Adopts Cainiao Concept, Lodi Improves Warehouse Utility with Technology

The logistics startup industry now has a new player playing in the field fulfillment and delivery last mile named Lodi. Indeed, Lodi was initiated at the end of 2018 and operations began the following year.

Concept offered Lodi similar to Cainiao, Alibaba's logistics giant in China, but with local adjustments.

Managing Director of Lodi Zico Gosal explained, so far logistics players have always relied on heavy assets, has warehouses in various locations and has its own fleet in running its business.

In fact, not necessarily the assets they have, such as warehouses, have high utilization. When the warehouse is empty, there is overhead costs always charged. This concept is not appropriate when applied in the era of digital technology.

Hence the Cainiao concept with light assets and carry the spirit of collaboration with other logistics players in fulfillment center and delivery last mile more appropriate for adoption.

“Currently, we are focusing on expanding the warehouse location by looking for more businesses because our goal is to reduce logistics costs,” he told DailySocial.

Lodi has connected with partner fulfillment such as DB Schenker to provide a warehouse located in Marunda, North Jakarta with the concept shared users area of ​​10.500 square meters. Another location is in Cawang about 4 thousand square meters.

DB Schenker is a global logistics player with more than 40 years of experience. The entry of DB Schenker's warehouse for the North Jakarta location brings high optimism for Lodi to attract more partners.

With that capacity, Zico admitted that Lodi could accommodate 50 thousand orders every day. However, this condition is still being strived to be achieved.

Lodi's business model and target users

In addition to connecting the warehouse owner to rent out his room to Lodi, the company has hooked up logistics companylast mile for delivery to consumers. The names are JNE, SiCepat, Lion Parcel, and First Logistic.

The target user of Lodi itself is the owner brand, reseller and sellers on the platform marketplace or social commerce with an order capacity of more than 100 per day. It's different when the order is under 100 per day. This condition can still be handled properly in-house by seller.

Chief Commercial Officer Dina Effendy added, from this upper limit, the solution that used to be taken was to recruit additional people. In fact, they should prioritize business development.

Lodi's presence can be a solution, all their goods can be deposited and the entire shipping process will be handled directly by Lodi.

“Users can monitor in dashboards which we provide to monitor the entire movement of incoming orders. All systems are integrated. When the goods are in the warehouse, they can be directlystock," added Dina.

It is not stated how many sellers have used Lodi as the preferred option for fulfillment-his. If users are interested in Lodi's solution, there is a one-year contract system.

Throughout this year, Lodi will focus on adding the next warehouse location in Java. It is targeted that there will be additional warehouses covering an area of ​​2 thousand square meters. Next year it will expand its presence in Sumatra and Sulawesi.

It has also developed a warehouse function so that it can store more complex products such as frozen food, chemicals, and medicines so that more users can take advantage of Lodi.

Lodi currently has pocketed early-stage funding from local investors with an undisclosed nominal. These fresh funds were obtained when Lodi was new. Zico admitted that the company is currently seeking series A funding with needs ranging from $3 million to $5 million (approximately IDR 41 billion to IDR 68 billion).

Lodi's team consists of 40 people, almost half of whom are commercial teams.

“We have started roadshow looking for investors, it is estimated that in two to three months it will be announced," he concluded.