5 Ways Smart Logistics Automation Benefits Courier Companies In Indonesia


5 Ways Smart Logistics Automation Benefits Courier Companies In Indonesia

The Indonesian courier, express, and parcel industry is evolving and projected to record a CAGR of more than 12.5% between 2022 and 2027. There are three major drivers behind this growth. The first is the increasing regional and global economic integration that is pushing businesses in Indonesia to look for courier and logistics service providers to connect to the domestic and international markets.

The second reason is the booming e-commerce sector that makes online retailers partner with courier companies in Indonesia to manage their logistics operations. The third driver behind the growth of the Indonesian CEP industry is the growth in the manufacturing and automotive industry.

CEP Industry In Indonesia: Key Segmentation

The Indonesian CEP market is categorized by destination (domestic and international), transaction (B2B and B2C), and end-user (retail and wholesale, food and beverage, banking and financial services, electronics, construction and infrastructure, and manufacturing and automobile).

Major Logistics Challenges In Indonesia

Indonesia’s logistics industry is facing many challenges including the following:

logistics challenges in Indonesia

Top Courier Companies In Indonesia

Deutsche Post DHL Group

Deutsche Post is one of the leading courier companies that offer a wide array of freight transport, international express, and supply chain management services along with top-notch e-commerce solutions.

Pos Indonesia

It’s a state-owned company, dominant in the courier and logistics industry. Apart from the postal and courier services, this well-known courier company in Indonesia also offers financial services, remittance services, cargo, and more.

PT Jalur Nugraha Ekakurir (JNE)

JNE is a well-known logistics and freight forwarding company with its network and scope of distribution spanning over 83000 cities. This courier company in Indonesia offers delivery services for small and large-sized goods.

PT. Global Jet Express (J&T Express)

J & T Express is a leading logistics and express delivery company with a presence in 13 countries across the world. It offers integrated logistics solutions leveraging its intelligent infrastructure and digital logistics network. 

PT. Citra Van Titipan Kilat (TIKI)

TIKI is a renowned courier company in Indonesia that gains a competitive advantage by offering competitive shipping rates. It also specializes in same-day service, overnight service, trucking service, and online pickup.

5 Ways Smart Logistics Automation Benefits A Courier Company In Indonesia

According to Indonesia’s Ministry of Industry, shifting to digital-based logistics is the need of the hour. Logistics automation can make CEP providers get the following benefits:

1. Reduced Costs

To ensure hassle-free movement of goods, it is essential to complete each operation on time. However, unpredictable situations such as demurrage and detention, transportation delays, etc., can increase the costs of moving goods. Moreover, late deliveries can lead to poor customer experience and increased returns, further impacting a brand’s reputation. Investing in a smart courier management solution offers predictive analysis to empower courier companies to make strategic decisions and control the cost of moving goods. 

2. Real-time Shipment Tracking

Real-time shipment tracking is essential for a courier company in Indonesia to keep track of multiple shipments that are on the move via the same or different transportation modes. Integrating a smart courier management platform brings automation and provides 360-degree visibility of courier movements along with milestone alerts. Not just the courier company but also the company’s customers (retailers, e-commerce or manufacturing companies, etc.), along with the end-customers, can check the exact location of goods. It brings transparency in the entire journey of goods.

3. Data-Driven Insights

Data analytics empowers companies to pinpoint pain points, understand order patterns, and make data-driven decisions to improve the entire courier management process. Using these insights, companies can address logistics inefficiencies and boost customer experience. Smart courier management solutions provide insights in the form of smart charts and reports to help courier companies avoid ETA SLA breaches, streamline end-to-end courier management, and improve business profitability.

logistics automation benefits for courier companies

4. Scalability and Flexibility

Logistics automation enables courier companies to scale and meet the delivery expectations of customers even during sales or peak season when the order volume is high. Leveraging automation and integrated courier management platforms, they can facilitate same-day/one-house delivery and also provide flexible delivery options. Courier companies can effortlessly manage first, middle, and last mile operations.

5. Minimized Manual Intervention

Operations such as preparing invoices, bill of lading, and more can consume a significant amount of time and require manual intervention. Smart courier management solutions minimize dependency on human resources while guaranteeing complete precision in the task performed.

Key Features To Look For In A Courier Management Solution

To choose the best courier management solution for your courier company in Indonesia, look for the following features and functionalities:

  • Logistics Automation to automate first, middle, and last mile delivery operations, hub pickups, and other task allocations.
  • Analytics and smart dashboards to improve KPI benchmarking, extend reach and scale logistics operations, optimize vehicle capacity, and more.
  • Automated route planning and optimization to allocate optimal delivery routes for drivers. 
  • Advanced geocoding to convert text addresses into exact longitude and latitude and locate delivery addresses without any hassle.
  • Seamless collaboration with all stakeholders via automated WhatsApp, Email, and SMS alerts.

Shipsy: Intelligent Courier Management Solution For Effortless Courier and Parcel Management 

Shipsy’s intelligent courier management platform ensures end-to-end logistics management and guarantees complete operational efficiency for CEP providers. The solution leverages the capabilities of AI, ML, and other top technologies to optimize resources, facilitate hub ops management, maintain operational transparency, offer real-time tracking, and much more. By integrating this customized SaaS-based solution, businesses can unlock benefits like:

  • 45% reduction in customer onboarding time
  • 23% reduction in last-mile delivery cost
  • 12% reduction in mid-mile costs
  • 28% reduction in customer complaints
  • 18% increase in delivery NPS

Request for a custom demo now.


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