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Cargo Padala Express > Blog > Unpacking the Advantages of Land Freight for Businesses
There are many advantages to using land freight for transporting goods across the country. This includes cost-efficiency, speed, and security. That’s why businesses all over the Philippines still consider land freight services as one of their primary shipping and logistics options.
In an increasingly interconnected and borderless world, efficient logistics and transportation have taken center stage as key drivers of business success. It’s no longer enough to produce high-quality products or offer top-notch services. Getting these goods to your customers in a timely, cost-effective manner is just as important.
For businesses based in the Philippines’ archipelagic landscape, navigating the logistics world can seem like a formidable task. The options are many: air freight, sea freight, or land freight. Doing it in-house or outsourcing to experts. In such a scenario, understanding the intrinsic strengths of each option becomes vital.
This article focuses on one such essential cog in the logistics wheel—land freight—and goes a step further to advocate for a critical strategic decision: partnering with a third-party logistics (3PL) company.
It unravels the multi-layered advantages of employing land freight, especially for short to medium-distance deliveries. But, more than that, it offers a compelling argument for entrusting your company’s logistics needs to a specialist 3PL firm. Laying out real-world scenarios, benefits, and practical examples. In essence, this guide aims to show how businesses in the Philippines can unlock tremendous value, efficiency, and effectiveness in their supply chains through the power of land freight and the expertise of a 3PL partner.
The efficacy of land freight often goes unnoticed, overshadowed by the speed of air freight or the scale of sea freight. But land freight holds its own. It offers a unique set of benefits that can greatly enhance the efficiency and cost-effectiveness of a business’s logistics operations.
One of the most significant advantages of land freight is its unparalleled accessibility. This comes to the forefront, especially in an archipelago like the Philippines, where businesses often span across multiple islands.
For example, retailers with outlets and clients across Luzon, Visayas, and Mindanao. The last-mile delivery—bringing the goods from ports or airports to the actual stores or to the customers’ homes—relies heavily on land freight.
Trucks can traverse through cities, provinces, and regions without issues. Delivering goods straight to your stores or your customers’ doorsteps ensures that your goods reach their final destination promptly and efficiently.
Land freight stands out as a more economical choice, especially when it comes to shorter to medium hauls.
Consider a small to medium-sized enterprise (SME) exporting local handicrafts from Cebu to Manila. While sea and air freight can seem like viable options, they often come with higher costs due to port charges, air fees, and complex handling requirements.
Land freight, on the other hand, often entails a simple point-to-point charge, making it a more cost-effective solution for such distances.
Land freight also provides a higher degree of security and flexibility. Attributes that are particularly important in an ever-changing and unpredictable business environment.
For example, during an unfortunate situation where a typhoon strikes, altering sea and air travel routes, land freight could provide an alternative.
The ability to swiftly change routes, driven by real-time updates, ensures your goods reach their destination with minimal delays.
Moreover, the possibility of door-to-door delivery minimizes the number of touchpoints. Thereby reducing the risk of damage or loss during transit. This assurance of safety and adaptability can be a game-changer for businesses operating in dynamic and volatile markets.
The power of land freight can be greatly amplified when managed by a logistics company (3PL). As businesses strive to focus on their core competencies, managing logistics in-house can become a strain on resources. This is where a 3PL company comes into play. Providing a host of merits that extend beyond simple transportation.
Land freight requires intricate knowledge of the local routes, regulations, customs processes, and more. For instance, a Mindanao-based furniture company wants to distribute products nationwide. With the geography of the Philippines being a unique mix of islands, urban, and rural areas, navigating the logistics can be a challenge.
This is where a 3PL’s expertise becomes invaluable. They are well-versed with the local terrain, have established relationships with authorities, and can ensure timely and efficient land freight delivery across diverse routes.
Land freight involves several hidden costs, such as vehicle maintenance, driver training, fuel expenses, and regulatory compliance. Operating an in-house fleet can thus quickly become an expensive and time-consuming affair. By outsourcing to a 3PL company, you can leverage their already established fleet and expertise, allowing for cost and time savings.
One of the significant benefits of land freight is the ability to scale and adjust routes swiftly. This flexibility is crucial for businesses that experience seasonal demand or are looking to expand. A 3PL can easily scale up or down to match your business requirements and even reroute shipments based on real-time ground situations. Making the entire logistics process much smoother and more adaptable.
The realm of land freight has been revolutionized with technology. Enabling features such as real-time tracking and optimized route planning. While investing in this technology can be cost-prohibitive for individual businesses, 3PL companies often already possess it.
This means your business can enjoy the benefits of cutting-edge logistics technology, including GPS tracking, real-time updates, and efficient route planning without the associated costs.
Land freight comes with its own set of potential risks. Events like unexpected road closures, vehicle breakdowns, or unpredictable weather conditions. A 3PL company, with its experience and resources, can anticipate and manage these challenges, ensuring minimal disruption to your shipments.
Their ability to swiftly react to ground realities and reroute or reschedule deliveries is crucial in maintaining the consistency and reliability of your supply chain.
Land Freight can be simple and easy with the right partner. At CaPEx, we aim to make things simpler for our clients so that they can be at ease. We take care of their shipping and logistics requirements which allow them to focus on core business activities.
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