Kopi chat deep dive takeaways 13/07
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The key takeaways from deep dive sharing session hosted in BLOCK71 Jakarta. Experts from various backgrounds will share their views on whats happening in the logistics industry and interesting things that will come in the next few years. Kopi Chat Deep Dive is a signature event of BLOCK71 Jakarta held every quarter. Our goal is to bring together experts to give talks that are industry-focused, and on an in-depth subject, to foster learning and understanding of a specific industry in Indonesia.
Kopi chat deep dive takeaways 13/07
- 1. Kopi Chat Deep Dive Takeaways LOGISTICS IN INDONESIA The Present and the Future 13th July 2017
- 2. Our distinguished panel (from left to right): Peter Choi (GO-SEND); Johari Zein (JNE); Sebastian Togelang (Kejora Ventures); Ashwath Ramesh (Lazada Indonesia); Adrian Lim (Popbox) as moderator,; Sriman Kota (IBM Asia Pacific)
- 3. With the growth of ecommerce (...). Everyone knows that parcels need to be delivered, (and) with the likes of JNE, GO-JEK, and Uber coming to play, logistics is sexy again. - Adrian Lim, PopBox (The) most challenging thing is that (customers) want things fast, and want things cheap. A growing middle class with more disposable income want you to bridge 17,000 countries in a cost effective way. - Peter Choi, Go-send In terms of physical delivery, we cannot catch up with the speed of ecommerce. So, e-commerce is driving the logistics company, but we must be careful because logistics might limit the growth of e-commerce. - Johari Zein, JNE Landscape of Indonesian Logistics
- 4. Lot of things are manual at the moment, so the integration of technology with the infrastructure of indonesia and the increasing number of players will have a positive effect on the price. - Sebastian Togelang, Kejora Ventures Today, a lot of people say that the problem of indonesia is the 18K islands. But thats not the problem. Thats the context. The problem is that infrastructure between these islands do not exist. - Ashwath Ramesh, Lazada Were in the process where theres a lot more happening in terms of spreading our wings and reaching more. Optimization is always working behind the scenes in terms of leveraging technology. - Sriman Kota, IBM Landscape of Indonesian Logistics
- 5. First step is, are all delivery companies in ID able to scan the package at the hub? These are the simplest problems in tech that should be enabled before going further. (...) Nobody even agrees on the same post code. - Ashwath Ramesh, Lazada The indo postal codes keep changing, there are a lot of new provinces and kabupaten. Soon, we will establish a standardised version in the future. - Johari Zein, JNE Internet and smartphone penetration (are) both rapidly taking form. More people have access to what we can provide them. More and more mobile purchases outweigh internet purchases. This increase in demand is enabling the industry to take form. - Peter Choi, Go-send Technology in the Industry
- 6. Were already doing it, investing in physical assets and structures. All our facilities are equipped with this technology. Our focus is dead clear. Were B2C delivery and its super clear. Not playing in the Go-Jek market and last- mile delivery. (...) We need to wire ourselves to what customers are expecting today through data and not through perception. Ashwath Ramesh, Lazada Industry Investment
- 7. Every customer expects theirs to be delivered first. This needs to be solved, we cannot satisfy every customer. In another 5 years, maybe 16 million parcels need to be delivered in a day. At 20% market share, maybe 3 million parcels a day. We have to add fifty-five thousand employees to deliver. Whos going to pay for this just to maintain market share? Johari Zein, JNE What Drives Customer Expectations?
- 8. Combining good execution and tech can solve the basic problem. Thats our focus. Its a mix of proper execution and scaling with technology and solving the basic needs. The growth of ecommerce is so fast that logistics players are struggling to keep up. - Sebastian Togelang, Kejora Ventures Prime for investment and entrepreneurship is labor force management. This is an area that is an unmanaged service right now. Ramping up courier capacity for ramadan or 1212 sales is not an easy challenge. They need to be trained and used to it. They dont get these skills automatically, they need training. - Ashwath Ramesh, Lazada Main Areas with Investment Potential?
- 9. We have worked with truck companies using image and video recognition for safety and tracking. It can monitor location and driver fatigue. Its basically taking the camera feed and saying are you staying in the lane or not. - Sriman Kota, IBM If you think about it too far its not relevant. We have to think about the present and how IOT can solve things. We try to optimize routes and how we can truck from A to C with inventory. These kinds of things are not too far, unlike drones, that can affect the industry a lot that will happen in the next 3-5 years. - Sebastian Togelang, Kejora Ventures Status of Tech in Logistics
- 10. Indonesia has a huge area, and on a minimum we need to have three players at the size of JNE. The market is still open. Of course, we need to take a look at cost. Its not as easy because of the infrastructure and geography of indonesia. If anybody can solve the problem, it will be a good opportunity. Johari Zein, JNE The good thing about logistics is that its impossible for a winner to take it all. Theres a lot of opportunities for a lot of players. - Sebastian Togelang, Kejora Ventures Competition in Logistics
- 11. The opportunity is big. And me as an investor and an indonesian I hope that the players play in a healthy way. Too much price dumping and price war is not good for this market. - Sebastian Togelang, Kejora Ventures Lets say with 16 million per day in the next 5 years, and we consider 20% by pos indonesia, and 20% from us, theres still 60% that need to be fulfilled. - Johari Zein, JNE Go-Jek has done is find a niche in on-demand. Whether for consumers or ecommerce. Over time, as we get more and more data points, we can explore and play in these niches. - Peter Choi, Go-send Competition in Logistics
- 12. Have you standardized data? Have you taken care of the labor force skill level? Investment in infrastructure? Built shipping lanes and roads? These are the things that arent solved in one year, as fast as we are progressing in the execution phase, we also need the guys upstream and investing in infrastructure to keep up. - Ashwath Ramesh, Lazada On delivery, there has been no change from the beginning from when i was born until now. You have to wait at your points. This area needs to be changed. Hopefully next year we can change your habits from waiting at shipment points to coming to our point to pick up. It will solve a lot of cost, and we wont have any undeliverable parcels. - Johari Zein, JNE Payments. Its a very painful process right now in ecommerce. How can we smoothen out that process for more e-commerce growth? - Peter Choi, Go-send This Time Next Year
- 13. One year is too short to tell. We would like to hear about the focus on quality and avoid buzzwords. - Sebastian Togelang, Kejora Ventures End of the day, the question is; have you understood me more as a consumer? Do you know me better now? Theres a lot of data to see how we can serve customers better. - Sriman Kota, IBM This Time Next Year
- 14. Kopi Chat Deep Dive Takeaways @Block71 Jakarta A special thanks to everyone who attended Kopi Chat @BLOCK Jakarta and made the event possible! 13th July 2017