ft 45 ft.
3 Chassis (combo) 400 N/A N/A N/A 45 ft. 390 10 Skeletal 350 50
40 ft.
4 Chassis N/A N/A N/A N/A N/A N/A N/A N/A Combo 400 N/A
5 Chassis N/A N/A N/A N/A N/A N/A N/A N/A 40 ft Flatbed 370 N/A
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
6
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
7
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
8
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
9
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
10

Legend:
Price Difference A - Price
Price Difference B – Price
Price Difference C - Price

13
 Place Comparison
LMC Logistics Sprint Emme Subic
and Allied Transport Transport Delbros Waterfront
No. Location Services Services Inc. Corporation Leasing Inc.
Unit 401 Ground floor Lot 6 Block 19
Metropolitan PCIC bldg. 15 Aglipay bldg. 888 Delbros Ave.
Tower, Malate St. Port Area, C4 Longos, PASCOR Drive,
1 Main Office / Main Branch Manila Manila Malabon City Paranaque Manila.

2 Local 1 2 2 10
3 International N/A N/A N/A
TOTAL 1 2 10

4 NCR 1 1 2
5 Luzon N/A 1 1 2
N/A
6 Visayas N/A N/A 5
N/A
7 Mindanao N/A N/A 3
TOTAL 1 2 3 10

8 Company owned 3 1 1 1
9 Franchise operated N/A
TOTAL 3 1 1 1

14
 Promotional Mix Comparison

Emme Subic Delbros

LMC Logistics and Sprint Transport Transport Waterfront
Allied Services Services Inc. Corporation Leasing Inc.
Advertising
1 Endorser N/A N/A N/A N/A
2 TV N/A N/A N/A N/A
3 Radio N/A N/A N/A N/A
4 Internet (Social Media) 3 2 3 3
Prints (newspaper,
5 flyers) 3 1 1 1
6 Outdoor N/A N/A N/A N/A
7 Other(s) N/A N/A N/A N/A
Sales Promotions
8 Contest N/A N/A N/A N/A
9 Coupons N/A N/A N/A N/A
10 Freebies 3 3 2 2
11 Discounts 4 4 4 4
12 Product Sample N/A N/A N/A N/A
13 Prizes N/A N/A N/A N/A
Customer Loyalty
14 Program N/A N/A N/A N/A
15 Other(s)
Public Relation
16 Press Releases N/A N/A N/A N/A
17 Sponsorship 1 3 1 1
18 Partnership 4 4 4 4
Other(s)
19 Raffle 4 4 4 4
20 TOTAL 22 21 19 19

Legends:
Rating 4 major strength
3 minor strength
2 minor weakness
1 major weakness

15
 Corporate Social Responsibility

Beyond the realm of commerce, the LMC Group of Companies which comprises of LMC Logistics & Allied Services, Inc., LMC Sea Air
Services, Inc., and Pinnacle Supply Chain, Inc., is at the forefront of Corporate Social Responsibility or CSR.

We strictly adhere to the universal law that the kindness of society should be reciprocated with kindness. Our company has consistently
extended aid, financial or in kind, to the less privileged citizens stricken by natural calamities such as typhoons, extreme flooding and
earthquakes.

We make modest donations to charitable institutions worthy of its cause in the mold of Knights of Columbus, The Red Cross, and Medical
and Feeding Missions to indigenous people in the far flung areas of the Philippines through Lifeline Foundation Support Team, Inc. We
LMC Logistics and aim to participate in scholarship programs for deserving young people to give them and their families a brighter future to look forward to.
1 Allied Services

Sprint Transport N/A

2 Services Inc.

N/A
Emme Subic Transport
3 Corporation

Delbros Waterfront
Leasing Company N/A
4

16
 Competitive Profile Matrix
LMC Logistics Delbros
and Allied Sprint ransport Emme Subic Waterfront
Services Services Inc. Transport Corp. Leasing Inc.
Weight
No Critical Success Ratin Weighted Ratin Weighted Ratin Weighted Rati ed
. Factors Weight g Score g Score g Score ng Score
Quality of
1 Service 0.17 4 .68 4 .68 4 .68 4 .68
Price
2 Competitiveness 0.12 4 .48 3 .36 3 .36 3 .36
3 Promotion 0.07 3 .21 3 .21 3 .21 4 .28
4 Accessibility 0.15 3 .45 3 .45 2 .30 2 .30
5 Maintainability 0.11 4 .44 4 .44 4 .44 4 .44
6 Reliability 0.08 4 .32 4 .32 4 .32 4 .32
7 Availability 0.08 3 .24 4 .32 4 .32 4 .32
8 System 0.06 4 .24 2 .12 3 .18 4 .24
Human
9 Resource 0.08 3 .24 3 .24 3 .24 3 .24
10 Management 0.08 3 .24 3 .24 3 .24 4 .32
Total 1.00 3.39 3.38 3.29 3.50

Legends:
Rating 4 major strength
3 minor strength
2 minor weakness
1 major weakness

Weighted Score = (Weight X Rating)

17
III. Industry Analysis

Industry Profile

Logistics can be defined as providing the right type of products and/or services at the right price,
at place, time and in the right condition. A quick look back at some logistics history may prove
very enlightening.
The birth of Logistics can be traced back to ancient war times of Greek and Roman empires
when military officers titled as 'Logistikas' were assigned the duties of providing services related
to supply and distribution of resources. This was done to enable the soldiers to move from their
base position to a new forward position efficiently, which could be a crucial factor in
determining the outcome of wars. This also involved inflicting damage to the supply locations of
the enemy and safeguarding one's own supply locations. Thus, this lead to the development of a
system which can be related to the current day system of logistics management.

During the Second World War (1939-1945), Logistics evolved greatly. The army logistics of
United States and counterparts proved to be more than the German army could handle. The
supply locations of German armed forces were inflicted with serious damages and Germany was
not able to wreak the same havoc on its enemy. The United States military ensured that the
services and supplies were provided at the right time and at the right place. It also tried to
provide these services when and wherever required, in the most optimal and economical manner.
The best available options to do the task were developed. This also gave birth to several military
logistics techniques which are still in use, albeit in a more advanced form.

Logistics has now evolved itself as an art and science. However, it cannot be termed as an exact
science.

Logistics does not follow a defined set of tables nor is it based on skills inherited from birth. A
logistics manager performs his duties and responsibilities based on his educational experiences,
skills, past experiences and intuition. These skills are nourished by a constant application of the
same by him for the betterment of his organization. The logistics manager ensures that the
company is benefited by an effective and efficient system of logistical management. He also
needs to ensure that the right kind of products and services are provided at the right time and for
a right price, whether inside the organization's premises or delivery of shipments outside the
premises of the organization.

18
Logistics has come to be a kind of relief for many organizations that formerly looked upon it as a
burden. Understanding how important logistics is to the overall success of a company is vital for
business leaders. It's important because of how big a role logistics plays. Business leadership and
management degrees are constantly preaching this, like the department at Gonzaga University
Online. Companies nowadays are hiring people with the requisite knowledge to deliver
sustainable enhancements in the field of supply chain management. As has been the case
throughout most of logistics history, the task of a logistics manager involves a clear vision and a
drive within to deliver results under strict deadlines in addition to his usual responsibilities.

19
 Scope and Delimitation

The purpose of this study is to provide strategies that the

researchers may recommend to their chosen company, for it to grow

more or just to maintain its rank and to be known by the public or other

clientele. The company that was chosen is the LMC Logistics and Allied

Services, a trailer leasing company.

The scope of this thesis was limited only in the trailing leasing

company inside of Metro Manila.

20
 Pest Analysis

Bert Lina leaves his business empire to take over Customs

Published April 29, 2015 8:47pm

By JAMAICA JANE PASCUAL, GMA News Research

There seems to be no honeymoon period for the newly appointed chief at the Bureau of Customs.

Less than a week into his appointment, Commissioner Alberto Lina is already on the defensive at his first
press conference at the BOC, fielding questions about his vast business interests and their potential
conflict with his new post.

Lina admitted owning 18 companies, six of which has direct transactions with the BOC.

“Immediately upon being advised of my appointment as Commissioner of the Bureau of Customs, I

immediately met with the directors and officers of all my companies and announced my resignation from
the chairmanship and vacated my seat as director of all the companies comprising the Lina group,” Lina
said.

In his meeting with the media on Wedenesday, he announced that he and his family would divest their
shares in the six companies that dealt directly with the agency: 2100 Customs Brokers Inc., LGC
Logistics, U-Freight Phils Inc., U-Ocean Inc., E-Konek Pilipinas Inc, and Air 21.

E-Konek Pilipinas, as stated in its website, is building and implementing the core customs application of
Electronic-to-Mobile (e2m) Customs, a computerization project of the BOC.

“Ida-divest ko talaga yun. Maski wife, oo, maski wife. Maski anak, basta dealing with the Bureau of
Customs. Para wala nang agam-agam at masabi pa. 'Yun ang isang problema eh,” Lina said.

“So ina-assure ko ang public…na dapat level ang playing field,” he added.

The law provided that a public official or employee should avoid conflicts of interest at all times.
Republic Act No. 6713 or the Code of Conduct and Ethical Standards for Public Officials and

Employees provides that “when a conflict of interest arises, he shall resign from his position in any
private business enterprise.”

