Analysis of Trade Logistics Competitiveness in the Philippines

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This report provides a comprehensive literature review on trade logistics competitiveness in the Philippines. It examines the challenges and opportunities within the country's logistics framework, focusing on issues related to outsourcing, transportation, and overall performance. The report analyzes various factors affecting the trade logistics, including infrastructure, government regulations, and the role of intermediaries. It draws on multiple sources, including academic papers and industry reports, to assess the Philippines' standing in comparison to other countries. The review highlights the importance of improving trade logistics for economic growth, emphasizing the need for strategic planning, technological advancements, and international collaborations to enhance the efficiency and effectiveness of the logistics systems within the Philippines. The study concludes by emphasizing areas for improvement, such as the integration of tracking systems and the streamlining of customs processes to foster better competitiveness in the global market.
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Contents
Introduction:...............................................................................................................................2
Literature Review:......................................................................................................................2
Conclusion..................................................................................................................................5
References:.................................................................................................................................5
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Introduction:
In this paper we are going to conduct the literature review on competitiveness in the
arrangement of the trade logistics in the Philippines. The logistics problem is equipped with
many firms of Philippines for the insourcing and outsourcing of the shipments. The focus
should be given on the operations for improving the deployment of the trade logistics in the
area. The performance of the country can be measured in terms of the trade logistics
compared with the other countries logistics. The literature review helps in highlighting the
issues and challenges which exist with the performance of the trade logistics in the
Philippines. Measuring the parameters of the logistics helps in analysing the nation’s
economy. In Philippines, the transportation is mainly carried out through ships and road
mechanism. The reviewing of the literature helps in finding out the area of concern exists
with the trade logistics implied in the nation.
Literature Review:
The collection of information helps in developing the strategic plan for the improving the
trade logistics system in Philippine to remain ahead of their competitors. The investigation of
the literature review helps in investigating the structure of empirical data. The following
logistics performance index table shows competitive advantage of trade logistics in different
countries from the year 2008 to 2017.
Name of the
country
Year
2008
Year
2010
Year
2012
Year
2015
Year
2017
Singapore 2 1 2 6 6
Malaysia 29 30 30 25 33
Thailand 32 36 38 36 44
Indonesia 44 76 60 54 64
Vietnam 54 54 56 49 63
Phillippines 66 45 53 58 21
Cambodia 82 130 102 84 72
Myanmar 148 134 126 143 112
Lao PDR 118 119 132 110 153
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The improvement has been seen in the ranking of the Philippines in the trade logistics in the
year 2017-18. The following graph shows the rise of ranking in the deployment of logistics
system:
The evaluation and findings of different literature reviewed helps in analysing the growth of
the country through the trade logistics. Aldaba, 2008, He focuses on the outsourcing of the
logistics helps in increasing the manufacturing process of the product and the delivery of it to
the customers. The logistics problem is equipped with many firms for the insourcing and
outsourcing of the shipments. The investigation helps in investigating the structure of
empirical data. The analysis of the author helps in developing the new policies for the
creation of new logistics modules. The value added services should be provided to create
logistics service providers. The good and healthy relationship should be developed between
value chain services and the logistics services.
Bordey, 2016, In his paper, he found that the creation of third party logistics is the important
trend seen in the last few decades in the field of industry and educational sector. The
resources should be shipped according to the user requirement by the inclusion of third party
delivery system. In his articles he focuses on the problems which exist with the resources
shipment policies. The writer has emphasised on four phases of logistics which are named as
pre-alliance association, implementation plan, operation, and assessment of the performance.
Caris, 2013, In his article he focused on the deployment schemes of freight forwarders to
provide services at the international shipment. The activities should be scheduled for
increasing the service reliability and expected criteria.
Deloitte, 2014, he focuses on the competencies should be met for increasing the traditional
delivery of the products. The foreign trading can be improved by developing the enhanced
version of custom formalities to provide the services on demand. The resources should be
supplied according to the demand raised by the customers. Direct and indirect export system
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should be deployed by the country for decreasing the transaction cost of the shipment. The
performance of the logistics can be improved by managing the marketing channels. Kumar,
2002, In his context, he focuses on the role played by the intermediaries in development of
the marketing channels.
Lorenzetti, 2014, He focuses on the change in the business trends helps in bringing the
changes in the development of international market. The new legislation should be developed
for imposing competition in the delivery of the product at the destination point. The
development of the logistics index table helps in clarifying the custom regulation on the
delivery. The government regulations should be clearly determined for the elimination of
conflicts at the international level in the logistics system. The trade logistics should
emphasize on the quantity of goods carried to the different destination. The client generates
new requirement for reducing the cost of transportation and the delivery schedule.
