After opening a new plant in the northern part of Mindanao (Southern part of the Philippines), the immediate concern that our operation experienced was the issue on logistics. Freight cost are high inspite of the continuous roll-back of fuel prices. Apparently the distance and the terrain play a major obstacle.
Cagayan de Oro City is around 300KM (186 Miles) away for Davao City and some 450KM (280 Miles) for General Santos City (Manny Pacquio's home town) travelling south. It would take a 10-wheeler truck 2-3 days to complete a round trip. Considering the wear and tear of the truck including tires, fuel consumption, and driver's fee, Most of the truckers are charging a considerable sum of money.
Nonetheless, since our commitment to our customers is to deliver their requirement on time, we have to carry the freight burden. In any kind of business, delivering to what has been committed is foundational to building trust and the first step for a repeat sale. Nothing can prosper if such commitments are violated.
Almost for the whole month of December, my team and I hurdled the hick-ups of a start up operation. There were a lot of sleepless nights and internal challenges. But in the end, by putting the customers first, everything went fairly well.
All thanks to the relentless efforts of an engaged team.