Lina has 30 days from his assumption of office to resign from such companies. He also has 60 days to
divest himself of his shareholdings or interest.

When asked why he’d choose to let go of a business empire he has founded and built, Lina says, “I love
this country more than anything else.”

GMA News Research looked into the companies of Lina and his family.
21
Lina and/or his wife Sylvia appeared as officers and/or stockholders in at least 19 companies registered at
the Securities and Exchange Commission. Except for two, all these companies are part of the Lina Group
of Companies (LGC), based on the company’s website.

All 19 companies are multi-million-peso businesses with authorized capital ranging from P2 million to
P500 million. Most of these companies were registered with the SEC more than a decade ago.
Based on the latest available SEC documents, Lina is an officer in 18 companies: the chairman in 16, and
a director in two.

He and his wife own majority ownership in 12 of these companies.

His daughters are co-owners and officers in six companies.

April Rose Arboleda is a director in two companies and Donna May Flavier is president in one and
director of another three companies.

Lucia Jane Lina is president of two companies and a director in three others. Bertha Ann Lina sits as
director of three companies.

The new commissioner did not figure in the latest SEC records of Air2100 Inc. His wife and three of his
daughters, however, are directors. Each owns 20 percent of the company. – with Jun
Veneracion/NB,GMA News

http://www.gmanetwork.com/news/news/specialreports/478722/bert-lina-leaves-his-business-empire-to-
take-over-customs/story/

22
 ‘Balikbayan’ box tax-free up to P150,000

Bureau of Customs says Filipinos working abroad may avail of the new duty- and tax-free privilege
up to three times a year

By: Julie M. Aurelio - @inquirerdotnet

Philippine Daily Inquirer / 12:59 AM December 11, 2016

Good news for overseas Filipino workers (OFWs) sending home “balikbayan” boxes to their loved ones.
The Bureau of Customs (BOC) and the Department of Finance have signed the implementing rules and
regulations (IRR) prescribing the guidelines on duty- and tax-free balikbayan boxes. The two agencies
signed Customs Administrative Order (CAO) 05-2016, which serves as the IRR of the Customs
Modernization and Tariff Act (CMTA) covering the sending of such packages.

“We value the importance of each balikbayan box. (It) symbolizes the hardship of our (OFWs), and the
love of Filipinos abroad for their families here in the country,” BOC Commissioner Nicanor Faeldon said.

Qualified Filipinos
CAO 05-2016 takes effect on Dec. 25, Christmas Day, and states that only qualified Filipinos abroad may
avail themselves of duty- and tax-free privileges on balikbayan boxes containing personal effects and
households goods.
Under the new CMTA, the tax exemption ceiling for balikbayan boxes has now been hiked to P150,000
as long as the items inside the box are not in commercial quantities.

3 times a year OFWs may avail themselves of the duty- and tax-free privilege up to three times a year.
Defined as “qualified Filipinos abroad” are holders of valid passports issued by the Department of
Foreign Affairs and certified by the Department of Labor and Employment or the Philippine Overseas
Employment Administration for overseas employment purposes.
Also included are nonresident Filipinos who have established permanent residency abroad but retained
their Filipino citizenship, and resident Filipino citizens who temporarily stay abroad and hold a student
visa, investors’ visa, tourist visa and similar visas.

To avail themselves of this privilege, qualified Filipinos must submit: a photocopy of the page of their
Philippine passport with personal information, picture and signature, or a photocopy of their foreign
passport with personal information, picture and signature, plus a copy of proof of their dual citizenship.
The qualified Filipino must also submit an invoice, receipt or equivalent document covering the goods in
the balikbayan box. The sender must sign and submit as well the information sheet to be issued by the
agency, with the document serving as the packing list.

Electronic format
The international forwarder or consolidator, meanwhile, must submit the information sheets and
supporting documents in secured electronic format to the Philippine forwarder or deconsolidator.
The local forwarder shall then transmit the information sheet and supporting documents in a secured
electronic format to the BOC, before the arrival of the balikbayan boxes to the Philippines.
For consolidated shipments by sea that have a three-day shipping time, documents must be submitted 24
hours before the package’s arrival. Those with a seven-day shipping time must have the documents
submitted 48 hours before arrival.

23
For shipments coming from America, Europe, Middle East, and other parts of the world that do not fall
under the above-mentioned shipping time, the documents must be submitted 10 days before arrival.
Consolidated shipments carried by aircraft and coming from Asia must have their documents submitted
one hour before arrival. Those from other countries must have the documents submitted six hours before
arrival.
The BOC said the qualified Filipino sender must also certify that only personal effects and household
goods, in noncommercial quantities, are contained in the balikbayan boxes. These include clothes,
foodstuff, grocery items, canned goods and other similar items.
A different order covers balikbayan boxes brought in through means other than consolidated shipments.
Faeldon urged all international and local forwarders, foreign consolidators and local deconsolidators to
strictly follow the guidelines provided for in CAO 05-2016 to ensure that BOC personnel can expedite
clearance procedures, and that all balikbayan boxes are delivered to their receiver with utmost care.
The BOC chief also reminded all port officials and personnel to follow the agency’s “no opening of
balikbayan boxes” policy, and to expedite the release and handling of these boxes.

http://globalnation.inquirer.net/150500/balikbayan-box-tax-free-p150000#ixzz4qOMDuO5F

24
 DTI seeks to improve transport, logistics with road mapping project
Thursday, March 03, 2016 – SunStar Cebu newspaper

THE Department of Trade and Industry (DTI) is reiterating the need to address issues on transportation
and logistics services. “A more efficient transport and logistics system can better serve the international
market, raise the country’s competitiveness, and enable local industries to take full advantage of a healthy
economy,” DTI Secretary Adrian S. Cristobal Jr. said during a recent meeting with the major players of
the transport and logistics sector. The DTI met with the members of the United Port Users Confederation
of the Philippines, Inc. (UPC) and the Philippine International Seafreight Forwarders Association
(PISFA). UPC spearheads the crafting of the Philippine Logistics Roadmap together with PISFA. The
meeting provided the opportunity for all parties to discuss critical issues and identify the course of action
for the transportation and logistics sector. Logistics is part of the supply chain system that spans the
integration of information flow, material handling, production, packaging, inventory, transportation,
warehousing, border regulatory procedures, and security. In the Philippines, logistical costs account for
24 percent to 53 percent of wholesale prices; shipping and port handling costs account for eight percent to
30 percent, depending on the goods and routes, and five percent of retail price of goods. “Port congestion,
high shipping and trucking surcharges notwithstanding, the Philippines remains a gateway and central
entry point of international shipping and air cargo. We are working with various stakeholders towards a
strong and comprehensive national multimodal transport and logistics development plan that will
encourage investments for development and expansion of logistics infrastructure, in the long run,”
Cristobal added. In the same meeting, the status of the Logistics Industry Roadmap was also discussed.
The Logistics Industry Roadmap establishes strategies and programs designed to further develop the
country’s transport infrastructure, particularly roads and ports outside Manila such as Batangas and Subic.
The road map proposes the creation of a government body on Supply Chain and Logistics to coordinate
all initiatives related to the supply chain and to follow through on implementation and compliance of
policies. The roadmap is in its final stages and will serve as a guide to improving the National Logistics
Plan being drafted by the DTI’s Supply Chain and Logistics Management (SCLM) Division in
partnership with USAID’s Advancing Philippine Competitiveness (COMPETE) Project. Cristobal said
that harmonizing supply chain and logistics initiatives and programs will help in the efficient allocation of
limited resources earmarked to address logistics inefficiencies; and, eventually establish a mechanism that
will sustain and improve the country’s logistics performance. According to the World Bank, the
Philippines is ranked 57th out of 160 countries in the Logistics Performance Index which measures the
weighted average across six key logistics dimensions (customs, infrastructure, international shipment,
logistics quality, tracking and timeliness) obtained through structured online survey of logistics
professionals. (PR)

http://www.sunstar.com.ph/cebu/business/2016/03/03/dti-seeks-improve-transport-logistics-roadmapping-
project-460630

