A LEADING logistics firm urged companies and retailers of fast-moving consumer goods (FMCG) to adopt co-loading delivery models to cut transport costs and improve efficiency amid the fuel price surge.
"Higher oil prices, driven by global conflict, should push companies to rethink traditional direct-to-store delivery systems, which often result in underutilized trucks, long queuing time, and higher fuel consumption," FAST Logistics said in a statement on Wednesday.
FAST Logistics operates the largest warehouse footprint in the country, the largest fleet of trucking transport, and the widest selling and distribution network, with over 13,000 employees covering 94 percent of the country's provinces.
The logistics company warned that prices of goods are likely to go up if problems in transport and direct-to-store deliveries are not addressed early on.
A study conducted by FAST Logistics showed that about 56 percent of trucks delivering FMCG goods in retail distribution units or receiving bays were only 32 percent to 40 percent utilized.
"This setup creates long queues at receiving bays, particularly in supermarkets, shopping centers, groceries, and other modern trade outlets where multiple FMCG companies deliver during the same time window," it said.
It added that FMCG companies deliver most goods to retail stores using Asian Utility Vehicles (AUVs), which cost 61 percent more than using larger six-wheeler trucks.
On March 17, in a consultation conducted by the Department of Trade and Industry — Supply Chain and Logistics Group with leading FMCG companies and retailers, FAST Logistics proposed co-loading to mitigate the impact of fuel price hikes on the prices of Filipinos’ preferred brands.
According to the company, co-loading is a logistics model in which shipments from multiple suppliers share space in the same delivery truck.
"Instead of paying for a dedicated vehicle, FMCG companies pay only for the space occupied by their goods in the co-loading model," FAST said, noting that the co-loading approach increases vehicle utilization, reduces empty miles, and lowers fuel consumption per delivery.
The company has long been pushing for co-loading through Flow by FAST, a system-guided direct-to-store delivery solution that consolidates shipments at strategically located cross-docking facilities.
"Under the system, products from multiple FMCG companies are sorted and consolidated at strategically located logistics hubs across Luzon, Visayas and Mindanao, then delivered to retail outlets based on scheduled receiving windows," the logistics company said.
FAST CEO for Logistics Manuel Onrejas Jr. said the company had been pushing for the solution for quite some time now after studying inefficiencies in traditional direct-to-store deliveries.
"Oil price hikes driven by conflict in the Middle East should prompt companies to consider co-loading as a practical and cost-efficient alternative to fragmented delivery operations," Onrejas said. “Every direct-to-store delivery should create value, not waste.”
"With Flow by FAST, we eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods to retail stores more efficiently, lower logistics costs, and keep shelves stocked despite rising fuel prices," he added.
He said the success of co-loading hinges on the support of retailers, whose cooperation is essential to making co-loading work at scale.
"They have an important role in aligning receiving windows, improving bay scheduling, and supporting more coordinated store deliveries," he stressed.
Stronger retailer collaboration would also help reduce congestion at receiving areas and maximize the efficiency gains from co-loading across the supply chain.
As a leader in FMCG logistics, FAST Logistics is well-positioned to execute a co-loading model for FMCG companies because of its scale, operational reach, and nationwide network.
“We are offering this solution as a plug-and-play model, using our existing facilities that already serve modern trade and function as consolidation points for co-loading. We already have the digital and physical infrastructure in place, and we are ready to begin as soon as our partners are,” Onrejas said.
“FAST is committed to working closely with FMCG companies and manufacturers to make this model work. We bring agile problem-solving, strong digital capabilities, load optimization, and route planning to help improve delivery efficiency,” he added.
