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Copyright 2020

Digital Transformation in Logistics

WEBINARTRANSFORMASI DIGITAL

Iman KusnadiBoard Asosiasi Logistik Indonesia

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Key Digital Trends

“Digital” is not about the technologies. It’s about new ways ofsolving problems, creating unique experience, and accelerating business growth.

Source:Zaldy Masita - Chairman of Asosiasi Logistik Indonesia (ALI)

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Digital Evolution

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Payment

Logistics

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Logistics Digitalization Level

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Breakup Business Model

Sharing Resources

Streamline Business Process

Offline to Online (paper based to paper less)

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Pre-Condition of Digitalization

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Technology Talent (Product, UI/UX, QC,

Developer, PM, Helpdesk)

ITC Backend& Front End

Data Optimization Standardization

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Logistics Collaboration

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- Multi pick up- Drop Point- Smart Locker

- Multi User Whs- Common Sorting

Center

- Load Konsolidasi(Milk Run)

- Re-logistification- Smart Locker- Localize Delivery

- Load Konsolidasi(LCL, LTL, Air Freight)

- Back Load optimization

First delivery

Is handled by express deliverycompany / transportation company (by motor / van)

Long distance cargo handling is handled by LH delivery company (by truck)

Short distance cargo handling may be outsourced to LH delivery company or handled by in-house truckers of express delivery company (by truck)

Last mile delivery

Is handled by express deliverycompany (by motor / van)

Standardization is the Key

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Challenge of Logistics Digitalization in Indonesia

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Standardization (Data & Process)

Conflict of Interest – Transparency

Regulation

Lack of Technology Talent

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Opportunity of Logistics Digitalization

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OBJECTIVE:Better Service Level with Lower Cost

Cost Saving

Increase Service Leveland Certainty

Better UserExperience

Lower InventoryCost

Maximise AssetUtilization

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Before Digital

After Digital

( Call )

( Email )

( Message )

Transporter A

Transporter B

Transporter C

Transporter ...

- Manual Order booking- No transparency- No Digital POD- No real time KPI- Low truck security

“Repeat“

Upload

Done

Existing Transporters

Ritase Marketplace

Transporter 1Transporter 2Transporter 3...

Transporter 1Transporter 2Transporter 3…500++

Nestle in Numbers

Milestone

53 Transporters registered+ 31 Subcontractor

5.598 Truck Drivers registered

6.085 Transporters registered

“ Imagine if the delivery activity was still manual “

#SimplifiedShipping

Digital Transformation in Nestle

Nestle established in Indonesia since1873 ( 147 Years ), currently nestlehave 3700 employees, selling morethan 20 brand and thousand SKU.Nestle have factory in 3 location inIndonesia producing Nescafe,Bearbrand and Milo. Sales forceestablished in 9 City and distributefrom 3 DC ; west Java , east Javaand Sumatra.Ritase established partnership withNestle since 2018 starting withMarket place until we reached acertain level where nestle appointedRitase as a strategic partner in digitaltransformation at Logistics division.Ritase full Stack technology able tomonitor the shipments from origin todestination includingpost-deliveryactivities

First Go Live, Dec 1 2018DC Cikarang

4 Distribution Center

3 Factory

10 Copacker

Dec 20 2018Factory Karawang

Mar 14 2019DC Gempol

Mar 19 2019DC Surabaya

Mar 20 2019Factory KejayanApr 10 2019DC MedanApr 24 2019Factory Panjang

May 17 2019All Copacker

Oct 1 2020T-Hub Go Live+ SAP Integration

Features For Nestle

Oct 1 2020 T-Hub Go Live“T-Hub is responsible for managing all cross-bordertransportation of Nestle in Indonesia. The simplification,standardization, and centralization of the transportationprocess for Nestle Indonesia, which was previously managedby each site, was eventually transferred in one controlTower.”

