Hidden costs, not fuel, squeeze PH last-mile delivery

Logistics operators cannot control disruptions, such as fuel prices and typhoons. What they can control is the cost that sits on top of them, according to Suryansh Jalan, chief business officer of logistics software firm FarEye.

According to FarEye’s Eye on the Last Mile 6.0 report for Asia-Pacific launched this year, last-mile costs are up 18.9% year-on-year, and operators can see where most costs land directly through fuel, driver, and vehicle costs, but not where it is created.

The report surveyed operators across Southeast Asia, Australia, New Zealand and adjacent Asia Pacific markets during the first quarter. It was run by FarEye, with support from the Supply Chain Management Association of the Philippines and the Australasian Supply Chain & Logistics Association.

Jalan said much of the delivery cost isn’t in the fuel bill at all and is created by failed deliveries, reattempts, rescheduling, “where is my order” calls and poor routing. Based on the report, 75% of operators named inefficient routing as a top bottleneck, the most common pain point.

This story was originally published by PortCalls Asia. Read the full story at PortCalls Asia →