Bizzy Becomes a Holding Company, Oversees Procurement, Logistics and Distribution Business

Startups procurement B2b special "Bizzy" officially announced to be holding company, aka a group of companies that houses several businesses. This initiative was accompanied by the inclusion of logistics and distribution business lines into its services. Under the auspices of the Bizzy Group, the company has the ambition to be at the forefront of serving B2B consumers, especially in the SME arena.

Bizzy CEO Andrew Mawickere will lead holding the. It is planned that by the end of this year, a new website with the domain Bizzy.co.id will be released, containing all Bizzy services that have been fully integrated. For the time being, they are still separated but can be accessed online.

"Bizzy.co.id will be the main site. It will contain all services under Bizzy Group. Later, after selecting the client menu, you will be directed to the pages of each service," said Andrew, Tuesday (23/7).

It should be noted that the logistics and distribution business that has joined Bizzy is none other than a company that is part of the Sinarmas Group. Namely PT Bina Sinar Amity (Bizzy Logistics) and PT Sinarmas Distribution Nusantara (Bizzy Distribution).

The business bases of these two companies were initially very conventional, but strong in terms of assets and services because they have been around for a long time. Bizzy himself entered the Sinarmas affiliate, after pocketing Series B funding led by SMDV last year.

Andrew admitted that the integration process between the two companies took a relatively short time, only a year. Because, both started from conventional businesses so that the testing can be done directly without having to go through a third party. The biggest challenge lies in change mindset and how it works.

"Usually startups start from digital and then go offline. If we reverse it, the assets are already online, right. The difference is that if we build the application, we can directly try it on our own assets, no need for a third party."

He set an ambitious turnover target for Bizzy Group by the end of this year of IDR 5 trillion. This figure is an increase of 30%-40% compared to the company's realization in the previous year of around Rp3,8 trillion. It is predicted that Bizzy Distribution will be the main support because it is considered closely related to the user segment of the Bizzy Group, namely SME entrepreneurs.

Andrew admitted that his party is currently preparing a new funding round to support all of his plans going forward.

Introducing Bizzy Consolidation

Not only adding two new lines, continued Andrew, the company also released Bizzy Consolidation to help B2B clients reduce tender prices when negotiating with vendors. This service comes in the form of a vendor registered on the Bizzy Marketplace.

The working model, when the team finds that there is more than one client who wants to buy procurement goods with the same type, the team will offer to combine them into one order before being negotiated with the vendor. The goal is to reduce the purchase price, considering that the more quantity of goods the price from the vendor will decrease.

"Later on, our clients offer orders to be combined for negotiation with vendors. We can get a commission from their savings."

Bizzy Marketplace, still on the Bizzy.co.id website, has recorded 2000 buyers and 2500 vendors since officially operating in 2015. There are 14 product categories with 5100 sub categories. Ranging from industrial electronics, furniture and furnishings, MRO, hotel equipment, restaurants and cafes, and much more.

Bizzy Logistics and Distribution

On the same occasion, representatives from both companies also introduced their businesses. Bizzy Logistics CEO Paul Good explained the company is playing into the logistics area for international freight forwarding and customs; supply chain; and transportation.

From the data that Good cites, the logistics market in Southeast Asia is very large at $1,5 trillion. Indonesia represents 5% of the total, 2% of which is controlled by DHL.

"We are working with Hakovo from Singapore to digitize customs so that the client process is more efficient when sending goods into Indonesia," said Good.

In terms of assets, the company has a warehouse of 38 thousand square meters, 384 trucks of various capacities, and annually makes 80 thousand trips. The company serves delivery to Malaysia, Singapore, and Vietnam.

For Bizzy Distribution, it has 26 branches and 100 sub distributors. The company distributes consumer goods products from FMCG brands to traditional and modern traders, with a total of 200 thousand distribution points spread throughout Indonesia.

CEO of Bizzy Distribution, Harsanto Huang, explained that the company has a derivative product, namely TokoSmart.id, to help shop traders in terms of stocking goods through the application. They can also sell digital products from the TokoSmart application. The concept is similar to Kudo and Kioson.

Since TokoSmart was introduced in January 2019, it is claimed that 18.900 stalls have joined. The transactions reached more than 39 thousand with a GMV value of IDR 76,7 billion as of July 2019.

"We intend to expand TokoSmart's services by providing POS machines to make it easier for them to sell. The plan is that by the end of the year we want to attract 1 million stall traders," said Harsanto.