25
 PH logistics ‘needs its reinvention’

Monday, April 24, 2017

SunStar Cebu newspaper

In this Aug. 4, 2016 photo, Amazon.com boxes are shown stacked near a Boeing 767 Amazon Prime Air
cargo plane in Seattle. As shoppers demand speed, some online stores have had to expand their businesses
from retail to logistics. AP FOTO/TED WARREN The Philippines has “to reinvent its logistics sector” to
raise its visibility as a favored business destination in Asia, or increasingly lose out to neighboring
countries, according to analysts. Owing to regulatory burdens, the country’s logistics industry is faring
poorly compared to that of its peers in the Association of Southeast Asian Nations (ASEAN), Aida
Velasco and Salie Siao said in a recent briefing. Logistics performance surveys indicate that the
Philippines has been slowly backsliding, they added, speaking during a public consultation organized by
the Development Academy of the Philippines. “Given the low competitiveness standing of the country in
comparison with its ASEAN neighbors as regards logistics, the country has to reinvent its logistics sector
to have a better chance in its bid to be a choice business destination in the Asia-Pacific region,” they said.
“Given that the transportation sector and infrastructure that supports it are highly regulated by the
government, a review of regulations that burden the players in the logistics industry should be reviewed to
better support the ease of doing business in the country,” they further stated. In terms of global ranking,
the Philippines’ standing has been fluctuating, they noted. In the World Bank’s Logistics Performance
Index (LPI), the Philippines placed 65th out of 160 countries in 2007. In 2010, the rank improved to 44th
place, only to go down to 52nd, in 2012. And in 2016, the Philippines’ ranking has worsened at 71st. The
overall score of the Philippines’ logistics industry is further subdivided into six key dimensions, ranging
from efficiency of the clearance process by customs and quality of trade- and transport-related
infrastructure to the ease of arranging competitively priced shipments. “From 2007-2016, the country’s
LPI has shown a decreasing trend in these six dimensions,” Velasco and Siao said. Compared with its
ASEAN neighbors, the Philippines is ranked sixth next to Singapore, Malaysia, Thailand, Indonesia, and
Vietnam. Challenges ahead “It is notable that in 2010, our country has improved its overall ranking,
where we came in 4th (Vietnam came in as 5th and Indonesia came in as 6th) but in 2012, our
performance slowly regressed to 7th place after Brunei, who recently joined the LPI ranking.” The
presenters cited the challenges industry stakeholders said they are up against, which include red tape,
unclear and poorly thought-out government regulations, informal payments, poor infrastructure, non-
compliance with international agreements such as the ASEAN Framework Agreement on Multimodal
Transport, and lack of skills development. Velasco and Siao enumerated a number of recommendations
designed to invigorate the logistics sector. On policymaking, they cited the need to develop an integrated
and long-term national master plan for supply chain and logistics; create an administrative agency for
supply chain and logistics; and review, streamline, and standardize logistics-related policies to promote
efficiency. To improve efficiency, they pushed for automation of relevant government agencies. For
infrastructure, it is crucial to promote the following: continuous development of transport infrastructure,
capacity expansion of air and sea gateways, and improved efficiency of road freight transport. Also
suggested is the use of rail for freight transport. / PHILEXPORT NEWS AND FEATURES

http://www.sunstar.com.ph/cebu/business/2017/04/24/ph-logistics-needs-its-reinvention-53812

26
 DTI outlines measures to develop logistics industry in PH
April 8, 2016

Department of Trade and Industry (DTI) Secretary Adrian S. Cristobal underscored the important role of
the Philippine logistics industry in economic growth. He said there is a pressing need to upgrade the
infrastructure and logistics sectors, which he identified as key investments areas, that will expedite the
development of various industries and facilitate trade.

“DTI is working with various stakeholders, particularly the United Port users Confederation and
Procurement and Supply Institute of Asia, to put together a comprehensive national multimodal transport
and logistics development plan,” he said.

Logistical costs account for 24 percent to 53 percent of wholesale prices while shipping and port handling
costs cover eight to 30 percent, depending on the goods’ route, and roughly five percent of the retail price
of goods. Cristobal noted that the Philippines has the highest logistics cost among ASEAN countries,
pointing out that In Cambodia, the cost of transporting 15 metric tons of containerized auto parts from
domestic ports to warehouses, in cost per kilometer, is the lowest at US$0.89. It is followed by Thailand
at US$1.14. The Philippines, he said, has the highest at US$21.10.

Citing a study published by World Bank, he said the Philippines lags behind its ASEAN neighbors in
terms of the “ease of doing business” based on the time and cost, excluding tariffs. Domestic transport
was one of the three critical factors in measuring the performance of each country.

“While the numbers do not seem favorable nor encouraging, industry together with government remains
focused and determined to address challenges and gaps in the various functions of the logistics chain by
effecting reforms and establishing mechanisms to further build the logistics industry,” he said.

Secretary Cristobal added that DTI has already established the Supply Chain and Logistics Management
Division (SCLMD) under the Competitiveness Bureau. “This Division is mandated to lower logistics cost
and streamline the process of transporting goods from point of origin to point of destination. This includes
formulation of policies and measures relative to supply chain, trade facilitation, and logistics to support
exporters, importers and traders by helping secure competitive rates and equitable terms and conditions,”
he said. Meanwhile, DTI Assistant Secretary Rafaelita M. Aldaba reported that the Philippines can now
look forward to sustained investment in infrastructure over the medium term. Aldaba, said that the
Philippines has met the government infrastructure spending-to-GDP ratio prescribed by the World Bank
of at least five percent this year. “This is apart from the big ticket private-public partnerships that are
already on stream with more in the pipeline,” she said.

Aldaba named the Logistics Industry Roadmap as another key element in the development plan. “It
establishes strategies and programs designed to further develop the country’s transport infrastructure,
particularly roads and ports outside Manila such as Batangas and Subic,” she said.

Furthermore, she said USAID’s Advancing Philippines Competitiveness (COMPETE) has submitted a
comprehensive study on a National Logistics Master Plan. The DTI organized a consultation session with
stakeholders yesterday (7 April 2016) on the said document. “The Master Plan, when completed shall
become a strategic document for enhancing the Philippine logistics sector. Likewise it will contain key
actions for implementation in the short and medium term (2016-2022),” she said.

http://www.dti.gov.ph/dti/index.php/news/563-dti-outlines-measures-to-develop-logistics-industry-in-phl
27
 Chelsea Logistics drops 1.12% below IPO price

Published August 8, 2017 7:28pm

By TED CORDERO, GMA News

Newly-listed Chelsea Logistics Holdings Corp. (CLC) closed more than 1 percent below its Initial Public
Offering price (IPO) on Tuesday as investors cashed in on gains from its market debut.

CLC opened at P11.04 on its first day of trading on the Philippine Stock Exchange, up 3.37 percent from
an IPO of P10.68 per share.

It reached a high of P11.22, but finished at P10.56 – down P0.12 or 1.12 percent its offering price.

"CLC's maiden voyage was met with many headwinds ... It traded with a VWAP (volume-weighted
average price) of P10.9632 with 136 million shares traded, meaning most sellers still on the average made
a profit from the listing," Regina Capital Development Corp. said in a market commentary.

"Perhaps, some of this was also because of the index falling on weak note," the broker added.

Eagle Equities Inc. president Joseph Roxas said the market performance of CLC shares not reflect on the
fundamentals of the company.

"It happens. It does not affect the company. They already got the money ... There is no requirement that
all IPOs go up," Roxas said.

The company sold 546,593,000 new common shares, or 30 percent of its 1,821,977,615 outstanding
common shares, raising as much as P5.84 billion during the offer period on July 24 to 31.

Proceeds from the IPO will pay for fleet expansion. The company also plans to buy and upgrade ports,
port facilities, containers, and machinery and equipment, as well as other shipping and logistics firms. —
VDS, GMA News

http://www.gmanetwork.com/news/money/companies/621130/chelsea-logistics-drops-1-12-below-ipo-
price/story/

28
 RP exports continue to fall in June 2015
Written by Tribune Wires | Wednesday, 12 August 2015 00:00

Philippine exports fell for the third consecutive month despite the recovery of the electronics sector in
June 2015, according to the National Economic and Development Authority (Neda). “Weak external
demand continues to affect the country’s external trade performance, particularly for the merchandise
exports sector. Year-to-date outcome, in terms of both value and volume, suggests fragility in the
demand, particularly in major trading partners,” said Economic Planning Secretary Arsenio Balisacan.

The Philippine Statistics Authority (PSA) said yesterday the country’s merchandise exports declined by
3.3 percent in June 2015 from the same period last year on account of lower revenues from total agro-
based and mineral products. The value of exports in June 2015 dropped from $5.5 billion last year to $5.3
billion. “This decline reflects a still fragile global economy that is felt across the region. Most of the
major economies in East and Southeast Asia also registered negative export performance in June 2015,
with only Vietnam and People’s Republic China in the positive territory,” said Balisacan.

On a positive note, the country’s higher sales of exported manufactured goods (3.4 percent), particularly
electronics, and petroleum tempered the exports decline during the month. The electronics sector gained
momentum as exports of electronic products rose by 9.5 percent during the month, buoyed by
semiconductors (16.9 percent). This is a strong reversal from the year-on-year reduction of 7.5 percent
last month. “The country’s relatively strong semiconductor exports emulated the progress in the global
semiconductors market as worldwide sales continued to expand at its 26th consecutive month, as reported
by Semiconductors Industry Association,” the Cabinet official said.

Meanwhile, revenues from the country’s agricultural exports continued to fall in June 2015, marking its
fifth consecutive month of double-digit decline for the year. The value of outward shipments of agro-
based products fell by 24.9 percent on account of lower revenues from fruits and vegetables, sugar and
coconut products and other agro products.

Similarly, exports of mineral products decreased by 26.2 percent in June 2015 due to lower earnings from
copper metal and other mineral products.
Also, mineral product exports to the country’s top markets posted steep declines in June 2015,
particularly China, Switzerland and Thailand.
“In addition to the frail demand from major economies, the country’s recent external trade performance is
also partly due to an abundant supply of industrial commodities, thus revenues from mineral and agro-
based exports are seen to continue to decline in the short-term due to falling prices,” said Balisacan, who
is also Neda director general.

