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Reshaping logistics, supply chain toward Logistics 4.0
Like other industries, transportation and logistics are currently facing immense changes and like all changes these produce both risk and opportunity.
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Mobile operator company Telkomsel continues to recover telecommunication infrastructure in Palu, Donggala and the surrounding areas in Central Sulawesi following the earthquake and tsunami that shattered the region on Friday. (Shutterstock/File)
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ike other industries, transportation and logistics are currently facing immense changes and like all changes these produce both risk and opportunity. New technology, new market entrants, new customer expectations and new business models. There are various ways the sector could develop to meet these challenges, some evolutionary, others more revolutionary.
Logistics companies are confronting an era of unprecedented change as digitization takes hold and customer expectations evolve. New technologies are enabling greater efficiency and extra collaborative operating models; they are also reshaping the marketplace in a way that is only just starting to become apparent. New entrants, whether startups or the industry’s customers and suppliers are shaking up the sector as well.
Indonesia’s geographic situation has proven to be a tremendous challenge for transport and logistics operators. With more than 17,000 islands, 5 million square kilometers of sea and a total land area of almost 2 millions square kilometers, Indonesia’s logistics performance is far from maximal. In Indonesia, logistics costs are higher than those in other countries.
Around 70 percent of logistics costs are in transportation, according to Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) chairman Wahyu Utomo. Data from the “World Bank Logistic Report Index 2016” said Indonesia ranked 46th out of 160 countries when it came to logistics costs, up from 63rd in 2016. But Indonesia still ranks below Malaysia, India, Thailand and Vietnam. This is due to weak connectivity that causes relatively high logistics costs and makes Indonesia’s products and services less competitive compared to its regional counterparts.
