SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones explores the seeming revitalization of the Philippine supply chain sector after the past few years.
A pep in its step
This column, at this time of year, would usually be a recap of the recently concluded SCMAP Supply Chain Conference, but I’m writing this on Thursday night, which means we’re just one day down on our flagship event, so I’m technically not able to recap the whole event. That being said, there is one observation I can’t help but make for this installment, and it’s one that is arguably indicative of the confidence present among Philippine supply chain players.
Now, some inside baseball: I personally wasn’t expecting to see so many sponsors in last week’s conference. When we made the decision, early this year, to make the 2022 conference a hybrid one, I was trying to temper the expectations of my colleagues a little. Maybe the companies we are hoping to take part wouldn’t, at least not physically, due to the uncertainties still posed by COVID-19. After all, this was around the time the country just recovered from the Omicron- and Christmas-led spike in cases.
True enough, some companies weren’t able to participate because they hadn’t budgeted enough for physical events. They just weren’t expecting that many, or any at all. But other companies heartily took the plunge, snapping up our exhibit’s prime slots in record time. And while we ultimately did not sell out the whole exhibit, we saw a lot of new companies joining our event for the first time. They were mostly solutions providers, perhaps taking advantage of the newfound importance of digitalization in our supply chains, as well as the continuing democratization of technologies that work towards that goal.
On the other hand, we also saw logistics providers become more aggressive in marketing themselves. Perhaps it’s all the new blood – I’ve talked to a lot of new people throughout the three months sponsorship was open – and the new ideas that come with it. Perhaps it’s indicative of recent moves in the global and local logistics industries, from conglomerates entering the sector to continuing consolidation among major players. Perhaps it’s more opportunity-grabbing: as principals look to diversify their portfolio of logistics providers for both cost control and flexibility, there’s no better time to show off what you can provide.
So, yes, the exhibit at this year’s SCMAP Supply Chain Conference felt extra lively. Sure, it could be because we have not seen each other in such a setting for three years. But I’d also like to think that the industry has emerged from the pandemic with a pep in its step, confident that they are now seen as important partners in the competitiveness of any business – and confident enough to embrace new innovations and pursue out-of-the-box thinking to show how it can add value to potential customers.
This is definitely a good thing. I know this sounds counter-intuitive considering how conglomerates are entering the space, but good competition should mean more innovations and lower costs for all. It’s like the long-established players have been jolted out of their complacency and decided to up their game. Who knows where this will lead? Any drive for lower costs would inevitably reach more places. Perhaps calls for better logistics infrastructure will be further intensified, providing both public and private sectors with a renewed urgency to invest. Perhaps we can finally see such infrastructure branch away from commercial and industrial hubs and strengthen access to goods of far-flung towns and provinces, for example. Couple that with efforts to streamline the regulatory landscape for logistics providers, and we might just be on track for stronger supply chains that truly last.
Or maybe all this is because I’m really giddy because I’ve seen so many of my colleagues in person for the first time in years. You know what that does to the psyche.
What more next year, when companies do make space in their budgets for more exhibits?