FAST Logistics Group, the Philippines’ leading third-party logistics (3PL) provider, reinforced its commitment to innovation, agility, and people-centered transformation for supply chain resiliency during the Last Mile Leaders in APAC 2026 conference hosted by FarEye.

With decades of experience serving businesses across the Philippines, FAST continues to enable supply chain solutions for companies of all sizes — from the country’s largest brands to some small and growing enterprises. Through its nationwide network, integrated end-to-end logistics capabilities, and tech-driven operations, FAST supports industries ranging from FMCG and consumer retail to automotive, agribusiness, pharmaceutical, industrial, and technology.

Representing FAST at the regional gathering held from Wednesday to Friday, May 20 to 22, at the Shangri-La Hotel Bangkok in Thailand were FAST CEO for Logistics Manuel L. Onrejas Jr. and FAST Chief Information Officer Leo Sacamos Jr. 

Both executives joined panel discussions focused on the evolving realities of logistics operations, supply chain resiliency, and digital transformation across the Asia-Pacific region.

Last Mile Leaders in APAC 2026 is an invite-only forum where industry leaders exchange practical insights on modernizing TMS and last-mile systems into delivery orchestration solutions.

Last Mile Leaders in APAC 2026 by FarEye_FAST Logistics Group_Group Photo
Last Mile Leaders APAC 2026 is an invite-only industry forum hosted by tech leader FarEye that brings together senior logistics, supply chain, retail, and technology executives across the Asia-Pacific region to discuss how organizations can modernize legacy transportation and last-mile delivery systems, improve operational efficiency, protect margins, and build more agile, technology-enabled delivery networks through peer-to-peer knowledge sharing and real-world transformation experiences.

Last Mile Leaders in APAC 2026: Understanding the Cost-to-Serve Challenge in Philippine Logistics

During the panel discussion titled, “The Cost-to-Serve Reckoning: Where’s APAC’s Logistics Margin Disappearing,” Manny shared insights on the complexities of scaling logistics operations in today’s rapidly changing business environment.

Expounding on the realities of scaling logistics operations, Manny emphasized that rising volumes do not automatically translate into stronger profitability, especially in a market as complex as the Philippines. 

“Scale is absolutely necessary to sustain and grow the business. However, in today’s macro environment, scale can also become counterproductive very quickly,” he said.

Drawing from FAST’s extensive experience in multi-modal transport operations, Manny emphasized that while growth creates opportunities, it also increases administrative complexity, operational processes, and compliance requirements.

The Scale vs Profitability Paradox

He also noted that growth often requires logistics providers to add more trucks, riders, or warehouse space. Without smarter systems and stronger network optimization, costs can rise almost as quickly as revenues. 

According to Manny, many logistics providers continue to scale through additional assets and manpower rather than through network efficiency, resulting in operating costs increasing at nearly the same pace as shipment volumes. He said these factors can sometimes allow smaller, more agile players to compete aggressively against established 3PL.

In the Philippine context, this challenge is even more pronounced because of the country’s archipelagic geography, inter-island transport requirements, port congestion, road infrastructure gaps, and changing customer ordering behavior. 

On the business-to-business (B2B) side, he noted manufacturers or companies are increasingly reducing inventory levels and placing smaller, more frequent orders. While this generates higher transaction volumes, it also creates greater operational complexity and lowers vehicle utilization.  

This shift from larger consolidated deliveries to smaller, more frequent shipments reduces load efficiency and increases transportation costs across the network. As a result, logistics providers often find themselves managing more trips with smaller loads, increasing costs without proportionate revenue gains. 

Last Mile Leaders in APAC 2026 by FarEye_FAST Logistics Group_Thumbnail

Last Mile Leaders in APAC 2026 by FarEye_FAST Logistics Group_Manuel L. Onrejas Jr
FAST CEO for Logistics Manuel L. Onrejas Jr. joined industry leaders at Last Mile Leaders in APAC 2026 to share insights on balancing scale and agility, emphasizing the critical role of technology in sustaining operational efficiency and supply chain resiliency amid evolving market challenges.

Responding to Rising Customer Expectations and Economic Pressures 

Manny also highlighted that customer expectations have permanently changed the economics of logistics. Businesses now expect stricter delivery windows, stronger service-level compliance, and greater visibility, while consumers increasingly demand faster delivery, real-time tracking, flexible fulfillment, and affordable shipping. 

Meeting these expectations requires significant investments in technology, fleet readiness, people, and operational control. For logistics providers, the challenge is to deliver higher service levels while protecting margins amid rising fuel costs, inflation, and other macroeconomic pressures. 

“The volatility we’re seeing today makes forecasting and long-term planning significantly more difficult,” Manny explained. “For logistics providers, the ability to adapt quickly and make data-driven decisions has become a competitive advantage.” 

He also pointed out that modern logistics ecosystems — involving 3PLs, subcontractors, technology platforms, carriers, and delivery partners — can improve flexibility, but may also introduce hidden costs.  

These include systems integration, subcontractor management, compliance monitoring, and additional coordination across multiple service providers. 

Renewable Energy to Mitigate Impacts of Rising Fuel Costs 

During the panel discussion, Manny also highlighted renewable energy and fleet electrification as emerging opportunities for logistics providers seeking to mitigate the long-term impact of fuel volatility.  

With fuel prices increasingly influenced by global geopolitical developments, he noted that reducing dependence on traditional fossil fuels has become an important consideration for protecting margins over the long term. 

