Wednesday, December 1, 2021
Home3PL/4PLLBC Express net income leaps 120%; growth plans unveiled

LBC Express net income leaps 120%; growth plans unveiled

Courier and remittance company LBC Express Holdings, Inc. reported a 120% surge in net income for 2016 to P913.9 million from P416.3 million in the previous year, as improved cost of air and sea freight drove demand for air and courier services.

Its operating unit, LBC Express, Inc., likewise reported a 217% leap in net income in 2016 to P920.2 million from P424.7 million in 2015.

The group’s total comprehensive income last year rose 338% to P1.105 billion from P326.8 million in 2015

Revenues from the logistics segment grew 20% due largely to the opening of 48 new branches in the Philippines and the increase in volumes handled by its cargo forwarding services during the year.

Operating expenses, on the other hand, went down 4%, even as cost of services increased by 9%.

Given this momentum, LBC in a statement said it is ensuring the company’s continued growth by focusing on tailored services for the logistics market, consistent e-commerce initiatives, and the addition of new technologies and systems for more efficient freight forwarding operations.

In line with this, LBC has started offering corporate remittance fulfilment services, covering over-the-counter Cash Pick Up for major non-government organizations like the Philippine Red Cross, ACF International, and OXFAM International. This is on top of similar services offered to government organizations that have entrusted relief funds, payroll, and insurance benefits to third parties.

To boost efficiencies, LBC said it is moving to automate key facets of its service.

The company implements back-end service and systems innovations focused on customer convenience, such as handheld units utilized by couriers during deliveries, and SMS postings for real-time delivery status updates.

This service improvement, LBC noted, is already implemented with all e-commerce consignees in major cities in the Visayas and Mindanao regions. Nationwide roll-out of this innovation is due to be completed by the end of 2017.

Handheld units also allow the implementation of SISO (Scan-In & Scan-Out), which is utilized by LBC facilities, warehouses, and container freight stations. The system’s features include detection of double-tracking, misrouted shipments, short or overlanded shipments, and online generation of manifests.

LBC said other new system enhancements and automations such as the revamped GPS-enabled fleet and new conveyor systems support increased efficiencies, better service, and improved customer experience.

Last year also saw the introduction of new SKUs (Sales Keeping Units) such as the “Vpouch,” “Kilobox Mini,” and “Kilobox Slim” as additional receptacle options.

Other internal operational improvements include POS and an automated financial reporting system that enables consolidated reporting for higher efficiencies.

To date, LBC operates in over 20 countries, with a network of over 1,200 offices in addition to 5,300 partner agents. It said it is steadily trying to expand its reach domestically and around the world.

In the country, it operates three main hubs for sea cargo, specifically in Manila, Clark, and Cagayan de Oro, and has 78 delivery hubs, with a team of 1,410 delivery associates and over 6,000 employees across the country.

LBC said it has gone deeper into third-class municipalities, while also expanding its network in key cities.

“Our branch expansion is driven by our customers’ expectations [of] convenience and ease. We continue to push for growth so that we can meet the needs of our customers who demand only the best when it comes to their padala,” said Oliver Valentin, senior vice-president for operations of LBC Express.

Besides the 48 branches that were opened in 2016, LBC is planning to open more branches this year in untapped areas where express delivery service is critical.

Plans for additional branches in busy urban areas will also enable LBC to create a seamless branch experience where customer service is at the forefront.

To this end, LBC Express intends to continue learning about the communities that they will service to further enhance and customize their branch experience.

“We’ve been making efforts to consistently expand [our] reach in the region and bring our services to communities that need it the most,” added Valentin.

LBC is also launching initiatives to improve operations and services across the Association of Southeast Asian Nations regional market, where it expects the increased regional economic activity to prompt demand for its services.

“Supported by LBC’s investment in infrastructure, LBC is poised to meet the influx of demand,” the company said.

It has likewise made recent expansions in the Middle East including opening a bigger and better warehouse in the United Arab Emirates. This is in addition to new services like deferred payments among partners for added convenience.

The brand’s roster of services also now includes government certificate processing for Qatar-based Filipino customers, Pick-Up on Demand service, and a new rewards program called LBC Plus.

Smart Shelters was also added to the range of services to kababayans in the UAE, where LBC opened an innovative curbside retail concept for efficient parcel sending to 236 destinations around the world.

“Our continued expansion lends itself to building trust and ensuring convenience, for both our loyal customers and our ever-growing team. It’s part of a longstanding commitment to provide the kind of service that our kababayans deserve. And we will go on to find new ways to innovate our products offerings to ensure that our services truly deliver value and answer their needs,” LBC Express Holdings chairman of the board, president and chief executive officer Miguel Camahort said. – Roumina Pablo

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

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