Local traders to promote e-commerce network<\/p>\n
By Christiani S.A. Tumelap<\/p>\n
JAKARTA (JP): A number of local manufacturers, distributors
\nand retailers have established a grouping to promote e-commerce
\nin the country.<\/p>\n
The Efficient Consumer Response Indonesia (ECR Indonesia)
\nfollowed the establishment of ECR Asia, a joint trade and
\nindustry body created to foster the use of e-commerce in the
\nregion.<\/p>\n
ECR Indonesia's arrival is receiving a positive response.
\nAbout 60 local and foreign manufacturers have pledged their full
\nsupport of ECR Indonesia's operations through an independent
\ncooperation forum, the Indonesian Forum of Consumer Goods
\n(FINDOC), which they established last month.<\/p>\n
Chairman of ECR Indonesia Kusudiarso Hadinoto said the country
\nwas years behind other countries in America, Europe and Asia in
\ndeveloping business-to-business e-commerce. The system was
\npopular within companies in the United States by 1995.<\/p>\n
The Reference Guide to E-commerce in South Asia classifies
\nIndonesia as a country with quite slow adaptation to e-commerce,
\nwith usage growth of 16 percent to 18 percent in recent years.
\nSingapore is voted as the most adaptive country with usage growth
\nreaching over 28 percent.<\/p>\n
One of the factors behind the delay in the use of e-commerce
\nlies in the fact that there are only a few e-commerce gateway
\noperators in the country, Kusudiarso told The Jakarta Post at a
\nrecent seminar on e-commerce held by gateway operator Indosatcom
\nAdimarga.<\/p>\n
Another is the high investment entailed.<\/p>\n
The chairman of the Indonesian Retail and Merchants
\nAssociation, Steve Sondakh, said retailers had no choice but to
\nstart investing in the electronic business data system because it
\nwould sooner or later be a necessity for their business
\nactivities.<\/p>\n
\"Investing for e-commerce may not be cheap. But looking at the
\ngreat benefits it can bring to your business, it is definitely
\nworth the money,\" he told the Post.<\/p>\n
The assistant director of the country's largest department
\nstore chain PT Matahari Putra Prima, Iwan Goenadi, said his
\ncompany entered into e-commerce transactions with some suppliers.<\/p>\n
He said it eliminated the painstaking paperwork -- including
\npurchase orders, advance shipping notices, invoice and return to
\nvendor notices -- required in the supply chain process.<\/p>\n
\"A proper use of business-to-business e-commerce will enable
\nbusiness entities to cut up to 80 percent in their order lead
\ntime, 60 percent in working capital and 60 percent in storage
\ncapacity,\" he said.<\/p>\n
Iwan said Matahari planned to further develop the mastering of
\ne-commerce technology and expand links with more suppliers,
\nincluding small and medium firms.<\/p>\n
The general manager of international marketing and the
\nInternet for local cosmetics manufacturer Martha Tilaar Group,
\nChandra Sugiono, said his company also experienced the cost and
\ntime reduction benefits of using e-commerce with its retailers,
\nincluding Matahari stores.<\/p>\n
\"For instance, we save time and transportation expenses as our
\nsalespeople do not have to travel back and forth to retailers
\njust to get the purchase order requital.\"<\/p>\n
He added that his company also improved its level of service
\nbecause the e-commerce enabled it to receive, process and reply
\nto any required documents around the clock throughout the week.<\/p>\n
Kusudiarso warned that the benefits of e-commerce would not be
\noptimal if a company lacked cooperative and efficient
\ntransportation services.<\/p>\n
\"ECR will persuade logistic movers operating here, including
\nforeign firms DHL, UPS and TNT and local companies, to also
\nparticipate in e-commerce with our trade and industry sector,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-traders-to-promote-e-commerce-network-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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