Imagine if moving goods around the country were as fast, efficient, and seamless as sending an email. No half-empty trucks stuck in traffic. No wasted warehouse space. No missed delivery windows. And yet — despite this technology already being discussed in global logistics circles — most people in the Philippine logistics industry have never even heard of it.
Physical Internet
The Physical Internet (PI) is a revolutionary approach that takes the principles of the digital Internet and applies them to the movement of physical goods — creating a logistics network that is seamless, standardized, and highly efficient. It was introduced by Professor Benoit Montreuil, a logistics visionary who asked: What if the way we ship goods was as interconnected as the way we send information online?
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Instead of each trucking company, warehouse, and shipping line working in silos, PI envisions a shared, standardized, and modular network. Think of goods moving in reusable “smart containers” that can hop between trucks, trains, and ships, just like how a digital file travels across different devices and networks without compatibility issues.
The idea is powered by Internet of Things (IoT) devices, real-time tracking, and data-sharing across the entire supply chain. It promises to slash inefficiencies, cut costs, and reduce carbon emissions — all while improving working conditions for drivers, warehouse staff, and other logistics workers.
Why should we care?
The Philippines should care because our logistics industry is weighed down by massive inefficiencies that hurt both businesses and communities. Trucks often return from deliveries with empty loads, wasting fuel and resources. Many warehouses remain underutilized despite the high rental costs that eat into profit margins. Traffic congestion and fuel waste not only increase operational expenses but also worsen air pollution. On top of these challenges, logistics workers endure long hours, unpredictable schedules, and low pay, creating stress and reducing overall well-being in the sector.
Missing the bus
Despite its promise, the Physical Internet remains largely theoretical in the Philippines because of several persistent challenges. Awareness is still low, with many logistics managers, SMEs, and even policymakers unaware of its existence. Resistance to change is another hurdle, as companies hesitate to share data or assets with competitors, even when collaboration could deliver mutual benefits. The absence of unified standards for container sizes, tracking systems, and IT compatibility further complicates integration. On top of this, regulatory gaps mean there are no strong policies in place to encourage shared infrastructure or data exchange. As a result, the country’s logistics networks remain fragmented, with most players focused on short-term gains instead of building a truly connected and sustainable ecosystem.
What should we do now?
Bringing the Physical Internet to life in the Philippines will require strong collaboration among government, the private sector, academia, and technology innovators. The government must take the lead in creating supportive policies and offering incentives for shared logistics infrastructure, while private companies need to embrace data-sharing and standardization to enable seamless operations. Universities can play a crucial role by conducting research and launching pilot projects to test PI concepts in local contexts. At the same time, tech providers should focus on developing scalable IoT and tracking solutions tailored to Philippine conditions. The good news is that many of the necessary components already exist — from modular containers to GPS tracking, AI-powered route planning, and shared logistics platforms. What’s needed now is to connect these pieces under a unified Physical Internet framework.
Logistics revolution
Failing to act on the potential of the Physical Internet means risking a future where other nations outpace us in supply chain efficiency, environmental responsibility, and economic resilience. But embracing it could turn our logistics sector from a daily struggle into a powerful enabler of progress, cleaner in its environmental impact, faster in operations, more inclusive in opportunities, and better prepared for the challenges ahead. Around the world, this transformation is already underway, bringing with it healthier working conditions, smarter resource use, and stronger partnerships across industries. The real question for the Philippines is whether we will lead this movement toward a more sustainable, equitable, and competitive future, or simply watch from the sidelines as others set the pace.
Steven Kim Albert R. Tan is a Doctor of Business Administration student at De La Salle University. His research focuses on sustainability, operations management in logistics, and financial management. He is a licensed Mechanical Engineer with a degree from the University of Santo Tomas and an MBA from the Ateneo Graduate School of Business.
With 13 years of experience in the oil industry, over 10 of which are in logistics, he serves as Fleet Services Group Manager at Petron Corporation, overseeing trucking logistics, deliveries, and the company’s Vendor Managed Inventory System. His career also includes significant experience in business planning, driving operational efficiency, and supporting strategic decision-making.
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