Supply Chain Trends in 2018

International Scene
Supply Chains will face growing demand for ecommerce
• Online shopping is and will still be one of the most popular online
activities worldwide
• In 2018, ecommerce sales worldwide is forecasted to increase by 24%
from 2017

Supply Chains will invest in Omnichannel Initiatives

• Integration between channels on the back-end
• Providing customers with a seamless shopping experience whether they
are purchasing online from a desktop or mobile device, by phone or in a
physical store
Supply Chains will go digital
• Artificial Intelligence (AI) to utilizes algorithms to detect patterns in vast volumes of data and interpret meaning
• Cloud-based technology to do away with large investments on hardware and upgrades
• Advanced analytics for better forecasting, process improvements, and management of relationships
with customers and suppliers
 International Scene
Supply Chains will venture into transparency and better visibility
• Tracking and tracing for deep visibility to SKU-level information from first-mile to last-mile
• Make data collected available to all stakeholders to give them greater control and visibility into what is happening
across the enterprise
• Embed sensors to devices, such as pallets and trucks, to transmit status and performance data

Supply Chains will be a sharing economy

• Sharing of resources and fleets in order to become more efficient
• Optimization of backhaul movements using a TMS to foster
collaboration among providers to bridge the gap between transport
supply and demand

Supply Chains will use more 3PLs

• To focus on their core business and reduce costs associated with
managing their supply chain
 Philippine Supply Chain
Developments in the cold chain business and industry
• Increase in the number of controlled-temperature facilities due to:
o Higher domestic consumption and Shift from buying fresh and frozen
products from traditional wet market to supermarkets
o Growth of e-commerce and online grocery shopping
o High demand in dairy and frozen desserts
o Thriving of the BPO industry leads to increased demand for convenient,
easy-to-consume meals
o US-supported Philippines Cold Chain Project (PCCP) working to
increase agricultural production and meet international food safety
requirements
o China signed a $1B agreement to setup imports of Philippines
agricultural products
• Edge in having value-added services (the more VAS a cold storage
provider can offer, the stronger the competitive edge becomes)
• Nautical highway to boost logistics efficiency
 Philippine Supply Chain
Build, Build, Build Program and How It Will Affect Philippine Supply Chain
• 75 flagship projects $36 billion in investment
• Six airports, nine railways, three bus rapid transits, 32 road and bridges and four seaports
• Will combat the perennial traffic problem that affects the trucking industry
• More roads = increased connectivity between seaports, airports, road and rail; improve linkages across the archipelago
• Lessened traffic; decreased delays; faster delivery and lesser cost of transporting goods
• Shipping lines can finally use bigger vessels and carry more cargoes in one voyage
 Philippine Supply Chain
Growth of e-commerce in the Philippines
• eCommerce in the Philippines is geared for massive growth brought about by the
rising middle class, high consumer spending and a young and vibrant, tech-savvy
population
• JDA Software Group: E-commerce in the Philippines is going to post very high growth
that will drive the logistics industry to improve to cope with demand for a seamless
experience operation from manufacturer to retailer to customer
• Lazada, 1st to launch a full-automated warehouse in the country
• LBC to continue modernization of facilities and fleets, incorporating more system
automations to enhance their end-to-end supply chain capabilities and portfolio

• Emergence of food deliveries like Foodpanda, Twoanyone, Honestbee, and recently, GrabFood
• Offerings of grocery deliveries by MetroMart, Philgrocers, Pushkart, and Happy Fresh among others
• On-demand transportation platforms like Mober, Transportify, and Lalamove
How, then, do these trends affect the Philippine logistics
and supply chain companies in the country?
 ABOUT US

 Victory Group (VG). Established in 2017 to provide customers synchronized end to end
supply chain solutions, Victory Group combines the strength of its partner/investor, who is in
real estate, finance, and food; and, the operating group’s experience in and understanding of
the logistics and supply chain landscape of the country.

 To deliver service level commitments to its customers, consistently and effectively, and
MAKING LOGISTICS EASIER ultimately make logistics easier for them, Victory Group has invested in and established
operations across the end to end logistics spectrum, spanning Consultancy Services, Design,
Warehousing, Shipping, Transportation, Domestic and international Freight Forwarding.
 OPERATING UNITS

Contract Logistics Domestic Shipping Transport International and Domestic

Freight Forwarder and NVOCC
MAKING LOGISTICS EASIER
 MEET OUR TEAM
A Team of supply chain professionals who have witnessed, and participated in their respective companies the making of supply chain management
a differentiating business strategy, led by a 30-year veteran-practitioner in the field of supply chain operations and academe.

