Leading global supply chain company eyes scaling up its logistics hub in PH

Secretary of Trade and Industry Alfredo Pascual (4th from left) with the Philippine Delegation and Officers of Schneider Electric at Schneider Electric Innovation Hub in Paris. Photo shows other officials (L-R): Assistant Secretary Allan Gepty of DTI; Mr. Homer Ilagan, Director of Power Systems and Services Sustainability of SE Philippines; Undersecretary Maria Blanca Kim Bernardo-Lokin; Mr. Eric Heitz, VP for Power Systems Supply Chain; Mr. Romaric Ernst, VP for Business Development (EAJ); Mr. Norman Roland Ocana III, Head of Government Affairs of SE Philippines; and Commercial Counsellor Rosa Katrina Banzon of Philippine Trade and Investment Center in Paris.

Schneider Electric, a global leader in energy management and automation, is looking to scale up its logistics hub in Cavite, reaffirming its strong confidence and continued expansion in logistics services, manufacturing, and high value services in the Philippines.

This comes on the heels of a high-level meeting with Trade Secretary Fred Pascual in Paris, France on 19 June 2023 at the sidelines of the 10th Philippines-France Joint Economic Committee Meeting.

The expansion project, estimated at € 1.4 million, has already been greenlighted by Schneider Electric’s top management. The company has been operating in the Philippines for 26 years now and currently employs 3,375 Filipino workers.

At present, the company’s operations in the country cater to nine countries with an annual throughput value of € 1 billion.

BOI representatives recently met with Schneider Electric officials at their Taguig office to discuss the expansion plan. Part of the company’s sustainability journey in the Philippines is to reach 50% conversion of inter-site trucks to electric vehicles (EV) and 20% of last mile to utilize EV trucks as part of their Net-Zero Roadmap which it plans to achieve by 2030.

On top of its manufacturing activities, Schneider Electric also shared that it has expanded its Analytics for Schneider Electric Global Hub in Taguig City, which requires higher value services and AI-assisted platforms. This project will employ 80 Filipino data analysts.

Notably, the Philippines is one of the four (4) Global Hubs of the company, which provides technical, analytics, finance planning and accounting and sales support to 154 countries and hosts 23 languages.

“Schneider Electric’s business is constantly evolving to ensure growth and increase resilience. An integral part of our growth strategy includes continued strengthening of the organization’s global services that is based in the Philippines. This expansion underpins the company’s goal of further boosting our global presence and capabilities to support advancement across different markets around the globe. We are truly grateful for the support that BOI has extended to our company as we embark on this major business expansion,” says Mr. Ejie-Tauto-An, Logistics Director, APC by Schneider.

The global leader in digital automation and energy management, Schneider Electric nabbed the top spot on the best supply chains of 2023 list by Gartner, thanks to its 10% reduction in carbon emissions, which has been crucial in accelerating progress in Schneider Electric’s own supply chain carbon footprint. The company was placed 7th on Corporate Knight’s 2023 Global 100 list of Most Sustainable Corporations and operates in the areas of energy management, industrial automation, central functions and digital costs.

The company, which was founded in France, started its venture in the Philippines in 1995 through manufacturing UPS, power surge, backup UPS, and smart UPS. In 2019, the company converted its existing manufacturing factory in Rosario, Cavite into a smart factory. With the transition, the smart factory ensures operational excellence is attained with the help of the Ecostruxure Platform that optimizes end-to-end efficiency and promotes agile management to ensure effective asset management, data security monitoring and insights tracking.

Moreover, Schneider Electric also established APC Philippines— their flagship brand. APC provides clean battery back-up power, surge protection, and IT physical infrastructure inside and outside the traditional IT environment. Its facility in Cavite Economic Zone produces UPS, power surge, backup UPS, and smart UPS.