Warung Pintar Announces Presence as a "Holding Supply Chain"

Warung Pintar announced its position as a group that specifically oversees supply chain solutions for the warung ecosystem, ranging from stall owners, grocery stores, wholesalers, distributors, to retailers. brand. This news was announced four months after the action its acquisition of Bizzy.

Currently, Warung Pintar Group has four digital solutions, each of which is tasked with helping to strengthen the warung supply chain from upstream to downstream.

First, the Warung Pintar application which is intended for shop owners and grocery stores to meet the stall's stock. Other available features are the Smart Notes feature (debt recording), Smart Community (stall business development program), and Smart Ads (advertising revenue). brand for additional stall income).

Second, Smart Wholesale app used by grocery stores to connect directly with hundreds of shop owners within 5-10 km. In addition, there is a Smart Business feature for inventory procurement. So far, the company has collaborated with more than 600 wholesale business partners, each serving around 200-300 shop owners who are included in the application.

Third, Warung Pintar Distribution which has been present since the company's inception. This third service is now even more solid because it has more than 50 warehouses and depots throughout Indonesia. There is a warehouse management system and inventory solution in it.

Lastly, Bizzy Connect, which is the newest product, connects brands and distributors directly to shop owners. This integrated digital distribution system is supported by applications for salesman management to an effective delivery tracking system. For brands, it is equipped with a dashboard to monitor the distribution of goods directly.

Now, there are more than 500 brand and distributors who joined, including big names like Reckitt Benckiser and Coca Cola. "In 2021, we have succeeded in completing digital solutions for traditional channels, Bizzy's presence makes us richer in solutions," said CEO of Warung Pintar Group Agung Bezharie Hadinegoro in a virtual press conference, Wednesday (7/7).

The solution from the Warung Pintar Group is claimed to be able to increase the efficiency of stalls because shop owners can be efficient up to 40% both in terms of competitive prices and get additional income. Also, for the owner brand and distributors can now connect directly to the shop, without any middleman. Shop owners have more sources of products at competitive prices, almost 20%-25% cheaper.

Agung realized that in the midst of this pandemic, stalls were among the most affected sectors. Based on the results of an internal company survey, at the beginning of the pandemic, as many as 93% of shop owners experienced a decline in sales of up to 28%.

On the one hand, 74% (approximately $267 billion) of Indonesian retail business occurs in channel traditional and the number of stalls is 60% of that figure. Warung is also the main distribution channel with a contribution to GDP four times higher than E-commerce.

The root of the problem at the warung is the multi-layered distribution system that reduces efficiency between 20%-25%. Fragmented and asymmetrical information causes a lack of visibility of data that hinders the growth of all parties, unfortunately many players are trying to bring solutions to only one side. This disrupts the market which ultimately increases the skepticism of digital adoption in the warung ecosystem.

“Warung Pintar Group's digital solutions are designed as strengths fundamental which is urgently needed to promote more significant economic growth in one of the largest distribution channels in Indonesia,” added Agung.

Next step

With the new position as a group, Agung explained that the company's focus will return to the roots that warungs must be stronger than before. Therefore, the company will bring more new features which will be released soon this year. Unfortunately, he refused to divulge further.

According to him, although there are many minimarkets to supermarkets, warungs still play an important role. Because it is not only a transactional place, but as a community to gather and chat. Moreover, in Indonesia there is room for service growth E-commerce still so big.

“Digital stalls are vehicles that can lead to pintu a gateway that can reach more Indonesians into digital platforms.”

As part of the transformation, Warung Pintar no longer provides a yellow cart stall. As of now, Warung Pintar Group has grown 100 times since the beginning of the pandemic for the number of stalls served - from 5 thousand to 500 thousand stalls. This means that 1 out of 7 warungs in Indonesia are in the Warung Pintar Group network.

The active users reach 106 stalls who transact every month. It also said the company had processed millions of transactions this year. Agung targets Warung Pintar to attract up to 1 million stalls by next year.

Related news about fundraising, he said the $6 million was part of the company's acquisition of Bizzy, so it wasn't a special round. However, he said the company is currently actively discussing with investors about the possibility of a new round.

“We are active Chat with investors, which one can give us the spirit of mutual cooperation, which can give us additional value and capability so that more stalls can be digitized,” he concluded.