Logistics Software Companies in Indonesia: The Top 5 List

The logistics market in Indonesia is expected to be USD 74.9 billion in 2023, and the rapid rise of eCommerce, improving middle class, and increased delivery demands are fueling the growth of logistics services. However, weak transportation infrastructure, poor connectivity, and major reliance on road freight are crippling the logistics sector. 

The emergence of eCommerce, diverse delivery models, and a surge in cross-border trade are contributing to the overall call for automation and digitized logistics to help businesses manage, monitor, track, and control all the processes in a better manner. 

Here, we discuss the various challenges facing the logistics sector in Indonesia, how smart logistics software platforms can overcome them, and the top 5 logistics software companies in Indonesia.

The State of Logistics in Indonesia – Major Challenges

#1 – Poor Connectivity and Weak Transportation Infrastructure

Businesses in Indonesia face an uphill battle due to the country’s geography and its lack of adequate transportation infrastructure. The size and complexity of the country require multiple forms of transportation—air, land, sea, and rail—in order to ship goods, leading to extra costs and longer delivery times. 

Additionally, businesses lack an integrated system for managing, monitoring, controlling, and tracking operations and assets, making communication and collaboration between logistics and supply chain stakeholders difficult and thus further affecting efficiency and productivity. 

#2 – Major Reliance on Road Transportation

Another major challenge that is a crucial use case for logistics software companies in Indonesia is – non-optimal logistics transportation. Around 90% of logistical movements rely on road transport, leaving sea and rail as underutilized freight channels. 

Further, the roads aren’t paved and well connected, leading to an inefficient supply chain, higher operational costs, and delays in delivering shipments. Longer lead times spur operational and supply chain inefficiencies and degrade the overall profitability of the businesses.

#3 – Tricky Geography Leading to Higher Logistics Costs

Owing to its unique and tricky geography comprising more than 18000 islands and islets, carriers and shippers in Indonesia are grappling with higher logistics costs – 25-30% of the country’s GDP. Even domestic logistic movements call for multimodal transportation, which leads to poor efficiency and higher costs of shipping because of the lack of proper visibility over multimodal movements.

#4 – Operational Inefficiencies

The absence of an integrated logistics management platform means inefficient negotiations/communications between transporters, brokers, and shippers, leading to empty back-hauls. This brings down reduces the economy per truck, adds to losses, and makes the overall supply chain non-sustainable. 

For example, in Europe, truck utilization stands at 200,000 km/year, and in Thailand, it is 150,000 km/year. However, in Indonesia, truck utilization stands at just 50,000 km/year. 

Compared to the industry average for empty truck backhaul ranging between 20% and 25%, the values are 40-50% in Indonesia. Lack of logistical visibility and inability to track trucks/assets lead to SLA breaches, missing cargo, and more such issues.

#5 – Industry Fragmentation and Lack of Digitization

Indonesia’s logistics industry is fragmented – around 90% of the trucking companies own 100 or fewer trucks, and 75% own 20 trucks or less. Also, the owner-operators are unable to collaborate with businesses that have shipping needs as there is no reliable and functional network, and the right knowledge is not available, which prevents them from scaling.

Finally, the logistics and freight industry lacks digitization. Businesses still rely on obsolete logistics management methods, such as manual shipment/fleet tracking, pen-and-paper ledgers, and disparate systems leading to higher demurrage, delayed deliveries, higher shipment costs, etc.

Now that we have had a look at the crucial challenges in logistics in Indonesia let us move on to find how logistics software companies can help businesses in Indonesia.

Logistics Software Companies in Indonesia – Overcoming the Challenges

#1 – Integrated Management Dashboard

An integrated management dashboard enables businesses to manage, plan, track, monitor, control, and analyze every single process and every single stakeholder in the entire logistics ecosystem via a single interface. Right from freight procurement to 3PL allocation, rider management, order management, shipment tracking, invoicing, and transaction management – dashboards offer all these and many other functionalities.

Logistics software companies in Indonesia that offer AI-powered functionalities and capabilities in the dashboards help businesses unlock higher efficiency, reduced costs, operational visibility, and higher returns.

#2 – Optimal Freight Transportation Management

Right from carrier choice to optimized routes and vehicle capacity optimization to LTL/FTL management – smart solutions from leading logistics management software companies in Indonesia help businesses manage their freight movements and transportation smartly. 

They can partner with multiple 3PLs at one time and can choose the most profitable ones with data-backed insights. This helps plan highly efficient and optimal multimodal logistical movements.

