ONLINE retail transactions along with the growing digital shift present opportunities for export and shipping businesses, an official of a supply chain solutions provider said.
“One of the biggest opportunities available at the moment — especially for small and medium-sized businesses (SMBs) — is digitalization, and in particular e-commerce,” UPS Philippines Managing Director Russell Reed said in a recent interview.
“Online shopping has been growing quickly for many years already, and it’s likely the pandemic has accelerated that growth even more,” he added.
Mr. Reed said the e-commerce industry has leveled the playing field, allowing businesses to thrive with an internet connection, products, customers and the means of getting their products to customers.
However, limited time, expertise, and resources have made cross-border shipping a challenge for SMBs.
“There is literally a whole world of potential customers out there, so where is the best place to start? That’s what UPS is here to help with,” he said.
Mr. Reed said four segments can drive Philippine trade, namely: retail, industrial manufacturing and automotive (IM&A), high-tech, and healthcare.
“The high-tech segment, which alone accounts for 41% of the country’s intra-Asia trade, could double in value by 2030, while the IM&A segment could more than treble to overtake the high-tech segment as the largest in value by 2030,” Mr. Reed said.
UPS’s study on intra-Asia trade shows that Philippine trade was the second fastest in the region, largely driven by manufactured goods.
Trade value between the Philippines and 11 other top Asian markets is expected to triple to $393 billion in 2030, from $113 billion in 2020.
Meanwhile, the country’s entry into the Regional Comprehensive Economic Partnership is also seen to offer opportunities for trade and investment.
“This may mean an increase in the Philippines’ exports by 3.7% by 2030, an addition of $7 billion, according to the Asian Development Bank,” Mr. Reed said.
To reach the full potential of intra-Asia trade by 2030, businesses need to digitalize comprehensively to respond faster to cross-border demand, said Mr. Reed.
“Digitalization of more links in the supply chain process can contribute to business success, which is why we continue to develop tools and solutions that allow our customers to digitalize more of their processes at every step of the shipping journey,” he said.
“This includes using machine learning to simplify the process of creating a shipment to reduce the risk of documentation errors, providing a dashboard from which businesses can track and manage all in[bound] and outbound shipments in one place, paperless invoicing, and much more,” he added.
The UPS group’s smart logistics network is present in more than 220 countries and territories worldwide. It also has an airline that operates a fleet of nearly 600 aircraft. — Justine Irish D. Tabile