Visayas has the lowest logistics reliability rate

BACOLOD CITY-- An official from the Department of Trade and Industry said the Visayas region has performed poorly in delivering goods in the domestic market.

Jonathan Cabaltera, supervising assistant chief of the Competitiveness Bureau’s Supply Chain and Logistics Management Division said that Visayas has high reliability issues in terms of logistics performance.

Cabaltera based his conclusion on the agency’s national survey on logistics performance by region in the first quarter of this year, that identified factors that contribute to the high logistics cost.

In his presentation at the Logistics Efficiency roadshow in this city, he said that Visayas has the highest customer complaint rate of 8.64 percent.

The rate is almost double that of Mindanao with 4.46 percent, and Luzon with 5.65 percent.

Visayas has the lowest rate of delivery made on time with 83.81 percent. Luzon has 90.76 percent and Mindanao 86.46 percent.

Cabaltera said reliability is the most important factor in measuring logistics performance. If there is a high rate of logistics cost, it means that region has a low reliability rating and needs to be improved.

Overall, the Philippines has a high logistics cost compared to neighboring countries, with an average of 27.16 percent, based on the survey of World Economic Forum on 2016, he said.

Indonesia has 21.40 percent, Vietnam 16.3 percent and Thailand 11.11 percent.

Cabaltera said this average is computed over total sales. For example, if the total sales of small businessmen is P100, P27 is deducted to cover the logistics cost.

In the national average, chemical products sector has the highest logistics cost with 43.30 percent, followed by food with 32.72 percent and automotive sector with 23.08 percent.