CEBU, Philippines - Cebu exporters are eyeing clustering measures to be able to boost production of export products, especially those in bulks, to help not only their respective companies but the export industry as a whole.
Philexport Cebu Executive Director Fred Escalona said that they see the importance of clustering the export companies together where they can harness the strength of the whole group.
Escalona said that in the value-chain analysis that they did, there are still some concerns that the export industry is facing like issues regarding inbound logistics which need to be addressed to.
According to Escalona, they are trying to move in to a clustered situation to address the matter since the companies have common concerns and therefore could give a united solution.
He said that they have shared the idea to the companies and in response has gotten positive response in which the companies have extended their excitement to see the results of the seen solution.
Escalona said that problems could be encountered along the way like the idea of competition since the companies are in the same business. Also, Escalona said that the Philippines being an archipelago may become a challenge since it would be hard to have clustering measures.
But Escalona said that clustering would be a good way to go since it would have a bigger effect in giving lower production cost for the companies.
He explained that if companies would be clustered, the companies could save on the orders of materials since they would do bulk buying and could avail of wholesale prices from their producers.
“We also want to be able to handle the large orders,” said Escalona who shared that there are huge order like more than a 100,000 products, there are companies that back-out since they could not handle the large order.
He said that in other countries, orders even come in millions and they are able to produce such number since they have partners nearby that could help out.
Escalona said that if the companies here would be clustered, they would be able to achieve the same as other countries.
The Value chain analysis is in line with the Sector Export Marketing Plan which is a guide for exporters that would help them on their operations and addressing solutions to matters concerning their sector.
SEMP was crafted by of the Cebu Furniture Industries Foundation, Fashion Accessories Manufacturers and Exporters, Cebu Gifts Toys and Housewares Foundation, Cebu Health and Wellness Council and the Seaweed Industry Association of the Philippines —AJ de la Torre