Driving innovation to the last mile
Local last mile and consumer delivery firm Black Arrow Express is on a mission to compete in Southeast Asia’s digital economy. Part of the plan is to bring an improved delivery experience to retailers and consumers through technology-based logistics solutions.
Black Arrow Express President and CEO Allan Brizuela
“We are not a tech company looking to build a logistics network. We are logistics experts with a strong network, simply adapting to the needs of our market,” said Black Arrow Express President and CEO Allan Brizuela.
Black Arrow Express, the express courier brand of Airlift Asia Inc., started in 2016 with only 100 deliveries per day. Today, the company delivers 50,000 parcels per day.
“The strategy of Black Arrow back then was to build the network first. There are many tech logistics but most of them only serve the NCR. It does not make sense,” Brizuela told The Manila Times.
Initially, the company’s target market were the provinces of the country. Since it has become the official courier of e-commerce site Shopee, Brizuela and his group were forced to open up hubs in Metro Manila.
“About 60 percent of our deliveries goes to the provinces, and 40 percent goes to Manila. We now have 2,000 riders placed in 33 hubs across the country,” Brizuela added.
The eCommerce trend in the Philippines
The total e-commerce sales reached $2.3 trillion worldwide in 2017. In the Philippines, the e-commerce industry is expected to amount to $1.63 billion by year-end, noted research company Statista.
With a projected annual growth rate of 15.2 percent of eCommerce revenue, Brizuela sees a huge potential for logistics market in the Philippines.
“The growth of eCommerce is unbelievable, it’s growing by 15 percent month-on-month. Actually, last year we had to give ourselves limitations because the industry is moving really fast and we can’t handle it anymore,” said the executive.
The technology-based logistics solution
Black Arrow Company recently introduced a mobile application that will cater to the growing eCommerce trend in the Philippines, and eventually, Southeast Asia.
“Our app is based on independent studies on the demands and behavior of the market. We invested thousands of man-hours to make sure we deliver an app that will benefit both buyers and sellers,” said Brizuela.
With over 1,200 partner outlets nationwide, the youthful-looking executive said the mobile app aims to address pick-up and delivery failure rates. The app provides real-time updates through push notifications and SMS from system-integrated pick-up and drop-off locations.
Envisioning a cashless society, Brizuela said the app is integrated with convenient payment options and features a loyalty rewards program.
The future of Black Arrow Express
The company grows as the eCommerce industry progresses. Brizuela said his group aims to enter new markets in Asia including Hong Kong, Taiwan and Singapore.
“First would be Hong Kong because of the density of the Filipinos living and working there. There is also Taiwan and Singapore,” he continued.
Brizuela, as part of the company’s initiative to create a strong network, plans to build a so-called mega-line haul that will connect Luzon, the Visayas and Mindanao.
“We ordered 72 trucks for our linehaul – half goes for linehaul, half goes for deliveries,” Brizuela added.
By 2019, the executive aims the company to be the first in the Philippines to have a fully automated sorting machine that will optimize Black Arrow Express services.
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