#3 – End-to-End Automation for Effortless Orchestration

AI-powered end-to-end logistics management solutions can help businesses identify multiple optimization pockets and tackle inefficiency at its core. They can automate all aspects of logistics management, from freight procurement, bidding, shipment/vehicle/rider/order tracking, and facilitating documents to reconciling invoices and more.

This real-time visibility ensures 100% transparency. With highly actionable data insights at hand, businesses can become more efficient and profitable by making strategic decisions to minimize losses via demurrage, detention, transport delays, etc.

#4 – Feature-Rich Interface

Unlike legacy logistics management software with limited features targeting specific business problems and industries, modern logistics software companies in Indonesia, like Shipsy, can cater to businesses of all types and sizes. They offer integrated logistics management solutions for all industries, such as manufacturing, courier and parcel, freight forwarding, etc., in a customizable structure. Hence, businesses can make the most out of their digitization and automation pursuits and stay ahead of their competitors. 

#5 – Disparate and Fragmented Systems

The freight and logistics industry in Indonesia suffers from fragmentation and a lack of automation. Spot inquiries, RFQs, document handling, and price procurement are all handled by different players, resulting in data and information silos.

Logistics software companies in Indonesia with intelligent end-to-end freight management platforms solve this issue by providing an automated, single-dashboard solution. With integrated management and data information like shipment tracking details via rail, road, sea, or air, real-time alerts, documentation, and communication, businesses can manage their processes in a better manner.

Top 5 Logistics Software Companies in Indonesia

#1 – Shipsy

Shipsy is an AI/ML-powered end-to-end logistics management platform that helps businesses unlock cost-effective, efficient, and seamless operations with its easy-to-use and highly intelligent offerings. Businesses can manage and track bulk movements and get access to crucial data insights, such as transshipment aging, carrier and volume analysis, and more.

Its smart in-built AI algorithms and cutting-edge technology ensure effortless management and orchestration of same-day/one-hour deliveries, boost on-time delivery volumes, offer end-to-end courier visibility, drive profitability, and improve customer experience.

In-built route planning and optimization engine, automated customer/manager alerts, vehicle optimization, territory optimization, and predictive alerts help businesses:

• Reduce SLA breaches by 37%
• Increase deliveries per driver by 14%
• Increase savings on freight costs by 10%
• Increase vehicle capacity utilization by 31%
• Increase savings in optimization time, and route planning by 18%
• Reduce overall transportation costs by 12%

#2 – Circuit

It is majorly a driver and delivery management app with diverse features that help businesses reduce their in-house delivery costs. Businesses can create and manage routes for multiple drivers, collect PoDs, send customer messages, and more.

Pros: 

• Ease of use
• Route optimization
• Value for money

Cons:

• End-to-end logistics management absent
• 3PL onboarding, management, and optimization absent
• No comprehensive data analytics support

#3 – Optimoroute

This is also a route optimization software that offers territory management, driver tracking, dispatch management, and other such delivery management services in a simple drag-and-drop dashboard.

Pros:

• Live tracking for orders/riders 
• Customer feedback and PoD management 
• Reporting and analytics

Cons:

• End-to-end logistics management absent
• Strategic business decisions for entire ecosystem cannot be done
• Multiple parties management and stakeholder management is absent
• Address accuracy is sub-par

#4 – FarEye

FarEye is a logistics management platform with multiple solutions for different industries to solve diverse logistical problems. The tech stack is decent, and businesses can manage and plan multiple parties, operations, and business decisions easily via a single dashboard.

Pros:

• Ease of use
• Reliable customer support
• Diverse solutions for different business

Cons:

• Clunky integration
• Process flow can be better
• Products and module configuration can be better

#5 – InstaDispatch

This is also one of the best logistics software companies in Indonesia that offers complete delivery management and route optimization. The solution offers international parcel delivery management, same-day, next-day, and express delivery management, eCommerce, and retail delivery management.

Pros: 

• Routing 
• Scheduling
• Driver Tracking

Cons:

• Multiple parties management and stakeholder management are absent
• End-to-end logistics management absent
• 3PL management and optimization absent

Shipsy’s smart end-to-end delivery orchestration, effortless stakeholder management, and diverse logistics & supply chain management solutions equip businesses with the right automation. The solutions come with hundreds of custom optimization and planning criteria for routing, distribution, delivery planning, Last Mile, hub management, international logistics, and more. For more information about the logistics offerings of Shipsy, please get in touch with our experts and schedule a customized demo here.