Listening to the Potential of "Smart Logistics" Startups in Indonesia

The logistics business is increasingly relevant to today's industry needs. However, in the midst of digital developments, companies involved in it are required to carry out transformations. One of the results, in the last five years various -based initiatives "smart logistics" born. Not only supporting the performance of corporations, but also supporting SMEs quite a lot.

Business model relevance smart logistics also validated by the number of related startups that have received investment, hoping to disrupt the opportunities that exist. To see how far the progress smart logistics in Indonesia, in this week's #Tuesdaystartup DailySocial bring the Co-founder paxel Zaldy Masita.

Decacorns help growth smart logistics

According to Zaldy, the duo decacorn Gojek and Grab has a big role here. Especially GoSend services and GrabSend, they started to introduce the concept smart logistics which directly targets the B2C to C2C segments. The strategic move to enter this segment is considered by him as a smart decision, because most legacy businesses in the logistics sector are still fullycater B2B segment.

"During the current pandemic, it's quite obvious how the growth of services has been smart logistics targeting the B2C to C2C segments experienced very positive business growth. Meanwhile, for those who only focus on B2B, it is difficult to run a business at this time," said Zaldy.

Service growth E-commerce in Indonesia is also one of the supporting factors for local logistics services to start adopting technology and creating new innovations. No longer running a conventional business, but starting to invest in technology and hire relevant digital talent.

"Nowadays, many well-established and popular logistics companies in Indonesia are no longer spending funds to buy new supporting modes of transportation, but rather on IT resources to innovation and technology," said Zaldy.

The importance of technology and innovation

To support the logistics industry can move faster, of course, by developing relevant technologies and innovations. Starting from changing conventional processes to offering new options that make it easier for customers.

An example of a case that then began to be widely applied by logistics companies in Indonesia is, pickup which can be used by all customers. No longer have to deliver goods to the nearest logistics location, now through the ordering process application, collection and payment can be done through the application.

"In addition to the logistics companies and those who claim to be smart logistics Must be able to clearly understand customer needs. For that technology driver monitoring/goods to be delivered or delivered pick up become very important to implement," said Zaldy.

Technologies such as IoT to big data have started to be widely used by logistics companies. In addition, the ability to process intelligent mapping to the tagging process, which is currently widely used by logistics companies to find out in detail the address or point of the customer's destination, can facilitate and of course speed up the delivery process.

"On the other hand we as players smart logistics it is still difficult to find and get digital talent, because they still have to compete with technology companies to startups unicorn in Indonesia," said Zaldy.

Local players are still the "king"

Regarding competition, according to Zaldy, it's not a problem when there are a lot of players smart logistics foreign to local, which have sprung up and enliven the landscape of logistics services in Indonesia. In this he sees, the more player, the better the logistics ecosystem in the future.

Mentioned what are the opportunities for foreign players to enter the Indonesian market, according to Zaldy, the Indonesian region which is quite complex and unique, can make it difficult for foreign players to launch their business. In this case, it can be a good potential and opportunity for local players to be able to launch their services and business in the logistics sector.

Looking at the current trends and needs, the choice to provide services same-day delivery between cities can be an option for those who want to enter the logistics sector. Not only providing support to SMEs, the segmentation is still relatively small niche This will minimize competition with giant logistics companies that already have extensive resources and reach in the country.

"For this reason, we at Paxel are still focused on this segmentation and continue to provide relevant services for customers. The strategic steps we take are, continue to develop technology to establish partnerships with related industries to financial services that can make it easier for customers to make payments on the platform," said Zaldy.