3PL Glossary: Defining Philippines Warehouse and Distribution
With the Philippines being dubbed as the world's 36th largest economy and the thirteenth largest economy in Asia as of April 2020, one can vividly imagine the bulk of freight and cargo that are both imported and exported domestically and internationally. Consequently, none of us will wonder why third party logistics or 3PL plays an impressive role in the shipping industry. One cannot deny the fact that successful logistics companies have their own warehouse and trucking services for storage and distribution purposes. Once a parcel,freight or cargo is handed over to the logistics company, they are already held responsible for its security and safe delivery. So to be able to understand the concept of both terminologies, we shall vividly share the basics of warehousing and distribution in the Philippines.
Warehouse Defined
A warehouse is a storage facility for the merchandise that is used by 3PL to store the received merchandise for transportation. Warehouses come in many forms but in the case of cargo and logistics, this is a hub where things are sorted and kept so it will be easy for distribution.
The Distribution Process
This is one of the essential parts of numerous activities that happens when an item is transported from one place to another. Technically, this refers to the movement of goods from supplier or manufacturer to point of sale and the process is monitored by a distribution manager. Distribution does not only concern a single storage facility but a series of interconnected facilities that are used in every station until the product reaches its destination.
Choosing a warehouse in the Philippines for your products
As an individual who is into importing and exporting goods, it is very important to find a partner who is able to properly store and distribute your merchandise both internationally and domestically. Thus, the listed key factors will help you identify which among the several companies can accommodate your needs.
1. Check your expenses
Partners are not supposed to overcharge a client. While availing of an external warehousing and distribution services in the Philippines may be expensive, an ideal 3PL is someone who can offer you a reasonable and personalized rate for their services. In essence, find someone who understands that business is not based on profits alone.
2. Assess the volume of products to be distributed
As a wholesale or retail supplier, you certainly know many goods are going to be out for distribution. Assessing how much of your products will be available for shipment is important not just in shipping but in warehousing because this will help the logistics services to determine if they will personally accept your product or they would outsource it to their connections.
3. Know your fellow clients
As a client, it is crucial to make a thorough background check on the logistics company that you intend to work with. What we are trying to say is that you need to have an idea what type of clients your target logistics caters to. As much as possible, look for companies that have dealt with other companies that have similar nature as yours so that you get an assurance that they are knowledgeable towards safe Distribution and warehousing of your merchandise in the Philippines.
