Ayala Group bets big on logistics
The Ayala conglomerate is making a big push into the booming logistics sector given the growing popularity of e-commerce activities.
As the digital economy expands, Ayala Corp. is ramping up its investment in Entrego Fulfillment Solutions, a joint venture with leading online fashion store Brillant 1257 GmbH & Co., to P1 billion to capitalize on the strong demand for transport and delivery services among small, medium and large-scale corporations.
Entrego, which started in 2013 as Zalora Philippines’ logistics division, offers an integrated suite of fulfillment services including management of parcel, document and bulky deliveries for B2B and B2C customers.
Ayala Corp. Chairman and CEO Jaime Augusto Zobel de Ayala said their entry into the fulfillment space “unlocks opportunities for its real estate, banking, telecom, health, automotive, and industrial manufacturing businesses and paves the way for new business models.”
Emerging opportunities for Ayala, as well as the growth of many SMEs, are anchored on having a highly-efficient, reliable, and inexpensive platform to move goods across the archipelago.
Zobel said Entrego is well positioned to meet the expectations of the growing marketplace.
The Ayala group’s investment includes the construction of a state-of-the-art e-commerce center to support back office operations. The facility is expected to fulfill more than 100,000 orders daily when fully operational by the second half of 2019.
Entrego now has 45 distribution hubs covering over 1,500 cities and municipalities across the country. This number is seen to increase to 60.
Since starting operations, Entrego is averaging a 99 percent on-time delivery rate nationwide, and even reaches 100 percent on-time delivery in certain areas.
Entrego’s technology backbone enables real-time tracking of shipments, providing clients visibility and peace of mind that goods get to their destination.