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Modernizing Logistics to Improve Efficiency

Economic Affairs Coordinating Minister Darmin Nasution said that improvement is needed to make goods transportation more efficient for creating a modern logistics system that will support the growth of national economy. It should depend not only on land transportation such as trucks, but also trains, sea-faring ships, and airplanes.


Darmin said that in developed countries, trains are longer than they are in Indonesia, especially freight trains. It’s because in those countries, trains are used for mass transport of not only people but also goods.


Another point that Darmin raised was the use of technology. He said that information system is needed for transportation, facilities, goods, prices, levies, and schedule. “This is a huge effort. It also needs economic and digital transformations,” Darmin said in Jakarta, as quoted from Media Indonesia (September 14, 2019).


Modernizing logistics processes using technology is still a much-talked topic in Indonesia. As quoted from Dailysocial.id (May 9, 2019), the concept is known as smart logistics. It is meant to reduce operating costs while maintaining prime service for customers.


According to Huatai Securities, the implementation of smart logistics would bring maximum results. First, modern warehouses can reduce rental costs by 70% compared to traditional warehouses. Second, smart logistics can reduce warehousing labor costs by 80%.


Third, through full monitoring of all transfer process and material storage, efficiency and accuracy level will improve. Moreover, from the big data collected by the smart logistics system, logistics companies can provide more added values to customers.


Indonesian Logistics and Forwarders Association (ALFI) Chair Yukki Nugrahawan said that commitment is needed from both the government and the companies in realizing smart logistics in Indonesia. What is needed from the government is the strengthening of regulations that have to be executed quickly with good calculation and a set schedule by the companies.


Yukki asserted that in smart logistics, what is needed the most is a digital mindset. It’s not only about changing manual processes into digital ones. “We do not want to stop at making the system, but we should also move to more advanced things, for instance, to blockchain in logistics,” he said (Dailysocial.id).


In Indonesia, smart logistics concept has developed better since the previous years, as more conventional logistics players have started to be aware of the importance of technological transformation.


The segment gets a boost from the digitalization of economy, which requires the logistics sector to take part in it. However, extensive education is still needed for the players. This is because the logistics sector is originally a sector that is not too familiar with the use of technology.


In welcoming smart logistics, SELOG as a subsidiary of PT Serasi Autoraya (SERA) which works in logistics has also adopted digitalization in its various working processes. One of them is through Warehouse Management System (WMS), a service for the management and storage of goods for your supply chain needs.


WMS allows continuous tracking process related to receiving, picking, shipping, goods detention, damaged goods, and completed orders. Not only that, WMS also allows customers to check the availability of goods in real time.


In general, the services offered by this logistics company that’s still affiliated with Astra Group are divided into standard service and solution service. Standard service includes same-day service, next-day service,danregular service. Meanwhile, with solution service, you do not need to worry if you need special services like VPD (valuable, perishable, dangerous goods) to send documents or oversized packages that cannot be sent using the usual cargo service.


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