Logistics Challenges In Online Shopping Era

Indonesian logistics industry is predicted to grow as time goes by. In the logistics sector, business players will make use of digital technology development to increase competitiveness.

Indonesian Chamber of Commerce and Industry (Kadin) Sea Transportation Standing Committee Chair Darmansyah Tanaman said that logistics business in Indonesia is not separate from current technology development, not excepting e-commerce that is becoming more of a part of people’s daily lives, especially in the cities.

"We, the business players in transportation sector, like it or not must be able to adjust to current technology development, in this case we must be able at all times to find the strategy for current technology development, so that we can prepare ourselves to compete," Darmansyah said. (Kontan.co.id, September 5, 2018).

Moreover, he also revealed that according to World Bank data, the performance index of logistics industry in Indonesia sat at rank 46. This condition was better than rank 63 in 2016.

Darmansyah added that in the future, business players especially in logistics sector must be able to present new strategy or breakthrough that can boost their business. "Of course we are not satisfied with the current condition because if we are satisfied, while competitors continue to improve, we will be left behind," he said.

Despite its recent advancement, logistics sector still faces various challenges. As cited from elogistik.id, (October 24, 2017), the challenges are various amid the development of e-commerce, starting from ensuring the products meet customers’ demand and arrive on time, minimalizing the risks of products getting damaged, to providing reverse logistics.

Reverse logistics is needed when customers ask for product return because of damage or because they want to exchange the product with another type, size, or color.

Technology is increasingly used to make logistics monitoring easier. Various media like email, newsletter, social media, advertisement, short message, and phone call are used to communicate with the customers and give updated information about the status of their deliveries.

SELOG, a subsidiary of PT Serasi Autoraya (SERA) in the logistics sector, plays a part in the development of Indonesian logistics industry. With its existing facilities, SELOG is still committed to give the best service to the people.

SELOG is present to fulfill customers’ needs for various end-to-end logistics services, such as contract logistics, shipping services, shipping agency, freight forwarding, warehouse, and yard management. For express courier service, SELOG is ready to deliver packages using the transportation that fits the need.