Schwab, 2015, he focuses on the effectiveness is the trade logistics can be approved by the
amalgamation of similarity in value criteria, deployment of information technology, key
management system and developing relationship. The five step process should be undergone
for the improvement in the trade logistics systems which are classified as making the
decision, maintaining the list of criteria and objectives, meeting the requirement specification
plan, and developing partnership.
Thai, 2015, The objective of his paper is to build good and healthy relationship with the
international business to promote trade logistics system. The procedure schemes of the export
and import products should be undergone. Watanuki, 2015, he focuses on the transportation
services should be updated periodically for increasing the efficiency level of delivering the
product at national and international level. The conclusion of the case study helps in
promoting the export trading system of the undertaken company.
The improvement of the trade logistics system helps in development of agreement with the
government on the non-compliance report at the international level. The central control
should be generated on the agency. The government regulations should be clearly determined
for the elimination of conflicts at the international level. The conveyance cost can be
increased with the addition of trucks in the delivery of the product. The new legislation
should be developed for imposing competition in the delivery of the product at the destination
point. The development of the logistics index table helps in clarifying the custom regulation
on the delivery. The logistic cost in the Phillipines is increased due to the availability of poor
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infrastructure in the transportation system, development related to the facilities and services
provided to the customers in relation to the trading, and improper management schemes for
the export and import of the products. The improvement in the trade logistic system can be
done with the inclusion of tracking system in the designing of the modular logistics system.
The competencies should be met at the international level of managing supply and demand of
the product. The Philippines country stands at the 77th ranks from the 152 countries which are
undertaken for arranging the competition. Various operations should be performed for
facilitating transportation infrastructure. The strategic operations helps in the development of
the improved version of the logistic system in the Philippines which helps in improving the
economy of the nation by developing good and healthy relationship with the business partner
at the international level. The facts and analysis report of the literature review helps in the
interpretation gaining competitive advantage. The collection of information helps in
developing the strategic plan for the improving the trade logistics system in Philippine to
remain ahead of their competitors. The inclusion of tracking information system helps in
satisfying the requirement of the customers to fetch the information of their shipment. The
customer can retrieved the information about his product according to his own need. It helps
in delivering the product on time.
Conclusion
From the literature review, it is concluded that the focus should be given on the operations for
improving the deployment of the trade logistics in the area and the improvement of the trade
logistics system helps in development of agreement with the government on the non-
compliance report at the international level. The facts and analysis report of the literature
review helps in the interpretation gaining competitive advantage. The conclusion of the
literature review helps in promoting the export trading system of the undertaken country.
References:
Aldaba, R. (2008). Assessing competition in Philippines market. Retrieved from
https://dirp3.pids.gov.ph/ris/dps/pidsdps0823.pdf
Bordey, F. (2016). Competitiveness of Philippines Rice in Asia. Retrieved from
http://www.philrice.gov.ph/wp-content/uploads/2016/08/Book_CPRA_22June2016_3
.pdf
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Trade Logistics
Caris, A. (2013). Decision support in intermodal transport: A new research agenda.
Retrieved from
https://pdfs.semanticscholar.org/d81e/14efbaa779b5269cb683dd1e9843a22d37c6.pdf
Deloitte. (2014). Competitiveness: Catching the next wave Philippines. Retrieved from
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/
gx-philippines-competitiveness-report.pdf
Kumar, R. (2002). International competitiveness of Asian firms. Retrieved from
https://www.adb.org/sites/default/files/publication/28440/wp004.pdf
Lorenzetti, M. (2014). Logistics Performance Index report: The gaps persists. Retrieved from
http://www.worldbank.org/en/news/press-release/2014/03/20/logistics-performance-
index-gap-persists
Schwab, K. (2015). The global competitiveness report. Retrieved from
http://www3.weforum.org/docs/gcr/2015-2016/Global_Competitiveness_Report_201
5-2016.pdf
Thai, V. (2015). Assessing the national logistics system of Vietnam. Retrieved from
https://ac.els-cdn.com/S2092521215000061/1-s2.0-S2092521215000061-main.pdf?
_tid=db6030ae-3937-4e5c-a6a3-
62a9143561f5&acdnat=1521872947_92ac41fa3e1e72a44306e48a32ac9bb2
Watanuki, M. (2015). Review of logistics service regulations for freight forwarding business.
Retrieved from
http://documents.worldbank.org/curated/en/596121467991936178/pdf/WPS7401.pdf
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