Shipsy’s Strategy to Strengthen Long-Term Business Foundations in Indonesia

Indonesia is the fourth largest market in the world with internet penetration reaching 65 percent with mobile 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 into a very attractive market and certainly has an impact on the logistics industry.

According to the CEO and Co-Founder of a logistics technology company Shipsy, Soham Chokshi, Indonesia is the largest market in Southeast Asia and so far Shipsy’s presence in this country has received quite a 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 also interacted and communicated with almost all leading companies in the field of e-commerce, logistics and so on. I think overall, we see a great opportunity here where technology will really help the retail, manufacturing and logistics industries,” he said during a face-to-face event with journalists in Jakarta some time ago.

According to Soham, the most challenging business problem in Indonesia related to the supply chain is the inefficient cost of last mile delivery that delivers goods to end customers.

“Currently, customer expectations have changed, if previously delivery was expected to arrive the next day (from ordering), now they want it to arrive in four hours, and even demanded to be able to arrive in 10 minutes. With so much pressure on operating costs due to high demands, that’s where artificial intelligence and machine learning can come together to help companies deliver fantastic experiences to customers.”

In addition to customers, AI-based logistics technology can also be a major driver in reducing carbon gas emissions.

“In terms of carbon emissions, two things need to be done, namely reducing the total miles traveled, or reducing the total kilometers traveled per package. We use it as the main metric that each package is how far it travels from start to finish, because it relates to fuel consumption.”

The second thing, said Soham, is the use of green transportation modes or electric vehicles.

“How can I prioritize bicycle use? Say within a kilometer, if I have a fleet of electric bicycles and regular bicycles, how do I prioritize their use? In a sense, how artificial intelligence AI actually recommends that, because the distance is short, it can use ordinary bicycles. AI can also group orders running in the same direction so that the distance can be reduced again. This is the way AI-based technologies reduce carbon emissions.”

What is Shipsy’s business strategy in Indonesia? Soham emphasized that the main goal of the company is basically to build a strong foundation first for the long term and not to get quick results.

“We build a very strong foundation, build a competent local team, create a solid support system, and collaborate with several industry leaders to create an example that can be adopted by the entire industry,” he said.

Recently Shipsy successfully held the Limitless Summit international conference. This is the second edition in the Limitless series, a featured agenda that has garnered over 1000 participations from industry practitioners and leading professionals in logistics, supply chain and operations.

The Limitless Summit is an open forum for industry leaders to exchange ideas, lessons, best practices and key trends that can drive and capitalize on limitless opportunities in a rapidly evolving logistics ecosystem.

SHIPSY MEDIA CONTACT

arjun.alva@shipsy.io