8 Key Considerations for Choosing Logistics Management Software in Indonesia

Despite being Southeast Asia’s largest logistics market, the Indonesian freight and logistics market is expected to demonstrate slow growth at a CAGR of more than 9% from 2023 – 2028. With the fragmented market, rising eCommerce, and the lack of standardized freight and logistics management processes – the logistics scene in Indonesia is challenging.

This is driving the need for automation and digitization of logistics processes, and as a result, a number of solutions are making an entry on the scene as well. However, the majority of these solutions offer disparate functionalities and fail to provide a completely centralized and highly integrated platform to manage as well as orchestrate logistics operations.

Hence, businesses find it hard to choose the right logistics management software in Indonesia and often end up working with 2 or 3 different software that offers partial results. 

To make it easier for businesses to make the right choice, we are sharing the key considerations a business owner must keep in mind while choosing logistics management software in Indonesia. 

How to Choose the Right Logistics Management Software in Indonesia – 8 Key Considerations

#1 – Ease of Integration

Ensure that the solution can integrate with your existing systems, such as ERP/WMS/OMS/CMS, etc. This helps avoid unnecessary disruptions to your business operations and ensures centralized management. By choosing software that can integrate with your existing systems, you can streamline your logistics processes and ensure that your team has access to accurate and up-to-date information. 

This can help you increase efficiency, reduce errors, and improve overall visibility into your logistics operations. When evaluating different software solutions, be sure to carefully assess their integration capabilities to ensure a smooth and effective implementation.

#2 – Scalability and Flexibility

As a business grows, logistics management needs also evolve. Also, a business might need to upscale or downscale its operations; it might want to offer diverse delivery options or track/monitor across multiple business components.

Hence, it is important to opt for logistics management software that scales as per your business. Further, opting for a platform that can be changed or updated as per the evolving business needs ensures flexibility which helps you avoid investing in a new solution every time your business grows or changes and can save you time and money in the long run.

#3 – Real-Time Tracking 

Real-time visibility enables stakeholders to track the exact location of a particular shipment/vehicle/rider, which can help prevent potential delivery delays and other issues that can negatively impact customer satisfaction and the company’s bottom line. Implementing advanced last mile delivery management solutions can bring real-time visibility into the logistics process for retailers as well as courier companies.

Investing in a smart logistics management solution in Indonesia ensures a unified and up-to-the-minute overview of your shipment’s progress both within and beyond national borders. You can check which shipment is being carried by which vehicle and which driver is en route to delivery for which customer. This visibility ensures a firm grip over the operations.

#4 – Asset Optimization

By leveraging smart asset optimization, companies can streamline their logistics processes, increase efficiency, and improve customer satisfaction while reducing operational costs. Smart optimization of assets can decrease turnaround time by maximizing vehicle capacity and delivering a higher number of shipments in each trip. 

This results in reduced operational costs for road freight transportation, line haul, and other related services. Additionally, it allows businesses to avoid issues such as U-turns, enhance vehicle capacity and utilization, monitor their shipments in real-time, and send automated notifications to multiple stakeholders, including the end customers. 

AI-powered logistics management software in Indonesia can help businesses increase their truck utilization and reduce empty miles, which is a major hurdle for logistics transportation in the region.

#5 – Unified Collaboration

As a business diversifies its operations or adds more partners, it becomes hard to manage all the transactions and multiple business components in a centralized manner. This creates data and operational silos, which affects the overall process visibility, and businesses are unable to improve productivity. 

Manual management, higher costs of operations, lack of transparency, manual billings, and chaotic settlements – the list is endless. On the other hand, having a logistics management system that offers smart workflow automation for billings & invoices, rider payouts, cash settlements, 3PL onboarding, 3PL allocation, shipment tracking, and order management can help businesses streamline their operations and reduce the overall cost of operations.

#6 – Integrated End-to-End Management

Smart platforms come with intelligent in-built AI routines and algorithms that help businesses plan, manage, monitor, track, and control all the operations, right from freight procurement to doorstep deliveries. So, you can manage every logistical movement, asset, stakeholder, and transaction from an integrated dashboard with smart capabilities.

Further, the solutions offer real-time alerts and communication for every relevant stakeholder, which ensures higher CX, reduces customer query calls, and ensures greater SLA adherence.

#7 – Authentication and Validation Checks

Another important consideration that every business looking for logistics management software in Indonesia should focus on is authentication and validation checks. Every time a change happens or a key milestone is achieved, the system should ensure proper validation/authentication to ensure robust operations management. 

Some crucial use cases of such checks are delivery confirmation, proof of delivery, customer feedback, delivery failure reason capture, rider behavior management, etc. Proper OTP-based checks, collecting reasons for delivery failures, confirmation for returns or order cancellations – all these automated checks ensure efficient management of field operations and help keep the frauds at bay.

#8 – Data Analytics

Having access to the right data at the right time and in the right format is a crucial business must-have. However, the disparate nature of the logistics system makes it hard to access reliable and real-time data insights for accurate business decisions. Further, even if the businesses manage to collect data from multiple sources, by the time they process it or create reports to understand it, the data relevance is degraded. 

This is where AI/ML-powered logistics software in Indonesia can actually make a difference. With smart in-built data analytics features, businesses can generate daily/weekly/monthly reports as and when required and analyze data in multiple ways to get actionable insights for improving business performance.

Further, they can set and track proper KPIs for every partner, rider, or carrier to build better strategies and introduce performance benchmarks.

Before we move ahead, it is important to understand that no single software comes with such diverse functionalities and can scale in such an agile manner. Hence, it is important to opt for customizable logistics platforms, such as Shipsy, that offer all the above-mentioned and a bevy of other powerful features and capabilities for excellent logistics management.

Shipsy: Smart, Scalable, and Customizable Logistics Management Software in Indonesia

Shipsy offers AI-powered end-to-end logistics management software to assist businesses in overcoming all their logistics management challenges and ensure rapid and sustainable growth. Being an intelligent solution, Shipsy offers real-time shipment tracking for a consolidated view of both international and domestic shipments on a single dashboard. 

Businesses can use smart route planning and optimization engines, asset optimization algorithms, rider management modules, and more to orchestrate highly efficient and fast deliveries, increase productivity and elevate their overall CX. With its intuitive and comprehensive solutions, Shipsy has helped businesses unlock

• 23% reduction in Last-Mile delivery cost
• 28% reduction in customer complaints
• 18% increase in delivery NPS
• 12% reduction in Mid-Mile costs
• 45% reduction in customer onboarding time

For more information on Shipsy’s smart logistics management capabilities or to get started with its logistics management software in Indonesia, please get in touch with our experts and schedule a customized demo today!