Efficient logistics means profitable business<\/p>\n
Ari Darmawan
\nContributor
\nJakarta<\/p>\n
The role of logistics in the business world is becoming more
\nand more important. Delivery of products is required to be early
\nand at the very least on time, otherwise competitors have the
\nopportunity to fill the gap and eventually grab a part of the
\nmarket.<\/p>\n
On time delivery, besides having a positive impact on
\ncustomers, also makes it more convenient for retailers or outlets
\nto prepare the necessary payments and monitor the level of stock
\nfor more efficiency.<\/p>\n
"With today's advanced logistics method that guarantees on
\ntime delivery, our retailers do not have to keep a high level of
\nstock. When previously, stock was piled up for one or two months,
\ntoday the inventory level is down to a maximum of two weeks or
\neven less. This way their money is not locked up unnecessarily
\nand they can use it to expand their business," said Agung
\nSurjoatmodjo, a supply manager at one of the leading milk and
\nmilk-based manufacturers in Jakarta.<\/p>\n
Realizing the vital role of logistics in the overall
\ndistribution that eventually affects a company's marketing, many
\nmajor companies in Indonesia have seriously developed their
\nlogistics divisions. Among the essential elements to be attended
\nto are the proper network and sophisticated information
\ntechnology. Due to the huge investment involved, however, only
\nreally big companies are capable of developing their own
\nlogistics departments.<\/p>\n
Another trend has come up within the past decade or so in
\nIndonesia. Instead of taking all the trouble of setting up an
\nextremely costly logistics division, including the warehousing,
\ninformation, communications equipment, manpower and so forth, a
\nnumber of companies have turned to outsourcing. They prefer to
\nleave their entire logistics work to the experts, like some of
\nthe courier or cargo companies, for example.<\/p>\n
"In the United States, this trend started many years ago and
\nflourished further in the late 1970s or early 1980s. It was the
\nideal solution to America's major companies' demands for
\nefficiency in distribution. Many of them were customers of large
\ncourier companies, like Federal Express (FeDex) or DHL," said
\nJohari Zein, chief executive officer of a local courier company,
\nTiki JNE.<\/p>\n
The need of courier companies' clients has expanded, from the
\npreviously simpler task such as sending products in smaller
\nquantity to keeping them in larger volume in their warehouses for
\nlonger periods. This newer assignment for the courier companies
\nmeans more revenue from the rental of warehouse space. With the
\ngrowth of this need many courier companies have also expanded
\ntheir services in providing the required warehousing.<\/p>\n
In Indonesia, the use of courier companies as logistics
\nproviders initially began with foreign manufacturers operating in
\nthe country. With the efficiency that they have experienced in
\ntheir home countries they started to look for the right courier
\ncompanies here to be their logistics "partners". Some of the
\nworld's most renowned corporations operating here that use the
\nservices of leading courier companies are Nestle, Sony Ericsson,
\nHewlett Packard, EMC and EMI Indonesia.<\/p>\n
EMI Indonesia distributes its musical compact discs and
\ncassettes throughout the nation using logistics services provided
\nby Tiki JNE, while the state-owned corporation PT Telkom relies
\non PT Repex Wahana.<\/p>\n
"Using the logistics service we provide, our customers can
\neasily calculate the related costs. Thus, making their short and
\nlong-term business plans less complicated, plus they get what
\nthey seek, efficiency," said Heni Purwani, Logistics Coordinator
\nat Tiki JNE.<\/p>\n
Former managing director of EMI Indonesia Yohanes Teja had
\nsimilar reasons for using logistics services provided by the
\ncountry's leading courier companies. "The first reason was we did
\nnot have our own logistics division, which would have been a huge
\ninvestment had we set up one. The next reason, obviously, was
\nthat using a reliable and experienced courier service was more
\nefficient. And we could always compare quotations given by each
\ncompany and then decide on the one with most superior service,"
\nhe said.<\/p>\n
Yohanes added that Tiki JNE was chosen to take care of his
\ncompany's logistics due to the reasons he mentioned as well as
\ntheir good networking, competent manpower and their mastery of
\ninformation technology (IT). "The IT system that we used at EMI
\nwas later adapted by Tiki JNE, so on this aspect compatibility
\nwas another added value," he said.<\/p>\n
In line with the current rapid development in technology and
\nmarketing, today's courier companies are more than "senders" of
\npackages from one place to another. Presently they use state-of-
\nthe-art information technology to enhance their entire range of
\nservices, which is called supply chain management in marketing
\njargon. Their services even include assistance on importing raw
\nmaterials, distribution nationally and globally and even after
\nsales service.<\/p>\n
"To meet all sorts of customers' courier needs, IT is a must.
\nWith our wide range of sophisticated IT equipment and facilities
\nplus our networking we are committed to providing a full-range,
\none-stop service to each of our customers," said Andry
\nAdiwinarso, managing director of sales and marketing at PT Repex
\nWahana.<\/p>\n
For example for Hewlett Packard, he explained that this
\ncustomer keeps a certain amount of stock at Repex Wahana's
\nwarehouse. With the aid of the company's IT system, delivery of
\nspare parts to Hewlett Packard's customers is guaranteed within
\none hour for the Greater Jakarta area.<\/p>\n
The giant telecommunications company Ericsson, meanwhile, has
\nbeen able to secure large business from PT Telkom due to, among
\nother things, its commitment to deliver spare parts within three
\nhours to most parts in Indonesia. Failing to deliver within the
\nstipulated time means penalties for Ericsson.<\/p>\n
"To comply with Ericsson's commitment is only made possible by
\nour IT equipment and facilities, wide networking, professional
\nmanpower and all the related logistics infrastructure, such as
\nwarehouses, various means of transportation, including our
\nprivately owned aircraft and so on," added Andry.<\/p>\n
The advanced IT has made the world much smaller in a way. In
\nthe world of business this means fiercer competition in the way
\ncompanies are forced to be more innovative and efficient in their
\nsupply chain management. With today's highly sophisticated IT
\nand, naturally, "the people behind the computers", who are
\nrequired to be more professional, efficiency in logistics matters
\ncan be achieved.<\/p>\n
"In most areas, logistics service providers have come up with
\nsolutions for many companies. In my opinion, this type of service
\nis the future of logistics service companies in general and
\nparticularly courier companies," concluded Johari Zein.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/efficient-logistics-means-profitable-business-1447899208",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}