Central Luzon Holds Logistics Efficiency FGD in Clark

The Department of Trade & Industry-Competitiveness Bureau (DTI-CB) conducted a focus group discussion on logistics efficiency indicators (LEI) last 22 March 2017 at Xenia Hotel, Clark Freeport. The LEI is a data gathering activity that assesses the Philippine’s logistics efficiency through the conduct of survey with the participants under the manufacturing sector.

Dr. Ruth Banomyong, a consultant from World Bank and an expert on logistics in Southeast Asia, discussed the importance of logistics and why it is being measured. He stated that logistics is recognized as a key opportunity to improve profitability and firm’s competitive performance. However, most firms do not comprehensively measure logistics performance and even the best performing firms fail to realize that their productivity and service potential is available from logistics performance measurement.

Dr. Banomyong shared that the 2016 World Bank Logistics Performance Index (LPI) accounts mostly the external perception of the logistics sector in the country. Respondents of the LPI rate logistics performance of their own country and 8 other countries. Published every 2 years, the LPI is an overall metric of supply chain efficiency and provides information of where a country stands and what their problem areas are. In 2016, the Philippines’ rank in LPI went down from rank 57 in 2014 to 71.

According to PhilExport-3 Executive Director Malou Balano, logistics is significantly about the capability and efficiency of the systems, and that manufacturers, whether selling locally or internationally, are willing to pay higher costs only to achieve these. Ms. Balano added that beyond the existing infrastructures, the quality of use of these facilities should be ensured and their development be supported by policies.

Since the LPI is mostly on how the country is being viewed externally on its logistics sector, it may not reflect what the Philippines is actually doing to improve the sector. To address this, DTI-CB is conducting the FGD on LEI in 6 key areas in the country and distributing survey forms to the manufacturing industries present in each activity. The data collected would be the quantitative information to reflect the current logistics performance levels of firms being assessed in the LPI and come up with a national database that will measure the logistics efficiency. The result of the survey is expected to be released by June 2017.