Home » 3PL/4PL » Scaling down resources, downsizing not the best options for logistics firms

Scaling down resources, downsizing not the best options for logistics firms IMPROVE services and relationships rather than scale down resources, hire the best instead of downsizing, and simplify rather than complicate. These are three measures logistics companies may adopt in order to thrive in these uncertain times. This advice was offered by Enrique C. Castillo, Director of Distribution for Avon Cosmetics, to participants of the recently concluded PortCalls Cargo Economics Conference at the Hyatt Hotel and Casino Manila. "We have to stay focused rather than change our priorities to harness growth in these times of uncertainty," said Castillo, who is also a professor at De La Salle University-Graduate School of Business, in a presentation attended by CEOs and other top-level managers of third-party service providers. "Business requirements have not changed – speed, reliability, cost. We have to continuously provide superior customer service at a continuously reducing cost," he said. Castillo pointed out that uncertainty, both in the area of politics and economics, is the key reason for the slowdown in growth and shutdown of windows of opportunities not only in the logistics sector but most business sectors in the country. Providing the uncertainty are the new e-VAT law which took effect Nov 1; inflation increases to 8.5%; and continuous oil price increases. In these trying times, Castillo said companies should seek sustainable solutions and execute them well. "Define your strategy, establish metrics, align your organization, re-engineer, redesign processes, and use technology as enabler." He added, "Implement non-conventional ways. Renegotiate prices with suppliers." Non-core businesses must also be outsourced. In addition, excellent business relationships must be maintained. "We have to make suggestions and give guidance to take the principals further. Think about the principals’ success," Castillo advised.

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