For high-density urban delivery operations in major metropolitan areas such as Metro Manila, Cebu, Cagayan de Oro, and Davao, he said commercial electric vehicles — including two-wheelers, three-wheelers, and light commercial vehicles — present a viable path toward more sustainable and cost-efficient logistics operations.  

He also shared that FAST is committed to building an off-grid, closed-loop electrification ecosystem, where solar panels installed in FAST warehouses will help power its facilities, EV chargers, and fully electric trucks. 

FAST’s solarization roadmap builds on renewable energy projects already operating in its facilities. FAST is the first end-to-end logistics provider in the Philippines to commit to achieving net zero by 2050.

Staying Agile Through Smarter Logistics Networks 

According to Manny, the path forward is not simply to grow bigger, but to grow smarter. This means improving cost-to-serve visibility, optimizing routes and networks, strengthening collaboration, and using data and technology to make faster, more informed decisions. 

He noted that future margin improvements may also come from greater collaboration across supply chain ecosystems, including shared logistics infrastructure, network optimization initiatives, and more efficient utilization of transportation assets. 

He added that advanced analytics, automation, and AI-driven optimization tools will play an increasingly important role in helping logistics providers improve efficiency and profitability. 

“The key is to stay agile as we scale, and technology plays a critical role in sustaining that agility,” Manny added.

For FAST, agility has become essential in supporting the increasingly diverse needs of customers across industries and business sizes. Whether enabling nationwide distribution for major enterprises or helping fast-growing businesses expand their market reach, FAST continues to invest in solutions that combine scale, speed, and flexibility.

This operational adaptability allows FAST to efficiently serve customers across the Philippines’ complex geographic landscape while maintaining high service standards and responsive delivery operations.

By combining nationwide reach with technology-enabled operations, deeper cost visibility, and a commitment to continuous innovation, FAST is better positioned to help customers navigate increasingly complex supply chain conditions while sustaining service quality and long-term resiliency. 

Accelerating AI Adoption Through Digital Transformation

In the panel discussion “Orchestrating Chaos: Managing Multi-Carrier Delivery Services Across APAC,” Leo highlighted FAST’s ongoing digital transformation journey and its approach to leveraging artificial intelligence responsibly and effectively.

Leo shared that FAST recognized early on the transformative potential of AI, but also understood that successful AI adoption depends heavily on people, data quality, and system readiness.

This realization led FAST to transition earlier this year from its legacy, in-house Transport Management System to FarEye’s AI-native logistics platform — a strategic move that modernizes end-to-end delivery operations across the Philippines’ 7,641 islands.

The transition enables FAST to:

  • Modernize legacy infrastructure with an agile, AI-native framework capable of managing over one million shipments annually
  • Rapidly configure workflows through low-code customization
  • Optimize operational costs while protecting logistics margins
  • Reduce delivery delays and improve operational efficiency
  • Improve visibility and responsiveness across nationwide delivery operations

According to Leo, legacy systems were originally designed to address previous business challenges, but today’s logistics environment has evolved far beyond those earlier operational realities.

“Business conditions and scenarios have changed dramatically in recent years. With the speed of technology evolution and the pace of business transformation, waiting years to redevelop legacy systems was simply not possible,” he explained.

By adopting FarEye, a platform already equipped to address modern operational requirements, FAST was able to accelerate its AI initiatives and focus more quickly on extracting business value from emerging technologies, Leo said.

The company’s technology transformation also strengthens its ability to support customers navigating increasingly complex fulfillment requirements, faster delivery expectations, and dynamic supply chain environments.

Last Mile Leaders in APAC 2026 by FarEye_FAST Logistics Group_Leo Sacamos Jr
FAST Chief Information Officer Leo Sacamos Jr. shared FAST’s digital transformation journey at the event, highlighting how AI-ready platforms, quality data, and a people-centered approach are enabling the company to build more agile, efficient, and future-ready logistics operations.

Putting People at the Center of AI Transformation

Beyond technology, Leo emphasized the importance of people in FAST’s transformation journey — a perspective that resonated strongly with conference attendees.

“We emphasized within our organization that AI does not replace people. However, it’s people who don’t use AI that will be replaced by people who do,” he said.

The statement underscored FAST’s belief that AI delivers the greatest value when combined with human creativity, critical thinking, and operational expertise. With about 13,000 employees nationwide, FAST has long recognized technology as an enabler for human potential rather than a replacement for it.

As logistics operations continue to evolve through automation, AI, machine learning, and IoT technologies, FAST is investing heavily in helping employees adapt and grow alongside these innovations.

“We will continue focusing on helping our people learn and train in new technologies — not only AI and machine learning, but also IoT and other emerging solutions. We want the organization to embrace these technologies rather than resist them,” Leo added.

Driving the Future of Logistics

FAST’s participation at Last Mile Leaders in APAC 2026 reflects the company’s broader commitment to innovation, operational excellence, and future-ready logistics solutions.

As customer expectations continue to evolve, FAST remains focused on building a logistics ecosystem that combines nationwide scale, agile operations, advanced technology, and empowered people.

By continuously strengthening its integrated logistics capabilities, FAST Logistics Group is helping businesses of all sizes move products more efficiently, expand into new markets, and navigate the growing complexities of modern supply chains across the Philippines. Connect with our Solutions Experts to learn more

Subscribe to our Newsletter!

Be the first to receive our latest guides, practical tips, and industry updates straight to your inbox.