DTI pushes logistics reforms as supply chain bottlenecks risk retail operations

Supply chain weaknesses directly impact product availability and operations.

Strengthening supply chains and logistics systems is key to sustaining the growth of the Philippine retail industry, according to the Department of Trade and Industry (DTI).

Maria Liza Sandina David, assistant division chief of the DTI’s Supply Chain and Logistics Group, said that efficient logistics networks are essential to keeping the retail sector running smoothly. “Retail is a major employer, and logistics is one of the key systems that keeps retail functioning,” she told Retail Asia Summit Philippines - 2026. “When supply chains work well, businesses can stock products, reach consumers, and operate more efficiently.”

David also cited the strong link between retail and logistics, noting that the two sectors are deeply connected in supporting economic activity.

“Retail is a major pillar of the Philippine economy,” she said. “Wholesale and retail trade remains the largest industry contributor to the economy. It is one of the biggest sources of jobs, business opportunities and consumer spending.”

According to David, wholesale and retail trade accounts for 10.1 million jobs, representing 20.6% of total national employment, while the transport and storage sector provides 3.7 million jobs, or 7.7% of employment.

She added that weaknesses in supply chains can quickly affect retail performance.

To help address logistics challenges, the DTI established the Supply Chain and Logistics Group in 2025 to study supply chain networks and identify operational bottlenecks.

“Our group helps to study supply chain networks and logistics operations, and to identify gaps, bottlenecks and inefficiencies across the movement of goods,” David said.

The group works with industry partners and other government agencies to develop technical solutions that improve supply chain performance and resilience.

Amongst its initiatives is the Supply Chain and Logistics Center (SCLC), which serves as the government’s advisory and training hub for supply chain and logistics concerns.

“The SCLC is meant to be the government’s go-to unit for supply chain and logistics insights, advisory and training,” she said.

The DTI also presented the Section G: Job Blueprint for Wholesale and Retail Trade, developed in partnership with the Philippine Retailers Association and the Supply Chain Management Association of the Philippines.

“The roadmap that we developed was not developed in isolation," said David. "It was shaped through collaboration with industry partners who understand the realities on the ground."

The blueprint outlines 15 strategies and 30 tasks designed to strengthen the sector, including promoting Philippine-made products, supporting omnichannel retail, and accelerating digital adoption.

One initiative includes encouraging the use of global identification standards to improve product tracing, inventory management, and supply chain coordination.

DTI also called on retailers and supply chain partners to work closely with the government in implementing the roadmap’s strategies. “Strengthening the retail sector will require close collaboration between government and industry,” David said.

She added that beyond policy frameworks, the agency also facilitates market linkages between regional producers and large retailers to expand opportunities for local products.

“Strengthening the retail sector requires efficient supply chains, digital transformation, skilled retail workers, and stronger market linkages,” she said.