Nonetheless, he remains hopeful as positive economic developments in the United States are expected to
add momentum to exports growth particularly in consumer goods, given strong employment figures. “In
addition to domestic policies that support exports growth such as product innovations, improvements in
bureaucratic procedures and industrial infrastructure, both the government and the private sector should
intensify programs to diversify export products,” said Balisacan.

In addition to exports diversification, he also emphasized on tapping opportunities in the Asean bloc and
exploring trade opportunities in other emerging markets to take advantage of their increasing consumer
base. “While these options require more time to be realized, propping up domestic demand should be
supported to counter external imbalances. The government should fast track projects intended to make the
business climate more conducive for investments and employment generation, as well as policies
designed to increase the purchasing power of consumers,” he said.

http://www.investphilippines.info/arangkada/rp-exports-continue-to-fall-in-june-2015/

29
 Stakeholders pinpoint regulatory burdens that inflate PH logistics cost

Updated August 16, 2017, 10:29 AM - By PNF

Logistics stakeholders have identified several regulatory factors as contributing to the steep cost of
logistics services in the Philippines compared to the country’s neighbors in the Association of Southeast
Asian Nations (ASEAN).

In a recent consultation with logistics players on the national regulatory reform program, studies were
presented showing that the Philippines consistently topped Vietnam, Indonesia, and Thailand in logistics
cost, including in the areas of transport, warehousing, inventory carrying, and logistics administration.

The consultation held August 10 aimed to evaluate the regulatory environment of the logistics industry
with the view to establishing a regulatory management system that will support the industry’s sustainable
development.

Among the factors seen hindering logistics performance and ease of doing business is the difference in
schedules of the truck ban enforced in cities in Metro Manila.

Another is that requirements for obtaining clearance for import and export cargoes are unclear. Private
sector participants observed the lack of a formal and systematic procedure for disseminating information
regarding regulations other than posting them on government websites.

On getting permits to move products, it was noted that the Philippine National Police and Philippine Drug
Enforcement Agency have requirements that are open to different interpretations.

As for challenges in renewing permits, participants deplored the requirement to apply online, only to have
to secure the hard copy from the government agency.

Moreover, people commented that “some government agencies do not follow the citizen charter,” with
different agencies having different clearance processes.

Other grievances expressed during the forum concerned non-standardized tax assessment, the collection
of fees by different local government units each time goods traversed borders, redundancy in the forms
required by different agencies, and the misalignment of procedures with the country of origin and the
destination of products.

http://business.mb.com.ph/2017/08/15/stakeholders-pinpoint-regulatory-burdens-that-inflate-ph-logistics-
cost/

30
 Logistics industry to grow by 16.7% in 2020, study says

By: Roderick Abad - MAY 16, 2015

GLOBAL research and analyst Transport Intelligence (Ti) said in its latest report that the Philippines can
become a major growth market for logistics-service providers in the coming years, if the government will
take steps to enhance trade flows and invest heavily in infrastructure.

While the country is considered one of the fastest-growing economies worldwide—with a thriving
consumer market driven by its growing middle class, remittances and the offshoring of back-office
functions by many knowledge and financial institutions—it still lags behind its peers in Southeast Asia,
logistics performance-wise.

The study, titled “Philippines Transport & Logistics 2015,” revealed that if policy reforms were done to
invite investments by manufacturers—alongside the support of more investments, especially from the
private sector in infrastructure—there will be a rise in demand for contract logistics and forwarding.

In addition, if the country can surpass the infrastructure challenges it currently faces at its ports and
airports, as well as on Luzon’s highways, then it is poised to turn into a key growth area for
manufacturers to move in, according to Ti Head of Operations in Asia Michael King.

“By removing existing logistics-performance issues and the many obstacles to doing business in the
country, Ti believes that it is well-placed to become a growing market across the various logistics
sectors,” he said.

But since the current administration of President Aquino ends in about a year, he stressed that a lot will
depend on the determination of whichever candidate wins the coming presidential elections next year to
drive through policy reforms.

“Ti believes that if the next Philippines’s government embraces policy change to address its current LPI
[Logistics Performance Index] performance, then it will become a major regional growth engine for both
contract logistics and forwarding,” King said.

This, he added, could be improved further by the free-trade options, as the economies of the 10 member-
states of the Association of Southeast Asian Nations begin to integrate in December of this year, and
current restrictions on trade and migration are removed or reduced.

“All of this should boost economic growth and transport demand. But the Philippines will only see the
benefits of this if it takes steps to improve trade flows,” the executive said.

In analyzing the local market’s size, Ti looks at every key logistics sector using three growth scenarios—
low, medium and high—from 2013 to 2020, depending on the Philippines’s LPI reaching a certain
threshold. Many differences in growth rates are predicted when LPI scores differ.

31
At the upper range of LPI improvement, the provider of global logistics analysis believes the size of the
domestic contract logistics market will expand from €478 million in 2013 to €1.412 billion by 2020.The
latter sizing will represent a compounded annual growth rate (CAGR) of 16.7 percent over the periods in
review.

But if political leaders will not make business-friendly reforms, the CAGR will increase only by 10.5
percent to a total of €962 million.

Some of the contract logistics market’s growth drivers will, likewise, determine expansion rates for
forwarding.

Ti concluded that the overall freight forwarding market can surge by a CAGR of 15.1 percent from 2013
to 2020 under the “high” LPI increase scenario, but only by 9 percent at a “low” forecast.

http://www.businessmirror.com.ph/logistics-industry-to-grow-by-16-7-in-2020-study-says/

32
 SM goes into logistics, buys minority stake in 2Go Group

Published March 31, 2017 1:25pm

SM Investments Corporation (SMIC) completed the acquisition of a minority stake in 2Go Group via a
34.5 percent stake in its parent company, SMIC said on Friday.

2Go is the largest integrated supply chain operator in the Philippines, with its businesses encompassing
shipping, freight forwarding, warehousing, and express delivery services.

The 2Go deal is an “opportunity to invest in a fast growing, dynamic logistics business," said SMIC
President Harley Sy.

The final valuation of the SMIC-2Go deal is still unavailable, said Cora Guidote, SMIC senior vice
president for Investor Relations. "... We are still reviewing some provision," she said.

SMIC intends to benefit from the transaction, as well as contribute to economic progress, "especially as
development spreads to the provinces," Sy noted.

In line with the government's plans on tourism, agriculture and infrastructure Sy earlier said the SM
Group is positive about broader regional growth.

At the close of the morning trade on Friday, SMIC shares were up by P1.00 or 0.14 percent at 697 per
share. At the same time, shares of 2Go Group Inc. traded at P9.65 per share, up P0.07 or 0.73 percent.

SMIC reported a net income of P31.2 billion last year, up 8 percent from a year earlier, with its property
business accounting for 39 percent of total earnings,

Consolidated revenue grew by 9 percent to P362.8 billion, from P332.8 billion in the same comparable
period, driven by an 8 percent increase in retail revenue and a 12 percent growth in property revenue. —
VDS, GMA News

http://www.gmanetwork.com/news/money/companies/605370/sm-goes-into-logistics-buys-minority-
stake-in-2go-group/story/

33
 Maute logistics now ‘paralyzed,’ Army general says

Published June 8, 2017 2:12pm

MARAWI CITY - The siege of Marawi City in the southern Philippines could be over soon because the
logistics of the Islamist militants holed up there have been disrupted and they have been reduced to a
"small resistance," a military general said.

Government troops had entered three neighborhoods from which the pro-Islamic State Maute fighters
who seized the town on May 23 had pulled back, said Major General Carlito Galvez, head of the military
command in the region.

"We saw food, IEDs, mobility assets. Considering we have paralyzed logistics capability, we are looking
at the possibility that the end will be near," Galvez told a news conference here, referring to improvised
explosive devices, or bombs.

The military believed "more or less 100" civilians were still being held hostage by the militants, he said.

Task force head Brigadier General Rolly Bautista told reporters that a Catholic priest who was taken
hostage with about a dozen of his parishioners on the first day of the siege, was still alive. He said this
was information passed back through emissaries.

The battle for Marawi has raised concern that Islamic State, on a back foot in Syria and Iraq, is building a
regional base on Mindanao that could pose a threat to neighboring Indonesia, Malaysia and Singapore
too.

Officials have said that, among the several hundred militants who seized the town, there were about 40
foreigners from Indonesia and Malaysia but also fighters from India, Saudi Arabia, Morocco and
Chechnya.

The strike on Marawi City suggested to many that pro-Islamic State factions wanted to establish it as a
Southeast Asian "wilayat" – or governorate - for the radical group, a view reinforced by video footage the
military found last week showing the fighters plotting to cut the town off completely. — Reuters

http://www.gmanetwork.com/news/news/nation/613720/maute-logistics-now-paralyzed-army-general-
says/story/

34
 UNICEF provides supplies for malnourished Filipino kids

Published April 13, 2017 3:12pm - BM, GMA News

UNICEF’s global supply and logistics network has delivered nutrition supplies for as many as 50,000
severely malnourished children in the Philippines.

According to a press release from the United Nations agency, it is working with the Department of Health
to bring ready-to-use therapeutic food (RUTF) to children in "priority provinces."

