FAST Logistics Group called on fast-moving consumer goods (FMCG) companies and retailers to adopt co-loading delivery models, warning that inefficiencies in current systems could drive up consumer prices as fuel costs rise.
The appeal followed a March 17 consultation convened by the Department of Trade and Industry (DTI) and the Supply Chain Management Association of the Philippines (SCMAP). The meeting gathered leading FMCG firms and retailers to address the impact of higher fuel prices on supply chains amid elevated oil prices driven by global conflicts.
The country’s largest third-party logistics provider said traditional direct-to-store delivery setups, where suppliers deploy dedicated trucks for each shipment, are becoming increasingly unsustainable. Data from FAST showed that about 56 percent of trucks delivering FMCG products to retail units operate at only 32 percent to 40 percent capacity.
This underutilization contributes to congestion at receiving bays in supermarkets, groceries and shopping centers. Many firms also rely on smaller vehicles like AUVs, which can cost up to 61 percent more than larger six-wheeler trucks. These increased logistics expenses are ultimately passed on to consumers.
FAST Logistics chief executive for logistics Manuel Onrejas Jr. said the company’s co-loading solution, Flow by FAST, is a practical strategy to reduce transport costs and cushion the impact on consumers.
“Every direct-to-store delivery should create value, not waste. With Flow by FAST, we eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods more efficiently, lower logistics costs, and keep shelves stocked despite rising fuel prices,” Onrejas said.
The co-loading model allows multiple companies to share space in a single delivery truck and pay only for the capacity they use. Under the system, shipments are consolidated at hubs across Luzon, Visayas and Mindanao, then sorted and delivered to retail outlets based on scheduled receiving windows.
The company said the system cuts empty miles and fuel use while improving turnaround at receiving bays. However, success depends on stronger coordination between FMCG firms and retailers to align delivery schedules and manage bays.
Wider adoption of the model could ease traffic congestion, cut carbon emissions and improve the affordability of goods, especially in Visayas and Mindanao where transport costs are higher.
“We are offering this as a plug-and-play solution using our existing facilities that already serve modern trade. We have the digital and physical infrastructure in place and are ready to proceed as soon as our partners are,” Onrejas said.
