2GO, the logistics arm of the Aboitiz Transport group, expects to complete its warehouse expansion program within the year.
2GO president and chief executive officer Sabin Aboitiz in an interview said the company has earmarked P2 million for the expansion of its supply chain hub in Pasig which, by the first half of the year, should be able to accommodate 21,000 pallets, and by end-2008, 30,000 pallets.
The facility could only previously handle 6,500 pallets, of which 1,200 are for airconditioned storage.
Aboitiz said the expansion puts the company on track to meet its 6% growth target despite such negative factors as fuel price increases, the strong local currency, and noisy local politics.
“Fuel, forex and politics will continue to be concerns this year, but we continue to expand our supply chain facilities as we believe that there is so much growth opportunity in the supply chain particularly here in the Philippines,” he stressed.
“Our main focus now is to further develop our supply chain management nationwide as this has already made 2GO a complete logistics solutions provider,” Aboitiz said.
The Pasig facility houses products of multinationals Wrigley’s, the makers of juicy fruit and double mint chewing gums; Nestle water; baby food manufacturer Gerber; and Mead Johnson infant products. Soon it will also accommodate J&J Vision Care products.
The facility is used as a single-stocking point for distribution to other areas. The products are distributed to at least 400 Mercury Drug stores nationwide.
It is equipped with the SAP warehouse management system that operates radio frequency and barcode pallet management as well as provides for sales order entry, credit check, product discount management, inventory management, inventory management forecasting, procurement, financial trade management, transport route planning, returns management and document tracking.