RUTFs are "energy-dense, micronutrient-enhanced pastes used in therapeutic feeding," as UNICEF

describes on its site.

"These soft foods are a homogenous mix of lipid-rich foods, with a nutritional profile similar to the World
Health Organization-recommended therapeutic milk formula used for inpatient therapeutic feeding
programs. Typical primary ingredients for RUTF include peanuts, oil, sugar, milk powder and vitamin
and mineral supplements," the agency says.

RUTFs are used to treat children with severe acute malnutrition (SAM), defined by the World Health
Organization as "a very low weight for height (below [the lowest] scores of the median WHO growth
standards), by visible severe wasting, or by the presence of nutritional edema."

In its statement, UNICEF reports that as many as 3.4 million children in the country are stunted (short for
their age) and more than 300,000 children under 5 years are severely wasted (thin for their height)
concentrated in Regions IVB, ARMM, Eastern Visayas and Bicol Regions. Children who have severe
wasting—also known as severe acute malnutrition or SAM—are nine to 12 times at risk of dying.

The 2016 Global Nutrition Report ranks the Philippines among the top 40 countries in the world when it
comes to wasting, at 7.9%.

The UNICEF Global Nutrition Database ranks the Philippines 10th in the world in the number of children
under the age of 5 who are moderately or severely wasted.

“Good nutrition is the foundation of a child’s survival, health and development. Identifying severely
malnourished children early, feeding them therapeutic food and giving them routine medications before
any complications develop are key to saving their lives,” said UNICEF Philippines Deputy
Representative Julia Rees.

According to UNICEF, in 2016 it provided technical support to DOH in scaling up SAM management
services in an initial 17 provinces. This includes training health workers in detecting SAM. It was also the
first time DOH received commodities such as RUTFs and therapeutic milk, enough for 50,000 children
with SAM and with additional stocks prepositioned for emergency situations. — BM, GMA News

http://www.gmanetwork.com/news/lifestyle/healthandwellness/606908/unicef-provides-supplies-for-
malnourished-filipino-kids/story/
35
 FedEx Philippines: Cultivating a culture of volunteerism
By Jerni May H. Camposano (The Philippine Star) | Updated April 20, 2015 - 12:00am

MANILA, Philippines - As the managing director for the Philippines and Indonesia for logistics giant
FedEx, Rhicke Jennings is responsible for the operations in both countries from aircraft unloading and
loading to package sortation as well as customs clearance and delivery and pickup of customer shipments.
“It is my priority to ensure that our Purple Promise of making every customer experience outstanding is
fulfilled,” he says.

But more than overseeing operations, Jennings is most proud of being able to inspire his team to give
back to the communities where FedEx operates and where its members live and work. Through various
corporate social responsibility (CSR) programs, FedEx instills in each and every employee a strong sense
of volunteerism.

“Our team members readily dedicate their time and effort to help out in their communities. In 2013, 9,900
FedEx team members worldwide donated over 46,000 hours of volunteer service to more than 500 non-
profit organizations for FedEx Cares Week, recording the highest volunteer participation in its nine-year
history,” shares Jennings. “In the Philippines, 111 employees volunteered in various FedEx CSR
initiatives, contributing a total of 121 hours of community outreach.”

According to him, CSR activities enable employees to make a positive difference in the world. Being part
of such worthwhile endeavors also help team members get to know each other better and become closer
in the work place.

Opportunities for them to help are unlimited, says Jennings. In Asia, FedEx invests in five areas for its
CSR activities: Road and child pedestrian safety; education; health and human services; environmental
sustainability; and disaster relief.

“We strive to support initiatives that allow us to leverage our infrastructure, resources, and our people to
help communities worldwide,” explains Jennings.

FedEx collaborates with Safe Kids Worldwide in 10 countries to ensure that roads are safe for children. In
the Philippines, the Walk This Way (WTW) program—which includes initiatives such as The Walking
School “Bus,” Mobile Road Safety Park, Model School Zone Project, and Young Road Safety Champion
and Traffic Patrol Buddy—was launched in 2004. FedEx’s collaborative road and child pedestrian safety
campaign has since reached over one million Filipino students from 89 schools across the country.

The logistics company also works with Junior Achievement (JA) in conducting the FedEx/JA
International Challenge, a program designed to introduce secondary school students to the fundamentals
of business.

Jennings furthers that FedEx partners with Haribon Foundation for its environmental sustainability
initiatives. “As part of FedEx Cares Week 2014, 29 FedEx volunteers participated in a tree-planting and
seedling restoration activity at the Buhay Punlaan Nursery in Lumban, Laguna to support Haribon
Foundation’s ROAD TO 2020 Movement, which aims to restore one million hectares of Philippine
rainforests by the year 2020,” relates Jennings, who has also been present in a number of activities.

“I participate in our CSR programs. FedEx nurtures a strong culture of volunteerism among its
employees, and I believe in leading by example. I have planted my share of trees, mostly in the pouring
rain, although we had beautiful weather for the first time during our most recent tree planting activity for
FedEx Cares Week in October 2014.”

36
FedEx is also a reliable name after a disaster strikes, especially in calamity-prone Philippines. After super
typhoon Haiyan ravaged the central part of the country in 2013, a chartered FedEx MD-10 aircraft
transported more than $10 million worth of relief supplies donated by Heart to Heart and Direct Relief to
the victims in the affected areas.

Jennings notes, “Each year, FedEx sets aside space for up to four million pounds of disaster-related
shipping worldwide. Over the last 10 years, FedEx has delivered approximately 50 million pounds of aid
to disaster victims.”

In the health and human services area—the closest one to his heart—the company has been supporting
Orbis International since 1982, enabling the Delivering Sight Worldwide Initiative by providing resources
and logistics support.

Jennings reveals he is personally touched by the Orbis missions, with the Flying Eye Hospital traveling
the world to treat patients with eye problems like cataracts and tumors. “It’s truly heartening to see the
emotional responses evoked among family members when children smile for the first time after their sight
is restored,” he says.

“I am always amazed at the level of commitment and strong customer orientation the FedEx Philippines
team has. We added more than 300 employees in the past 18 months and I could not be more proud of our
team,” Jennings concludes. “It is also rewarding to work for a company that is always reinventing itself to
meet the changing needs and expectations of customers.”

http://www.philstar.com/business-usual/2015/04/20/1445681/fedex-philippines-cultivating-culture-
volunteerism

37
 Social and environmental risk management in supply chains: a survey in the clothing industry

May 1, 2015

Almost daily, news indicates that there are environmental and social problems in globally fragmented
supply chains. Even though conceptualisations of sustainable supply chain management suggest supplier-
related risk management for sustainable products and processes as substantial for companies, research on
how risk management for environmental and social issues in supply chains is performed has so far been
neglected. This study aims at analysing both why companies in the clothing industry are performing
management of social and environmental risks in their supply chain and what kind of action they are
taking. Based on the literature on sustainable supply chain management and supply chain risk
management as well as 10 expert interviews, a conceptual model for risk management in sustainable
supply chains was developed. This model was tested in an empirical study in the clothing industry. The
data were analysed by structural equation modelling. Results of the research show high statistical
significance for the respective conceptual model. The main driver to perform risk management in
environmental and social affairs is pressures and incentives from stakeholders. While companies’
corporate orientation mainly drives social actions, top management drives environmental affairs for
differentiating themselves from competitors.

https://link.springer.com/article/10.1007/s12159-015-0121-8

38
 Typhoon Nina damage to agriculture, infrastructure now at P5.183 billion
Published January 2, 2017 1:28pm - Jon Viktor Cabuenas/KG, GMA News

Damage to agriculture and infrastructure due to the onslaught of Typhoon Nina (international name:
Nock-Ten) continue to rise with more assessments ongoing, the National Disaster Risk Reduction and
Management Council (NDRRMC) said in its latest report.

As of 8 a.m. on January 2, damage to both agriculture and infrastructure in the Philippines has so far
reached P5.183 billion, up from the P5.143 billion the previous day.

The report includes assessments in the Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon), Mimaropa

(Occidental and Oriental Mindoro-Marinduque-Romblon-Palawan), and Bicol regions.

