FILIPINO-OWNED AP Cargo Logistic Network Corp. signed on Thursday a multimillion-dollar contract with global enterprise solutions provider Ramco Systems for its logistics software meant to streamline the homegrown company’s freight operations nationwide while enabling its future growth plans.
Set to roll out early next year are Ramco’s mobile-friendly modules for transport, hub, warehouse and fleet management; visibility, rating and building; as well as finance and accounting.
They are integrated with end-to-end human resource (HR) and payroll solutions compliant with the Philippines’s statutory requirements at AP Cargo.
“Ramco’s unified solution will offer real-time operational visibility and better planning capabilities, enabling us to arrest revenue leakage and boost productivity to drive overall growth,” AP Cargo VP for Business Operations Vincent John S. Villacorte said.
The combined platform bundled with next-generation finance and HR are expected to benefit over 1,600 employees of the domestic provider of express logistics for air cargo and other goods, while covering more than 500 fleet, reducing manual workloads, generating cost savings and automating complex administrative tasks.
This partnership comes at a time when the Philippines is rapidly embracing the digital era to pump up it logistics capabilities and infrastructure.
Based on the report of ResearchAndMarkets.com, the country’s freight and logistics market value is seen to reach $60.22 billion by 2023 on the back of the rise of e-commerce, Internet penetration and improved buying power anticipated to bolster demand.
Witnessing this development, Ramco Group set up its local subsidiary in mid-2016, bringing with it its vast experience and continuous thrust on logistics segment.
“Ramco has a great track record as a logistics software provider in the Philippines, and we are excited to work with them for our digital transformation,” he said.
Ramco Systems CEO Virender Aggarwal was pleased to announce their AP Cargo as their newest client in the logistics and shipping space.
“Logistics is the backbone of global trade and the Philippines has enjoyed remarkable growth in recent times,” he said, while citing that almost 40 percent of the new order booking for Asia Pacific has come from the country since last year.
“Our intelligent, mobile-friendly enterprise suite has won us the trust of customers throughout the Philippines, helping local enterprises optimize their operations and meet the changing demands of commerce in the region,” he added.
The deal is part of AP Cargo’s bigger strategy to overhaul its supply chain. The chain of events that went into this was the company’s rebranding in 2016 and the improving economy during the time that had it experience tremendous growth.
“I think we were on the right time that the rebranding was made on time with the upsurge of the economic business and expansion of business towards Visayas and Mindanao,” AP Cargo President and CEO Virgilio R. Villacorta told reporters in a sideline interview during the contract signing held at the Grand Hyatt Hotel in Bonifacio Global City in Taguig.
He said they are targeting to hit 100 outlets by adding 20 more to their existing 80 branches nationwide by 2020.
Without divulging the exact capitalization amount, he said that it will be another “multi-million” peso investment that will be financed through bank loans.
This expansion plan, Villarcorta said, would result in a conservative 10-percent annual growth in their business, which to date averages between 10 percent and 15 percent.
Last year, AP Cargo posted a net income hike of 28 percent. He said: “I think we’ll be hitting around 38 percent [this year due to] the expansion going the south, the Build, Build, Build [project of the Duterte administration], as well as the [local] traders that we have that goes along with [it].”