Time for Logistics Management to Enter Digital Era

The trend of the fourth industrial revolution or Industry 4.0 moves faster in a world that is associated with digital economy. Seeing the challenges of the disruption wave, Indonesian government spurs the development of all sectors including tourism, creative industry, and transportation (Trade Ministry's Press Release, Friday, September 14).

There are five priority sectors for the government in facing Industry 4.0; they are food and beverages, textiles, automotive, chemicals, and electronics. However, aside from these sectors, the government also pays attention to logistics and warehouse due to increasing demand.

"So, smart logistics also needs to be given attention to improve the development of industry cluster," Industry Minister Airlangga Hartarto said in Industry Ministry's Press Release, Thursday (November 1).

Heading to smart logistics era, what is needed is the support from information technology. Logistics must also be managed digitally so that national logistics system can run more efficiently and effectively.

Indonesian Chamber of Commerce and Industry (Kadin) Logistics, Supply Chain, and Human Resources Standing Committee Chair Nofrisel said that national logistics business players must be able to tackle the challenges of Industry 4.0 because it is possible that logistics industry will experience disruption.

What business players need, he said,is to realize the importance of automation, artificial intelligence (AI), and Internet of Things (IoT). He said that even logistics companies with no assets can become important players in logistics.

"That can happen because of the utilization of current technology. On average, all logistics activities are connected to all technology-based things," Nofrisel told Bisnis.com, Wednesday (September 5).

Meanwhile, Indonesian Shipowner Association (INSA) Vice Chair Darmansyah Tanamas said that logistics sector still has prospective growth in the future because the government is now trying to increase exports.

Moreover, e-commerce trend is growing rapidly. "Digital era has pushed us to make various changes to keep up with the development of the industry," Darmansyah said as quoted from Indopremier.com, Friday (September 7).

However, market observer Yuswohady said that the shift from old industry to new digital-based industry must be done wisely and carefully. The strategy must be able to minimize the socioeconomy impact so that old industry can conduct digital transformation smoothly, instead of dying due to the tough market competition ("Digital Darwinism").

This is because, "The disruptive change of Industry 4.0 has the power to 'wash down' old industry," he said in an article titled "Tantangan Revolusi Industri 4.0" (Challenges of Industry 4.0) published on Yuswohady.com. He also suggested that the disruption strategy must prioritize equal employment opportunities.

PT Serasi Autoraya (SERA) also keeps boosting all of its business lines, including its logistics business unit SELOG. Logistics service market is predicted to keep growing.

According to SERA's financial report in 2017, logistics contributed 22% (around Rp1.22 trillion) to total net revenue (Rp5.56 trillion). Meanwhile in the company's prospectus, in 2020, logistics contribution to SERA's total revenue is projected to be 23%.

To strengthen SELOG, PT Serasi Autoraya enhances their existing 100 warehouse facilities. The total area of the warehouses is around 8.67 hectares. SELOG now also manages 1,600 trucks and 12 cargo ships. Every year, SELOG handles more or less 935,000 cargo shipments.

SELOG offers end-to-end logistics services, including courier services. Generally, the express courier service is divided into standard service and solution service.

Standard service includes same-day service, next-day service, and regular service. Meanwhile, with solution service, you do not need to worry if you need special service like VPD (valuable, perishable, dangerous goods) to send documents or oversized packages that cannot be sent using the usual cargo service.

For more information about other services by SELOG, you can visit this page.