For years, freight forwarders have voiced frustrations about slow customs clearances, complex compliance procedures, and inefficient processing. Now, the Bureau of Customs (BOC) is modernizing, pushing for paperless transactions, digital submissions, and automated clearance processes. These changes aim to reduce delays, increase transparency, and ultimately improve trade efficiency.
But while the government moves forward, many forwarders remain hesitant. Digital transformation should be a welcome solution to long-standing inefficiencies, yet adoption remains slow. Why? Is it due to concerns about reliability? A preference for familiar processes? Or the perception that digitization is expensive and complicated?
It’s understandable. The logistics industry has long been built on relationships, manual documentation, and physical approvals. Change is uncomfortable, and for businesses that have operated the same way for decades, overhauling processes may seem disruptive. But here’s the reality: sticking to outdated methods is far riskier than adapting to a digital future.
Focus on Customer Service
The biggest issue with resisting digital adoption isn’t just about compliance—it’s about business survival. Speed and efficiency define logistics today, and companies that cling to manual methods are losing valuable time and money.
1. Time-consuming customs clearance
Paper-based processing leads to longer wait times and increased errors, while digital systems streamline documentation and minimize bottlenecks. A competitor that submits documents digitally can clear goods faster, gaining an edge in customer service.
2. Higher operational costs
Manual processes require more staff to handle paperwork, track shipments, and resolve errors. Digital systems reduce overhead by automating routine tasks, allowing businesses to allocate resources more efficiently.
3. Customer expectations are evolving
Importers and exporters are demanding real-time tracking and faster turnaround times. Forwarders who can’t provide digital transparency risk losing business to tech-enabled competitors.
Ignoring digital transformation is not just about lagging behind—it’s about losing relevance in an industry that is moving forward.
What Needs to Change? A Practical Approach to Digital Adoption
The shift to digital doesn’t have to be overwhelming. Forwarders don’t need to overhaul everything overnight, but small, strategic steps can make all the difference.
Start with digital customs compliance. The BOC’s modernization efforts mean that many processes—such as the submission of import/export documents—can now be handled online. Forwarders should prioritize shifting these workflows to digital platforms to reduce clearance delays.
Invest in simple digital tools. Digital doesn’t have to mean expensive enterprise systems. Even adopting basic cloud-based tracking, automated invoicing, and document management can improve efficiency without heavy IT investments.
Train teams to embrace change. Employees accustomed to manual processes may resist digital systems, not because they are unwilling, but because they are unfamiliar. Investing in training will ensure smoother adoption and better utilization of available tools.
There is no single approach to digital transformation—it will look different for every company based on its size and operations. But what’s clear is that forwarders who proactively adopt digital processes will be in a stronger position to compete, comply, and grow.
The Industry Can’t Wait—Now is the Time to Move Forward
The Philippine freight industry has always been resilient, adapting to shifting trade demands, regulatory changes, and economic challenges. Digital transformation is just the next step in this evolution. The government has set the stage for modernization—now it’s up to the industry to take action.
The question isn’t whether digital adoption will happen, but who will lead the change and who will be forced to catch up later. Forwarders who embrace technology now will not only comply with regulations but gain a long-term competitive advantage in an increasingly digital world.
The time to modernize isn’t next year or the year after. It’s now.
Originally Published in Portcalls Asia Magazine