JAKARTA - The rapid growth of e-commerce makes this sector the main contributor to the digital economy sector. It can be seen in 2022, the transaction value in e-commerce is 86 billion US dollars and is projected to increase to USD 137.5 billion by 2025.
The increase in e-commerce transactions also affected growth in the logistics sector. Based on data from the Central Statistics Agency (BPS) until the third quarter of 2021, the logistics sector will contribute Rp699.1 trillion to Gross Domestic Product (GDP) or grow by 1.08 percent (year-on-year) in 2022.
This growth also boosted the need for warehousing logistics services and order processes for business actors in supporting their operations. Smart warehouse services are one solution for business actors to meet the needs of the customer order process in order to provide the best service quality.
The need for this service presents a logistics aggregator who has a vision to improve the quality of the digital shopping ecosystem in Indonesia. One of the technology-based logistics aggregators, LODI Indonesia is also present with full fulfillment services and last mile delivery.
LODI fulfillment services are equipped with warehouses spread across various strategic locations in Indonesia. The selection of the company's warehouse location, which was established in 2018, was not arbitrary. According to Alodia Hutauruk, Head of Marketing for LODI Indonesia, the distribution of the LODI warehouse area was chosen based on the high number of consumer shopping activities around the area.
By having a storage location close to active consumers, the order and delivery processes can be carried out faster. Customers can also enjoy lower shipping costs.
"The shipping cost is still a crucial factor for buyers. There are many cases where the shipping rate is almost as high as the product price because the product is sent from the center. This can make customers hesitate or don't even buy. Here consumers and business actors both do not benefit. Therefore, LODI wants to help industry players to be able to reach customers throughout Indonesia through warehouse locations spread across various islands," said Alodia, in a written statement, Thursday, September 15.
Currently LODI is focusing on expanding in order to meet the increasing demand for customers. Additional additions to three new locations, namely in Cibubur, Bandung, and Denpasar can be the choice of business owners to meet customer demand with a wider range.
Seeing Cibubur as the location with the highest demand in Greater Jakarta, Bandung as a solution to meet demand around West Java, as well as Denpasar which is one of the developing cities in Indonesia so that it can become an intermediary for delivery to eastern Indonesia.
Yan Hendry Jauwena as CEO of LODI explained, this expansion is a form of LODI's response and commitment to continue to support the current or future business development of customers.
"This expansion is not about LODI, but about traveling together with colleagues (business partners) and customers who have entrusted LODI to collaborate to continue to grow together. This indicates that the future of business in Indonesia will be very good because of the support of digital-based logistics solutions in Indonesia which will definitely be able to support Indonesia's economic growth in the era of future trade or what we currently know as the future commerce," he said.
The expansion carried out by LODI leads to logistics digitization, which is now a prerequisite to remain competitive given the current growth in the marketplace. The warehousing process and fulfillment of orders carried out require fast and complete transparency as well as clear stock structure of products and orders.
In addition, recording product stocks that are automatic and secure is an increasingly important role in mobilizing existing workers as efficiently as possible. In addition to optimizing the warehousing and overall fulfillment of orders, an inventory that is free of mistakes and simple is also important.
This change also raises new demand for smart warehouse spaces, not only as a product distribution center but also a request as a storage warehouse, management, and distribution to customers. This smart warehouse can be a solution by business players because it provides flexibility, efficiency and economic value for the logistics business, especially e-commerce.
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