TRANSPORTATION AND DISTRIBUTION MANAGEMENT

Submitted by:

Baluan, Gina
Dalida, Shaina
Infanta, Kenneth Renz
Lorenzo, Adrian Earl
Requierro, Hacel Ann

Submitted to:

Mr. Rodel C. Pomentil

November 21, 2022

1. Introduction

1.1 Description of the Firm

LBC Express, Inc., formerly known as Luzon Brokerage Company, is a Philippine-

based courier service. It is a brokerage and air cargo agent founded in 1945 and is a
market leader in the Philippines in express delivery, cargo shipping, money transfers, mail
and documents, packages and boxes, logistics, and 24-hour door-to-door delivery. It is
currently the Global Filipino's most dependable courier, logistics, and remittance service
provider. Retail customers and corporate customers are two of the customer segments
that the company serves through its logistics services. It offers retail customers services
like balikbayan boxes, air cargo forwarding, and couriers. It provides corporate solutions,
specialized corporate logistics services, and courier and freight forwarding services to its
clients. The business offers domestic and international money transfer services like
remittances, bill payment collection, and corporate remittances under this segment more

LBC is dedicated to moving lives, businesses, and communities while complying

with data privacy guidelines, and continues to operate despite numerous lockdowns and
the restrictions that come with them, the 76-year-old business continues to deliver crucial
services and support the smooth operation of the nation's vital supply chains. LBC has a
growing network of over 6,400 locations, partners, and agents in over 30 countries. It has
locations in Hong Kong, Australia, Brunei, Malaysia, Singapore, Japan, Germany, the
United Arab Emirates, Spain, Kuwait, South Korea, and Taiwan.

1.2. Organizational Management

LBC Express Inc. (the "Company"), the board of Directors and Management, as well
as its employees, commit to the principles of good governance outlined in its Revised
Manual on Corporate Governance, which was approved in May 2017 and July 2014. The
Board of Directors and Management, as well as employees and shareholders, believe
that corporate governance is an essential component of sound strategic business

1
management and will make every effort to raise awareness within the organization as
soon as possible. Since the company's core business segments include Logistics,
Business solution, E-commerce, and Money Transfer Services., which assists individuals
and businesses in sending and receiving parcels from all over the globe through the use
of the land, sea, and air freight services. The Company ensures that transparency is the
essence of corporate governance. As a result, the Company publicly and timely discloses
all material information about the Company that could potentially affect its viability or the
interests of its stockholders and other stakeholders. The Company and its Board of
Directors are committed to full disclosure of material information dealings at all times, and
as such, have caused the documents of all necessary information through the relevant
joint initiatives for listed companies, as well as submissions to the commission, for the
benefit of its investors and shareholders and other partners.

The Board of Directors of the LBC Express Inc. Company consists of nine (9)
directors. The Chairman, President, and Chief Executive Officer is Miguel Angel A.
Camahort. Enrique V. Rey serves as Chief Financial Officer and Chief Risk Officer, and
Mahleene G. Go serves as Corporate Information Officer and Compliance Officer.
Various Directors serve on different managerial teams, including Rene Fuentes (EVP-
COO of International Sales and Operations), Miguel Vercin (Vice President- Europe), and
Alfie Deato (SVP and CIO). Rene Fuentes is in charge of the Sales department, which
has 41 employees, Jb Floralde (Marketing Professional), who is in charge of the
Marketing department, which has 7 employees, and Babes Laczarino is in charge of the
Finance department. Rea Gomez, director of corporate affairs and integrated marketing
communication, is in charge of the HR department, which has 48 employees. Alfie Deato,
SVP, and CIO are in charge of the IT department, which has 47 employees. Additionally,
Victor Y. Lim is the Independent Director, and Anthony A. Abad is the Lead Independent
Director. Rosalie H. Infantado is the Treasurer, Jeric C. Baquiran is the Chief Audit
Executive, and Cristina S. Palma-Gil Fernandez is the Secretary. A total of 11,277
company employees up the organization's workforce.

