The importance of building partnerships for the Indonesian transport and logistics industry to work together to achieve its goals was a key point raised by speakers during the HERE Directions Jakarta 2024 panel discussions.
Collaborative partnerships drive innovation, improve operational efficiency, and enable companies to deliver more comprehensive solutions. Collaborative partnerships are a critical factor that will shape their supply chain success and build smart, sustainable solutions for the future of smart cities.
Innovating beyond supply chain challenges
Participants in the first HERE Directions Jakarta roundtable Can Indonesia’s end-to-end supply chain innovate beyond the challenges? they talked about how they use location intelligence to improve their supply chain efficiency and solve logistics challenges.
By working with partners within the ecosystem, stakeholders were able to streamline their product development and access a wider variety of tools, from data modeling to geospatial data access.
Using real-time data, for example, has enabled Amazon Web Services (AWS), Schenker Logistics and Anteraja to gain better visibility into shipments, reduce inventory levels and optimize transportation routes .
Globally, AWS has already established a strategic collaboration with HERE Technologies to help organizations and their customers improve their supply chain visibility. This includes bringing advanced capabilities to the market, in areas such as warehouse management, predictive ETA calculations and CO2 emissions solutions for transportation and logistics fleets.
“We are passionate about working with partners to help our customers achieve their goals. Collaboration is at the heart of our DNA and is essential to enabling AWS to grow its business and deliver the best customer experience,” said Juan Hasang, Head of Solutions Architecture for AWS Enterprise Segment.
With Indonesia facing heavy traffic congestion, limited access to remote areas and challenges in last-mile delivery, Ajeng Nurul, head of land transportation at Schenker Logistics Indonesia, said it was essential to a 3PL provider like Schenker to look outside and work with others to find solutions to problems.
“We know our own capabilities, but we cannot meet the challenges alone. We want to collaborate with a software expert who can help us overcome the infrastructural and logistical hurdles we face by accelerating the use of technology,” Ajeng said.
Leveraging new technologies through collaboration was a similar goal for Indonesian tech startup Anteraja. To overcome the limitations of the existing supply chain, Robert Julius, assistant vice president of Anteraja, said the company intends to establish a logistics system or laboratory open to external partners. This logistics lab can only thrive, he said, if information is shared and close relationships can be established to allow industry players to come up with ideas and solve problems.
“We want to work with technology or logistics providers to help develop new solutions or to drive the industry towards more innovation and standardization, for example by establishing guidelines for how we manage security to protect customer information,” Julius said.
Describing how HERE Technologies works with its partners, Kushal Rajveer, head of supply chain for Asia Pacific, said the company is always listening: “We want to do more than just be a technology provider. We want to think about how we can improve the ecosystem of our partners and customers.
“For example, we run workshops where we try to understand what a day in the life of our partners is like. We look at their data, we mine it, we simulate it, we discuss how to improve it and define KPIs, and then we pass it on to our partners. That’s our collaboration model. We want to understand their business KPIs, the operational impact and how, by collaborating, we can help them win in their markets.
The industry must think big and work together
The theme of partnerships was a dominant theme during the second panel discussion Sustainable urbanization and the role of smart mobility in Indonesia’s future.
Like many countries, Indonesia is committed to tackling climate change and has set a goal of reaching net zero emissions by 2060. This is particularly important for the transport and logistics sector, which currently contributes third to Indonesia’s carbon pollution. The country has committed to reducing its emissions by 40 percent between 2005 and 2030, and achieving this goal will require adopting new technologies and continuing efforts by industry players to reduce their carbon footprint.
Bayu Yasa Wedha, co-founder and CEO of Integrasia Utama, said many Indonesian companies are embarking on a national strategy 4.0 has undertaken a digital transformation of its activity. The technology provider uses location technologies, IoT and machine learning to improve its route optimization for more than 6,000 vehicles since its founding in 2006.
“Using real-time data has allowed us to make faster and more accurate forecasts across our supply chain. The next step is to use more IoT devices and increase automation, but we can’t develop the technology ourselves. It would be too expensive to do it alone,” Wedha said.
Telkomsel Indonesia is a strong proponent of advanced mobile technologies. The mobile operator has to date installed more than 250,000 base stations built across Indonesia, serving more than 150 million customers and 120 million internet users.
Diko Aldillah Patiwiri, Telkomsel’s general manager, Insight-as-a-Service, said the mobile operator launched MSight six years ago – part of the company’s Data Solutions business unit – which enables the use of telecoms big data to provide customer insights to a range of businesses.
Telkomsel is now able to obtain information on demographic and psychographic profiles of consumers, their digital behavior in different locations, and how often and how they use the company’s products and services. “To take data usage to the next level, we need to collaborate and share or combine with others’ proprietary data. Trust, privacy and cost are also factors and that’s where the partnership ecosystem comes in. We also need to ensure that every stakeholder in the ecosystem protects how data is managed and used,” Patiwiri said.
Wedha and Patiwiri said that moving towards a smart and sustainable business ecosystem requires overcoming challenges in areas such as managing supply chain complexities, managing a skills/talent shortage, lack of standardization, governance and better support from government regulations.
Sharing his advice with the panelists, John Ramieri, Vice President of Global PartnersHERE Technologies, said that to achieve sustainability goals, industry players must think “larger than them and associate with each other.
“The key to partnership is bringing together a diverse set of skills, knowledge and experiences to help solve a particular problem or advance a particular initiative. How can we build this ecosystem and leverage each other’s different skills to solve these problems and create a sustainable environment?”
Citing the results of previous projects, Ramieri believes that 50% of a company’s costs typically come from the last mile of delivery. Notably, 81% of the end customer is always willing to pay extra for a guaranteed delivery time and 78% of them will change retailers or companies if delivery is not made on time. “We need to focus maniacally on that last mile and optimize it to ensure deliveries are made on time,” he said.
Another challenge, Ramieri said, is making sure the data is always available and in the same language and formats that you need. “Sometimes you need a third party to help mitigate some of those challenges, to understand and surface what they are and what role each player in that ecosystem plays in overcoming that challenge.”
“To achieve these sustainable development goals, the government plays an important role as it must pave the way for policies that ensure that all stakeholders can execute in a timely and high-speed manner,” he said.