Shipment- Multimoda Air- Multimoda Sea- Multimoda Land- Crossdock

Distribution Order- Auto Allocation- Auto Assign to Next Transporter- Spot Tender*- Open for Bidding*

Monitoring Order- Track Start Load- Dispatch Monitor- Inbound Monitoring- Delivery Report

Warehouse Management- Appointment*- Pick Ticket Issued & Good Issued- Gate In & Gate Out- Shift Monitoring

Restriction- Security Gate In- Geofence- Confirm with Driver- Hide Driver Destination

Issue & Ticketing- Issue Reporting*- Ticketing*

Billing & Payment- Settlement*- Accessorial Service*- PO Transport- Procurement- E-Invoice

Advanced Report- Unload Report- PO Transport- All Site Delivery Report Inbound & Outbound- Time Windows Report- Shipment Report- Could Stock Report- Transporter Performance Report- Vehicle Utilization- Pickup Report

( * ) T-Hub Features

“ Ritase has supported Nestle for monitoring all shipments in Indonesia “

Medan :1 site

Lampung :1 site

West Java :11 site

East Java :4 site

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Digitalized Indonesian Logistics EcosystemBEFORE AFTER

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Internationalization to EnglishTransporters Automatic Allocation & Assignment

All milestone activities (from booking -> goods received) is recorded in historical manner, which will improve data quality

Tracking link can also be shared with goods recipient.

All authorized transporters will be able to bid and accept assignment through our platform within the deadline specified by each DC / Factories, minimize manual call confirmation

Shippers can set allocation priority according to vendor performance.

Start: 08:00

Finish: 18:00

Total Time: 10 Hours

Truck Activities measured by Lead Time from Origin to Destination only

Minimal timestamps taken to monitor shipment.Usually, only start time (arrival at loading area)and finish time (arrival at unloading area) is tracked.

Low visibility to see which area of the supply chain is causing the bottleneck.

Who has the best

performance ?

Transporter allocation is decided by the transport coordinator

Transport coordinator calls vendors manually and decides which

transporter gets assigned to what order.

Human judgement may be subjective.

Live Event Milestone Activities

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Internationalization to EnglishTrack & Trace is done via WhatsApp or Calls

After assignment, ongoing orders can be track and traced comprehensively in our shippers and transporters portal.

This is useful for day to day immediate problem solving operation

Hardcopy POD sent via courier

Transporter sends hardcopy POD via courier taking about 3 – 7 days before invoicing process can proceed

Digital-POD

Transporters can provide digital proof of delivery (POD) upon arrival at unloading facility, which can be passed back to Shipper’s ERP (SAP) for accelerating invoicing process

Shippers have to track their shipments manually via WhatsApp or Calls and may find it difficult to reach drivers when they are driving.

Drivers are at risks of accidents when attempting to pick up calls or update their location via text.

Live GPS Track & Trace

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Internationalization to EnglishTransporter Performance Report by Excel Integrated Business Intelligence Report

Shippers can track transporter’s performance based on live performance tracking system where we can track their cancellation frequency and speed of delivery.

Analysis on timestamps can also compare unloading or loading time at the various points of destination

Gather → Report → Insights → Compare → Improve

*All KPI in report dashboards can be custom made as per Shipper’s requirements

compare performance of transporters withnational benchmark score carrying similar loads

Analyze key areas of supply chain that can be improved

Track fulfillment rate per transporter and speed of order confirmation

Traditionally companies assess performance for each vendor by requesting data from each vendor through internal assessments and also truck arrival timestamp that is manually maintained by the warehouse operations.

This data is then standardized in an Excel sheet where they will generate a transporter performance report.

Report may not be reliable as it involves a lot of manual entry.

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Transport Fee Management

Transporters will be able to add additional fee component that incur after delivering the goods (e.g. overnight cost, toll fee, etc)

This will increase transparency especially when there is surcharge due to unexpected event

Give transporters special instructions for every order

Attach supporting documents (pdf, images, text) or handling instructions for each delivery order. Transporter will be asked to acknowledge before accepting order and assigninga driver.

Increase truck & driver compliance

Physical Invoices given to Shippers

Transporters gives physical invoices of additional charges incurred from TKBM, etc.

Difficult to track additional fees incurred per destination or compare additional fees between transporters.

Shippers give general EHS/ truck requirement before they start services

Shippers only inform transporters of EHS/truck spec requirements before they begin services with the vendor.

Experienced transporters has high bargaining power due to familiarity with shipper’s standards.

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Multidrop & Routing

Generate recommendation for the most optimum routing with historical and live traffic conditions to achieve the highest efficiency in terms of time.

Software Guided Order Planning

Software guides planner on available truck types and their capacity.

Planner are also guided by estimated lead time from originto destination

An experienced staff will sort out deliveries by scanning through the addresses printed and grouping them by areas.

Difficult to find staff who knows all of Shipper’s customers and their proximity.

Staff manually sorts deliveries

Staff plans orders manually by experience

Unexperienced staff will not be familiar on truck types and usual lead times for different route combinations.

Need to find experienced staff for order planning.

Which truck

to use?

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