Artificial Intelligence (AI) Based Technology Becomes a Solution to Face the Logistical Challenges of Archipelagic Countries

The logistical challenges in an archipelagic country like Indonesia are quite large. For decades, the development of the Central and Eastern parts of Indonesia has still lagged far behind that of Western Indonesia, especially with regard to infrastructure.

These two regions are still not of great concern to foreign and local investors because their economic movements are not as fast as the islands of Java and Sumatra. This is partly due to logistical problems that have not been evenly distributed throughout Indonesia.

The high cost of national logistics and the inadequate quality of service is a particular challenge in an archipelagic country like Indonesia. Artificial intelligence technology (artificial intelligence / AI) can be one solution to answer this challenge. According to Soham Chokshi, CEO and Co-Founder of analytics-based logistics solution provider company, Shipsy, said that the unique geography of a sprawling archipelago nation like Indonesia presents its own challenges and dependence on multimodal transport and logistics partners. Developing robust physical infrastructure such as roads, railways and ports in such terrain takes time to impact the movement of goods. The inability to utilize multiple modes of transportation effectively will increase logistics costs.

“In addition, as a maritime country, the pressure on ports is increasing. Then there are challenges around the lack of visibility in logistics and higher shipping TAT, which leads to a poor customer experience,” he said when contacted on Monday (2/1).

According to him, modern technology can help businesses thrive in fast-growing markets and achieve operational excellence. For example, logistics management platforms leverage technologies such as AI, machine learning and predictive analytics to empower customers to achieve extraordinary business results.

“This optimizes delivery routes, reduces travel distances by 5 percent, and reduces travel volumes by 6 percent to reduce logistics costs. Our proprietary geocoding engine improves address quality and ensures seamless customer communication to minimize return to origin events by 18 percent.”

Soham added, the system increases vehicle capacity utilization by 31 percent and combines multiple pick-ups and deliveries to drive 14 percent more deliveries per driver. All of these capabilities combine to lower mid-mile and last-mile logistics costs by 12 percent and 23 percent, respectively.

“This technology enables logistics supported businesses to scale their delivery cost-effectively by partnering with multiple 3PLs and managing them on a single dashboard. It also oversees delivery KPIs and validates them with customers. This helps businesses not only deliver on promises of same hour per day delivery but also increases customer satisfaction.”

The Shipsy logistics management platform empowers logistics supported businesses in the region to automate the selection of logistics partners according to their needs. The system automatically measures cost, first try delivery rate, expertise, delivery type, serviceability and other factors to select the best logistics partner for the task.

“It also extends complete visibility into their operations across multi-modal transport and enables management of all of them through the same dashboard. Automation-driven allocation rules work with the same logic to target the best drivers and vehicles to carry out operations, speeding up critical decision-making to meet strict customer SLAs.”

In 2023, Shipsy management will continue to invest in technological innovation with AI, ML and Blockchain and add special features to enhance product capabilities and provide more value for customers.

“We will also take advantage of our product-led growth (PLG) approach to introduce more self-service-based solutions, where users only need to choose a package according to their business needs, make payments, and start realizing the benefits of these solutions,” he concluded.

SHIPSY MEDIA CONTACT

arjun.alva@shipsy.io