2
2. Assessment of Transportation and Distribution Functions

2.1. Transportation Activities

LBC "Hari ng Padala" transportation activities include cross-dock freight services such
as loading and unloading (the procedure of setting up or taking down the stall or pitch as
well as loading and unloading supplies and equipment from the stallholders' vehicles),
pallet breaking, and repacking (the pallet is a flat structure that serves as the foundation
for the unitization of goods in the supply chain. Pallets are typically a type of tertiary
packaging. While repackaging is the process of putting a product in a different container
after it has already been made available for purchase), export consolidation for complete
fulfillment (the method of combining multiple smaller shipments from various senders to
cut down on transportation costs. One container is used to transport all of the goods,
which lowers the cost of shipping), streamlined supply chains from point of origin to
destination (helps companies understand future customer needs by looking beyond
tactical order fulfillment), door-to-door delivery (a method of shipping wherein cargo is
picked up at the senders’ door and delivered to the recipient’s door. The delivery is picked
up from the sender and delivered right to the recipient), domestic and international
couriers (can deliver from the same country and can also deliver outside the country),
and freight forwarding services (via air, sea and ground transport. These transportation
activities are cost-effective (they reduce your costs in any aspect such as warehouse
space, labor, and transportation), eliminating the need for warehouse spaces and trusted
logistic companies from the world's largest brands.

2.2. Distribution Activities

LBC "Hari ng Padala" is the Philippines' market leader in payments and money
transfers, documents, emails, parcels, boxes, cargo, and logistics. With a growing
network of over 6,400 locations, partners, and agents in over 30 countries, LBC is
committed to moving lives, businesses, and communities and delivering smiles around

3
the world. It was founded in 1945 as a brokerage and air cargo agent and now pioneered
express deliveries, cargo shipping, and 24-hour door-to-door delivery in the Philippines.
Today, it is the most trusted courier, cargo and logistics, and remittance service provider
of the Global Filipino.

And for LBC to deliver on-time, cost-efficient, and reliable specialized logistics
services, it undergoes several distribution activities. There will be times when the
business will have specific demands for specialized logistics services. So, their
specialized solutions will help a business’s tailored needs which guarantees that there
will be no lapse in the quality service they provide. After booking a pick-up online for a
customer, an LBC Express rider will come to the customer's address, pick up the parcel,
and collect your payment (Order Processing). The package will then be turned over to
LBC Express for delivery. In this regard, the products will be under On-Site management
where professional care of dedicated teams from handling to monitoring is ensured
(Shipping). Through creating, high-value, heavy, fragile, and unique items are assured to
safely create, pack, and ship valuables to their final destination (Delivery). LBC also
includes Reverse Logistics that helps in moving inventory even in responding to customer
requests for returning products and designing a plan to retrieve these items (Returns).
Lastly, Document Return is performed as if the service doesn’t end with the delivery itself.
After delivering the goods, they also return the necessary documentation, duly completed,
and signed by the recipient for compilation.

4
 INFORMED CONSENT

RESEARCHERS

Gina Baluan
Shaina Dalida
Kenneth Renz Infanta
Adrian Earl Lorenzo
Hacel Ann Requierro

PURPOSE OF THE STUDY

You are being asked to take part in a research study. Before you decide to participate in
this study, it is important that you understand why the research is being done and what it
will involve. Please read the following information carefully. Please ask the researcher if
there is anything that is not clear or if you need more information.

STUDY PROCEDURES

This study aims to identify the insights of the LBC Express with their different daily
activities. As part of the study, participants to be interviewed shall be gathered to gain a
deeper understanding of the situation the research study focuses on. The aforementioned
study uses a quantitative method.

To dig deeper into this study, the participants will conduct interviews with participants who
are suitable to the study’s criteria. In gathering the data, some questions will be asked.
You have the right to answer or to refuse to answer the questions. Also, documentation
will be done such as audio-tape recording, taking pictures and video recording, if
permitted. During the data-gathering process, the researchers might also ask some
confidential questions. It is up to you if you want to give your insights on whatever may
be asked of you. Rest assured that the researchers will provide confidentiality to the

5
gathered data and anonymity to your profile in case you request it. After transcribing,
interpreting, and analyzing all the research data, in case you request to verify the
accuracy of your statements, the researcher will show you the results.

