SM group may build consolidation hubs to support MSMEs

SM INVESTMENTS Corp. (SMIC) said it plans to build “consolidation hubs” to aid micro-, small-, and medium-sized enterprises (MSMEs) with their logistical requirements.

“They are mostly located in remote areas, and logistics can be very expensive for them, especially if the shipments to Metro Manila are small,” the company said in an e-mailed statement on March 29.

The consolidation hubs in rural areas will allow MSMEs to drop off items that logistics companies of SMIC can pick up on a regular schedule.

“Our company has a tie-up with the local government units, the Department of Trade and Industry, and other institutions that deal with MSMEs,” it added.

SMIC is collaborating with its affiliate, Amazing Digital Economy Corp., to provide additional assistance to MSMEs. The latter has a platform that enables MSMEs to showcase their products to a wider audience across the country and globally.

“Airspeed can also handle cross-border delivery anywhere in the world for customers who are export-ready. Through this, MSMEs now have a platform with payment and delivery options that are reasonably priced,” SMIC said. 

To date, the company has two logistics companies under its wing — 2GO and Airspeed — which provide a full suite of logistics services to cater to the requirements of the supply chain.

“2GO focuses on domestic end-to-end transport and logistics using ships as its primary carrier, while Airspeed has primary strengths in customized and international cross-border logistics using planes and partner sea freight carriers, and domestic distribution via multimodal transport,” the company said. 

Both companies have on-land logistics capabilities which specialize on various segments of the logistics value chain.

SMIC sees faster growth in other regions where there is an expected rise of logistics opportunities.

“Growth is also faster in the regions compared with NCR (National Capital Region) which provides rising logistics opportunities to cater to the needs of the local economies,” the company said.  

The company said that as the country develops, “more sophisticated logistics services will be needed to move heavy equipment and oversized materials to build infrastructure.”

“Logistics is a facilitator of economic growth in the country as it enables the efficient and reliable movement of goods across the archipelago. This allows us and our stakeholders to reach a broader market,” it added. — Justine Irish D. Tabile