Broken down, damage to agriculture was recorded at P4.130 billion, while damage to infrastructure —
roads, bridges, river control, health, and school facilities — was at P1.053 billion.

http://www.gmanetwork.com/news/money/economy/594361/typhoon-nina-damage-to-agriculture-
infrastructure-now-at-p5-183-billion/story/

39
 Assessing PH’s logistics sector

Thursday, April 20, 2017 By KATLENE O. CACHO

THE Department of Trade and Industry-Supply Chain and Logistics Management Division (DTI-
SCLMD) has partnered with the World Bank to publish the country’s first logistics performance report
this June. DTI-SCLMD conducted surveys with manufacturers and logistics service providers in Cebu
yesterday to obtain quantitative data related to the current logistics capabilities of manufacturers and
logistics service providers in the country. Jonathan Cabaltera, assistant chief at DTI-SCLMD, said the
results of the survey would be helpful in crafting national logistics policies and programs that will make
the country’s logistics services efficient and competitive in Southeast Asia. The survey measures critical
factors like time efficiency, reliability of transporting goods and the logistics costs. Target The DTI-
SCLMD and World Bank aim to survey 300 respondents in Manila, Cebu, Davao, Iloilo and Cagayan de
Oro cities. Initially, the DTI has surveyed 20 respondents, mostly heads of industry associations in
Manila. World Bank International Finance Corp. consultant Roberto Galang, in a statement, said the joint
report will be used “to find the pain points of the sector for the regulators to start looking into” and
monitor the industry’s growth. The team has tapped WB consultant Ruth Banomyong, who conducted
similar assessment projects in other Asian countries such as Indonesia and Vietnam, to lead the project.
She noted a lack of empirical data in the country’s logistics industry. High cost In the Philippines,
logistics costs account for 24 to 53 percent of wholesale prices, with shipping and port handling costs
making up eight to 30 percent, depending on the goods and routes, and five percent of retail price of
goods. According to the 2016 World Bank’s Logistics Performance Index (LPI), the Philippines ranked
71 among 160 countries. It scored 2.86 in the latest World Bank’s logistics report. The LPI ranks
countries on their trade logistics performance, looking at indicators such as customs, infrastructure,
international shipments, logistics quality and competence, tracking and tracing, and timeliness. In Asean,
Singapore ranked fifth in the global LPI. Malaysia ranked 32; Thailand, 46; Indonesia, 63; Vietnam, 64;
Cambodia, 73; Myanmar, 113; and Laos, 152. Aside from making logistics services in the country
efficient and competitive, participants of yesterday’s focus group discussion also pointed out the need to
eliminate red tape in the Bureau of Customs. Alexander Hey, vice president of furniture manufacturer
Sarah Woodcraft, said red tape in government prevents businesses from growing. It also discourages
potential investors from coming to the country. Hey noted it is not shipping companies that burden them
but the red tape in the government. Hey suggested the industry craft a position paper calling for business
procedures to be streamlined. “We need to address this immediately, otherwise we will be eaten up alive.
It has happened already with Vietnam and Indonesia already cutting prices. It wouldn’t help if we won’t
move,” said Hey, citing the current situation of the furniture industry.

http://www.sunstar.com.ph/cebu/business/2017/04/21/assessing-phs-logistics-sector-537547

40
 Turn to Technology to Attract the Next Generation of Workers
April 12, 2017 | Samuel Mueller

Supply chain stakeholders have to acknowledge the shortage of workers in the supply chain sector. An
estimated 600,000 manufacturing positions in the United States are going unfulfilled due to a lack of
qualified workers, according to the 2016 MHI Annual Industry Report. Additionally the survey showed
that 58 percent of respondents face a significant challenge in hiring and retaining a skilled supply chain
workforce.

Yes, the supply chain is creating more jobs than it can fill. Exacerbating the talent drain is the lack of
engagement of many employees. Workers aren’t fully engaged, and they’re quitting their jobs to look for
other opportunities. And it’s only going to get worse unless something changes.

In order to try and reverse the situation, employers could cast a wide net and attempt to hire as many
people as possible. A more strategic move, however, would be to focus on cultivating the next generation
of young workers who have completed their undergraduate studies and are ready to enter the workforce.
If you want to attract these individuals, then you need to appeal to what they’re interested in. What
exactly is that? By and large, this generation is interested in technology and creating things.

http://www.inboundlogistics.com/cms/article/turn-to-technology-to-attract-next-generation-of-workers/

41
 Four Technologies Set to Change the Future of Logistics

December 01, 2016 | Heather Vacca

Technology historically plays the role of a disruptor, the means to newer and better things, and the
destruction of old ways of life. The following four technologies are sure to disrupt the business of
logistics.

3-D PRINTING
The technology of 3-D printing makes it possible for manufacturers, other businesses, and even
individuals to print exact working replicas of parts and products using metals, plastic, composite
materials, and even human tissue. The impact on logistics will be significant. A car manufactured in a
factory has about 30,000 parts, a 3-D printed car has just 50 parts. 3-D printing could lead to consolidated
manufacturing in one location rather than sourcing parts from all over the world, leading to a fall in
shipping and air cargo volumes. The mass customization of products would mean that inventory levels
would fall, leading to a reduced need for warehouse management, as products are made to order. Major
companies such as Nike, Gillette, and Mattel are already using 3-D printing or have filed applications to
do so. Shipping line Maersk has installed 3-D printers on some of its ships to make spare parts in the
event of breakdowns. Large logistics companies like UPS are also investing in the technology. UPS is
looking into taking orders from customers, printing them on 3D computers, and delivering them.

THE INTERNET OF THINGS (IOT)

This revolutionary technology allows devices to communicate with each other through an internet-like
infrastructure, without human intervention. Research firm Gartner forecasts that 6.4 billion connected
things will be in use worldwide in 2016, up 30 percent from 2015. A McKinsey survey in 2015 predicted
the economic impact of the IoT to be $11 trillion by 2025. Companies providing logistics software
solutions could find multiple uses for IoT, which would help them to increase speed, reduce waste, and
pare costs for their customers. For example, IoT could be used for asset tracking, inventory management,
filing of orders, and predictive maintenance, among others.

DRONE DELIVERY
Amazon made headlines when it announced that it was looking into the possibility of using small
unmanned aerial vehicles, known as drones, for making last-mile deliveries. While there is still a lot of
uncertainty over when drones will be available for commercial use, given the need for approvals from the
Federal Aviation Administration, they could be a game changer for the logistics industry. Drones would
help reduce the cost of delivery, would be easier to track, and would likely be an attractive draw for the
end customer.

DRIVERLESS VEHICLES
Driverless vehicles are set to become a reality. Google submitted a proposed design for a self-driving car
to the U.S. National Highway Traffic Safety Administration (NHTSA) in November 2015. In February
2016, the NHTSA replied that the artificial intelligence system that pilots the self-driving car could be
considered as the driver of the car under federal law. This is a major breakthrough, and could pave the
way for the faster development of such cars. At present, there are cars on the market that can be “driver-
less” under some conditions, but there is no fully driverless vehicle in use yet. Driverless vehicles could
become an integral part of a logistics software solution, reducing the turnaround time of orders and
human error, and ultimately helping companies save costs.

http://www.inboundlogistics.com/cms/article/-four-technologies-set-to-change-the-future-of-logistics/

42
 Globe to boost digital services

Published March 31, 2016 7:36am

Publicly-listed Globe Telecom Inc. on Wednesday announced it will boost its digital services to widen its
footprint in the e-commerce industry.

“One of the key components of building a digital nation is building a digital enterprise, and our goal at
Globe Business is to leverage on digital capabilities to change the way enterprises operate to achieve
greater business success,” Mike Frausing, Globe senior advisor for Enterprise and IT-Enabled Services
Group, said in an emailed statement.

According to Globe, its digital services will cater to the retail, business process outsourcing (BPO),
education, and the logistics industries.

“Companies in the retail industry, for instance, can benefit from managed security services, mobility
solutions, and connectivity solutions,” it said, as customers who shop online may be protected from
identity thefts, fraudulent activities, and malicious transactions from cybercriminals.

The Ayala-led telco also said that the IT-BPO industry is an “important sector” which would be assisted
by software solutions which could convert paper-based processes to dynamic mobile applications.

It will also focus on the education industry with solutions including personalized adaptive learning to
address student engagement in school, a virtual cloud for new applications for teachers and school staff,
and a school management system to open access to resources and tools for consolidated learning.

Globe also cited benefits for the logistics industry which can boost operations for companies to track and
manage fleet requirements, effectively improving productivity. Firms may also avail of managed
connectivity services to connect their branches.

“With our solutions and partnerships, we are safeguarding our enterprise clientele so that their digital
journey is seamless and free from threats as much as possible,” Frausing said. —Jon Viktor
Cabuenas/KG, GMA News

http://www.gmanetwork.com/news/money/companies/560960/globe-to-boost-digital-services/story/

43
 2Go completes delivery of VCMs, ballots

Published May 7, 2016 9:48pm

2GO Express on Saturday announced that it has deployed all vote counting machines (VCMs), official
ballots and non-accountable forms within schedule and based on agreed timelines with Commission on
Elections (Comelec) officials nationwide.

Delivering by air, land and sea, thousands of 2GO Express drivers and delivery personnel worked round-
the-clock to ensure that all election paraphernalia are delivered to more than 92,000 precincts nationwide
before Filipinos troop to their respective polling places on Monday, the company said in a statment.

Still being shipped are contingency (back-up) VCMs and BGANs (Broadband Global Area Network
satellite communications kits), additional thermal paper and Comelec election shirts.

“The management and staff of 2GO Express are honored to be partners of Comelec in this historic
national elections. We’re also proud of our patriotic contribution in deploying election materials to ensure
that Filipinos can exercise their sovereign right to choose the country’s leaders,” 2GO Express general
manager Randolph Arroyo said.