ETHICAL CONSIDERATIONS

Risks such as the participant’s identity, the confidentiality of information, data from
documentation, and request for privacy may be included in conducting the study, but as
ethical researchers, we assure you that there will be considerations such as those listed
below.

a) If the participant doesn’t want to be known, he/she might use another name to
conceal his/her identity.
b) The participant has the opportunity to read the questions first before the actual
data gathering.
c) If the participant doesn’t want to reveal some confidential information, he/she has
the right to do so.
d) If the participant doesn’t want to have documentation during the study, he/she has
the right to request it.
e) If the participant has any request to prevent risks in the study, he/she has the right
to give his/her suggestions to the researchers.

BENEFITS

There will be no direct benefit as you participate in the study; however, all the information
that will be gathered from you will contribute much to the body of knowledge. One of the
main goals of this study is to enlighten all the concerned people who have experienced
the same situation as yours. Your answer will give them knowledge on how to possibly
overcome the struggles in the situation where they are also in. In turn, it may lead to an

6
understanding of their situations and the application of some mechanisms to improve
them.

CONTACT INFORMATION

If you have questions at any time about this study, or you experience adverse effects as
a result of participating in this study, you may talk to the researchers freely. If you have
questions regarding your rights as a research participant, or if problems arise that you do
not feel, you can discuss them with the group of researchers by contacting the Research
Chairman: 09155615739 or adrian.earl.lorenzo@adamson.edu.ph.

VOLUNTARY PARTICIPATION

Your participation in this study is voluntary. It is up to you to decide whether or not to take
part in this study. If you decide to take part in this study, you will be asked to sign a
consent form. After you sign the consent form, you are still free to withdraw at any time
and without giving a reason. Withdrawing from this study will not affect the relationship
you have, if any, with the researcher. If you withdraw from the study before data collection
is completed, your data will be returned to you or destroyed.

CONSENT

I have read and understand the provided information and have had the opportunity to ask
questions. I understand that my participation is voluntary and that I am free to withdraw
at any time, without giving a reason and without cost. I understand that I will be given a
copy of this consent form. I voluntarily agree to take part in this study.

________________________
NAME AND SIGNATURE

SURVEY QUESTIONNAIRE

7
1. Demographic Profile

DIRECTIONS: Please answer each question as accurately as possible by checking the

correct answer or filling in the space provided.

Name (Optional):
______________________________________________________________

Which category below includes your age?

● 20-25
● 26-30
● 30-35
● 36-40
● 40-45

What is your gender?

● Female
● Male
● Others (specify): _______________

What is your highest level of education completed?

● Senior Highschool Graduate

● College Graduate
● Master’s Degree
● Doctorate Degree

Specialization: ___________________________________________________

8
2.1 Distribution Activity

DIRECTIONS: Kindly check the appropriate box that best describes your answer.

2.1.1. ORDER Strongly Disagree Agree Strongly

PROCESSING, SHIPPING, Disagree Agree
DELIVERY, AND RETURN

The company prefers using an

online system queuing when
accepting customers.

The company can always

deliver without incurring
damages to the goods being
shipped.

The company accepts a

refund if the goods were
delivered and proven
defective due to improper
packaging.

The company uses the first

come first serve basis if the
cargo cannot handle all the
goods.

The company finds it time-

consuming when locating the
address receiver in the
system.

9
The company accepts returns
when the goods have
defective or delivered the
wrong item.

The company can secure the

goods before its delivery
process.

The company is open to

delivering the goods up to 3
attempts.

2.2. Transportation Activity

2.2.1. PARTNERS, MODE Strongly Disagree Agree Strongly

OF TRANSPORT, Disagree Agree
ROUTING, SCHEDULING

The company effectively

delivers the goods because
of its delivery partners.

The company prefers to

deliver the goods during
weekends.

The company prefers to

deliver the goods during
weekdays.

10
 The company’s most used
transportation channel is
via sea.

The company’s most used

transportation channel is
via air.

The company’s most used

transportation channel is
via land.

The company does not

have a problem locating the
destination of the shipment.

The company transports

only transports dry goods
and parcels.

3. Issues and Concerns

3.1. What are the challenges that you encounter in the transportation and distribution
system of the firm?

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
_____________________________________________________________________.

11