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SMEs in Indonesia get help to digitise supply-chain infrastructure

The mobility restrictions caused by the COVID-19 pandemic have raised many challenges for companies that are still dependent on salespeople in the field to provide inventory information. Organisations started to realise their need for a distribution and retailer management system, turning to tech providers to help accelerate their supply chain transformation.

The rapid growth of e-commerce in Indonesia, especially during the pandemic, is placing increasing demands on its supply chain infrastructure. But the country’s logistics industry is highly fragmented, with companies usually relying on multiple distributors for one shipment, and many warehouses are still concentrated around major cities.

A report says that this fragmentation means higher expenses, logistics costs range is between 25% to 30% of the country’s gross domestic product (GDP). Even neighbouring countries, like Malaysia, incur half the cost as a percentage of GDP for logistics expenditure.

Now, an Indonesian tech company, after closing a US$2.75 million funding, wants to ease the logistical burden of manufacturers with the usage of software technologies to make the whole supply chain and logistics easier to track.

To help make logistics more efficient for its clients, the tech company offers a Software as a service (SaaS) solution to monitor their entire supply and logistics chain, from warehouse inventory to generating delivery routes for drivers. It includes a product digitalisation feature that uses QR codes to track products and prevent counterfeiting and tools for salespeople visiting retail stores since that is still one of the most effective tools for manufacturers and importers to find customers.

The tech company’s new funding will also be used to launch an online-to-offline system for small to medium enterprises (SMEs) and grow its sales team. The online-to-offline system will allow sellers to integrate inventory and sales from all their channels, including brick-and-mortar, business-to-business, and e-commerce.

The tech company is among several tech start-ups that are taking different approaches to tackling Indonesia’s logistics infrastructure.

Accordingly, a report says that the country’s freight and logistics market is currently trading at an inflexion point. Being the world’s fourth-largest populated country with excellent growth potential, Indonesia is a key market in the global scenario. Given the scope of household consumption in a densely populated country and its strategic location on geographical terms, the country is currently a centre of attraction for global investment. There is an evident display of momentum in the economy, with steady prospects for higher growth and more ideal economic scenarios.

Moreover, the country’s economy accounts for two-thirds of the ASEAN economy, with a growing rate of around 5%. The development of its stagnant manufacturing sector may ignite structurally high economic growth for a sustained period. A flourishing manufacturing industry seamlessly exporting domestically manufactured products will accelerate economic growth and generate plenty of employment opportunities.

At the same time, similar efforts have been put in to aid the digital transformation of the sector. As reported by OpenGov Asia, Indonesian SaaS-based start-ups recently merged to create a platform that will support SMEs through digitisation and human resources and financial management. This move was in response to the Government’s plan of digitising SMEs.

The platform aims to increase the productivity of SMEs in the country through significant technology adoption. The merged start-up will also provide help in cloud-based human resources management. Moreover, it will focus on providing a more affordable SaaS option that would address the needs of the SMEs.

According to statistics provided by the Ministry of Communication and Information, only 6.5 million out of a total of 59.2 million SMEs have been digitised since last year. Modern solutions are needed to enhance the business of Indonesian SMEs.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.