Logistics Business Adaptation and Growth Opportunities in the Midst of a Pandemic

The logistics business experienced a period of receding at the beginning of the Covid-19 pandemic that hit the country. Uncertainty in the transportation sector and restrictions on social activities were a barrier for this industry to grow rapidly. But over time, players began to adapt and find opportunities in the midst of a pandemic situation.

Budi Handoko, as Co-Founder and COO Shipper, platform developer startup aggregator logistics, admitted that his team was quite overwhelmed by the limitations created by the pandemic, which was also influenced by policy makers. In addition, it must also maintain business continuity without violating regulations and the health of employees.

In the midst of challenges that continue to emerge, various innovations are created to adapt and look for opportunities to be able to continue to grow in the midst of "uncertain" conditions. In the #TuesdayStartup session, Budi shared some insights interesting when the pandemic disrupts the logistics business in Indonesia.

Mutualism in the midst of a pandemic

Growing industry E-commerce in a country, will also have an impact on the growth of the logistics business in that country. From the retail side, many traditional sellers have switched to market share "online" to adapt to the pandemic situation. Success E-commerce also closely related to support from the logistics industry.

This reciprocal relationship also creates a circle of consumers that intersects between E-commerce and logistics. Therefore, when consumer behavior is E-commerce experience a shift, the logistics industry will also receive "feeling" which is not much different.

Budi revealed, three interesting things he found when observing consumer behavior during the pandemic. First, many sales in the tertiary sector fell at the beginning of the pandemic. This creates an interest in selling medical devices. Second, lots of sellers online who tend to choose to limit interaction with couriers. Finally, many are starting to look at the business in food industry These three things create opportunities that the country's logistics business can take advantage of.

HR Development

The rapid growth of the logistics industry will create a growing need for talent in related fields. The Shipper is aware of this and has prepared an initiative to support the development of logistics human resources in Indonesia.

There are three scenarios offered, namely the Shipper Trainee Program, his party will recruit Intern/Fresh Graduate who will be given training on the logistics industry. Second, Shipper Academy, is a scholarship program for parties interested in logistics to be given 3 weeks of training in theory and practice. For best results will include a job offer at the company. Finally, there is the Shipper Hack, for IT talents who are interested in working in logistics and creating related innovations.

In addition, Shipper also explained his business plan in 2021 which wants to develop a warehousing network and first mile or the process of picking up goods from the customer.

Logistics sector funding

Regarding investment, many investors have looked at the logistics industry in the hope of solving problems E-commerce. In the past year, several names have announced funding acquisitions, including Shipper, logicallyand Andalin. Budi is of the opinion that this year will be no different considering the growth of the logistics industry which will continue to rise in 2021.

In addition, Shipper is an alumnus of the US-based Y Combinator accelerator program. In this discussion, Budi also shared some tips for startups early stage who also want to participate in accelerating their business growth by participating in programs like this.

Previously, Budi emphasized that startup activists are encouraged to focus on their products first, and how big the problem they want to solve. That all things obtained from the accelerator program are "extras" that can accelerate business growth, not merely as a solution and an achievement.

In addition, the proportion of shares, the composition of the company [founders & team members] and market potential is also one that is highly considered to be able to participate in the accelerator program.

Regarding funding, Shipper is still actively communicating with investors to this day. Budi emphasized that establishing a good relationship with investors is not only when seeking funding, because no one knows what will happen in the future.