FAST Logistics Group, the Philippines’ premier end-to-end logistics and supply chain solutions provider, is calling for the immediate adoption of co-loading delivery models across the fast-moving consumer goods (FMCG) and retail sectors. The move aims to mitigate the impact of soaring fuel prices and prevent logistics inefficiencies from driving up the cost of basic goods for Filipino consumers.
The call to action follows a high-level consultation held on March 17 by the Department of Trade and Industry (DTI) and the Supply Chain Management Association of the Philippines (SCMAP). During the session, industry leaders discussed strategies to insulate supply chains from global oil price volatility.
FAST Logistics Group warned that traditional direct-to-store delivery models—where individual suppliers deploy dedicated, often underutilized trucks—are becoming unsustainable.
“Every direct-to-store delivery should create value, not waste,” said Manuel L. Onrejas Jr., CEO for Logistics at FAST. “With Flow by FAST, we eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods more efficiently and keep shelves stocked without passing the burden of rising fuel costs onto the consumer.”
Data presented by FAST highlights a significant gap in current logistics productivity:
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Capacity Gap: Approximately 56% of trucks delivering FMCG products operate at only 32% to 40% capacity.
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Vehicle Misalignment: Many firms rely on smaller vehicles (AUVs), which can cost up to 61% more per unit of volume than larger six-wheeler trucks.
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Congestion: Underutilized fleets contribute to severe bottlenecks at retail receiving bays, further delaying supply chains.
To counter these challenges, FAST introduced Flow by FAST, a tech-driven co-loading solution. Under this model, multiple companies share space within a single vehicle, paying only for the capacity they occupy.
Key benefits of the Flow by FAST model include:
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Consolidation: Shipments are pooled at strategic hubs across Luzon, Visayas, and Mindanao.
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Optimized Delivery: Goods are cross-docked and delivered in larger, fully loaded trucks aligned with retail receiving windows.
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Regional Impact: Reduced “empty miles” significantly lowers the cost of goods in Visayas and Mindanao, where transport expenses are traditionally highest.
While FAST maintains the digital and physical infrastructure to implement co-loading at scale, the company emphasized that success requires a unified front. Retailers, in particular, are essential in aligning delivery schedules and improving bay management to support a consolidated flow of goods.
“We are offering this as a plug-and-play solution,” Onrejas added. “We have the facilities and the technology ready. We can begin as soon as our partners are ready to collaborate.”
Beyond economic savings, the wider adoption of co-loading promises a positive environmental and social impact by reducing traffic congestion and lowering the carbon footprint of the Philippine logistics industry.
