An executive of a logistics integrator has recognized the Philippine government’s efforts to boost digitalization of processes that spur businesses’ capacities and increase opportunities amidst the pandemic.
Constantin Robertz, Locad chief executive officer (CEO) and co-founder, said recognition by both the government and the private sector of the importance of electronic commerce (e-commerce) not only helps revive the economy post-pandemic but also “create an economy that is structurally more open and has opportunities especially for SMEs (small and medium enterprises).”
“At the same time, the government supports in creating a clear framework, a right framework for consumers to build trust and e-commerce framework for businesses to especially digitalize a lot of services like e-invoicing that can go a long way in helping business be efficient and digitalize their processes,” he said in a virtual briefing.
Digitalization processes surged during the pandemic after the government implemented movement restrictions. However, gaps remain and this is what logistics and supply chain management integrator Locad, which was founded in Manila and Singapore in October 2020, wants to address.
Through a USD4.9 million (over PHP240 million) seed funding from several investors like Sequoia Capital India’s Surge, Antler, Febe Ventures, Foxmont, Global Founders Capital, Gokongwei Family, and Hustle Fund, Robertz said they want to offer domestic e-commerce players, most of which are SMEs, simple yet scalable end-to-end solutions.
He said providing sellers a fully digital and integrated platform with real-time visibility on orders and inventory movements would help address cost and delivery time. Robertz said while e-commerce and on-demand delivery has accelerated in the country, many sellers still have issues with logistics to bring their products to consumers.
These are on top of the issues of lack of infrastructure, resources, and experience in managing both their online services and their own supply chain, he added.
He further said local executives aim to level the playing field by helping local businesses increase their opportunities and empower companies that “will play a pivotal role in driving the Philippines’ massive post-pandemic growth opportunity.”