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FAST Logistics is pushing manufacturers and retailers of fast-moving consumer good to adopt co-loading delivery models amid rising fuel costs
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The call was made during a March 17 consultation with the FMCG sector organized by the Department of Trade and Industry and the Supply Chain Management Association of the Philippines
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56% of FMCG delivery trucks operate at only 32%-40% capacity, causing congestion at retail receiving bays
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Many FMCG firms use smaller vehicles that cost up to 61% more than six-wheeler trucks
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FAST’s co-loading solution, “Flow by FAST,” consolidates shipments at hubs across Luzon, Visayas, and Mindanao
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Co-loading allows multiple companies to share truck space and pay only for what they use
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Inefficiencies in current logistics setups may push up consumer prices
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Wider co-loading adoption could cut traffic congestion and carbon emissions
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FAST says its digital and physical infrastructure is already in place and ready to scale
FAST Logistics Group is urging fast-moving consumer goods (FMCG) manufacturers and retailers to adopt co-loading delivery models as rising fuel costs continue to strain supply chains and threaten to drive up consumer prices.
The recommendation was raised during a consultation convened by the Department of Trade and Industry (DTI) and the Supply Chain Management Association of the Philippines (SCMAP) on March 17, where industry players discussed the impact of higher oil prices on logistics operations.
FAST, one of the country’s largest third-party logistics providers, in a blog released after the forum said traditional direct-to-store delivery systems, where suppliers deploy dedicated trucks for each shipment, are becoming increasingly unsustainable under current market conditions.
To address this, the company presented its co-loading solution, Flow by FAST, which allows multiple companies to share truck space and reduce delivery costs.
“Every direct-to-store delivery should create value, not waste,” said Manuel Onrejas Jr., chief executive officer for logistics at FAST. “With Flow by FAST, we eliminate half-empty trucks and unnecessary trips so FMCG companies can move goods to retail stores more efficiently, lower logistics costs, and keep shelves stocked despite rising fuel prices.”
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Data from FAST shows that about 56% of trucks delivering FMCG goods operate at only 32% to 40% capacity, leading to congestion at receiving bays in supermarkets and other retail outlets.
The company added that the continued use of smaller vehicles, such as AUVs, can drive costs higher, with expenses reaching up to 61% more than using larger six-wheeler trucks.
FAST said these inefficiencies ultimately increase logistics expenses, which may be passed on to consumers through higher retail prices.
Under the co-loading model, multiple companies consolidate shipments into a single truck and pay only for the space they use, improving vehicle utilization and reducing the number of trips required.
Through Flow by FAST, shipments are consolidated at strategically located cross-docking hubs across Luzon, Visayas, and Mindanao, where goods are sorted and dispatched to retail outlets based on scheduled delivery windows.
The system is designed to reduce empty miles and fuel consumption, improve turnaround times at receiving bays, and enable more efficient deliveries using larger vehicles.
However, FAST highlighted that effective execution depends on close collaboration between FMCG companies and retailers, especially in synchronizing delivery timings and optimizing receiving bay operations.
Beyond cost savings, the company said broader adoption of co-loading could help ease traffic congestion, lower carbon emissions, and improve the availability and affordability of goods, especially in the Visayas and Mindanao, where logistics costs are typically higher.
“We are offering this solution as a plug-and-play solution using our existing facilities that already serve modern trade. We already have the digital and physical infrastructure in place, and we are ready to begin as soon as our partners are,” Onrejas said.
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