The joint venture of 2GO Express and 2GO Logistics was awarded the contract as Comelec’s logistics
provider for the 2016 polls. The contract covers the country’s 17 regions. During the 2013 elections, the
firm also won the logistics contract for the Visayas. — APG, GMA News

http://www.gmanetwork.com/news/news/nation/565438/2go-completes-delivery-of-vcms-ballots/story/

44
 SWOT Analysis Matrix
Strengths
S1. We’re in the state of
innovating the technology and
system that we’re using.
S2. They are dedicated to meet
the standard that the customers
SWOT
demanded.
S3. The price of the chassis that
they offer is more affordable
compared to their competitors.
S4. Their clients are the top
priority of them.
S5. Highly maintenance of the
rented chassis.
Opportunities S/O Strategies:
O1. “Balikbayan’ box tax-free up to P150,000” Bureau of > More balikbayan boxes, more
Customs says Filipinos working abroad may avail of the trailers needed to ship those
new duty- and tax-free privilege up to three times a year. boxes to customs. More improve
infrastructure, more efficient in
O2. DTI seeks to improve transport, logistics with road transporting goods.
mapping project. (S2,S3,S4,S5 ; O1,O2)
O3. Logistics industry to grow by 16.7% in 2020, study
says. > Using technology we can attract
O4.UNICEF’s global supply and logistics network has new generation of workers. Those
delivered nutrition supplies for as many as 50,000 severely new workers can help the
malnourished children in the Philippines. company to improve or
O5. Turn to Technology to Attract the Next Generation of innovating the technology and
Workers system that used to track and
price the rented chassis. (S1 ; O5)
Threats S/T Strategies:
T1. Logistics performance surveys indicate that the
Philippines have been slowly backsliding. > Event marketing is a promotional
T2. Requirements for obtaining clearance for import and strategy that involves face-to-face
contact between companies and their
export cargoes are unclear. Private sector participants
customers at special events like
observed the lack of a formal and systematic procedure for
concerts, fairs, and sporting events.
disseminating information regarding regulations other than
( S1,S2,S3,S4,S5 ; T4)
posting them on government websites.
T3. Proceeds from the IPO will pay for fleet expansion.
The company also plans to buy and upgrade ports, port
facilities, containers, and machinery and equipment, as well
as other shipping and logistics firms.
T4. “Weak external demand continues to affect the
country’s external trade performance, particularly for the
merchandise exports sector.
T5. Philippines ranked 71 among 160 countries. It scored
2.86 in the latest World Bank’s logistics report. The LPI
ranks countries on their trade logistics performance,
looking at indicators such as customs, infrastructure,
international shipments, logistics quality and competence,
tracking and
Weaknesses
W1. Location of yard is too far
to the port area.
W2. Short time of leaves or
vacation for their employees
W3. They only have one rescue
team when having trouble in
chassis
W4. The service that they offer
is limited to rental of chassis or
trailer.
W5. The chassis that they have
is lesser compared to their
competitors.
W/O Strategies:
> If this month of ber has a lot
of balikbayan box expected to
import even the location of our
yard is too far the clients will
forced to come. The short time
of leaves of the employees was
not being wasted since they have
a works to do. May hired a
seasonal or term employee to
work as a rescue team. It’s time
to have more rented chassis
since they just offer a leasing
trailer but in this must consider a
loyal client.
(W1,W2,W3,W4,W5 ; O1)
W/T Strategies:
> Mobile marketing. Marketing on
or with a mobile device, such as a
smart phone. Mobile marketing can
provide customers with time and
location sensitive, personalized
information that promotes goods,
services, and ideas. (W1,
W2,W3,W4,W5 ; T5)
45
 Internal Factor Evaluation Matrix (IFE)

Key Internal Factors Weight Rating Weighted Score

Strengths (3/4)
S1. We’re in the state of innovating the technology .10 4 .40
and system that we’re using.
S2. They are dedicated to meet the standard that the .16 4 .64
customers demanded.
S3. The price of the chassis that they offer is more .10 3 .30
affordable compared to their competitors.
S4. Their clients are the top priority of them. .13 4 .52

S5. Highly maintenance of the rented chassis. .15 4 .60

Weaknesses (2/1)
W1. Location of yard is too far to the port area. .10 2 .20

W2. Short time of leaves or vacation for their .11 2 .22

employees.
W3. They only have one rescue team when having .06 2 .12
trouble in chassis.
W4. The service that they offer is limited to rental of .04 1 .04
chassis or trailer.
W5. The chassis that they have is lesser compared to .05 2 .10
their competitors.
Total 1.00 3.14

46
 External Factor Evaluation Matrix (EFE)
Weighted
Key External Factors Weight Rating Score
Opportunities (1/4)
“Balikbayan’ box tax-free up to P150,000” Bureau .08 4 32
of Customs says Filipinos working abroad may
O1. avail of the new duty- and tax-free privilege up to
three times a year.
O2. DTI seeks to improve transport, logistics with .22 4 .88
road mapping project.
O3. Logistics industry to grow by 16.7% in 2020, .08 3 .33.
study says.
UNICEF’s global supply and logistics network .05 1 .05
has delivered nutrition supplies for as many as
50,000 severely malnourished children in the
O4. Philippines.

O5. Turn to Technology to Attract the Next .11 3 .33

Generation of Workers
Threats (1/4)
T1. Logistics performance surveys indicate that the .05 3 .15
Philippines have been slowly backsliding.
Requirements for obtaining clearance for import .13 4 .52
and export cargoes are unclear. Private sector
participants observed the lack of a formal and
systematic procedure for disseminating
T2. information regarding regulations other than
posting them on government websites.
Proceeds from the IPO will pay for fleet .06 2 .12
expansion. The company also plans to buy and
upgrade ports, port facilities, containers, and
T3. machinery and equipment, as well as other
shipping and logistics firms.
“Weak external demand continues to affect the .10 3 .30
T4. country’s external trade performance, particularly
for the merchandise exports sector.
Philippines ranked 71 among 160 countries. It .12 4 .48
scored 2.86 in the latest World Bank’s logistics
report. The LPI ranks countries on their trade
logistics performance, looking at indicators such
T5. as customs, infrastructure, international shipments,
logistics quality and competence, tracking and
Total 1.00 3.48

47
IV. Marketing Strategies

Marketing Objectives

 To increase sales by 10%.

 To acquire new clients.

 To sponsor some events.

 To retain existing customers.

 To enter in public and private partnership by the year of 2021.

48
 GENERAL ATTACK STRATEGIES:

Tagline

 “Container mo, pasan ko”

 It is a very effective tool that we can use to have a recall to a customer.

Event Marketing

 Event marketing is a promotional strategy that involves face-to-face contact between

companies and their customers at special events like concerts, fairs, and sporting events.

Direct Marketing

 We will use technology such as email, and sms.

Social Media Marketing

 We will take advantage of a social media such as facebook, twitter, and instagram.
 We will create an account on each social media platform, to introduce the existence of
our service in the market.
 Instead of posting it on a newspaper, we will post it on a social media because it’s free.

Mobile Marketing

 We will create a mobile application using technology now a day.

 Just like the Grab and Uber applications. It will be the guide for our new clients to know
the service that we have other than the website that we have. This was also created for the
more convenient reservation of chassis.

49
 Advertising

Number Total Expected

No. Activities Description In-Charge Target Date of Units Price Price Output
We will join
Logistic
event in August 17-
Trade and Worldtrade Marketing August 19, Increased
1 Exhibit Center Manager 2019 2 Days 200,000 200,000 by 10%
We promote
our service by
meeting our January 3 –
Personal customers Marketing January 10, Increased
2 Selling face-to-face. Manager 2019 1 Week 30,000 210,000 by 25%
We can
promote our
business August 1 –
through Marketing August 15, Increased
3 Newspaper newspaper Manager 2018 2 Weeks 30,000 30,000 by 10%
We advertise
our business
through Marketing April 1, – 1 Increased
4 Magazine magazine Manager May 1, 2020 Month 80,000 80,000 by 15 %
We advertise March 5, –
our business Marketing March 12, Increased
5 Radio to radio Manager 2018 1 Week 100,000 100,000 by 10%
We advertise
through
yellow pages April 1, 2021
phone Marketing – July 1, Increased
6 Directories directories Manager 2018 3 Months 150,000 150,000 by 20%
We post a August 5, –
poster in the Marketing August 12, Increased
7 Posters Pier 15 Manager 2022 1 week 70,000 70,000 by 10%
TOTAL Php 840,000.00

50
 Sales Promotion

Number Total Expected

No. Activities Description In-Charge Target Date of Units Price Price Output
October 1, –
Eat Bulaga Sugod - Marketing December 1, 2 Increased
1 Segment Bahay Manager 2019 Months 1,000,000 1,000,000 by 25%
It is given to
loyal Marketing January 2 - 2 Increased
2 Coupon customers Manager March 2, 2018 Months 50,000 50,000 by 10%
We give discount
Discounted to our loyal Marketing May 5 – June, 1 Increased
3 prices customers Manager 2021 Month 500,000 500,000 by 10%
We promote our
service through Marketing February 2 – Increased
4 Direct Selling letter. Manager February 5, 2020 3 Days 50,000 150,000 by 20%

