RORO system tapped to boost Philippine e-commerce

A new player in the e-commerce industry, Beebeelee, has tapped Quick’s (also known as QRS) deferred freight system and 4PL services for delivery of items purchased online. 

Pioneered by Quick, deferred freight is a service delivery that utilizes buses and the roll-on, roll-off (RORO) system to cater to customers looking for options that are cheaper than airfreight but faster than sea freight. 4PL, on the other hand, is an innovation anchored on the belief that customers can obtain a single source for expert supply chain advice, services, and modern technology at cost-effective prices.

“We are glad that Beebeelee has given us its trust and named us its 4PL delivery partner. E-commerce in the Philippines is growing very fast and yet challenges are there. Logistics is one of these challenges,” said Emer Ilagan, President and General Manager of Quick. “Logistics is one fundamental element in making or breaking an e-commerce company. Delivery of goods purchased online becomes more challenging in a country that is archipelagic like the Philippines”, he added.

This 2018, Philippines has reached a revenue of US$1,491 million in the e-commerce market. The market volume is expected to grow by US$2,619 million in 2022 according to a report by statistical portal Statista. Data on user penetration also shows that in 2017, 30.3 million people in the Philippines have made purchase via e-commerce. This number is expected to hit 46.1 million by 2020.

Despite the exciting figures, however, Philippines is still considered to have the lowest e-commerce share among the six largest markets in Southeast Asia. A market research firm eMarketer noted that digital purchases comprise only 0.9 percent of the total retail sales in the Philippines.  

Hope in the RORO system

“The deferred freight tapped into the efficiency of the RORO system. This is an innovation brought about by our extensive knowledge of our country’s logistics landscape,” explained Ilagan.

Recognizing the potential of RORO system to boost the country’s logistics industry, an Executive Order was passed in March 2016 expanding the existing RORO services to include Chassis RORO (Cha-RO). DTI’s computation shows that with Charo, the cost of cargo handling will be lesser by 15 to 20 percent.

In Quick’s experience, a cargo from Manila can be delivered to Mindanao in just three (3) days and is a cheaper option to airfreight and a faster alternative to sea freight.

“This partnership with Beebeelee is an opportunity for us to reach out to more Filipinos and provide them quick and reliable logistics and courier services, a quality service that we all deserve. We are excited to be able to provide solutions that would catapult e-commerce in the country”, ended Ilagan.