FAST Logistics Group Advocates for Forward Stocking Strategy to Bolster Philippine Supply Chains
FAST Logistics Group, the premier end-to-end logistics solutions provider in the Philippines, is urging local companies to embrace a Forward Stocking Strategy. This approach involves positioning inventory nearer to customers to mitigate vulnerabilities exposed by recurrent typhoons and infrastructure disruptions. The company emphasizes that 2025 underscored the critical need for building distribution networks capable of withstanding such disturbances.
Typhoon Impacts and Operational Challenges
According to the state weather bureau PAGASA, the Philippines faced over 20 tropical cyclones in 2025, with back-to-back Typhoons Tino and Uwan causing significant damage to infrastructure, restricting routes, and delaying shipments. Cargo movements from Metro Manila to key markets in the Visayas and Mindanao were particularly affected. FAST's operational data reveals that a single day of port closure can lead to three days of industry-wide delivery delays. During successive storms in the fourth quarter of 2025, eight consecutive days of port closures resulted in delays extending up to 24 days.
Manuel L. Onrejas Jr., CEO for Logistics at FAST, stated, "The question for business leaders is not whether disruption will happen, but how prepared the network is when it does."
Defining the Forward Stocking Strategy
FAST defines the Forward Stocking Strategy as a proactive, resilience-focused method that pre-positions inventory in strategic warehouse locations near key cities and demand centers before disruptions occur. By placing goods closer to markets in advance, companies can replenish stores more swiftly when routes, ports, or infrastructure are constrained. The framework involves three key steps:
- Pre-positioning inventory from factories or central warehouses to forward stock locations.
- Protecting goods through disaster preparedness controls.
- Rapidly deploying inventory to stores using Fixed Delivery Schedules.
Onrejas explained that this strategy is tailored for the realities of an archipelagic nation where supply chains rely on a delicate mix of land, sea, and air connectivity. "When demand spikes in calamity-hit areas, the real constraint becomes inventory availability and replenishment speed," he said. "Forward stocking gives businesses a way to respond immediately instead of waiting for the network to normalize."
Lessons from 2025 and Infrastructure Constraints
Drawing from FAST's 2025 experience, Onrejas noted that consumer brands with pre-positioned inventory in typhoon-affected areas maintained operational stability, while those dependent on long-haul replenishment from central hubs struggled to keep shelves stocked. Essential goods like canned foods, instant noodles, detergents, and bar soaps are particularly crucial during calamities.
He also highlighted infrastructure constraints that weaken supply chain reliability. For instance, the rehabilitation and retrofitting of the San Juanico Bridge temporarily impacted RoRo operations and freight movements between Eastern Visayas and Luzon, as the bridge's load capacity was upgraded from three tons to 15 tons.
Shifting from Lean to Smart Inventory Models
Onrejas warned that lean inventory models, often celebrated in developed economies, can become "fragile" in an archipelagic country like the Philippines with complex inter-island networks. Instead, he advocated for a shift toward "smart inventory" by moving stocks closer to consumers ahead of disruption-heavy periods. This strategy is especially vital during the typhoon season from June to November, which overlaps with increased retail demand leading up to the holidays.
"Consumers should never face empty shelves when they need essentials the most," Onrejas emphasized. "For businesses, stockouts mean lost sales. For communities, it means disruption to daily life."
Implementation and FAST's Enabling Role
Companies typically execute the Forward Stocking Strategy by partnering with third-party logistics providers capable of managing warehousing and transport under clear service level agreements. FAST's nationwide network, covering approximately 94 percent of Luzon, Visayas, and Mindanao, positions it as a key enabler. Trusted by multinational companies and major conglomerates, FAST operates over 160 warehouses and a fleet of more than 3,100 vehicles, supported by multi-modal transport options across land, RoRo, air, and sea, along with partnerships with truckers, shipping lines, and airlines.
As a 3PL company, FAST provides intelligent cold chain solutions, including systems-driven cold storage and refrigerated transport for perishable goods. Its end-to-end capabilities allow clients to store inventory in strategic forward stock locations while maintaining integrated oversight through AI-powered Warehouse Management Systems and Transport Management Systems, offering real-time visibility down to the pallet and SKU level. The company also excels in last-leg delivery, enabling rapid dispatch from forward stock locations to retail outlets during disruptions.
Onrejas concluded, "Resilience has to be designed into the network before the storm arrives. Forward stocking is one of the most practical ways to do that."
FAST Logistics Group, with over 50 years of industry leadership, offers a comprehensive suite of services including transportation, warehousing, cross-docking, and toll manufacturing, supported by a robust and extensive network across the Philippines.
