Challenging’ outsourcing trend to continue

As more and more companies are outsourcing their non-core competencies, the need for transportation providers is increasing. Edu Lopez in conversation with Vincente


“In addition, with the truck bans andnumber coding, there is more demandfor transportation providers,” saysVincente Dinglasan, president of IDSPhilippines. Friends call him “Jess.” Heexpects outsourcing would continue tobe the trend for most companies.Through information technology(IT), data are readily availableplus improvements in the country’sinfrastructure would resultin operations being increasinglycentralised compared to 15 yearsago when it was a competitive advantageto have as many branchesas possible across the country,”says Dinglasan.

“Today, having too many stockkeeping points could lead to inefficiencyand waste with wrongproducts in the wrong place.”The clamour for better serviceat lower cost is a major challengefor most companies in the industry.”The continuing increase inlabour and fuel costs makes thisa very tough challenge. Workingsmarter, increasing or improvingefficiency and productivity,controlling costs are some of themeasures we have found usefulin addressing these challenges,”says Dinglasan.

Fortunately, IDS can count onthe full support of its parent Li& Fung based in Hong Kong, arecognised global leader in supplychain management.

“In other words, because IDS is aregional player, the local unit can,whenever necessary, tap the region’spool of experts anytime it needs to, tohelp address any issue or problem thatmay crop up in the country.”

The Group is also proactive in thesense that what happens in one countryand its possible impact on other countries,are always in the radar screen ofthe region.