THE cost of goods in the Philippines would be lower should companies incorporate digital technology in the supply chain, a business group said Thursday.
At the virtual National Export Congress 2020, Supply Chain Management Association of the Philippines president-elect Pierre Carlo Curay said 80 percent of the processes in the local supply chain are not digitized.
About 43 percent are highly analog and manual, while 35 percent of digitized process applies low to medium digitalization.
Of the supply chain processes, fleet management and customer services have no digitized processes.
“The Philippines is lagging behind other Asean (Association of Southeast Asian Nations) neighbors like Singapore, Thailand, and Indonesia in digitalization. In fact, these countries are gearing up for future logistics,” Curay said.
He added that the country has the highest share of logistics cost on retail cost among Asean countries.
Logistics cost in the Philippines accounts for 27 percent of the retail price of goods compared to Thailand at 11 percent, Curay said.
He added that the digitalization of supply chain processes, particularly logistics, will “greatly reduce” the cost of products in the domestic market. (PNA)
