Logistics firm rolls out ‘pay-per-space’ delivery service

Logistics firm rolls out ‘pay-per-space’ delivery service

MANILA, Philippines — Merchants can now quickly restock their inventories—even at smaller loads—through a new delivery service by logistics player Ninja Van Philippines that ships multiple and separate customer orders within the same route at a time, making it cheaper for the clients.

Called Ninja Restock, the company launched on Thursday the pay-per-space delivery service, which also seeks to provide flexibility for the merchants’ inventory management.

“Many small and medium-sized businesses encounter difficulties in sending out products and supplies to their branches, particularly if they have less than a truckload’s supply to send out at any given time,” Ninja Van country head Vin Perez said.

Perez explained the Ninja Restock essentially consolidates the delivery orders of several clients requiring the service, making the dispatch time for trucks shorter.

He noted that a single merchant usually takes weeks before it fills up a truck with items for delivery to optimize cost per trip.

However, other merchants might need to deliver smaller loads of inventory at a time, which means they might wait for a longer period, Perez explained. Perez said this could result in a stock shortage.

He noted that other entrepreneurs also tend to build their own delivery system, which translates to additional costs as they have to buy and maintain vehicles and hire drivers, among others. Ninja Van crafted the new service to eliminate such need, allowing the merchants to save on costs.

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“Ninja Restock streamlines the resupply and delivery process, providing flexibility and cost optimization with the benefit of nationwide coverage,” Perez said.

Apart from this, Perez said the company can also do fulfillment services for merchants, including warehousing and inventory management solutions.

“Innovation and expansion into these business-to-business delivery solutions is a strategic pivot that complements our expertise in e-commerce logistics,” Ninja Van chief commercial officer Sabina Lopez-Vergara said.

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Ninja Van opened a new warehouse in Cabuyao, Laguna last year. The 3,700-square-meter facility can process around 15,000 orders a day.

The company has been beefing up its operations amid a positive outlook for logistics businesses, which are supported by the growing online shopping segment.

A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025.