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• Rising Business Costs
• Rising Business Costs


  • Increasing operational costs, influenced by supply chain issues and market changes, are impacting industries worldwide
  • Operational costs arise from daily core operational activities conducted by a business
• Continued inflation


  Could lead to higher interest rates from the Bangko Sentral ng Pilipinas in 2024, aimed at reducing consumer spending
• Pre-opening startup costs


  Include a business plan, research expenses, borrowing costs, expenses for technology, business permits and licenses
• Startup costs


  The expenses incurred during the process of creating a new business
• Post-opening startup/Running Costs


  Include advertising, promotion, employee wages, rent, raw materials, utilities
• With the exception ICT and BPO industries, large firms tend to be more innovation active compared to smaller firms
• In food and other manufacturing, nearly half of large firms were innovation active while only a third of micro-enterprises were innovation active
• For the ICT and BPO sectors, there are more small and medium-sized establishments that are innovation active firms than large or micro firms
• What entrepreneurs can do to mitigate the impact of rising business costs

  • Reducing waste
  • Inventory counts
  • Renegotiate rental terms
  • Implement quality control system
  • Assess direct material costs
  • Re-evaluate sales and marketing costs
  • Study maintenance costs
  • Decrease transportation costs
  • Employee Engagement
  • Benchmarking
  • Increase employee efficiency such as outsourcing, automation and task consolidation
  • Utilize technology to reduce costs
  • Negotiating better prices with suppliers
• What entrepreneurs can do to mitigate the impact of rising business costs

  • Automating tasks
  • Outsourcing tasks
  • Raising prices
  • Focus on increasing sales
  • Cut back on unnecessary expenses
  • Get creative with marketing
  • Network with other small business owners
  • Review your team
  • Seek professional help
  • Monitor supplier costs
• Elmer Macalingay opened a vegetarian restaurant in Baguio City, which became popular
• Elmer has recently expanded his business to include a farm and agri-tourism enterprise, the UM-A Farm and Restaurant
• The farm has vegetables and fruits, around 400 free-range native chickens, and a fish pond. The farm also absorbs the waste from their restaurants, turning them into compost and chicken feed
• Macalingay said "We are conscious of our carbon footprint, we use organic materials, and manage time and motion as we engage in e-commerce"
• Supply Chain Strategy


  A roadmap that helps businesses get their products to customers with as little friction as possible
• 3 types of supply chain strategies

  • Demand-driven business strategy
  • Agile or flexible supply chains
  • Sustainability at the core of the supply chain
• Client-centric supply chain strategy

  • Fulfilling client demand is the most significant function, enabled by automating processes that focus on the client's needs first
• Predictive business supply chain strategy

  • Uses predictive tools to manage and adjust shipments based on things like weather or traffic, enabled by technologies like digital twins
• Visibility supply chain strategy

  • Provides real-time insights on goods that are still in transit or production, enabling better collaboration and streamlining cross-border transactions
• Smart automation supply chain strategy


  • Utilizes warehousing solutions to streamline processes between systems, human workers and robots to achieve mass product customization, improved delivery and distribution processes, and flexibility to eliminate carrying costs
• How to implement a supply chain strategy

  1. Identify demand types

  2. Understand the product portfolio

  3. Know your customer's location

  4. Manage inventory

  5. Know your suppliers' locations
• PH Supply Chain Trends For 2024 include increased digitalization and automation
• Inventory management


  Key to managing an efficient supply chain. Real-time updates give an idea about inventory size, nature and complexity. Can use this information to determine which supply chain strategy to implement.
• Suppliers' locations


  Identifying where your suppliers are is equally significant. If suppliers are from another country, lead times will likely be longer than those from within the same region. This aspect will affect both your shipping and inventory processes.
• PH Supply Chain Trends For 2024

