Indonesia is the fourth largest market in the world with internet penetration reaching 65 percent with cellular users continuing to grow. This landscape then leads consumers in how to buy goods, all of which can be via mobile phones (smartphones). The growth of the young population with changes in consumer behavior like this has pushed Indonesia to become a very attractive market and of course has an impact on the logistics industry.
According to the CEO and Co-Founder of logistics technology company Shipsy, Soham Chokshi, Indonesia is the largest market in Southeast Asia and so far the presence of Shipsy in this country has received a fairly positive response from the market.
“We started a few months ago, setting up a competent local team to help with domestic support. And we have interacted and communicated with almost all the leading companies in the fields of e-commerce, logistics and so on. I think overall, we see a big opportunity here where technology will really help the retail, manufacturing and logistics industries,” he said in an official statement in Jakarta, Sunday (20/11/2022).
He further revealed that recently Shipsy opened its representative office in Indonesia. Its presence in the Indonesian market is also to make this country a business center in the Southeast Asian region for the logistics solutions it offers.
“Current logistical challenges such as rising logistics costs, poor delivery visibility and scalability, manual processes, substandard customer experience, and other factors present opportunities to assist Indonesian businesses in unlocking operational efficiencies with technology solutions,” he added.
Apart from operations, the logistics industry has also contributed to increasing carbon emissions. Artificial intelligence-based technology helps the sector reduce its carbon footprint, one of which is through the efficiency of travel routes.
“The main driver for reducing carbon emissions is the total distance traveled from the start to the end point. This is where Artificial Intelligence comes into play in creating better travel routes with intelligent systems that suggest the right order of delivery,” said Soham.
As a provider of artificial intelligence-based platforms, Shipsy also invests heavily in machine learning technology, which has algorithms that can learn from previous data to help make better decisions in the future.
“For example, how do we plan a logistics delivery route efficiently? How to increase vehicle usage capacity? Machine learning-based systems can learn this on the first day, if there is inefficiency, then the second day will be a little more efficient. And within three to four months, it can become more efficient because the platform learns from previous traffic patterns,” he explained.
According to Soham, the most challenging business problem in Indonesia related to the supply chain is the inefficiency of last mile delivery costs that deliver goods to end customers.
“Currently, customer expectations have changed. Previously, delivery was expected until the next day (from ordering), now they want it to arrive in four hours, and they are even required to arrive in 10 minutes. Because there is so much pressure on operational costs due to high demands, that’s where the role of artificial intelligence and machine learning can come together to help companies provide fantastic experiences to customers,” he explained.
Recently, Shipsy successfully brought together more than 1,000 world supply chain practitioners at the Limitless Summit event. This is the second installment in the Limitless series, a flagship program that has garnered the participation of many industry advocates from leading organizations. Limitless Summit is an influential international conference of leading professionals in logistics, supply chain and operations. It is an open forum for industry leaders to exchange ideas, lessons learned, best practices and key trends that can drive and capitalize on limitless opportunities in a fast-growing logistics ecosystem.
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