Enrique Castillo
President and CEO

Roberto Sanchez Ligert Bryan Lee

COO – Transport and Warehousing COO – Shipping Lines and Freight Forwarding
Jessie Calinog
Jerome Fernando Head – Supply Chain
John Guillermo Solution Design
Heads –
Rowee Budlong Business Development Jonathan Gealon Peter Mantaring Larry Bernardo
Efren Novilla
AVP – Transport Head - Procurement AVP – Shipping AVP – Freight
AVP – Transport 3PL
Operation Operations Forwarding
BD Leads Norman Calub
Rene Cruz Teodoro Pomer Head – Business and
AVP – Warehouse IT and Infrastructure Operations Excellence
Operation Consultant
 Christian Banares
 Nelson Amoranto Janice Biscocho
Director – HR & OD

Marianita Obra
Finance Comptroller
 OUR CORE SERVICES and VALUE PROPOSITION

WE MOVE. WE DELIVER.

• In Land transport
• Domestic port-to-port services
containerized shipping • Control tower
• Domestic Barging and • Transport Management
RoRo Operations MAKING LOGISTICS EASIER System
• Domestic common carrier
slot operator

WE DESIGN. ANYWHERE.

• Warehousing
• Inventory Management • Full container loads
• Cross docking • Less-than-container loads
• Order Fulfillment • Consolidation
• Bundling • Custom house brokerage
• Cold Storage • International trade
• Warehouse Management documents
System • Air Freight

Supply Chain Solutions Design/Consultancy Services

• Supply Chain Management
• Integrated Business Management
• Distribution Network/Business Model review
 Sources
Agcaoili, L. (January 3, 2018). Investments in logistics to drive 'Build Build Build‘. Retrieved from
https://www.philstar.com/business/2018/01/03/1773984/investments-logistics-drive-build-build-build.

Angeles, Alyza. (December 11, 2017). Lazada to introduce first fully automated warehouse, hire robots in PH next year. Retrieved from
http://www.yugatech.com/news/lazada-to-introduce-first-fully-automated-warehouse-in-ph-next-year/.

Banker, S. (December 7, 2017). Supply Chain Trends to Watch in 2018. Retrieved from https://www.mendeley.com/guides/apa-citation-guide.

Castro, J. M. (December 31, 2017). 4 focus areas in supply chain for 2018. Retrieved from https://www.ibm.com/blogs/insights-on-
business/electronics/supply-chain-innovation-for-2018/.

Clark, D. (January 11, 2018). Transportation Predictions That Will Shake-Up the Supply Chain Industry In 2018. Retrieved from
https://www.supplychain247.com/article/predictions_for_the_supply_chain_in_2018.

Cohen, Raanan. (December 21, 2017). Guest Forecast: Major Supply Chain Trends for 2018. Retrieved from
http://www.scmr.com/article/guest_forecast_major_supply_chain_trends_for_2018.

Kok, F. (June 15, 2017). Cold chain logistics is heating up in the Philippines. Retrieved from https://www.aeb.com/intl-en/magazine/cold-chain-
logistics-philippines.php.

Magkilat, B. (May 22, 2017). E-commerce growth to drive logistics business in PH. Retrieved from https://business.mb.com.ph/2017/05/22/e-
commerce-growth-to-drive-logistics-business-in-ph/
 Sources
PortCalls Asia | Asian Shipping and Maritime News (January 30, 2018) PH logistics players upbeat about 2018 amid old issues. Retrieved
from https://www.portcalls.com/ph-logistics-players-upbeat-2018-issues/.

Robinson, A. (January 24, 2018). 2018 Supply Chain Trends: Omnichannel, Customer Experience, & Regulations to Shape the Industry.
Retrieved from http://cerasis.com/2018/01/24/2018-supply-chain-trends/.

Whelan, Sam. (October 18, 2017). LBC Express growing as e-commerce drives logistics boom in the Philippines. Retrieved from
https://theloadstar.co.uk/lbc-express-growing-e-commerce-drives-logistics-boom-philippines/