In a significant move to bolster its supply chain capabilities, the Victory Group of Companies has announced a substantial investment of P2.5 billion. This strategic initiative is aimed at expanding the company’s warehouse facilities and enhancing its transportation fleet. This development marks a pivotal step for the group in reinforcing its position as a leading end-to-end supply chain solutions provider.
The investment plan includes the construction of two new warehouses and the expansion of an existing facility. Specifically, the North Distribution Center 3 (NDC 3) and the Mindanao Distribution Center (MDC) are set to be built, while the North Distribution Center 1 (NDC 1) will undergo expansion. This move is projected to significantly increase the group’s warehousing capacity, adding approximately 300,000 pallet positions by the year 2025.
VG’s current project, the P1.5-billion NDC 2, has recently been completed and handed over to its lessee, FAST Logistics. This facility alone boasts a capacity of 80,000 pallet positions, underlining the group’s commitment to scaling its warehousing solutions.
The expansion isn’t limited to warehousing. In a parallel effort to augment its logistics infrastructure, VG is planning to grow its transportation fleet. The goal is to increase the number of transport units to nearly 1,000, up from the current fleet of 600 vehicles. This expansion will be supported by a corresponding increase in manpower, with the hiring of 250 truckers, up from the current 150.
VG is also investing in technological advancements. The group is set to upgrade its warehouse management system and implement an enterprise resource planning (ERP) software this year. These technological improvements are in line with VG’s commitment to efficiency and modernization in its operations.
These developments come at a time when VG is experiencing robust growth. The previous year was marked as a “positive reset” for the company, with sales reaching a billion pesos and a healthy EBITDA margin of around 20%. Enrique Castillo, VG’s President and CEO, is optimistic about the future, particularly for the year 2024, which he describes as a “kick-off” year for various warehouse expansion projects and systems improvements.
Furthermore, VG is actively contributing to the supply chain industry’s growth by adding value to its customers’ businesses. The company’s strategic decisions are guided by the objective of enhancing its service offerings and staying ahead in a competitive market. VG’s approach is centered around understanding customer needs and providing consolidated, efficient solutions in logistics and supply chain management.
The Victory Group’s expansion plans are a testament to their belief in the country’s growth potential and their commitment to enhancing supply chain efficiency. This investment is expected to significantly impact the logistics and supply chain sector, setting new standards in warehousing and transportation capabilities.
As part of their expansion strategy, Victory Group has chosen strategic locations for their new facilities. The NDC 3, located in Meycauayan, Bulacan, is planned to house 20,000 pallet positions, while the expansion of NDC 1, also in Meycauayan, will add another 10,000 pallet positions to its current capacity of 35,000. This strategic positioning is key to optimizing logistics and distribution services in the region.
Furthermore, the Mindanao Distribution Center (MDC), an eight-hectare facility set to be located in Davao, highlights the group’s commitment to regional growth. With a capacity for 35,000 pallet positions, the MDC will also feature a cold storage facility, an essential component for the agricultural sector in the area. This inclusion demonstrates VG’s responsiveness to the diverse needs of different industries and their commitment to supporting local economies.
In addition to expanding physical infrastructure, VG is equally focused on technological and personnel development. The group’s recent completion of an in-house human resources system and the installation of advanced IT security measures exemplify their commitment to modernizing operations and ensuring data protection.
VG’s proactive approach extends beyond infrastructure and technology. Addressing the talent shortage in the industry, VG is actively involved in securing and developing skilled professionals. This focus on talent development is integral to their strategy, ensuring that they maintain a competitive edge in the evolving supply chain landscape.
The comprehensive expansion plan underscores VG’s dedication to elevating the supply chain industry’s standards. By investing in both infrastructure and human capital, VG is poised to deliver enhanced value to their customers and play a pivotal role in shaping the future of logistics and supply chain management.