  • Increased Digitalization and Automation
  • Enhanced Supply Chain Visibility
  • Sustainability Focus
  • Resilience and Flexibility in Supply Chain
  • Localized Supply Chains
  • E-commerce and Direct-to-Consumer Models
  • Advanced Analytics for Better Decision Making
  • Collaborative Ecosystems
  • Cybersecurity for a 'Fully-Secure' Supply Chain
  • Preparing for the Future Workforce
• Increased Digitalization and Automation

  Integration of advanced technologies like AI, machine learning, and robotics will continue to drive efficiency and accuracy in supply chain operations. Technology must be more accessible, meaning more intuitive and able to easily integrate with other systems. Automation in warehousing, logistics, and inventory management is expected to reduce manual errors and improve overall productivity.
• Enhanced Supply Chain Visibility

  With the help of Internet of Things (IoT) devices and real-time data analytics, companies will aim for greater visibility across their supply chains. It should be more graphical, easy to use, and mobile; in other words, it must empower the user.
• Sustainability Focus


  Environmental considerations will become more crucial, with companies increasingly adopting green supply chain practices. This shift will involve more sustainable sourcing, reduced carbon footprints in logistics, and eco-friendly packaging solutions. Change the formula for cost of goods to include the cost of disposal when deciding where to purchase. Consider environmental impacts in purchasing decisions, advocating for a more sustainable approach to procurement.
• Resilience and Flexibility in Supply Chain

  Businesses will continue to diversify suppliers, increase stock buffers, and develop contingency plans to quickly adapt to unforeseen events. There is importance of a 'just-in-case' approach over 'just in time' in building a more resilient supply chain, suggesting that businesses select critical points for building backup capacity for financial viability.
• Localized Supply Chains


  The shift towards localized supply chains is anticipated to gain significant momentum in the Philippines. This trend on dual/multi-sourcing and near-shoring, reflects a strategic move away from over-reliance on distant and often volatile global supply networks. By bringing supply chain operations closer to home, companies aim to reduce lead times, mitigate risks associated with international logistics, and gain greater control over their production processes.
• 1. commerce and Direct-to-Consumer Models

  The rise of e-commerce in the Philippines will continue to impact supply chain strategies, with an emphasis on direct-to-consumer delivery models. This trend will necessitate more robust last-mile delivery solutions and efficient reverse logistics for returns.
• Advanced Analytics for Better Decision Making

  Big data and advanced analytics will be crucial for predictive modeling and decision-making. This includes optimizing routes for logistics, managing inventory more effectively, and predicting consumer demand patterns.
• Collaborative Ecosystems


  There will be a greater emphasis on collaboration within the supply chain, including partnerships with suppliers, logistics providers, and even competitors, to optimize resources and information sharing.
• Cybersecurity for a 'Fully-Secure' Supply Chain

  As supply chains become more interconnected and reliant on digital platforms, they also become more vulnerable to cyber threats. Businesses in the Philippines need to invest in advanced cybersecurity solutions that can protect sensitive data, monitor supply chain networks for potential threats, and ensure the integrity of digital transactions.
• Preparing for the Future Workforce

  By 2025, 75% of the global population will be Millennials. This demographic shift will require supply chain leaders to understand and cater to the expectations of this new generation. Their preference for meaningful work, creative collaboration, and aversion to rigid hierarchies.
• Types of Data Used for Supply Chain Analytics

  • Product data
  • Logistics data
  • Inventory data
  • Supplier data
  • Demand data
• Product data


  Various attributes, specifications, and performance metrics that characterize multiple goods. Can fine-tune product catalog and drive sales growth by deciphering customer sentiments, preferences, and complaints.
• Logistics data


  Transportation, shipping routes, and delivery timelines, form the backbone of an optimized supply chain in the Philippines, enhancing operational efficiency.
• Inventory data


  At the heart of productive supply chain management is precise inventory orchestration. By understanding inventory trends, businesses can avert stockouts, reduce excess carrying costs, and optimize storage efficiently.