Logee Presents Logistics Supply Chain Solutions in Indonesia

The Covid-19 pandemic has driven digital transformation in various sectors, including logistics. One of the players who have digitized their services is "Logee". This startup is one of the new initiatives from Telkom Digital Leap to advance the efficiency and effectiveness of the logistics supply chain.

Logee is a digital platform that offers complete solutions for various categories of local logistics players. Not only digitizing processes supply chain leaders, they also connect the ecosystem at large for a more optimal trading process. One of its flagship features is Logee Trans, a marketplace for the truck fleet.

Head of Logee Trans Dumoli HM Sirait said, Logee Trans is here as a B2B platform that bridges the needs and supply of goods owners and fleet owners. The Logee app provides features that cargo owners can rely on with truck fleet owners to input and save routine delivery routes.

"Logee Trans has a vision to be a neutral and safe platform that prioritizes the interests of goods owners and truck owners in the goods transportation ecosystem in Indonesia. In the future, we will also full become a DigiCo company by releasing shares to the public," he said in an official statement.

Reach and business model

As an application, Logee Trans is said to be targeting companies that want easy delivery of goods, as well as fleet owners who want ease of getting orders to increase business productivity, efficiency, and effectiveness. Their two flagship products are Logee Truck Apps and Ecologee Web (Logee Port).

Dumoli explained, Logee Trans Truck Marketplace has two business models. First, Pay As You Use or use the app as marketplace B2B. Logee Trans provides easy access, speed, transparency in finding a fleet to get cargo equipped with digitalization features. Besides that, Charge Per Transaction which allows the owner of the goods to be charged charge fees.

Both of these business models are considered to provide flexibility, both for cargo owners and truck owners. Meanwhile, the Logee Trans Truck Marketplace payment schemes offered are Internal B2B, Non 4th PL, and 4th PL. By combining the two business models with the three payment schemes, the company claims to be able to boost the productivity of goods delivery from cargo owners.

Currently, the Logee ecosystem provides at least 84 fleets, with 215 trucker, and 606 distributors that reach all over Indonesia. The company has also collaborated with various logistics players to create an interconnected ecosystem, such as KAI Logistics, Pupuk Indonesia Pangan, and Bangun Pilata Indonesia.

Not long ago, the company inaugurated a partnership with a startup provider business software in the field supply chain leaders and transportation, McEasy. This cross-sectoral collaboration is believed to be effective in reaching more users to remote areas that have not been touched by technology.

Logistics sector development

The Central Statistics Agency (BPS) reports that in 2021 the logistics sector will be able to grow 3,24%. Many factors underlie it, ranging from high demand from the sector e-commerce, to the digital transformation in the logistics business itself.

Digital penetration is needed to help various processes, make them efficient, and lead to business acceleration. Logistics sector players are also required to understand the latest technologies in order to be used properly by business actors, including: big data analytics, artificial intelligence, internet of things, cloud logistics, as well robotics & automation.

In Indonesia, the positive trend of the logistics business is also an opportunity for digital startups that focus on working on the logistics sector to help accommodate the market. Currently, there are various startups with unique solutions in logistics, ranging from aggregator services, delivery, to fleet management.

Several logistics services that focus on delivery, including AnterAja, Paxel, Sicepat, and J&T Express which already hold the title decacorn through a funding round of $2,5 billion or equivalent to IDR 35,6 trillion valuation reaches $20 billion (approximately IDR 285 Rupiah).