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Digitalising the Indonesian Logistics Sector

Shippers and service providers who use technological advancements can significantly improve their logistical experience. Supply chains must deal with complex situations, and disruptions are becoming more common. As a result, more businesses are considering implementing risk-mitigation systems, particularly for time-sensitive shipments. This aids in the creation of more efficient operations and the management of costs. Companies that understand the benefits of technology and how it can assist their logistical experiences should consider embracing adaptive technology.

Information technology has evolved into an important component of port management. Proper port system management is required for more effective and efficient sea transport processes. This situation explains why port movement and container checking systems are given top priority.

To address this, a new tech-focused container depot has opened in Jakarta, with the firm’s founders set to modernise Indonesia’s inland box logistics. The new logistics leader in Indonesia is the latest project from a logistics veteran who, after heading an Indonesian freight forwarder, spotted a gap in the market to serve Tanjung Priok port with a “world-class” inland container depot (ICD).

The company’s goal, according to the logistics veteran, is to “disrupt traditional practises” in the local market, “driving productivity, innovation, and compliance levels that are expected in other markets and in demand from shipping companies, shippers, and forwarders.”

When old manual methods are abandoned in favour of newer, more technologically advanced systems, productivity gains are significant. When a company has efficient logistical operations in place, costs are reduced, and the company can operate more efficiently. This gives the company a competitive advantage by providing higher levels of satisfaction to their customers.

If any problems arise, they can be resolved quickly, resulting in better and faster deliveries. Using logistics software can help improve the supply chain by allowing multiple parties to interact easily while the goods are in transit. Collaboration through technology is crucial to ensuring that every challenge is overcome while client needs are met.

He also claimed that the sector is “at the bottom of the food chain” in terms of modern equipment and technology, leaving it vulnerable to inefficiencies and corruption. As a result, he adds, the port requires better ICDs. For example, the new logistics leader has collaborated with a local start-up that provides electronic payments and gate passes to port operators.

Whereas the automation tally is an IT device that records the number of containers unloaded from the ship that was previously done manually on the edge of the dock or known as Whisky, now it only requires a computer device from behind the control room that is connected with CCTV installed in Container Crane. The technology automation tally is suitable for use in the Port of Tanjung Priok because it is currently the busiest port in Indonesia. Because the container flow in the port is very high, expect the development of technology at the container yard, such as recording or checking the container.

A robust in-house Container Depot Management System, QR Code implementation for loading and unloading, and real-time EDI reporting based on customer requests will be among the other technological deployments. A real-time web dashboard and barrier gate automation are among the projects in the works.

“In Indonesia, when you want to drop a container down to the port, you’ve needed a paper gate pass, pay fees in cash and get a receipt,” he explained. “So, the local tech firm has digitised that process and taken a lot of the pain out of it. Naturally, it made sense for us as a depot to partner with them and speed up activities.”

While Indonesia has seen its fair share of venture capital pour into logistics start-ups, the logistic veteran claims that many are “creating solutions to problems that don’t exist,” such as “AirBnB for warehousing” or “Uber for trucking.”

With high exports and imports of goods via sea lanes, container ports are a critical component for increasing the growth rate of trade and the economies of the countries. Improving the quality and use of information technology is critical to facilitating the role of ports as a driver of economic success in the modern competitive environment.

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