How gov’t infra projects help boost the business of local delivery providers

Published August 1, 2021, 7:00 AM

by Bernie Cahiles-Magkilat

The delivery services, a segment in the burgeoning domestic logistics industry, is boosting the entrepreneurship spirit among Filipinos.

The Santos family of Las Piñas started a small hardware business and progressed as distributor of construction materials, particularly cement. “I was only 21 years old then, now I am 37,” said Gabby Santos, one of the owners of O&S Corp., when they jumped into the delivery services.

From a lone hauler truck in 2005, the family grew to a fleet of 45 large trucks delivering cement and other construction materials in Southern Luzon.

To complement its delivery service, O&S expanded into the construction of warehousing facilities. One is strategically located in Calawag, Quezon, and the other in Dasmariñas, Cavite.

O&S is further expanding as business grows. It is now constructing a new warehouse complex in Gumaca, Quezon.

“We are doing okay,” he said. They are hired by cement producers to serve their distributors.

“It depends on the market,” said Santos. To ensure viability, each truck must be able to accomplish two trips a day.

What is helping boost their delivery business is the government’s huge infrastructure projects. Demand for cement has increased because of the various government projects, such as the construction of bridges, rails, tollways, and road networks.

Aside from hardware stores, O&S is also supplying contractors.

They have flexible trucks, too. Some units can carry 1,000 bags of cement and others with 600 bags. Deliveries also continue even during the pandemic. The only challenge because of this pandemic is collecting payments. But O&S has to give consideration to clients because of the economic slump the pandemic has caused.

With robust business, O&S now employs roughly 300 people.

Santos said they are open to new opportunities, and are not closing their doors to potential expansion even in the last mile delivery service.

“We just have to study thoroughly if we go out into new business segments,” he said. While their trucks are equipped with RFIDs, they are still doing the traditional way of dispatching their trucks and receiving orders. He said they might also look into digitizing their operation.

Initially, they are trying to do online marketing via social media.

Digitalization is the way forward in the booming logistics industry.