Multinational Dow Chemical Company recently awarded its top logistics service providers in Southeast Asia for 2017, with a Philippine company bagging two of the three awards.
Dow selected its top carrier, freight forwarder and warehouse operator in Southeast Asia under its S4TAR (four star) Partnership Program.
Philippine company Stamm International, Inc. won as best carrier as well as freight forwarder, beating other competitors from Singapore, Malaysia, Vietnam, Indonesia, and the Philippines.
Sankyu Logistics (Indonesia) bagged the best warehouse operator award, beating Damco (Vietnam), LTH Logistics (Singapore and Malaysia), and PIL Logistics (Malaysia).
Companies that competed for the best carrier award were SDM Transport (Indonesia), Sankyu Logistics (Indonesia), LTH Logistics (Singapore and Malaysia), AG Ararao (Philippines), and Yusen Logistics (Vietnam).
Contenders in the freight forwarder category were BDP International (Indonesia, Singapore, and Philippines), Damco (Vietnam), PIL Logistics (Malaysia), and Yusen Logistics (Vietnam).
Doris Torres, general manager of Stamm, said they are honored to have received the “Best Forwarder” and “Best Carrier” awards.
“Knowing our contenders, the multinational logistics companies with a global presence especially in more advance countries, it was like competing with the giants. Nonetheless, we have prepared our people and our processes for this. Over time, services, safety and security, social responsibility and sustainability practices in our operations became our culture,” she told PortCalls.
“Bagging the award in two categories… is an affirmation that the quality of logistics services in the Philippines is at par with international standards.”
S4TAR is a collaborative partnership between Dow and its logistics service providers to enable the latter to advance their safety, services, sustainability, and social responsibility standards, which represent the 4S in S4TAR. Teamwork, accountability, and reliability make up the rest of the S4TAR program.
Under S4TAR, Dow requires a certain level of commitment and initiatives from its logistics service providers, aligned with the 4S. The program started in China in 2011 and, in the following years, included Japan, South Korea, India, and Australia. The S4TAR program for Southeast Asia began in Singapore in 2015. Aside from Singapore, other Southeast Asian countries included in the program are Vietnam, Indonesia, Malaysia, and the Philippines, which joined just last year.
Under the program, Dow assesses its logistics service providers every quarter, and gives out awards to its top carrier, warehouse operator, and freight forwarder every year.
Peter Lee, road and warehouse mode leader for logistics, Southeast Asia of Dow Chemical Pacific (Singapore) Private Ltd., in an interview with PortCalls on the sidelines of the event, said Dow’s partnership with its logistics service providers is important as they are considered as extensions of the company.
Noting the high level of safety and compliances required in the chemical industry, he said Dow wants to ensure its service providers maintain the same high standards.
He said S4TAR aims “to make sure that vendors are also aligned to our culture” and to inculcate in them the level of required service as extensions of Dow. For Southeast Asia, Dow has 12 logistics service providers.
Lee said the program is also a “positive forum” where Dow logistics service providers showcase and share their best practices with other services providers, even while maintaining healthy competition.
He added that it is up to the logistics service provider to adopt the shared best practices of other companies, but noted that he has seen how service providers have improved their operations because of the program. Lee further said that Dow does not prohibit its logistics service providers from implementing their learnings when dealing with other clients aside from Dow.
Lee said the S4TAR program has borne fruit, as quality issues have been declining over the years even as Dow’s volumes of shipments continue to increase.
For 2018, Dow plans to include marine terminals in the program and, later on, survey companies in order to complete the scope of its services providers.
Aside from the new categories, Lee said they are also planning to tap more countries and eventually do the program on a regional level to share learnings and best practices between regions. – Roumina Pablo