5
TOTAL Php 1,700,000.00

51
 Month of Events / Activities
In- Target Number Total Expected
No. Month Activities Description Charge Date of Units Price Price Output
January 9, –
We set a seminar for Marketing January 16, Increased by
1 January Seminar our employees. Manager 2019 1 Week 50,000 35,000 10%
Every year we
celebrate the
anniversary of our Marketing February Increased
2 February Anniversary company. Manager 14, 2018 1 Day 100,000 100,000 by 15%
We will make trade
show event to March 2 –
demonstrate our Marketing March 4, 20 Increased
3 March Trade show service. Manager 20 2 Days 150,000 150,000 by 10%
We will set a team
building for the
Team employees to enhance Marketing April 7, Increased
4 April Building their social relations. Manager 2018 1 Day 100,000 100,000 by 10%
Charitable We donate to a charity Marketing May 3, Increased
5 May Donation in the form of cash. Manager 2021 1 Day 100,000 100,000 by 10%
It is a formal meeting
for the board of
Board directors in the Marketing June 2, Increased
6 June Meetings organization. Manager 2022 1 Day 50,000 50,000 by 25%
We set a corporate
event, as a gathering
that is sponsored by a
Corporate business for its Marketing July 8, Increased
7 July Event employees. Manager 2019 1 Day 150,000 150,000 by 25%
We rent a pool for the
employees to celebrate
a pool party event that
has a cool and fun Marketing August 28, Increased
8 August Pool Party theme. Manager 2018 1 Day 80,000 80,000 by 25%
Every year we will
conduct a family day
program which is held
Family Day every fourth Sunday of Marketing September Increased
9 September Program September. Manager 24,2019 1 Day 20,000 20,000 by 15%

We set a Halloween
party and each
Halloween employee should have Marketing October 30, Increased by
10 October Party their costume. Manager 2020 1 Day 50,000 50,000 10%
We will give an award
Awarding to our responsible Marketing November Increased
11 November Night employees Manager 28, 2021 1 Day 100,000 100,000 by 15%
Christmas We set a Christmas Marketing December Increased
12 December Party party for the company. Manager 15, 2018 1 Day 150,000 150,000 by 10%
TOTAL Php 1,085,000

52
 Corporate Social Responsibility
Number Total Expected
No. Activities Description In-Charge Target Date of Units Price Price Output
We set a tree
planting
Clean and activities every Marketing September 17- Every 2 Increased by
1 Green two years. Manager 23 2019 years 5,000 10,000 10%
The employees
will attend in Increased by
Fundraising fundraising Marketing February 21, Every
25%
2 Event event. Manager 2021 year 20,000 20,000
We will
sponsor to the
person that
fighting
poverty,
hunger, disease
and other Marketing Every Increased by
3 Sponsorship global issues. Manager March 15, 2019 year 100,000 100,000 25%
We will
conduct a
community
service that has
Community a theme
Support “Chassis Marketing November 5, Increased
4 Program Program” Manager 2018 1 Day 25,000 25,000 by 10%
We will make a
Feeding feeding program Marketing December 8, Increased
5 Program for the children. Manager 2022 1 Day 30,000 30,000 by 10%
TOTAL Php 185,000.00

53
V. GLOSSARY OF TERMS

Accessibility – the quality of being able to be reached or entered.

Advertising – the activity or profession of producing advertisements for commercial products or services.

Agriculture – the science or practice of farming, including cultivation of the soil for the growing crops
and the rearing of animals to provide food, wool, and other products.

ASEAN – Association of Southeast Asian Nation

Availability – the quality of being able to be used or obtained

BGAN – Broadband Global Area Network

BPO – Business process outsourcing

Bureau of Customs – is a Philippine government agency under the Department of Finance.

Chassis – the base frame of a motor vehicle or other wheeled conveyance

CLC – Chelsea Logistics Corporation

Clientele – is the clients or customers, as of a professional person or shop

Competitiveness – the quality of being as good as better than others.

Coupon – a voucher entitling the holder to a discount for a particular product.

CSR – Corporate Social Responsibility

DFA - Department of Foreign Affairs

Direct selling – is the action of marketing and selling products directly to the consumer.

Directories – a book listing individuals or organizations alphabetically or thematically with details such
as names, addresses, and telephone numbers.

DOLE - Department of Labor and Employment

Drone – make a continuous low humming sound

Efficiency – the state or quality of being efficient

FedEx – Federal Express

Flexibility – the quality of bending easily without breaking.

Foreign – strange and unfamiliar.

Foster – encourage or promote the development

Human Resource – the personnel of a business or organization, especially when regarded as a significant
asset.

Inbound – refers to the transport, storage and delivery of good coming to a business.
54
Infrastracture – the basic physical and organizational structures and facilities

Innovative – featuring new methods

IPO – Initial public offering

JA – Junior Achievement

Logistics – is the detailed coordination of a complex operation involving many people, facilities, or
supplies.

LPI – Logistics Performance Index

Magazine – a periodical publications containing articles and illustrations, typically covering a particular
subject or area of interest.

Maintainability – the probability of performing a successful repair action within a given time.

Management – the process of dealing with or controlling things or people.

NDRRMC – National Disaster Risk Reduction and Management Council

Newspaper – a printed publication, usually issued daily or weekly.

NHTSA – National Highway Traffic Safety Administration

OFW – Overseas Filipino Workers

Outbound – refers to the same for goods going out of a business

Personal selling – to sell the product after meeting face-to-face with the customer.

PEZA – Philippine Economic Zone Authority

PISFA – Philippine International Seafreight Forwarders Association

POEA - Philippine Overseas Employment Administration

Posters – a large printed picture used for decoration

Proactive – creating or controlling a situation by causing something to happen

Professionalism – the competence or skill expected of a professional

Promotion – activity that supports or provides active encouragement

Quality of Service – is the description or measurement of the overall performance.

Quantitative data – is data expressing a certain quantity, amount or range.

Radio – the transmission and reception of electromagnetic waves of radio frequency, especially those
carrying sound messages

Reliability – the quality of being trustworthy or performing consistently well.

Residency – the fact of living in a place

Resiliency – is the power or ability to return to the original form, position, etc.
55
Sales promotion – is one level or type of marketing aimed either at the consumer or at the distribution
channel.

SCLM – Supply Chain and Logistics Management

SMIC – SM Investments Corporation

Stakeholder – a person with an interest or concern in something, especially a business.

Supply chain – the sequence of processes involved in the production and distribution of commodity

Surpass – exceed

Sustainable – able to be maintained at a certain rate or level.

Tagline – a catchphrase or slogan, especially as used in advertising, or the punchline of a joke.

Technology – the application of scientific knowledge for practical purposes, especially in industry

TI – Transport Intelligence

Trade and exhibit - a public event where businesses and other organizations show their products and
services.

Trailer leasing – is a full-service provider of rental and lease trailers to the shipping and tracking
community.

UNICEF – United Nations Children’s Fund

UPC – United Port Users Confederation of the Philippines

Urgency –an earnest and persistent quality

Utmost – most extreme

VCM – Vote counting machine

VWAP – Volume Weighted Average Price

Warehousing – the practice or process of storing goods in a warehouse

56
VI. Apendices

57
VII. BIBLIOGRAPHY

2Go completes delivery of VCMs, ballots

Published May 7, 2016 9:48pm

Assessing PH’s logistics sector

Thursday, April 20, 2017 By KATLENE O. CACHO

Bert Lina leaves his Business Empires to take over Customs

Published April 29, 2015 8:47pm
By JAMAICA JANE PASCUAL, GMA News Research

Bureau of Customs says Filipinos working abroad may avail of the new duty-and-tac-free
privilege up to three times a year.
By: Julie M. Aurelio - @inquirerdotnet
Philippine Daily Inquirer / 12:59 AM December 11, 2016

Chelsea Logistics drops 1.12% below IPO price

Published August 8, 2017 7:28pm
By TED CORDERO, GMA News

DTI outlines measures to develop logistics industry in PH

April 8, 2016

DTI seeks to improve transport, logistics with road mapping project

Thursday, March 03, 2016 – SunStar Cebu newspaper

FedEx Philippines: Cultivating a culture of volunteerism

By Jerni May H. Camposano (The Philippine Star) | Updated April 20, 2015 - 12:00am

Four Technologies Set to Change the Future of Logistics

December 01, 2016 | Heather Vacca

Globe to boost digital services

Published March 31, 2016 7:36am

Logistics industry to grow by 16.7% in 2020, study says

By: Roderick Abad - MAY 16, 2015

Maute logistics now ‘paralyzed,’ Army general says

Published June 8, 2017 2:12pm

PH logistics ‘needs its reinvention’

Monday, April 24, 2017
SunStar Cebu newspaper

RP exports continue to fall in June 2015

Written by Tribune Wires | Wednesday, 12 August 2015 00:00

58
SM goes into logistics, buys minority stake in 2Go Group
Published March 31, 2017 1:25pm

Social and environmental risk management in supply chains: a survey in the clothing industry
May 1, 2015

Stakeholders pinpoint regulatory burdens that inflate PH logistics cost

Updated August 16, 2017, 10:29 AM - By PNF

Turn to Technology to Attract the Next Generation of Workers

April 12, 2017 | Samuel Mueller

Typhoon Nina damage to agriculture, infrastructure now at P5.183 billion

Published January 2, 2017 1:28pm - Jon Viktor Cabuenas/KG, GMA News

UNICEF provides supplies for malnourished Filipino kids

Published April 13, 2017 3:12pm - BM, GMA News

59